Hundreds of millions at stake as “wave of broker claims” predicted after Hastings tribunal win
Experts have predicted a “wave of broker claims” against HMRC potentially worth hundreds of millions of pounds following a recent decision at a First tier Tax Tribunal.
The case related to UK insurance brokers who sell intermediary services to non-UK insurers relating to insurance taken out by UK insured parties.
Following previous unsuccessful litigation in 2016, HMRC introduced new legislation, the’ Offshore looping Regulations’, to limit VAT recovery in such arrangements.
However, broker Hastings contended that these amendments were incompatible with Article 169(c) of the Principal VAT Directive which allows VAT deductions for transactions where the customer
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