The Prudential Assurance Company Ltd (appellant) v HM Revenue and Customs (respondent)

Tuesday 23 – Wednesday 24 January 2024

By Appellant’s Notice filed on 9 May 2023, this is an appeal against the decision, dated 6 March 2023, of the Upper Tribunal (Tax and Chancery Chamber) (UT) in which, by finding that VAT was payable on certain transactions, the UT allowed HMRC’s appeal against the Decision of the First Tier Tribunal (FTT).

Background –
[1] Silverfleet Capital Ltd (“SCL”) supplied investment management services to the Appellant, Prudential. The services were rendered whilst SCL and the Appellant were both members of the dame group for VAT purposes.
[2]However, some of the services were invoiced and paid for after SCL had ceased to be a member of that VAT Group.
[3]The dispute arises because the Appellant considered these payments to be outside the scope of the charge to VAT because they fell to be disregarded under the rules for supplies between members of a VAT group. HMRC decided that the payments were liable to VAT because they were treated as taking place after SCL had left the VAT group under the provisions governing time of supply of continuous services.
[4] The Appellant appealed against HMRC’s decision to the FTT. The FTT decided the payments fell within the VAT grouping rules and allowed the appeal.
[5] HMRC appealed to the UTT. Granting HMRC’s appeal, The UTT found that Regulation 90 of the VAT Regs 1995 (SI 1995/2518) applied so that the time of supply was the date on which the VAT invoice was issued. As that was after the time SCL left the VAT group, the payments were liable to VAT.

View hearing:

Day 1

Part 1

Part 2

Day 2

Part 1

Part 2