In Bloomsbury Wealth Management LLP v HMRC (TC02063 – 22 June) a partnership introduced wealthy clients to fund managers. Initially it accounted for VAT on its supplies. Subsequently it submitted a repayment claim on the basis that it should have treated its supplies as exempt under VATA 1994 Sch 9 Group 5 Item 5. HMRC rejected the claim but the tribunal allowed the partnership’s appeal finding that it ‘introduced clients to the fund managers and acted as an intermediary between the clients and the fund managers for the purpose of acquiring and maintaining the portfolio of investments on behalf of the clients’.
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Why it matters: The First-tier Tribunal accepted the partnership’s contention that it was supplying intermediary services which qualified for exemption.
