Insurance premium rebates were not taxable receipts
In The Medical Defence Union Ltd v HMRC [2021] UKUT 249 (7 October 2021) the Upper Tribunal (UT) allowed the taxpayer company’s appeal holding that adjustments to an insurance premium were not taxable in the hands of the company. The sums received by the company from the insurer were refunds of amounts originally paid to the insurer by the company and which would be retained by the company for the mutual benefit of its members.
The taxpayer (MDU) a company limited by guarantee provided various benefits for medical professionals. Its services included helping its members defend against professional negligence claims. Traditionally it maintained a mutual fund (with contributions taken out of its members’ subscriptions) which was used to provide indemnity cover for members facing negligence claims. HMRC accepted that the subscriptions from members used in maintaining the mutual...
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Insurance premium rebates were not taxable receipts
In The Medical Defence Union Ltd v HMRC [2021] UKUT 249 (7 October 2021) the Upper Tribunal (UT) allowed the taxpayer company’s appeal holding that adjustments to an insurance premium were not taxable in the hands of the company. The sums received by the company from the insurer were refunds of amounts originally paid to the insurer by the company and which would be retained by the company for the mutual benefit of its members.
The taxpayer (MDU) a company limited by guarantee provided various benefits for medical professionals. Its services included helping its members defend against professional negligence claims. Traditionally it maintained a mutual fund (with contributions taken out of its members’ subscriptions) which was used to provide indemnity cover for members facing negligence claims. HMRC accepted that the subscriptions from members used in maintaining the mutual...
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
