Why this opportunity matters
If you’re a UK insurance intermediary (that’s brokers, agents and claims handlers too), here’s what you need to know.
Since March 2019, as a result of HMRC’s Offshore Looping Order, you’ve probably been missing out on recovering input VAT relating to certain insurance products offered to UK-based policyholders. HMRC’s position was that you could only recover VAT on services provided to non-EU insurers when the end policyholder was also outside the UK.
But that’s all now changed. The First-tier Tribunal (FTT) has ruled that the Offshore Looping Order wasn’t legally implemented – it was ultra vires, if you want to get technical.
This means there’s now a massive VAT recovery opportunity on the table. There’s no need to worry about where the ultimate policyholder sits—just rely on EU legislation’s “direct effect” instead.
Can you tick these two boxes?
- Were you providing services to non-EU insurers before 31 December 2023?
- Did you restrict your VAT recovery because the end policyholder was chilling in the UK?
If it’s a ‘yes’ to both, we can help you submit your rightful claim.
What’s the timeline?
Admittedly, this one’s a bit complex (let’s blame Brexit).
Right now, the legal deadline for this opportunity applies to VAT periods before 31 December 2023 and within the 4-year claim window.
And for post-2024 periods? This is a grey area and will probably need more legal wrangling. But for now, speed of response is vital to ensure earlier VAT periods don’t slip away.
Let’s make this happen
Cooper Parry’s VAT gurus, Damian Shirley and Steve Townend, are ready to run through the details with you. They can then help you prep and submit a claim to HMRC for any under-recovered VAT.
If HMRC appeals the FTT decision (because, let’s face it, they might), we can also help stay claims behind the lead Hastings case.
