For a transaction to be exempt from VAT as an insurance transaction there had to be some contractual relationship between the insured and the company providing the cover against the risk. Here there was no sufficient connection the insurance services were bought from one company and payments made to another.
Citations:
Times 20-Mar-2001, C-240/99
Statutes:
Sixth Council Directive 77/388/EEC on the harmonisation of laws relating to turnover taxes
Jurisdiction:
England and Wales
VAT, Insurance
Updated: 08 May 2022; Ref: scu.85050