The First Tier Tribunal (FTT) has dismissed the appeal from WTGIL Limited against HMRC’s rejection of a VAT refund of £2m with the court ruling that the insurance intermediary, Ingenie Services Limited (ISL), made neither a supply for consideration or a deemed supply to policyholders in relation to ‘black box’ devices fitted in their cars to analyse their driving.

WTGIL Limited, was an insurance intermediary which developed, marketed, and sold telematics car insurance, or black box devices. The company was not an insurer and the policies were financed by insurers from a panel appointed by Ingenie Services Limited which was another member of the Ingenie VAT group.