Hastings Insurance Services appealed against HMRC’s denial for the company to claim back input tax from 1 January 2019 to 31 December 2022, totalling claims for £16,060,572.

All of the supplies had been made by Hastings to Advantage Insurance Company Limited (Advantage), a Gibraltar based company licensed by the Financial Services Commission of Gibraltar.

At the First Tier Tribunal (FTT), Hastings argued that the UK based insurance intermediary established in the UK could deduct input tax in relation to supplies of services it makes to an insurer established in Gibraltar, that then supply insurance to people in the UK.