PPI claims handler loses bid for VAT exemption

The Upper Tribunal has upheld the First Tier Tribunal’s (FTT) decision that the services provided by the Claims Advisory Group Ltd for mis-sold PPI claims were not exempt and were subject to VAT

The Upper Tribunal dismissed the appeal made by Claims Advisory Group and upheld the previous decision from the First Tier Tribunal that found that the services that the Claims Advisory Group provided were not insurance transactions or services performed by an insurance broker or insurance agent and were not exempt from VAT.

Claims Advisory Group was a company that made claims on behalf of individual customers who had been mis-sold payment protection insurance (PPI) by financial institutions.

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