Hundreds of millions at stake as “wave of broker claims” predicted after Hastings tribunal win
Experts have predicted a “wave of broker claims” against HMRC potentially worth hundreds of millions of pounds following a recent decision at a First tier Tax Tribunal.
The case related to UK insurance brokers who sell intermediary services to non-UK insurers relating to insurance taken out by UK insured parties.
Following previous unsuccessful litigation in 2016, HMRC introduced new legislation, the’ Offshore looping Regulations’, to limit VAT recovery in such arrangements.
However, broker Hastings contended that these amendments were incompatible with Article 169(c) of the Principal VAT Directive which allows VAT deductions for transactions where the customer
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@insuranceage.co.uk or view our subscription options here: https://subscriptions.insuranceage.co.uk/subscribe
You are currently unable to print this content. Please contact info@insuranceage.co.uk to find out more.
You are currently unable to copy this content. Please contact info@insuranceage.co.uk to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@insuranceage.co.uk
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@insuranceage.co.uk
More on Regulation
What does the 2025 Budget mean for insurance brokers?
On Wednesday afternoon, after weeks of speculation (and an unprecedented early leak by the Office for Budget Responsibility), the Chancellor finally revealed her second Budget. Tom Golding, PKF Littlejohn partner considers some of the main tax changes and what these may mean for insurance brokers.
FOS plans to hike levies to £86m
The Financial Ombudsman Service has opened a consultation on raising its compulsory levy from £70m to £86m in 2026/27 having kept it flat for two years.
FCA insurance skilled person investigations tick up again
The Financial Conduct Authority commissioned two skilled person reports in the insurance sector during the second quarter of 2025/26, following on from one in Q1 and a recent record total in 2024/25.
Sheldon Mills exiting FCA – report
Sheldon Mills, executive director for consumers and competition at the Financial Conduct Authority, is leaving the regulator.
FCA reveals green sweep for broker-related authorisations
The Financial Conduct Authority achieved across the board success in its broker-related authorisation categories between July and September, its first ‘green sweep’ in the data series.
FSCS reveals early forecast of no broker levy in 2026/27
The Financial Services Compensation Scheme has indicated brokers will not have to pay a levy in 2026/27 which would keep the rate at zero for the fourth year in a row.
FCA issues warning of Close Brothers clone
The Financial Conduct Authority has issued a warning of fraudsters trying to scam people as a clone of Close Brothers.
Blog: Future-proofing your broking business starts with the back office
As regulatory scrutiny intensifies, the ability to demonstrate financial control and system integrity can provide brokers a tangible competitive advantage, argues Chris Stout, a director at PKF.