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VAT on insurance claim

13th December 1974
Page 15
Page 15, 13th December 1974 — VAT on insurance claim
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FEES RECEIVED by the National Transit Insurance Company for handling claims on behalf of the Road Haulage Insurers' Committee are chargeable to VAT, three High Court judges ruled last week.

The Queen's Bench Divisional Court dismissed an appeal by NT!, of V,oysey House, Barley Mow Passage, Chiswick, London, against a decision of the London VAT Tribunal that their • handling of the insurance claims was a supply of services within the meaning of the Finance Act, 1972, and that the fees were subject to tax.

Lord Widgery, Lord Chief Justice, said NT! charges £4 for each transaction.

The Customs and Excise contended that the charge was made for a service. The company argued that it was not a consideration for a service, but a fixed fee. They also submitted that the money was not paid in connection with their business or, alternatively, if it was, that it was for the provision of insurance and therefore exempt.

Lord Widgery said it was beyond argument that the fee was paid to the company in the course of their business of handling and settling claims on behalf of the Road Haulage Insurers' Committee. He also agreed with the Tribunal that "provision of insurance cover" did not extend to the settlement of claims.

Mr Justice Melford Steven§on and Mr Justice Watkins agreed The company was refused leave to appeal.


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