The Supreme Court will deliver its judgment on a case involving the liability of loan administration services provided by a taxpayer to a bank. The taxpayer argued that the services were exempt transactions, while HMRC argued they were taxable debt collection services. The First-tier Tribunal (FTT) had concluded that elements of the service could have been exempt transactions, but the Upper Tribunal (UT) disagreed. The Court considered the tension between EU and previous UK case law and will separately consider the taxpayer’s argument to depart from EU law now that the UK has left the EU.
Source KPMG
