Independent intermediary meaning

In this issue: Companies and corporation tax Capital gains tax VAT Taxes management and litigation Employment taxes International Devolved taxes Daily and weekly news alerts New and updated content Dates for your diary Trackers Useful information Companies and corporation tax FTT confirms consortium relief ownership proportion based on collective entitlement of link companies (Eastern Power Networks plc v HMRC) As noted in last week’s Tax weekly highlights, in Eastern Power Networks [2025] UKFTT 703 (TC), the First-tier Tax Tribunal (FTT) determined that, when calculating the ownership proportion for consortium relief, the rights of multiple link companies must be considered together, rather than by totalling separate entitlements. It also concluded that a corporate structure established to increase consortium relief entitlements amounted to a scheme with a main purpose of obtaining a tax advantage. See News Analysis: FTT confirms consortium relief ownership proportion based on collective entitlement of link companies (Eastern Power Networks...

Performance Leads Ltd v HMRC [2025] UKFTT 660 (TC) Performance Leads Ltd (PL) operated two sites that located and collected details on people looking for financial guidance. That data—the ‘lead’—was passed to its clients, being IFAs, so that those advisers could reach out to those particular individuals. For each lead supplied, PL was paid a fee by the IFAs. PL itself never communicated directly with the end customer at any stage whatsoever...

Why is the exemption for financial services important? VAT is a significant concern for firms in the financial sector, as supplying certain categories of financial services to customers belonging in the UK is exempt from UK VAT. This matters because: businesses will not levy VAT on services within the exemption; and such businesses cannot recover input VAT on supplies they receive while making an onward exempt supply The intermediary exemption for financial services Financial services supplies often involve other businesses serving as intermediaries between the parties requesting and delivering the services. Further parties may participate in a financial services transaction, for example by offering specialist advice or helping to ensure the deal proceeds. These services are VAT-exempt where the supplier: operates in an intermediary capacity provides intermediary services in relation to certain specified financial services transactions (whether or not the transaction ultimately concludes) Throughout this Practice Note, this is termed the ‘intermediary services...

What is the difference between an agent and a broker? Where insurance is arranged through an intermediary, that party is typically either an insurance agent (who generally represents a particular insurer or a number of insurers) or an insurance broker (who usually represents the insurance purchaser). Insurance agents Insurance agents have contractual appointments with insurers that define the products they may offer and how they are remunerated. A ‘captive agent’ focuses on a single insurer’s products, while an ‘independent agent’ can work with multiple insurers. The agent’s role is to bring insurance business to their principal(s). Insurance brokers As the buyer’s representative, a broker is independent. Brokers prepare and submit applications to insurers for their clients. During placement, they obtain a temporary contract, known as a ‘binder’, signed by an authorised representative of the insurer. After the transition period (often 30 or 60 days), the binder is replaced by the issued policy of insurance. Statutory guidance Pursuant to Schedule 2 to the Consumer...