Century Life has successfully overturned a VAT tribunal's refusal to grant VAT exemption for pensions misselling work in the High Court.
VAT exemption usually applies to all services performed by agents, related to the provision of insurance contracts. The tribunal had ruled that the review of pensions misselling was outside the normal work of an insurance agent and so was not eligible for VAT exemption.
Century Life's chief executive Chris Little says the High Court ruling is very significant to life offices using third party administrators such as Century's outsourcing arm, Century Financial Services.
He said: “I was astounded by the original decisions of the tribunal back in 1998 and we have been working to correct it ever since. We have always maintained that it is incidental that the work was ordered by the Government.”