United Kingdom Supreme Court Issues Judgment on VAT Treatment of Success Fees

The United Kingdom Supreme Court Sept. 11 issued a judgment in Case No. UKSC/2024/0065, on the VAT treatment of success fees invoiced after a service supplier’s exit from a VAT group. The taxpayer, the Prudential Assurance Company Ltd, received supplies of investment fund management services from another company that was in the same VAT group. Upon the taxpayer paying the other company the quarterly management fees that it contractually owed to it, the supplies were treated as having been made by the taxpayer and disregarded for VAT purposes. The other company stopped managing the funds for the taxpayer and left ...