Watchstone Group plc
("Watchstone")
WTGIL Limited ("WTGIL") VAT Appeal
Watchstone announces that following a hearing held in November 2023, it has now been informed of the decision of the Upper Tier Tribunal ("UT") which has dismissed WTGIL's appeal. WTGIL is a subsidiary of Watchstone.
Contrary to the First Tier Tribunal, the UT found in WTGIL's favour that it had made a supply of services to policyholders, comprising the installation of the telematics device. However, the UT did not find that WTGIL had satisfied all the necessary elements to establish that it had made a taxable supply to policyholders "for consideration". The UT identified 5 elements that WTGIL had to satisfy in order to succeed. Whilst the UT held that WTGIL had satisfied 4 elements, WTGIL failed to establish one - that there was a direct link between the supply by WTGIL and the policyholder's entry into the insurance contract.
WTGIL will consider the judgment with its advisers and Counsel and decide on the next steps (if any) including whether to seek permission to appeal to the Court of Appeal.
The full decision can be read here: https://www.bailii.org/uk/cases/UKUT/TCC/2024/77.pdf
The Audit of the Annual Report and Accounts for the year ended 31 December 2023 is currently being undertaken in advance of proposing a return of capital to shareholders at the forthcoming AGM.
For further information:
Watchstone Group plc investor.relations@watchstonegroup.com |
Tel: 03333 448048 |
WH Ireland Limited, Financial Adviser and Broker Antonio Bossi/James Bavister |
Tel: 020 7220 1666 |
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