The Medical Defence Union Limited v Revenue and Customs Comrs

Subject Matter

REVENUE — Corporation tax — Assessment — Mutual trading — Complex insurance arrangements — Taxpayer providing members indemnity cover against professional negligence claims through mutual fund maintained by members’ subscriptions and arrangements with third-party insurance companies providing insurance cover to individual members — Arrangement with insurers for “premium element adjustment” where premiums payable in later years reduced or rebated if claims in earlier years lower than expected — Refunds paid into mutual fund for benefit of members — Whether “premium element adjustment” taxable receipt of taxpayer — Whether exempt by mutuality principle

[2021] UKUT 249 (TCC); [2021] STC 2235, UT (TCC)

Commentary

RPC Perspectives
The Medical Defence Union – insurance premium rebates not taxable receipts Case comment