Status of aggregators in English law

Aggregators have rapidly developed into one of the first ports of call for a person looking to purchase motor, household and other forms of insurance. In outline, an aggregator operates a website which allows the potential assured to insert various details and then to be presented with quotes from a number of insurers. The assured may then contact whichever of the insurers he wishes in order to make a formal application for cover. The question which arose in InsuranceWide.Com Services Ltd v HM Revenue & Customs [2009] EWHC 999 (Ch) was whether an aggregator is an insurance agent or an insurance broker for Value Added Tax purposes. The hearing before Sir Edward Evans-Lombe consisted of appeals from two VAT and Duties Tribunal decisions.

Insurancewide: the legislative background

The background to the appeals is to be found in the Value Added Tax Act 1994, which implemented the Sixth EC VAT Directive 1994 (subsequently replaced by the VAT Directive 2006). One of the exemptions from VAT set out in the Directive is for: