Part V8 HMRC Notices | Commentary

701/36/20 Insurance

Part V8 HMRC Notices | Commentary


December 2020

This notice cancels and replaces Notice 701/36 (March 2019).

It applies to supplies made on or after the day the UK leaves the European Union.

1 Overview

1.1 What this notice is about

This notice explains the VAT liability of insurance transactions and insurance related services. It also gives other VAT related information relevant to the suppliers of such services. This notice does not cover insurance premium tax (IPT). You can find information on IPT in Notice IPT1 “Insurance premium tax”.

Main narrative treatment—V4.121–V4.124.

1.2 What's changed

This notice has been updated to reflect changes to the VAT treatment of supplies of goods and services following the UK's departure from the European Union.

1.3 Who should read this notice

You should read this notice if you're:


    •     an insurer


    •     an insurance broker


    •     an agent


    •     supplying services connected to insurance such as claims handling


    •     arranging insurance in connection with other goods or services you supply

Main narrative treatment—V4.121–V4.124.

1.4 How to use this notice

This notice assumes you have a knowledge of the principles of VAT explained in VAT guide (VAT Notice 700). Apart from where specifically stated, the guidance in this notice is not part of the law and does not override it. It reflects only our interpretation of the law and current practice. It's unlikely that all the information in this notice will apply to you. To make it easier for you to use the notice has been divided into two halves:


    •     sections 2 to 7 cover insurance transactions and will be of particular

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