The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
VATA 1994, Sch 9, Group 2, item 4 exempts the provision by an insurance broker or insurance agent of any of the services of an insurance intermediary in a case in which those services:
are related (whether or not a contract of insurance or reinsurance is finally concluded) to an insurance transaction or a reinsurance transaction
are provided by that broker or agent in the course of his acting in an intermediary capacity
VATA 1994, Sch 9, Group 2, item 4, Note 1; De Voil Indirect Tax Service V4.123; 2006/112/EC, Art 135(1)(a); 2008/08/EC; VATINS2000, VATINS5000; VAT (Input tax) (Specified Supplies) Order 1999, SI 1999/3121; HMRC Notice 701/36
This guidance note provides an overview of the VAT rules relating to supplies made by insurance intermediaries and agents. This note should be read in conjunction with the Insurance overview and Insurance ― specific transactions guidance notes.
An insurance agent is not defined in either the UK or EU legislation.
HMRC gives the following definition in its guidance:
“For the purposes of the VAT exemption HMRC recognise, that an insurance agent might be anyone who provides insurance related services in an intermediary capacity. An agent could be a tied agent who sells insurance as his main business or, for example, a typical high street retailer or a car dealer arranging insurance to cover the goods they sell. Whereas an insurance broker usually acts for the insured, an agent may act for the insurer, the insured or both. The definition of an insurance agent, therefore, is fairly wide.”
In HMRC Notice 701/36, para 9.1.1, HMRC provides the following definition:
insurance broker ― normally acts for the insured person or person seeking insurance in negotiating a contract of insurance on their behalf
insurance agent ― this person is normally tied to a particular insurance provider and arrange and administer their policies
If an insurance broker or agent makes the following supplies, they will be exempt from VAT:
the business supplies
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
‘Hold-over’ relief allows for the deferral of a gain that would otherwise arise in relation to a disposal. No capital gains tax (CGT) is due in respect of the disposal, but the base cost of the asset for the transferee for the purpose of a future disposal is reduced by an amount equal to the gain
This guidance note considers the capital gains tax implications where shares are sold in exchange for new shares.The consideration paid by a purchasing company to the shareholder(s) for their shares in a target company could be in the form of either:•new shares in the vendor in exchange for shares
Why is this important?Tax-free amountEach individual, whether or not they are resident in the UK, is entitled to an annual exempt amount when calculating the taxable amount of their chargeable gains for the tax year (although see the exceptions below). The annual exempt amount is also known as the
Preparatory workBefore completing the Inheritance Tax account for submission to HMRC, the practitioner needs to undertake a comprehensive review of the extent of the estate and its proposed distribution. The work required leading up to the submission of the account is described in detail in the
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.