The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s VAT and customs regime. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit — overview guidance note.
This guidance note provides an overview of specific types of insurance transactions and the associated VAT treatment. This note should be read in conjunction with the Exemption ― insurance ― overview and Exemption ― insurance ― brokers and agents guidance notes.
The sale of part-paid endowment policies are not exempt under the insurance exemption due to the fact that the risk covered by the underlying insurance remains with the original policyholder. However, this will be treated as a finance transaction so any consideration received will be exempt.
Businesses may offer engineering insurance that is intended to protect large capital items of machinery against damage or faults. The insurer may also offer the customer an inspection service in connection with the insurance product which may be used to reduce claims or the level of cover offered.
If the inspection services are provided separately and are not incidental to the supply of the insurance, they may be liable to VAT at the standard rate. If they are supplied in connection with the insurance, then the business needs to ascertain whether a single composite supply of exempt insurance has been provided. Please see the Single or multiple supplies ― overview guidance note for more information on what constitutes a single supply for VAT purposes.
These types of organisations normally provide insurance against accident, sickness, redundancy, old age, etc. They are not for profit organisations and their insurance capital is derived from the payments made
**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
Why is this important?In order to get a full basic state pension, an individual must have paid sufficient national insurance contributions (NIC) for a minimum number of qualifying years in their working life. As NIC cannot be paid in the tax year before the individual reaches the age of 16, or in a
Companies Act 2006 allows a company to repurchase its own issued share capital, provided certain conditions are met. This type of transaction is sometimes referred to as a ‘share buyback’ or a ‘purchase of own shares’.The repurchased shares can either be immediately cancelled, which is typically the
IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s
Restriction of carry forward and carry back of trading lossesFollowing the extensive changes to the loss carry forward provisions introduced from 1 April 2017, the anti-avoidance rules restricting the offset of trading losses following a change in ownership were tightened up and extended.