Vat and Financial Services

Mark Chesham has specialised in advising businesses in the financial services and insurance sectors for nearly 25 years. He started with HM Customs and Excise, working in a specialist insurance team, before spending 15 years in two of the 'Big 4' accounting firms. He set up his own consultancy practice in 2005 and is now Director of Indirect Tax Services at Moore Stephens. He is a member of the Chartered Insurance Institute and the VAT Practitioners Group.

About the author
Acknowledgements
Contents
Tables of authorities
1 Introduction
2 Financial Services
2.1 Introduction
2.2 Money and money-related services
2.3 Securities
2.4 Investment funds and wrappers
2.5 Derivatives
2.6 Intermediary services
2.7 Supplies relating to the provision of credit
2.8 Debts and related services
2.9 Islamic Finance
2.10 Standard rated services
2.11 Investment Gold
3 Insurance
3.1 Introduction
3.2 General (non-life) insurance
3.3 Life Assurance
3.4 Friendly Societies
3.5 Insurance intermediary services
3.6 Lloyd's
3.7 Insurance claims
3.8 Insurers in 'run off'
3.9 Other types of insurance
3.10 Insurance Premium Tax (IPT)
4 Outsourcing
4.1 Introduction
4.2 Sparekassernes Datacenter (SDC) v Skatteministeriet (Case C- 2/95) [1997] STC 932
4.3 C&E Commrs v Civil Service Motoring Association [1998] STC 111
4.4 C&E Commrs v CSC Financial Services Limited (formerly Continuum (Europe) Limited) (Case C–235/00) [2002] STC 57
4.5 C & E Commrs v FDR Ltd [2000] STC 672
4.6 C & E Commrs v Electronic Data Systems Ltd [2003] STC 688
4.7 Century Life plc v C&E Commrs [2000] STC 276
4.8 Försäkringsaktiebolaget Skandia (Case C – 240/99) STC 754
4.9 C & V (Advice Line) Services Ltd v C & E Comrs (2001) (17310)
4.10 Staatssecretaris van Financiën v Arthur Andersen & Co Accountants cs (Case C-472/03) [2005] STC 508
4.11 JCM Beheer BV v Staatssecretaris van Financien (Case C-124/07) [2008] STC 3360
5 VAT Cost Sharing Exemption
5.1 Introduction
5.2 Who could be affected by the cost sharing exemption?
5.3 What supplies are covered by the exemption?
5.4 Supplies made to a CSG
5.5 Existing arrangements
5.6 Detailed guidance
6 Input Tax and VAT recovery
6.1 Introduction
6.2 Definition of input tax
6.3 Who can recover input tax
6.4 Blocked input tax
6.5 Purchases from overseas suppliers
6.6 Partial Exemption
6.7 Capital goods scheme
6.8 Recovery of VAT incurred elsewhere in the EU
7 Legislation, Case Law and Appeals
7.1 Introduction
7.2 EU legislation
7.3 Primacy of EU Directives over national legislation
7.4 UK legislation
7.5 Appeals
7.6 Legislation relevant to the financial services and insurance sectors
8 VAT supply and liabilities
8.1 Meaning of supply
8.2 Supply of goods
8.3 Supply of services
8.4 Supply of neither goods nor services
8.5 Place of supply
8.6 Time of supply
8.7 Taxable supplies
8.8 Exempt supplies
8.9 Outside the scope supplies
8.10 Reverse charge
Appendix A – Contracts of Insurance
Appendix B – Lloyd's VAT Arrangements
Appendix C – Extract from 'HMRC ABI Partial Exemption Guidance for the Insurance Sector'
Appendix D - Transfers of business as a Going Concern – Legal Extracts
Value Added Tax (Special Provisions) Order 1995 (SI 1995/1268)
Value Added Tax Act 1994
Appendix E - Guidance on the Cost Sharing Exemption - from 17 Jul 2012
Appendix F – EU member states
Appendix G - Summary of Car Benefit Percentages based on CO2 emissions
Appendix H - Terminal markets listed in VAT (Terminal Markets) Order 1973 (as amended)
Index