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HMRC internal manual

VAT Insurance

HM Revenue & Customs
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What is insurance for the Purpose of the Exemption: Money's worth

The reference to money or money’s worth simply means that a claim might be settledthrough the provision of a service or replacement goods which the insured would otherwisehave to pay for.

For example:

  • The AA are correctly seen to be providing insurance as part of their membership subscriptions. Although they do not make a cash payment, they provide a breakdown service to members when the need arises; and, similarly
  • BUPA will provide health care to members when needed. This aspect is specifically covered in the first of the three points listed above.