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HMRC internal manual

VAT Insurance

HM Revenue & Customs
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What is insurance for the purposes of the exemption?: disbursements

A business may also argue that, rather than being in respect of exempt insurance, an insurance charge is in fact outside the scope of VAT as a disbursement (that is, a payment collected from a customer on behalf of a third party). The circumstances under which payments for insurance can be treated as disbursements are covered in VATINS6090 and VAT Notice 701/36: Insurance.