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HMRC internal manual

VAT Insurance

Services of insurance intermediary: Insurance supplied with other goods and services -Legal notes (3-(5): Liability of the insurance


The supply of insurance by the insurer in these circumstances is an exempt supply, and the premium may be treated as a disbursement by the supplier of the taxable goods and services, provided:

  • it is genuine insurance that is being supplied; and
  • it is the customer’s risk which is being insured (that is, not the risk of the supplier of the taxable goods and services); and
  • the premium is separately identified on any documentation issued to the customer.

For more information on insurance and disbursements please see Notice 701/36, Insurance.