HMRC internal manual

VAT Insurance

Insurance with other goods and services: insurance provided by block policyholders with other goods or services

You should check the other guidance available on GOV.UK from HMRC as Brexit updates to those pages are being prioritised before manuals.

It is important to remember that block policyholders provide insurance as principals to their customers and not as intermediaries (see VATINS2300).This means that when they provide insurance to their customers along with other goods and services it is likely (although not necessarily always the case) that there will be one onward supply to the customer (as was the case with CPP themselves). The liability of that supply will depend upon the factors outlined in VATINS7130.

Although it will always be necessary to examine the insurance contract to be certain, businesses that are likely to be providing insurance under a block policy alongside other goods or services are those where insurance is intrinsically linked with their principal supply, these include: removal companies; vehicle rental companies; hire companies; and storage companies.