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HMRC internal manual

VAT Partial Exemption Guidance

From
HM Revenue & Customs
Updated
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Guidance for specific trade sectors: Lloyd's VAT arrangements: entitlement to input tax recovery

This refers to underwriting related activities only; all other supplies are subject to the normal rules.

Syndicates

Recovery will be based on the value of supplies made by the individual syndicates.

Managing Agents

Recovery will be based on the value of services supplied to the syndicates they manage.

Members’ Agents (to 31 December 2000)

Recovery will be based on the Global Market Rate.

Members’ Agents (from 1 January 2001)

Recovery will be based on the Members’ Agents Rate.

Lloyd’s Advisors

Recovery will be based on the value of services supplied to corporate members.

Mixed Agents

Recovery will be based on the Members’ Agents Rate (for the members’ agent activities) and the value of the managing agent services (for the managing agent activities).

Corporate members

Whilst the primary purpose of the corporate member registration is to account for their activities other than syndicate underwriting, corporate members will also incur input tax directly in relation to their syndicate underwriting. Recovery of this underwriting related input tax will be based on the supplies made by them on the syndicates on which they participate.

Natural members

Whilst the primary purpose of the member registration is to account for activities other than syndicate underwriting, natural members will incur input tax directly in relation to their syndicate underwriting. Please refer to PE77600 for details of the possible methods of recovery of input tax.