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HMRC internal manual

VAT Partial Exemption Guidance

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HM Revenue & Customs
Updated
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Guidance for specific trade sectors: Lloyd's VAT arrangements: Lloyd’s Advisors - Partial Exemption method

The annual adjustment will be declared in the first quarter following the end of their VAT tax year.

The partial exemption agreement will comprise at least the following components:

SECTOR 1 - LLOYD’S ADVISOR

The calculation will be based upon the value of fees charged to individual corporate members which the advisor is authorised by Lloyd’s to advise.

The sector recovery calculation will be;

Value of taxable supplies and other supplies with I/T credit = recoverable % to 2 decimal places
   
Total value of supplies  

Input tax recovery on supplies that are outside the terms of the advisor’s agreement may comprise a separate sector.

SECTOR 2 - INVESTMENTS

The calculation will be based on either the number or value of securities sales.

The sector recovery calculation will be;

Number or value of O/S with I/T credit sales of securities = recoverable % to 2 decimal places
   
Number or value of total sales of securities