Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

VAT Partial Exemption Guidance

From
HM Revenue & Customs
Updated
, see all updates

Guidance for specific trade sectors: Lloyd's VAT arrangements: mixed agents - 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 - MANAGING AGENT

The calculation will be based upon the value of fees charged to syndicates which the managing agent is authorised to manage by Lloyd’s. Where the fees relate to services supplied under the Managing Agent’s Agreement (General) and Managing Agent’s Agreement (Corporate Member) the liability split of the fees will be determined by the insurance business underwritten by the syndicates managed.

The sector recovery calculation will be;

Value of O/S with I/T credit fees = recoverable % to 2 decimal places
   
Total value of fees  

SECTOR 2 - MEMBERS’ AGENT

This sector relates to the services provided to members under the terms of the Lloyd’s Members’ Agent’s Agreement

The sector recovery calculation will be;

Non-attributable input VAT multiplied by the Members’ Agents Rate = input VAT recoverable to the nearest penny

SECTOR 3 - 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  

OTHER SUPPLIES

Input tax recovery on supplies that are outside the terms of the Managing Agent’s Agreement (General), Managing Agent’s Agreement (Corporate Member) or the Members’ Agent’s Agreement will be subject to the normal rules and may comprise additional separate sectors.