VAT and Financial Services

Mark Chesham has specialised in advising businesses in the financial services and insurance sectors for nearly 25 years.  He started with HM Customs and Excise, working in a specialist insurance team, before spending 15 years in two of the 'Big 4' accounting firms.  He set up his own consultancy practice in 2005 and is now Director of Indirect Tax Services at Moore Stephens.  He is a member of the Chartered Insurance Institute and the VAT Practitioners Group.  He can be contacted at mark.chesham@moorestephens.com.

• About the author  iiiAcknowledgements  ivContents  vTables of authorities  xiIntroduction 1Introduction to the first edition, September 2012  1Introduction to the second edition, June 2015  4Introduction to the third edition, March 2017  5Introduction to the fourth edition, June 2022  7Introduction to the fifth edition, December 2025  9Financial Services 112.1. Introduction  112.2. Money and money-related services  142.3. Securities  222.4. Investment funds and wrappers  252.5. Derivatives  392.6. Intermediary services  452.7. Supplies relating to the provision of credit  602.9. Islamic finance  722.10.       Standard rated services  772.11.       Investment gold  81Insurance 843.1. Introduction  843.2. General (non-life) insurance  913.3. Life assurance  963.4. Friendly Societies  983.5. Insurance intermediary services  993.6. Lloyd's  1063.7. Insurance claims  1093.8. Insurers in 'run off' 1143.9. Other types of insurance  1153.10. Insurance Premium Tax (IPT) 118Outsourcing 1214.1. Introduction  1214.2. Sparekassernes Datacenter (SDC) v Skatteministeriet (Case C- 2/95) [1997] STC 932  1224.3. C&E Commrs v Civil Service Motoring Association [1998] STC 111  1254.4. C&E Commrs v CSC Financial Services Limited (formerly Continuum (Europe) Limited) (Case C–235/00) [2002] STC 57  1254.5. C & E Commrs v FDR Ltd [2000] STC 672  1274.6. C & E Commrs v Electronic Data Systems Ltd [2003] STC 688  1274.7. Century Life plc v C&E Commrs [2000] STC 276  1284.8. Försäkringsaktiebolaget Skandia (Case C – 240/99) STC 754  1304.9. C & V (Advice Line) Services Ltd v C & E Comrs (2001) (17310) 1324.10.       Staatssecretaris van Financiën v Arthur Andersen & Co Accountants cs (Case C-472/03) [2005] STC 508  1344.11.       JCM Beheer BV v Staatssecretaris van Financien (Case C-124/07) [2008] STC 3360  1364.12. Aspiro (formerly BRE Ubezpieczenia Sp. z o.o.) v Minister Finansów (Case C – 40/15) 137Input Tax and VAT recovery 1385.1. Introduction  1385.2. Definition of input tax  1385.3. Who can recover input tax  1385.4. Blocked input tax  1395.5. Purchases from overseas suppliers  1425.6. Partial exemption  1425.7. Capital goods scheme  167 5.8. Recovery of VAT incurred in the EU   172Legislation, Case Law and Appeals 1756.1. Introduction  1756.2. EU legislation  1756.3. Primacy of EU Directives over national legislation and European Union (Withdrawal) Act 2018  1766.4. UK legislation  1776.5. Appeals  1776.6. Legislation relevant to the financial services and insurance sectors  178VAT supply and liabilities 1797.1. Meaning of supply  1797.2. Supply of goods  1807.3. Supply of services  1817.4. Supply of neither goods nor services  1817.5. Place of supply  1837.6. Time of supply  1887.7. Taxable supplies  1927.8. Exempt supplies  1937.9. Outside the scope supplies  1937.10.       Reverse charge  194Appendix A – Contracts of Insurance  196Appendix B – Lloyd's VAT Arrangements  201Appendix C – Extract from 'HMRC ABI Partial Exemption Guidance for the Insurance Sector' 215Appendix D – Transfers of business as a Going Concern – Legal Extracts  240Appendix E – EU member states as at 1 January 2021  244Appendix F – Terminal markets listed in VAT (Terminal Markets) Order 1973 (as amended) 245 Index    247