VAT and Financial Services (third edition)

VAT and Financial Services (third edition)

VAT and Financial Services takes the reader through the relevant legislation case law, and legal concepts; examines the consequences of outsourcing; looks at the key issues facing financial services and insurance; and discusses the VAT cost sharing exemption. Since the first edition there have been significant developments in the area of pensions management and VAT charged on investment management for pension schemes. Also includes the new and developing area of cryptocurrencies such as Bitcoin.

Category: Finance, Tax
Series: VAT Guides
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VAT and Financial Services takes the reader through the relevant legislation and case law, the legal concepts such as time and place of supply, the distinction between goods and services, what is taxable, and the interaction of these elements; examines the consequences of outsourcing (through a detailed study of 10 significant cases); looks at the key issues facing financial services and insurance; and then discusses the VAT cost sharing exemption.

Since the second edition, there have been significant developments affecting payment processing and card handling services, VAT on holding companies and on the right to deduct input tax . Litigation in the areas of Special Investment Funds, pension fund management, partial exemption insurance and outsourcing has also moved on. Crowdfunding is a fairly new method of raising funds for activities, and HMRC have now issued guidance on the VAT liabilities affecting transactions.

Appendices include: contracts of insurance; Lloyd’s VAT arrangements; HMRC ABI partial exemption guidance for the insurance sector; TOGC legal extracts; guidance on the cost sharing exemption; and the VAT territory of the EU.

Finance directors and finance controllers in the financial services and insurance sectors and at those who advise these sectors should all find the book helpful. 

VAT and Financial Services takes the reader through the relevant legislation case law, and legal concepts; examines the consequences of outsourcing; looks at the key issues facing financial services and insurance; and discusses the VAT cost sharing exemption. Since the first edition there have been significant developments in the area of pensions management and VAT charged on investment management for pension schemes. Also includes the new and developing area of cryptocurrencies such as Bitcoin.

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

Acknowledgements

Contents

Tables of authorities

1          Introduction

2          Financial Services

2.1       Introduction

2.2       Money and money-related services

2.3       Securities

2.4       Investment funds and wrappers

2.5       Derivatives

2.6       Intermediary services

2.7       Supplies relating to the provision of credit

2.8       Debts and related services

2.9       Islamic Finance

2.10     Standard rated services

2.11     Investment Gold

3          Insurance

3.1       Introduction

3.2       General (non-life) insurance

3.3       Life Assurance

3.4       Friendly Societies

3.5       Insurance intermediary services

3.6       Lloyd’s

3.7       Insurance claims

3.8       Insurers in ‘run off’

3.9       Other types of insurance

3.10     Insurance Premium Tax (IPT)

4          Outsourcing

4.1       Introduction

4.2       Sparekassernes Datacenter (SDC) v Skatteministeriet (Case C- 2/95) [1997] STC 932

4.3       C&E Commrs v Civil Service Motoring Association [1998] STC 111

4.4       C&E Commrs v CSC Financial Services Limited (formerly Continuum (Europe) Limited) (Case C–235/00) [2002] STC 57

4.5       C & E Commrs v FDR Ltd [2000] STC 672

4.6       C & E Commrs v Electronic Data Systems Ltd [2003] STC 688

4.7       Century Life plc v C&E Commrs [2000] STC 276

4.8       Försäkringsaktiebolaget Skandia (Case C – 240/99) STC 754

4.9       C & V (Advice Line) Services Ltd v C & E Comrs (2001) (17310)

4.10     Staatssecretaris van Financiën v Arthur Andersen & Co Accountants cs (Case C-472/03) [2005] STC 508

4.11     JCM Beheer BV v Staatssecretaris van Financien (Case C-124/07) [2008] STC 3360

5          VAT Cost Sharing Exemption

5.1       Introduction

5.2       Who could be affected by the cost sharing exemption?

5.3       What supplies are covered by the exemption?

5.4       Supplies made to a CSG

5.5       Existing arrangements

5.6       Detailed guidance

6          Input Tax and VAT recovery

6.1       Introduction

6.2       Definition of input tax

6.3       Who can recover input tax

6.4       Blocked input tax

6.5       Purchases from overseas suppliers

6.6       Partial Exemption

6.7       Capital goods scheme

6.8       Recovery of VAT incurred elsewhere in the EU

7          Legislation, Case Law and Appeals

7.1       Introduction

7.2       EU legislation

7.3       Primacy of EU Directives over national legislation

7.4       UK legislation

7.5       Appeals

7.6       Legislation relevant to the financial services and insurance sectors

8          VAT supply and liabilities

8.1       Meaning of supply

8.2       Supply of goods

8.3       Supply of services

8.4       Supply of neither goods nor services

8.5       Place of supply

8.6       Time of supply

8.7       Taxable supplies

8.8       Exempt supplies

8.9       Outside the scope supplies

8.10     Reverse charge

Appendix A – Contracts of Insurance

Appendix B – Lloyd’s VAT Arrangements

Appendix C – Extract from ‘HMRC ABI Partial Exemption Guidance for the Insurance Sector’

Appendix D - Transfers of business as a Going Concern – Legal Extracts

Value Added Tax (Special Provisions) Order 1995 (SI 1995/1268)

Value Added Tax Act 1994

Appendix E - Guidance on the Cost Sharing Exemption - from 17 Jul 2012

Appendix F – EU member states

Appendix G - Summary of Car Benefit Percentages based on CO2 emissions

Appendix H - Terminal markets listed in VAT (Terminal Markets) Order 1973 (as amended)

Index

Product Format
Paperback
Dimensions
234 x 156
Publication Date
1 Jun 2017
Number of Pages
276
ISBN
9781910151525
Edition
3
Product Format
PDF
Dimensions
234 x 156
Publication Date
16 May 2017
Number of Pages
276
ISBN
9781910151532
Edition
3