VAT

Indirect taxes have a significant impact on the insurance services sector.

The VAT treatment of insurance intermediary services has been the subject of a number of court and tribunal cases in recent years and the European Commission has just undertaken a major review of this area. HM Revenue & Customs has pledged not to change their policies and practices in this area until the actions arising from this review have been agreed by the EC Council of Ministers.

Brokers and other intermediaries need to be aware of the potential impact of any changes to the VAT treatment of their services. We are monitoring developments and will ensure that our clients are well briefed in advance of any proposed changes.

We are also able to offer advice in connection with other areas where VAT impacts the sector, such as partial exemption and input tax recovery, the VAT implications of restructuring and consolidation, cross-border transactions and outsourcing and cost-sharing arrangements.

We can also provide assistance with IPT issues.