Sector summary ― financial services

Produced by Tolley in association with

Value Added Tax

Guidance

Introduction to the sector

The financial services sector covers a wide range of business activities. This segment of the economy is made up of a variety of financial institutions including banks, investment houses, lenders, finance companies, financial advisors and insurance companies. Large businesses dominate this sector, but it also includes a diverse range of smaller entities.

This guidance note covers the key VAT areas to consider for the financial services sector. It provides a starting point for advisers preparing for a meeting with clients which operate in this sector.

Relevant legislation

The exemption applicable to the financial services sector is VATA 1994, Sch 9, Group 5:

Item number	Description	Further detail
Item 1	The issue, transfer or receipt of, or any dealing with, money, any security for money or any note or order for the payment of money	De Voil Indirect Tax Service V4.136A
Item 2	The making of any advance or the granting of any credit	De Voil Indirect Tax Service V4.136B
Item 2A	The management

Continue reading

To read the full Guidance note, register for a free trial of Tolley+™

TAKE A FREE TRIAL

Popular Articles

Owner-Managed Businesses

Relief for employee share schemes

Relief for employee share schemesRemuneration expenses are generally deductible for corporation tax purposes as they are considered to be incurred wholly and exclusively for the purposes of the trade. However, expenses relating to shares are usually classed as capital and are therefore not

14 Jul 2020 13:21 | Produced by Tolley Read more

Personal Tax

Payment of the remittance basis charge

Payment of the remittance basis chargeRemittance basis chargeThe remittance basis charge is an annual charge payable by ‘long-term’ UK residents for the privilege of claiming the remittance basis.Taxpayers who wish to utilise the remittance basis (but do not qualify for it automatically) must pay

14 Jul 2020 12:52 | Produced by Tolley Read more

Owner-Managed Businesses

Special rate pool and long life assets

Special rate pool and long life assetsSpecial rate poolExpenditure on some types of plant or machinery must, if neither annual investment allowance (AIA) nor first year allowances (FYAs) are available, be allocated to a ‘special rate pool’. Expenditure to be allocated to the special rate pool

14 Jul 2020 13:41 | Produced by Tolley Read more

��Ƶ