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

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

TAKE A FREE TRIAL

Popular Articles

Owner-Managed Businesses

Trade or hobby

Trade or hobbyInteraction of hobby farming rules and commercialityFarming has its own set of ‘hobby farming rules’, which historically have stated that a profit must be made every six years. This is known as ‘the five-year rule’, in that there can be five years of losses but there must be a profit

14 Jul 2020 13:50 | Produced by Tolley Read more

Value Added Tax

UK VAT invoice requirements

UK VAT invoice requirementsThis guidance note provides details of the information that must be shown on a valid tax invoice. Businesses supplying goods and services that are liable to the standard or reduced rate of VAT are required to issue a tax invoice to another VAT registered person.If the

14 Jul 2020 13:46 | Produced by Tolley Read more

Corporation Tax

Research and development (R&D) relief ― overview

Research and development (R&D) relief ― overviewThis guidance note provides an overview of the research and development (R&D) tax reliefs for companies.See the Research and development tax relief summary diagram which summarises the R&D tax relief.See also Simon’s Taxes D1.401.For a factsheet which

14 Jul 2020 12:22 | Produced by Tolley in association with Will Sweeney Read more

��Ƶ