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:

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