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

Allowable deductions for employee-related expenses

Allowable deductions for employee-related expensesThis guidance note covers the tax treatment of some common types of trading expenditure relating to employees. Some of these are disallowable under general principles, for example the wholly and exclusively test or capital versus revenue expenditure.

14 Sep 2022 09:49 | Produced by Tolley Read more

Corporation Tax

Carried-forward losses restriction

Carried-forward losses restrictionOverview of the carried-forward loss restrictionAn important restriction in the use of losses carried forward was introduced by Finance (No 2) Act 2017. Subject to a de minimis of £5m (known as the deductions allowance), most carried-forward losses are restricted to

14 Jul 2020 11:09 | Produced by Tolley Read more

Trusts and Inheritance Tax

Tax on UK resident beneficiaries of non-resident trusts ― overview

Tax on UK resident beneficiaries of non-resident trusts ― overviewIntroductionUK resident beneficiaries of non-resident trusts are subject to UK tax on payments or benefits received from the trust. They are liable for income tax on income distributions from the trust and they may also be liable to

14 Jul 2020 13:47 | Produced by Tolley Read more

Autumn Budget 2024

UU��ֱ��