PE77350 | Guidance for specific trade sectors: Lloyd's VAT arrangements: managing agents - Partial Exemption method

The annual adjustment will be declared in the first quarter following the end of their VAT tax year.

The partial exemption agreement will comprise at least the following components:

SECTOR 1 - MANAGING AGENT

The calculation will be based upon the value of fees charged to syndicates which the managing agent is authorised to manage by Lloyd’s. Where the fees relate to services supplied under the Managing Agent’s Agreement (General) and Managing Agent’s Agreement (Corporate Member) the liability split of the fees will be determined by the insurance business underwritten by the syndicates managed.

The sector recovery calculation will be;

Value of O/S with I/T credit fees = recoverable % to 2 decimal places
total value of fees

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SECTOR 2 - INVESTMENTS

The calculation will be based on either the number or value of securities sales.

The sector recovery calculation will be;

Number or value of O/S with I/T credit sales of securities = recoverable % to 2 decimal places
Number or value of total sales of securities

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OTHER SUPPLIES

Recovery of input tax in relation to supplies not made under the Managing Agent’s Agreement (General) and Managing Agent’s Agreement (Corporate Member) will be subject to the normal rules and may constitute a separate sector.