Lloyd's - VAT arrangements at Lloyd's - members' agents combined agents & Lloyd's advisors - 2002 Quarter 3

Global market rate

1. The global market rate for the quarter ended 30 September, 2002 is 59.57%.
   
2. Members who are VAT registered by virtue of business activities other than underwriting at Lloyd's may use the global market recovery rate to recover input tax arising from their Lloyd's underwriting activities subject to agreement with Customs and Excise.
   
3. Members that participate solely on syndicates which write only EU business will not be permitted to use the global market rate or recover input tax in relation to these supplies.
   
4. Following the members' agents tribunal decision, the Taxation Department is now liaising with Customs and Excise to establish an appropriate recovery rate to determine input tax recovery by members' agents and those Lloyd's advisors who negotiate syndicate participations. As an interim measure members' agents may revert back to using the global market rate for this quarter. Lloyd's advisors may also use the global market rate but this will be subject to individual agreement with Customs and Excise.
   

Other information:

• For further information on the Lloyd's VAT Arrangements please refer to market bulletin Y2507 below.
• If you have any queries regarding the global market recovery rate then please call Harinder Sandhu of the Lloyd's Taxation Department on +44 (0)20 7327 5396.

Market bulletins:

• Lloyd's VAT arrangements (Y2507) - 1 January, 2000