VAT information to all corporate members and Scottish Limited Partnerships
Global market recovery rate
- The global market recovery rate for the year ended 31 December, 2004 is 58.08%.
- Corporate members and Scottish Limited Partnerships (SLPs) who are VAT registered on account of activities other than insurance underwriting may use the global market rate where the number of syndicates on which they participate makes it difficult for them to calculate the composite recovery rate for those syndicates. Those corporate members and SLPs are therefore able to recover 58.08% of input VAT arising from their Lloyd's underwriting activities during the year 2005.
- Please note that following an agreement with HMC&E the global market rate will only be calculated once in the year, at the end of the year, and input VAT recovery during the year will be based on the global market rate for the previous year.
- The annual adjustment for the year 2004 is to be declared in the VAT return for the quarter ended 31 March, 2005 and should be based on the global market rate of 58.08%.
- The actual recovery rate for the year ended 31 December, 2005 will be advised in April 2006 and must be used to determine to the annual adjustment for that year.
- Corporate members and Scottish Limited Partnerships that solely participate on syndicates that write only EU business will not be permitted to use the global market recovery rate
Other information:
- For further information please refer to market bulletins Y2158 and 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:
