VAT at Lloyd's - Corporate members, Limited Liability Partnerships & Scottish Limited Partnerships - 2011

Wed 20 Apr 2011

News item about VAT for all corporate members Limited Liability Partnerships and Scottish Limited Partnerships 2011 (20 April, 2011)

VAT information to all corporate members and Scottish Limited Partnerships

Global market recovery rate

  1. The global market recovery rate for the year ended 31 December 2010 is 68.91%.
  2. Corporate members Limited Liability Partnerships (LLPs) 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 68.91% of input VAT arising from their Lloyd's underwriting activities during the year 2011.
  3. Please note that following an agreement with HM Revenue & Customs 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.
  4. The annual adjustment for the year 2010 is to be declared in the VAT return for the quarter ended 31 March 2011 and should be based on the global market rate of 68.91%.
  5. The actual recovery rate for the year ended 31 December 2011 will be advised in April 2012 and must be used to determine to the annual adjustment for that year.
  6. Corporate members Limited Liability Partnerships (LLPs) 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 bulletin Y2507 below.
  • If you have any queries regarding the global market recovery rate then please call Nick Marman of the Lloyd's Taxation Department on +44 (0)20 7327 6727.

 

Market bulletins:

Lloyd's VAT arrangements (Y2507) - 1 January 2000 (94.5KB)

 

Further tax information

VAT

Taxation Bulletins

US Federal Excise Tax FET

Tax Contacts