VAT arrangements at Lloyd's for members' agents, combined agents and Lloyd's advisers - 2020

News item about VAT arrangements at Lloyd's for members' agents, combined agents and Lloyd's advisers 2020 (April 6, 2020)

VAT information to all members' agents, combined agents and Lloyd's advisors

Global market recovery rate

1. The Global Market Rate for the year ended 31 December 2019 is 75.77%.
2. Members who are VAT registered by virtue of business activities other than underwriting at Lloyd's may use the Global Market Rate for the year ended 31 December 2019 to recover input tax arising from their Lloyd's underwriting activities during the year 2020, subject to agreement with HM Revenue & Customs.
3. Please note that following an agreement with HMRC the Global Market Rate is now only 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. Members who are VAT registered by virtue of business activities other than underwriting at Lloyd's may use the Global Market Rate for the year ended 31 December 2019 to calculate the annual adjustment for that year, subject to agreement with your local VAT office regarding other supplies made by you.
5. The actual Global Market Rate for the year ended 31 December 2020 will be advised in April 2021 and should be used to determine the annual adjustment for that year.
6. 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.

Members' agents rate

1. The Members' Agents Rate for the year ended 31 December 2019 is 72.57%.
2. Members' agents and those Lloyd's advisors who negotiate syndicate participations must use the Members' Agents Rate for the year ended 31 December 2019 to determine input tax recovery during the year ended 31 December 2020, when preparing VAT returns.
3. Members' agents and those Lloyd's advisors who negotiate syndicate participations must use the Members Agents Rate for the year ended 31 December 2019 to determine the annual adjustment for 2019 in the VAT return for the quarter ended 31 March, 2020.
4. The actual recovery rate for the year ended 31 December 2020 will be advised in April 2021 and must be used to determine to the annual adjustment for that year.

Other information:

• For further information on the Lloyd's VAT arrangements please refer to market bulletin Y3237 below.
• If you have any queries regarding the global market recovery rate then please contact the Lloyd's Taxation Department via lloyds.com/resources-and-services/tax-information/tax-contacts.