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The Value Added Tax (Insurance) Order 2004

S.I. 2004/3083 · Made 24 November 2004

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

VALUE ADDED TAX

Made 24th November 2004

Laid before the House of Commons 24th November 2004

Coming into force 1st January 2005

The Treasury, in exercise of the powers conferred upon them by section 31(2) of the Value Added Tax Act 1994f1, hereby make the following Order:

Annotations to the whole text

Footnotes

f1

1994 c. 23.

Contents

  1. 1Article 1
  2. 2Article 2
  3. 3Article 3
  4. 4Article 4
  5. 5Article 5
  6. 6Article 6
  7. Signature
  8. Explanatory note

1

This Order may be cited as the Value Added Tax (Insurance) Order 2004 and comes into force on 1st January 2005.

2

Group 2 (insurance)f1 of Schedule 9 to the Value Added Tax Act 1994 (exemptions) is varied in accordance with the following articles.

3

For items 1 to 3 substitute —

“1.

Insurance transactions and reinsurance transactions.”.

4

In item 4(a) —

(a)

after “a contract of insurance” insert “or reinsurance”, and

(b)

for “any such provision of insurance or reinsurance as falls, or would fall, within item 1, 2 or 3” substitute “an insurance transaction or a reinsurance transaction”.

5

Omit Notes (A1) to (C1).

6

In Note (2)(a), for “any insurance or reinsurance the provision of which falls within item 1, 2 or 3” substitute “insurance or reinsurance”.

Signature

Jim Murphy

Derek Twigg

Two of the Lords Commissioners of Her Majesty’s Treasury

24th November 2004

Explanatory note

(This note is not part of the Order)

This Order, which comes into force on 1st January 2005, amends Group 2 of Schedule 9 to the Value Added Tax Act 1994 (c. 23), which exempts insurance from VAT.

Article 3 substitutes a new item 1 in Group 2 which removes the condition that VAT exemption for insurance and reinsurance transactions depends on the status of the provider. It also deletes items 2 and 3 which are no longer required, as they exempted insurance provided by specific persons or entities which is now exempted by the new item 1.

Articles 4 and 6 make consequential amendments to the cross-references to former items 1, 2 and 3 in item 4(a) and Note 2(a).

Article 5 deletes Notes (A1), (B1) and C1) which defined terms in the former items 1, 2 and 3 which no longer appear in the Group. It also means that a contract of insurance (now amended to “contract of insurance or reinsurance”) in item 4(a) is no longer defined by reference to the Financial Services and Markets Act 2000 (c. 8).

A full regulatory impact assessment has not been produced for this instrument as it has negligible impact on the costs of business, charities or voluntary bodies.