The chancellor announced, in his statement to parliament on 9 November 2020 on the future of UK financial services, that from 1 January 2021, businesses will be able to reclaim input VAT attributable to the export of certain financial services products to the EU (as is already the case for those exports to non-EU countries).
‘To make sure UK financial services exports to the EU remain competitive, we will treat those exports the same as we do for other countries,’ the chancellor said. ‘This means UK firms will be able to reclaim input VAT on financial services exports to the EU – support for British industry and British jobs worth £800m.’
The government will legislate for this by using a commencement order to bring into force the Value Added Tax (Input Tax) (Specified Supplies) (EU Exit) (No. 2) Regulations 2019. Further information is expected when the commencement order is laid, and it is understood that HMRC will produce guidance in due course.
For more on the chancellor’s vision for the future of UK financial services, whereby ‘the UK will remain an open, attractive international financial centre, and extend its global leadership in green finance and financial technology’, see bit.ly/36qqC5t.
Separately, HMRC has published country-specific guidance explaining how to import from and export to a number of countries from 1 January 2021.
HM Treasury has also published specific information for businesses and consumers in the financial services sector, on preparing for the end of the transition period. This brings together guidance for the end of the transition period from HM Treasury, the Financial Conduct Authority (FCA), the Bank of England and the Prudential Regulation Authority (PRA) for consumers and businesses.
The chancellor announced, in his statement to parliament on 9 November 2020 on the future of UK financial services, that from 1 January 2021, businesses will be able to reclaim input VAT attributable to the export of certain financial services products to the EU (as is already the case for those exports to non-EU countries).
‘To make sure UK financial services exports to the EU remain competitive, we will treat those exports the same as we do for other countries,’ the chancellor said. ‘This means UK firms will be able to reclaim input VAT on financial services exports to the EU – support for British industry and British jobs worth £800m.’
The government will legislate for this by using a commencement order to bring into force the Value Added Tax (Input Tax) (Specified Supplies) (EU Exit) (No. 2) Regulations 2019. Further information is expected when the commencement order is laid, and it is understood that HMRC will produce guidance in due course.
For more on the chancellor’s vision for the future of UK financial services, whereby ‘the UK will remain an open, attractive international financial centre, and extend its global leadership in green finance and financial technology’, see bit.ly/36qqC5t.
Separately, HMRC has published country-specific guidance explaining how to import from and export to a number of countries from 1 January 2021.
HM Treasury has also published specific information for businesses and consumers in the financial services sector, on preparing for the end of the transition period. This brings together guidance for the end of the transition period from HM Treasury, the Financial Conduct Authority (FCA), the Bank of England and the Prudential Regulation Authority (PRA) for consumers and businesses.
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