26 March 2018
HMRC has signalled the end of VAT cost sharing groups in the financial services sector after publishing a briefing paper on its response to a recent EU ruling. Although not widely used across the industry, VAT cost sharing structures operate as a valuable VAT cost reduction tool for financial services firms - particularly when combined with other VAT cost reduction mechanisms.
Indirect Tax Director
Justine is qualified as a Solicitor and Chartered Tax Adviser and has over 20 years’ experience of working in Indirect Tax (VAT and IPT). Justine’s main field of expertise is financial services clients and Justine offers a wide range of services in this sector; these include Indirect Tax advisory and compliance services, Indirect Tax litigation and dispute resolution services, and Indirect Tax legal support services in relation to contract formation and claims in contract law.
The EU Commission has confirmed that it is commencing infraction proceedings against the UK in respect of trading in certain commodity derivatives. At present transactions in relation to commodity derivatives including spot trades, futures and options benefit from a VAT zero rate under what is referred to as the Terminal Markets Order (TMO).