recovery of VAT on Lloyds Underwriting Expenditure

recovery of VAT on Lloyds Underwriting Expenditure

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My Client is a Lloyds Underwriter.

He was a Partner in a Farm which was registered for VAT, the turnover being well in excess of the registration limit. His Parents, the other Partners died within a short space of time, and he now runs the Farm as a Sole Trader, still VAT registered.

I believe that I am right in saying that his VAT registration now effectively applies to all businesses which he carries on in his sole name. Assuming this is the case, I assume that I could have made claims for repayment of input tax incurred in respect of his Lloyds Underwriting, albeit that these are restricted.

Could anyone point me in the right direction as to any VAT that could be reclaimed on Lloyds Underwriting expenditure? For example the VAT charged on our professional fees.

On a slightly different issue, his banker charges £10 per month (incl VAT) as a 'relationship fee' in respect of the account used solely for his Lloyds Underwriting business.

I assume that this is properly deductible in the same way that any traders business account bank charges would be?

SP

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By neileg
13th Jul 2006 10:58

I would think
that the Lloyds activities are VAT exempt, so you need to apply the partial exemption rules. There's a chance that you may be able to use the de minimus limits to recover the VAT on these charges.

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