HMRC has issued a new Brief explaining the background to the introduction of new rules regarding the application of “use and enjoyment” rules to insurance repair services. The new rules mean that VAT will relate to the place where the fruits of any insurance repair services are enjoyed, rather than the location of the paying party. HMRC was concerned that insurance companies were establishing entities in areas outside the scope of VAT in order to avoid VAT.

Revenue and Customs Brief 15 (2016) can be found here.