In the Summer Budget 2015, the government announced that it would introduce a use and enjoyment provision to counter tax avoidance involving the provision of repair services, carried out under a contract of insurance, to insurers located outside the EU.
This “use and enjoyment” provision is intended as an anti-avoidance measure to counter tax avoidance involved in the provision of repair services carried out under a contract of insurance, to insurers located outside the EU.
On 27 January 2016, HMRC published the draft secondary legislation, accompanied by a draft explanatory memorandum, for the implementation of the provision.
A technical consultation is open on the draft legislation. All comments must be submitted by 29 February 2016.
The draft legislation is available to view here.
The explanatory memorandum accompanying the draft legislation is available to view here.