VATFIN2910 | Money (including transfer of money) and related services: operation of a current, deposit or savings account: purpose of VATFIN2900

This section deals with the exemption at the VAT Act 1994, Schedule 9, Group 5, item 8. It is a relatively straightforward, but quite restrictive, part of the finance exemption. This section will help you decide whether or not a supply falls within the exemption for the operation of one of the accounts specified.

Topics not covered by these sections

The following topics are only covered in VAT Notice 701/49 Finance. You should read the relevant paragraphs for guidance on liability:

• certain supplies of bank notes (paragraph 2.3);

• preparatory services carried out in respect of an exempt financial transaction (paragraph 2.4);

• dealing with numismatic and investment coins (paragraph 2.6);

• clearing and settlement services (paragraph 2.8);

• the provision of an ATM and software (paragraph 2.9);

• charges made for dishonoured cheques or direct debit payments (paragraph 2.11);

• electronic banking and cash management services (paragraph 2.12);

• deductions from pay (paragraph 2.13); and

• travellers’ cheques (paragraph 3.4).