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VATFIN4100 | Securities and related services: purpose of VATFIN4000

From HM Revenue & Customs · VAT Finance Manual

Introduction

VATFIN4000 provides guidance on the liability of transactions concerning securities. It covers the following:

Securities can take several forms, such as:

  • shares, stocks, bonds and notes (other than promissory notes), debentures, debenture stock, shares in an oil royalty

  • certificates of deposit

  • Treasury and government bills

  • letters of allotment and rights and options to acquire shares and

  • units in a unit trust.

The above list is not exhaustive.

Please note that authorised unit trusts (‘AUTs’), open-ended investment companies (‘OEICs’), personal equity plans (‘PEPs’), individual savings accounts (‘ISAs’) and child trust funds (‘CTFs’) and related services are dealt with in VATFIN5000 to VATFIN5700 of this chapter, and in paragraphs 7.2 and 7.3 of Notice 701/49 Finance.

For securities for money see VATFIN2800.

Topics not covered by VATFIN4000

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

  • nominee services, see paragraph 6.5

  • custody services, see paragraph 6.6

  • services of a share registrar, see paragraph 6.7

  • arranging the issue or placement of securities, see paragraph 6.10

  • execution only services, see paragraph 6.11

  • dealer systems, see paragraph 6.12

  • specialist services such as valuation research and advisory services, see paragraph 6.14

  • international security transactions, see paragraph 6.15

  • the ‘easement’ rule where the place of supply can not be identified, see paragraph 6.16