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HMRC internal manual

VAT Finance Manual

Money (including transfer of money) and related services: securities for money, credit guarantees and related services: partial exemption

Item 1 securities will normally distort the amount of residual input tax partly exempt businesses can recover if included in a values calculation with transactions other than securities. This is because the value of the supply is treated as the full proceeds of the sale. A sectorised method may provide a fair result. Further guidance on partial exemption can be found in PE.