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HMRC internal manual

VAT Finance Manual

Credit, debts and related services: debts and related services: legal provisions

Articles 135.1 (b) and 135.1 (d) of The VAT directive exempt:

the granting and the negotiation of credit and the management of credit by the person granting it;…
transactions, including negotiation, concerning … debts … but excluding debt collection and factoring.  

The above have been enacted into UK law as the VAT Act 1994, Schedule 9, Group 5, items 1, 2 and 2A, which exempt:

The issue, transfer or receipt of, or any dealing with, money, any security for money or any note or order for the payment of money.

The making of any advance or the granting of any credit.

The management of credit by the person granting it.