Securities and related services: purpose of VATFIN4000
VATFIN4000 provides guidance on the liability of transactions concerning securities. It covers the following:
|* characteristics of an item 6 supply||see VATFIN4150|
|* supply, liability and consideration||see VATFIN4250|
|* intermediaries and introductory charges||see VATFIN4300|
|* listing fees||see VATFIN4350|
|* member firms trading on the London Stock Exchange||see VATFIN4400|
|* stock lending||see VATFIN4450|
|* underwriting services||see VATFIN4500|
|* share/debenture/bond schemes||see VATFIN4550|
|* electronic data services and||see VATFIN4600|
|* clearing and settlement services.||see VATFIN4650|
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||paragraph 6.5|
|* custody services||paragraph 6.6|
|* services of a share registrar||paragraph 6.7|
|* arranging the issue or placement of securities||paragraph 6.10|
|* execution only services||paragraph 6.11|
|* dealer systems||paragraph 6.12|
|* specialist services such as valuation research and advisory services||paragraph 6.14|
|* international security transactions and||paragraph 6.15|
|* the ‘easement’ rule where the place of supply can not be identified.||paragraph 6.16|