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HMRC internal manual

VAT Finance Manual

HM Revenue & Customs
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Intermediaries: purpose of VATFIN7000

Many supplies of financial services involve other businesses acting as intermediaries between the parties selling and buying those financial services. Often these intermediary services are exempt.

These sections look at:

  • what is meant by the term ‘intermediary’
  • when an intermediary service falls within the finance exemption and
  • what supplies are specifically excluded from the exemption for intermediary services.

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:

* intermediary services in relation to an item 6 supply paragraph 9.4
* arranging the issue or placement of securities paragraph 6.10
* execution only services paragraph 6.11
* intermediaries’ supplies concerning financial derivatives paragraph 8.12
* dealer systems paragraph 6.12
* specialist services (e.g. professional services of accountants and lawyers, services of advice in general) paragraph 6.14
* financial investigators paragraph 9.6
* intermediaries involved in AUTs and OEICs paragraph 7.6
* data services paragraph 6.13
* liability of intermediary services concerned with securities supplied in the UK their related input tax VAT recovery position paragraph 9.11
* services supplied by Independent Financial Advisors (‘IFAs’) paragraph 9.9
* services supplied by an IFA network. paragraph 9.10