Paragraph 1.7 below looks at the question of single supply or multiple supplies. Where these services merely form one element of the service being provided, it will be necessary to look at the whole service being provided in order to determine the correct supply position and the liability of that supply or those supplies. the issue by a bank of a note payable to bearer on demand (but taxable at the zero-rate - see paragraph 2.3).service companies’ activities, for example administration, payment of salaries and wages (see paragraphs 2.4 and 2.13.safe custody (see paragraph 6.6) and safe transportation services (see paragraph 2.2).portfolio management (subject to paragraph 7.1).merger and take-over advice (see paragraphs 6.14 and 9.7).investment, finance and taxation advice (see paragraphs 6.10 and 6.14.executor and trustee services and the administration of estates.depository and trustee services (see paragraph 7.4).

debt collection (see paragraph 5.10) and credit control.However, the following list contains examples of services that, although connected to financial services, are not themselves exempt: In general, financial services are exempt from VAT. 1.6 What supplies are not covered by the finance exemption Relevant extracts from the VAT Act can be found in section 10. UK law is contained in the Value Added Tax Act 1994, which is referred to in this notice as the VAT Act. This notice and others mentioned are available both on paper and our website. You can access details of any changes to this notice since June 2009 either on our website or by phoning our Helpline on Telephone: 03. If you are a business and you supply or receive financial services this notice will be relevant to you. 1.3 Who should read this noticeįinancial services have relevance to every business and are not confined to banks, building societies, other financial institutions or financial intermediaries. The notice has been updated to reflect changes in paragraph 4.4 What supplies are not considered exempt credit’. Gold and investment gold coins are covered in VAT Notice 701/21: gold and VAT Notice 701/21A: investment gold coins. The content of this notice assumes that you have knowledge of the principles of VAT explained in Notice 700 The VAT Guide and have read Notice 700/15 The ins and outs of VAT.Ĭommodity derivatives and terminal markets are covered in VAT Notice 701/9: commodities and terminal markets. the transaction has the characteristics of a supply that is exempt from VAT under the finance exemption.the financial transaction in which you are involved is a supply for VAT purposes and.

You will find this notice useful in determining whether: This notice explains the VAT liability of certain financial services in the UK. Introduction 1.1 What is this notice about Details of any changes to the previous version can be found in paragraph 1.2 of this notice. This notice cancels and replaces Notice 701/49 finance (January 2013).

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