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Introduction

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, 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, see paragraph 6.5
• custody services, see paragraph 6.6
• services of a share registrar, see paragraph 6.7
• arranging the issue or placement of securities, see paragraph 6.10
• execution only services, see paragraph 6.11
• dealer systems, see paragraph 6.12
• specialist services such as valuation research and advisory services, see paragraph 6.14
• international security transactions, see paragraph 6.15
• the ‘easementâ€� rule where the place of supply can not be identified, see paragraph 6.16