VATFIN7100 - 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 |