Commentary

V4.136E Exemption for finance—securities and related intermediary services

Part V4 Exemption, zero-rating and reduced rates

V4.136E Exemption for finance—securities and related intermediary services

V4.136E Exemption for finance—securities and related intermediary services

VATA 1994, Sch 9, Group 5, item 6—scope of the exemption

Exemption is extended to1:

  1.  

    (1)     the issue, transfer or receipt of, or any dealing with, any security or secondary security within the descriptions set out below, and

  2.  

    (2)     the provision of intermediary services in relation to the above by a person acting in an intermediary capacity

The following securities and secondary securities are within the scope of this item2:

  1.  

    (a)     shares, stock, bonds, notes (other than promissory notes), debentures3, debenture stock, or shares in an oil royalty

  2.  

    (b)     certificates of deposit4

  3.  

    (c)     government bills5

  4.  

    (d)     any letter of allotment or rights; any warrant conferring an option to acquire a security included in VATA 1994, Sch 9, Group 5, Item 6; any renounceable or scrip certificates, rights coupons, coupons representing dividends or interest on a security included in that item, bond mandates or other documents conferring or containing evidence of title to or rights in respect of a security included in that item; and

  5.  

    (e)     units or other documents conferring rights under any trust established for the purpose, or having the effect of providing, for persons having funds available for investment, facilities for the participation by them as beneficiaries under the trust, in any profits or income arising from the acquisition, holding, management or disposal of any property whatsoever.

Transactions involving shares

Issue/sale of shares

The question of whether the issue of new shares (as opposed to the sale or transfer of existing shares) is

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