VATA 1994, Sch 9, Group 5, item 5—scope of the exemption
The provision of intermediary services in relation to any transaction comprised in VATA 1994, Sch 9, Group 5, items 1, 2, 3, 4 or 6, by a person acting in an intermediary capacity is exempt. This applies whether or not the transaction in question is finally concluded1.
Intermediary services comprise the bringing together, with a view to the provision of financial services2:
(1) persons who are or may be seeking to receive financial services, and
(2) persons who provide financial services,
together with (in the case of financial services falling within Group 5 items 1, 2, 3 or 4, but not Item 6) the performance of work preparatory to the conclusion of contracts for the provision of those financial services. They do not include the supply of any market research, product design, advertising, promotional or similar services or the collection, collation and provision of information in connection with such activities (unless these are ancillary to the overall exempt intermediary service3).
'Work preparatory to the conclusion of contracts' could include completing or assisting with the completion of application forms; checking completed applications and forwarding forms to the provider of financial services; making representations on behalf of one party to the other; and acting as a go-between generally. However, in relation to a transaction in Item 6 securities, preparatory work is not necessary, and exemption can apply to the mere introduction of a person seeking to buy or sell