This notice cancels and replaces Notice 701/49 “Finance” (January 2013).
1.1 What is this notice about
This notice explains the VAT liability of certain financial services in the United Kingdom (UK). You will find this notice useful in determining whether—
— the financial transaction in which you are involved is a supply for VAT purposes; and
— the transaction has the characteristics of a supply that is exempt from VAT under the finance exemption.
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”.
Commodity derivatives and terminal markets are covered in Notice 701/9 “Commodities and terminal markets”. Gold and investment gold coins are covered in Notices 701/21 “Gold” and 701/21A “Investment gold coins”.
Main narrative treatment—V4.136–V4.136J.
1.2 Changes from the previous edition
The notice has been updated to reflect changes in paragraph 4.4 “What supplies are not considered exempt credit”.
1.3 Who should read this notice
Financial services have relevance to every business and are not confined to banks, building societies, other financial institutions or financial intermediaries. If you are a business and you supply or receive financial services this notice will be relevant to you.
1.4 Further information
You can access details of any changes to this notice since June 2009 either on the website at www.hmrc.gov.uk, or by phoning our Helpline on telephone 0300 200 3700.
1.5 The law
UK law is contained in VATA 1994, which is referred to in this notice as