Exemption ― finance ― securities

Produced by Tolley
Exemption ― finance ― securities

The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Exemption ― finance ― securities
  • Securities
  • Securities for money
  • Guarantees and surety bonds
  • Shares, securities and other financial instruments
  • VAT treatment of security transactions other than share issues
  • International security transactions
  • International security transactions ― the easement
  • VAT treatment of share issues
  • Issue of shares and securities
  • More...

This guidance note covers the VAT treatment of various types of financial securities.


The issue, transfer or receipt of, or any dealing with, any security or secondary security in the UK is exempt from VAT (but see the impact of the Kretztechnik decision in ‘VAT treatment of share issues’ below). For these purposes, a security or secondary security comprises:

  1. shares, stock, bonds, notes (other than promissory notes), debentures, debenture stock or shares in an oil royalty

  2. any document relating to money, in any currency, which has been deposited with the issuer or some other person, being a document which recognises an obligation to pay a stated amount to bearer or to order, with or without interest, and being a document by the delivery of which, with or without endorsement, the right to receive that stated amount, with or without interest, is transferable

  3. any bill, note or other obligation of the Treasury or of a Government in any part of the world, being a document by the delivery of which, with or without endorsement, title is transferable, and not being an obligation which is or has been legal tender in any part of the world

  4. any letter of allotment or rights, any warrant conferring an option to acquire a security included in these provisions, any renounceable or scrip certificates, rights coupons, coupons representing dividends or interest on such a security, bond mandates or other documents conferring or containing evidence of title to or rights in respect of such a security

  5. 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

VATA 1994, Sch 9, Group 5, Items 1, 6

Securities for money

A security for money is usually described as a document under 'seal'

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