Discretionary portfolio management services

Discretionary portfolio management services are treated as a single service for Value-Added Tax (VAT) purposes, where the service consists of the: 

  • analysis and monitoring of the assets of client investors
  • and
  • the purchase and sell securities.

This service is subject to VAT at the standard rate.

Fees charged solely for the purchase or sale of shares or securities may be exempt from VAT. This is the case where:

  • the contractual arrangements reflect that fees are being charged on a transaction by transaction basis
  • and
  • the invoices correctly reflect the arrangements.

Further guidance contains more detailed information on the VAT treatment of discretionary portfolio management services.