Discretionary portfolio management services
Discretionary portfolio management services are treated as a single service for Value-Added Tax (VAT) purposes, if they:
- analyse and monitor the assets of client investors
- purchase and sell securities.
This service is subject to VAT at the standard rate.
Fees charged strictly for the purchase or sale of shares or securities on a transaction by transaction basis, 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
- the invoices correctly reflect the arrangements.
Further guidance contains more detailed information on the VAT treatment of discretionary portfolio management services.