Discretionary portfolio management services

Discretionary portfolio management services that consist of analysing and monitoring the assets of client investors and purchasing and selling securities, are treated as a single service for Value-Added Tax (VAT) purposes. This service is subject to VAT at the standard rate.

However, where the fees are charged strictly for the purchase or sale of shares or securities on a transaction by transaction basis, these fees may be exempt from VAT, 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.