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
  • and
  • 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
  • and
  • the invoices correctly reflect the arrangements.

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