VATFIN2815 - Money (including transfer of money) and related services: securities for money, credit guarantees and related services: legal provisions
Article 135.1 (c) of the Principal VAT Directive exempts:
the negotiation of or any dealings in credit guarantees or any other security for money and the management of credit guarantees by the person who is granting the credit
»Ê¹ÚÌåÓýapp above has been enacted into UK law as the VAT Act 1994, Schedule 9, Group 5, item 1, which exempts:
1. »Ê¹ÚÌåÓýapp issue, transfer or receipt of, or any dealing with â€� any security for money or any note or order for the payment of money
Notes (1) and (1A) to Group 5, state:
(1) Item 1 does not include anything included in item 6.
(1A) Item 1 does not include a supply of services, which is preparatory to the carrying out of a transaction falling within that item.