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Law
Law
The securities exemption is set out in Article 135.1 of the PVD. That provides that Member States “shall exempt the following transactions” which include (at f) :
“transactions, including negotiation but not management or safekeeping, in shares, interests in companies or associations, debentures and other securities...”
It is also relevant to understand the parties’ arguments on the case-law on the exemptions in respect of payments and transfers and in respect of the management of special investment funds. Those exemptions are worded as follows:
“d) transactions, including negotiation, concerning…payments, transfers…”
…
(g) the management of special investment funds as defined by Member States...”
The securities exemption was implemented into UK law by Group 5 Schedule 9 VATA 1994 item 6 (securities) and item 5 (negotiation) (which applies in respect of both the payment exemption and securities exemption). The payment exemption is provided for at item 1.
- Heading
- Introduction
- Legal principles relevant to single vs multiple supplies issue
- The FTT Decision - background facts
- Group structure
- Contractual materials
- The 2006 GMSA
- The Addendum
- The Expense Allocation Policy
- Specimen Invoice
- The Inter-entity tax invoicing tool
- Actual invoices
- The 2019 GMSA
- The FTT’s reasoning on the single vs multiple supply issue
- Grounds of appeal
- Ground 1: The FTT misconstrued key aspects of the contracts in issue before it
- Discussion
- Ground 2 : the FTT ignored other aspects of those contracts that were material
- Key provisions of the 2019 GMSA inconsistent?
- Ground 3: The FTT concluded that because the contracts reflected economic reality, it was not necessary to ‘go behind’ them, and so failed to (i) recognise the limitations of those contracts and (ii)
- Ground 4: the FTT misapplied the key factors of indivisibility and indispensability, equating those factors with the existence of ‘close links’ and ‘necessity’
- Ground 5: The FTT misapplied the concept of separate availability
- Ground 6: The FTT placed undue (and in any event incorrect) reliance on invoicing
- Other submissions – who is the typical consumer?
- Conclusion on single vs. multiple supplies grounds
- The exemption issue
- Law
- The FTT Decision regarding the Exemption issue
- Scope of securities exemption
- Case-law on securities exemption
- Discussion on scope of securities exemption
- CBNA’s ground of appeal that the FTT’s conclusion was inconsistent with other findings
- Negotiation in securities?
- Edwards v Bairstow errors
- CBNA’s challenge to application of principles to facts
- Conclusion on exemption issue
- The classification issue
- Conclusions