UT/2024/000002 - [2025] UKUT 00188 (TCC)

In developing CBNA’s submissions, Mr Hitchmough, took us through, skilfully and in some detail, the evolution of the case-law relating to the three financial service exemptions (the payment exemption, the securities exemption and the exemption in respect of special investment funds). Mr Beal likewise addressed this jurisprudence in HMRC’s response.

In broad terms both parties draw support in their interpretation of the securities exemption from other exemptions but in a different way. CBNA say the securities exemption is not like the payment exemption but has commonality with the principles in relation to the exemption for special investment funds. HMRC on the other hand say the securities and payment exemptions are more akin; they are both transaction based exemptions and distinct from the special investment fund exemption which refers to management of funds (which is based on activity). In our view it is sufficient for present purposes to turn directly to two of the CJEU cases specifically concerned with the securities exemption in order to expose the relevant principles.