# The Value Added Tax (Finance) Order 1999, Note: Explanatory note


(This note is not part of the Order)
This Order, which comes into force on 10th March 1999, amends Group 5 of Schedule 9 to the Value Added Tax Act 1994, to clarify the scope of the Group following recent litigation, redefining the exemptions for payment and credit transfer services and for intermediary services, and making it explicit that third party credit management is not exempt.
Articles 3 and 4 substitute new items 5 and 5A for items 5 and 7, which exempted the making of arrangements for any transaction within items 1, 2, 3, 4 or 6. The effect of the amendments is to substitute an exemption for intermediary services performed by a person acting in an intermediary capacity in relation to any transaction within those items. The exemption for underwriting services in relation to transactions in items 1 or 6 is retained.
Article 5 introduces a new Note (1A) which makes it clear that item 1, which exempts transactions in money, any security for money or any note or order for the payment of money, does not include services preparatory to the carrying out of any such transaction.
Article 6 introduces new Notes (2A) and (2B) which make it clear that the Group does not include the management of credit, except by the person granting the credit, and define the management of credit.
Article 7 substitutes new Notes (5), (5A) and (5B) for Note (5). New Note (5) defines “intermediary services” for the purposes of item 5. Note (5A) defines “acting in an intermediary capacity” for the purposes of item 5. Note (5B) defines “financial services” for the purposes of Notes (5A) and (5B).

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Source: https://www.legislation.gov.uk/uksi/1999/594/note (the official version)
Page: https://openlegislation.uk/value-added-tax-finance-order-1999/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.