VATFIN4550 - Securities and related services: share/debenture/bond schemes

These schemes are often adopted by clubs to raise extra finance from their members or prospective members. This method of raising finance is particularly popular with sports clubs.

For example, the increasing demand for golf facilities has led to an upsurge in numbers of golf clubs being formed - many of these will combine the raising of finance with the provision of membership benefits.

These schemes have also been attached to sporting events, where the benefit of the debenture/bond may take the form of discounted tickets for matches or similar.

The issue of shares, debentures or bonds where the issuer is seeking to raise funds will not be a supply for VAT purposes (see VATFIN4250).