Explanatory Note
(This note is not part of the Regulations)
These Regulations provide for UK depositary interests in foreign securities to be excluded from the definition of “chargeable securities” in Part IV of the Finance Act 1986 for the purposes of stamp duty reserve tax.
Regulation 1 provides for citation and commencement.
Regulation 2 provides for interpretation and includes definitions of “depositary interest”, “UK depositary interest” and “foreign securities”.
Regulation 3 provides that a UK depositary interest in foreign securities is not a chargeable security for the purposes of Part IV of the Finance Act 1986.
Regulation 4 provides for the giving of notice to the Inland Revenue where an operator of an electronic system first treats a depositary interest relating to a particular foreign security as one to which regulation 3 applies.
Regulation 5 amends Part I of the Schedule to the Stamp Duty Reserve Tax Regulations 1986 (“the principal Regulations”) by amending the entry relating to section 98 of the Taxes Management Act 1970 (“the Management Act”). The amendment reflects the obligations on operators under regulation 4 of these Regulations.
Regulation 6 amends Part II of the Schedule to the principal Regulations by amending section 98 of the Management Act as modified.