Finance Act 2010

54 SDRT: depositary receipt systems and clearance services systems U.K.

(1) Part 4 of FA 1986 (stamp duty reserve tax) is amended as follows.

(2) In section 95(1) (depositary receipts: exceptions), before “there shall be” insert “ subject to section 97C, ”.

(3) In section 97(1) (clearance services: exceptions), before “there shall be” insert “ subject to section 97C, ”.

(4) In section 97B (transfer between depositary receipt system and clearance system), after subsection (1) insert—

“(1A) Subsection (1) is subject to section 97C.”

(5) After that section insert—

“97C Transfers to non-EU depositary receipt and clearance services systems

(1) This section applies where arrangements are made in accordance with which chargeable securities are—

(a) issued to an EU system, and

(b) subsequently transferred from an EU system to a non-EU system.

(2) Nothing in section 95(1), 97(1) or 97B(1) disapplies a charge to tax under section 93 or 96 in respect of that transfer if—

(a) the chargeable securities have not previously been transferred, or

(b) where they have previously been transferred, the transfer (or, if more than one, each of them) was an exempt transfer.

(3) For the purposes of subsection (1)(a) chargeable securities are issued to an EU system if—

(a) pursuant to an arrangement of the kind mentioned in section 93(1), they are issued to a nominee in respect of an EU depositary receipt issuer, or

(b) pursuant to an arrangement of the kind mentioned in section 96(1), they are issued to a nominee in respect of an EU clearance service operator.

(4) For the purposes of subsection (1)(b)—

(a) a transfer is from an EU system if it is from a company which is incorporated under the law of a member State and at the time of the transfer falls within section 67(6) or 70(6), and

(b) a transfer is to a non-EU system if it is to a company which is not incorporated under the law of a member State and at the time of the transfer falls within section 67(6) or 70(6).

(5) In this section—

• “arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable);

• “EU clearance service operator” means a person—

  (a)

  whose business is or includes the provision of clearance services for the purchase and sale of chargeable securities, and

  (b)

  who—

  (i)

  if it is a company, is incorporated under the law of a member State, and

  (ii)

  in any other case, is resident in a member State;

• “EU depositary receipt issuer” means a person—

  (a)

  whose business is or includes issuing depositary receipts for chargeable securities, and

  (b)

  who—

  (i)

  if it is a company, is incorporated under the law of a member State, and

  (ii)

  in any other case, is resident in a member State;

• “exempt transfer” means a transfer in respect of which, by reason of section 90(5), 95(1), 97(1) or 97B(1), no charge to stamp duty reserve tax arises;

• “nominee”—

  (a)

  in respect of an EU clearance service operator, means a person whose business is or includes holding chargeable securities as nominee for the EU clearance service operator, and

  (b)

  in respect of an EU depositary receipt issuer, means a person whose business is or includes holding chargeable securities as nominee or agent for the EU depositary receipt issuer.”

(6) The amendments made by this section have effect in relation to transfers of chargeable securities on or after 1 October 2009.