PART IIISTAMP DUTY
Loan capital, letters of allotment etc.
C3F1C1C280A Sales to intermediaries.
1
Stamp duty shall not be chargeable on an instrument transferring stock of a particular kind on sale to a person or his nominee if—
a
the person is a member of an EEA exchange, or a recognised foreign exchange, on which stock of that kind is regularly traded;
b
the person is an intermediary and is recognised as an intermediary by the exchange in accordance with arrangements approved by the Commissioners; and
c
the sale is effected on the exchange.
2
Stamp duty shall not be chargeable on an instrument transferring stock of a particular kind on sale to a person or his nominee if—
a
the person is a member of an EEA exchange or a recognised foreign options exchange;
b
options to buy or sell stock of that kind are regularly traded on that exchange and are listed by or quoted on that exchange;
c
the person is an options intermediary and is recognised as an options intermediary by that exchange in accordance with arrangements approved by the Commissioners; and
d
the sale is effected on an EEA exchange, or a recognised foreign exchange, on which stock of that kind is regularly traded or subsection (3) below applies.
3
This subsection applies if—
a
the sale is effected on an EEA exchange, or a recognised foreign options exchange, pursuant to the exercise of a relevant option; and
b
options to buy or sell stock of the kind concerned are regularly traded on that exchange and are listed by or quoted on that exchange.
4
For the purposes of this section—
a
an intermediary is a person who carries on a bona fide business of dealing in stock and does not carry on an excluded business; and
b
an options intermediary is a person who carries on a bona fide business of dealing in quoted or listed options to buy or sell stock and does not carry on an excluded business.
5
The excluded businesses are the following—
a
any business which consists wholly or mainly in the making or managing of investments;
b
any business which consists wholly or mainly in, or is carried on wholly or mainly for the purpose of, providing services to persons who are connected with the person carrying on the business;
c
any business which consists in insurance business;
d
any business which consists in managing or acting as trustee in relation to a pension scheme or which is carried on by the manager or trustee of such a scheme in connection with or for the purposes of the scheme;
e
any business which consists in operating or acting as trustee in relation to a collective investment scheme or is carried on by the operator or trustee of such a scheme in connection with or for the purposes of the scheme.
6
A sale is effected on an exchange for the purposes of subsection (1) or (2) above if (and only if)—
a
it is subject to the rules of the exchange; and
b
it is reported to the exchange in accordance with the rules of the exchange.
7
An instrument on which stamp duty is not chargeable by virtue only of this section shall not be deemed to be duly stamped unless it has been stamped with a stamp denoting that it is not chargeable with any duty; and notwithstanding anything in section 122(1) of the M1Stamp Act 1891, the stamp may be a stamp of such kind as the Commissioners may prescribe.