C3C4C5C10C11 Part IVStamp Duty Reserve Tax
Pt. 4: power to restrict conferred (27.7.1999) by Finance Act 1999 (c. 16), s. 119 (with s. 123(4))
Pt. 4: power to extend conferred (1.5.1995) by Finance Act 1995 (c. 4), s. 152(2)(b)(6)
Pt. 4: 2019 c. 1, s. 48 construed as one with this Part (with effect in accordance with s. 48(12) of the amending Act) by Finance Act 2019 (c. 1), s. 48(11)
Pt. 4: 2019 c. 1, s. 48A construed as one with this Part by 2019 c. 1, s. 48A(9) (as inserted (22.7.2020) by Finance Act 2020 (c. 14), s. 78)
The principal charge
C6C7C8C9C1C2F188A Section 87: exceptions for intermediaries.
F21
Section 87 above shall not apply as regards an agreement to transfer securities of a particular kind to B or B's nominee if—
a
B is a member of a regulated market on which securities of that kind are regularly traded; and
b
B is an intermediary and is recognised as such by the market in accordance with arrangements approved by the Commissioners for Her Majesty's Revenue and Customs (“the Commissioners”).
1A
Section 87 above shall not apply as regards an agreement to transfer securities of a particular kind to B or B's nominee if—
a
B is a member of a multilateral trading facility, or a recognised foreign exchange, on which securities of that kind are regularly traded;
b
B is an intermediary and is recognised as such by the facility or exchange in accordance with arrangements approved by the Commissioners; and
c
the agreement is effected on the facility or exchange.
1B
Section 87 above shall not apply as regards an agreement to transfer securities of a particular kind to B or B's nominee if—
a
B is an intermediary who is approved for the purposes of this section by the Commissioners; and
b
securities of that kind are regularly traded on a regulated market.
1C
Section 87 above shall not apply as regards an agreement to transfer securities of a particular kind to B or B's nominee if—
a
B is an intermediary who is approved for the purposes of this section by the Commissioners;
b
securities of that kind are regularly traded on a multilateral trading facility or a recognised foreign exchange; and
c
the agreement is effected on the facility or exchange.
2
Section 87 above shall not apply as regards an agreement to transfer securities of a particular kind to B or B's nominee if—
a
B is a member of a regulated market, a multilateral trading facility or a recognised foreign options exchange;
b
options to buy or sell securities of that kind are regularly traded on, and are listed by or quoted on, that market, facility or exchange;
c
B is an options intermediary and is recognised as such by that market, facility or exchange in accordance with arrangements approved by the Commissioners; and
d
securities of that kind are regularly traded on a regulated market.
2A
Section 87 above shall not apply as regards an agreement to transfer securities of a particular kind to B or B's nominee if—
a
B is a member of a regulated market, a multilateral trading facility or a recognised foreign options exchange;
b
options to buy or sell securities of that kind are regularly traded on, and are listed by or quoted on, that market, facility or exchange;
c
B is an options intermediary and is recognised as such by that market, facility or exchange in accordance with arrangements approved by the Commissioners; and
d
the agreement is effected on a relevant qualifying exchange on which securities of that kind are regularly traded or is effected on a relevant qualifying exchange pursuant to the exercise of a relevant option and options to buy or sell securities of that kind are regularly traded on, and are listed by or quoted on, that exchange;
and in paragraph (d) “relevant qualifying exchange” means a multilateral trading facility, a recognised foreign options exchange or a recognised foreign exchange.
2B
Section 87 above shall not apply as regards an agreement to transfer securities of a particular kind to B or B's nominee if—
a
B is an options intermediary who is approved for the purposes of this section by the Commissioners;
b
options to buy or sell securities of that kind are regularly traded on, and are listed by or quoted on, a regulated market, a multilateral trading facility or a recognised foreign options exchange; and
c
securities of that kind are regularly traded on a regulated market.
2C
Section 87 above shall not apply as regards an agreement to transfer securities of a particular kind to B or B's nominee if—
a
B is an options intermediary who is approved for the purposes of this section by the Commissioners;
b
options to buy or sell securities of that kind are regularly traded on, and are listed by or quoted on, a regulated market, a multilateral trading facility or a recognised foreign options exchange; and
c
the agreement is effected on a relevant qualifying exchange on which securities of that kind are regularly traded or is effected on a relevant qualifying exchange pursuant to the exercise of a relevant option and options to buy or sell securities of that kind are regularly traded on, and are listed by or quoted on, that exchange;
and in paragraph (c) “relevant qualifying exchange” means a multilateral trading facility, a recognised foreign options exchange or a recognised foreign exchange.
4
For the purposes of this section—
a
an intermediary is a person who carries on a bona fide business of dealing in chargeable securities 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 chargeable securities 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
An agreement is effected on F4a facility or an exchange for the purposes of F5this section if (and only if)—
a
it is subject to the rules of F6the facility or exchange; and
F36A
The Commissioners may approve a person for the purposes of this section only if the person
F8a
is authorised under the law of an EEA State F9or Gibraltar to provide any of the investment services or activities listed in Section A 2 or 3 of Annex I to the Directive (execution of orders on behalf of clients and dealing on own account), whether or not the person is authorised under the DirectiveF7or
b
has permission under the Financial Services and Markets Act 2000 to carry on any of the investment services or activities in paragraph 2 or 3 of Part 3 of Schedule 2 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001.
Pt. 4: construed as one with 1999 c. 16, Pt. VI (27.7.1999) by Finance Act 1999 (c. 16), s. 123(1)