The Treasury may by regulations make provision excluding from the definition of “chargeable securities” in Part IV of the M1Finance Act 1986 such rights in or in relation to securities as, in accordance with the regulations, are to be treated as exempt UK depositary interests in foreign securities.

The regulations shall not make provision for the exemption of a depositary interest unless the terms of issue of the interest are such that it can only be transferred in accordance with regulations under section F1785 of the M2Companies Act F12006 (transfer of securities without written instrument) or by means of a transfer within section 186(1) of the M3Finance Act 1996 (transfer of securities to member of electronic transfer system).

The regulations may contain such incidental, supplementary, consequential and transitional provision as appears to the Treasury to be appropriate.

This may include provision modifying the enactments relating to stamp duty reserve tax for the purpose of giving effect to the exemption conferred by regulations under this section (or, where earlier regulations are varied or revoked, withdrawing an exemption formerly conferred).

Regulations under this section may make different provision for different cases.

Regulations under this section shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of the House of Commons.