Finance Act 2007

Intermediaries

4 (1) Section 88B of FA 1986 (exemption from SDRT on sales to intermediaries: supplementary) is amended as follows.

(2) In subsection (2)—

(a) after the definition of “collective investment scheme” insert—

““the Directive” means Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments, as amended from time to time;”,

(b) omit the definition of “EEA exchange”, and

(c) in the definition of “EEA State”, for “means a State which” substitute “, in relation to any time, means a State which at that time is a member State or any other State which at that time” and insert at the end “(as modified or supplemented from time to time)”.

(3) After that subsection insert—

“(2A) Each of the following expressions—

• “multilateral trading facility”, and

• “regulated market”,

has the same meaning in section 88A above as it has for the purposes of the Directive.”

(4) After subsection (3) insert—

“(3A) The Treasury may by regulations amend section 88A above and this section (as they have effect for the time being) in order to extend the exemption from tax under that section.”

(5) In subsection (5) (power for regulations to provide for SDRT to be chargeable at a rate not exceeding 0.1%), for “subsection (1) or (2)” substitute “any of subsections (1) to (2C)”.

(6) In subsection (7) (regulations exercisable by statutory instrument and subject to annulment), for “(4)” substitute “(3A)”.

(7) The amendments made by this paragraph have effect in relation to any agreement to transfer securities—

(a) in a case where the agreement is conditional, if the condition is satisfied on or after 1st November 2007, and

(b) in any other case, if the agreement is made on or after that date.