4.—(1) In the circumstances prescribed by paragraph (2), a charge to stamp duty or to stamp duty reserve tax shall be treated as not arising.
(2) The circumstances prescribed are where, as a result of the exercise of options, equity securities of a particular kind are transferred or issued or agreed to be transferred or issued—
(a)to The London Clearing House Limited; or
(b)to a person whose business is or includes holding such securities as a nominee for The London Clearing House Limited.
(3) References in this regulation and in regulation 5 to The London Clearing House Limited are references to that clearing house in its capacity as a person providing clearing services in connection with a transaction made on LIFFE.