EXPLANATORY NOTE
(This note is not part of the Regulations)
Section 89AA of the Finance Act 1986 provides that where chargeable securities are transferred under a stock lending or sale and repurchase arrangement, both the outward and the return delivery are relieved from Stamp Duty Reserve Tax, reflecting the temporary nature of the arrangement. The relief is subject to certain conditions including that securities of the same kind and amount must be returned to the lender or seller at the end of the arrangement.
The Regulations insert a requirement that the securities be transferred in both directions in accordance with the arrangement as a condition for relief.
A full and final Impact Assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.