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Statutory Instruments

2009 No. 1832

Stamp Duty

Stamp Duty Reserve Tax

The Stamp Duty and Stamp Duty Reserve Tax (Investment Exchanges and Clearing Houses) Regulations (No. 11) 2009

Made

9th July 2009

Laid before the House of Commons

9th July 2009

Coming into force

3rd August 2009

The Treasury make the following Regulations in exercise of the powers conferred on them by sections 116 and 117 of the Finance Act 1991( 1 ).

Citation and commencement

1. β€”(1) These Regulations may be cited as the Stamp Duty and Stamp Duty Reserve Tax (Investment Exchanges and Clearing Houses) Regulations (No. 11) 2009 and shall come into force on 3rd August 2009.

(2) These Regulations shall have effectβ€”

(a) for the purposes of the charge to stamp duty, in relation to instruments executed on or after 3rd August 2009;

(b) for the purposes of the charge to stamp duty reserve taxβ€”

(i) in the case of agreements to transfer traded securities which are not conditional, in relation to agreements made on or after 3rd August 2009;

(ii) in the case of agreements to transfer traded securities which are conditional, in relation to agreements where the condition is satisfied on or after that date.

Interpretation

2. β€”(1) In these Regulationsβ€”

β€œclearing participant” means a member of either (a) CC&G who as such is permitted by the Rules of CC&G or (b) EMCF who as such is permitted by the Rules of EMCF, to clear transactions made on the Facility for a traded security and who may or may not also be a participant in the Facility;

β€œclient” means a person who gives instructions to a non-clearing firm for traded securities to be sold on the Facility;

β€œCC&G” means Cassa di Compensazione e Garanzia S.p.A., a company which is a recognised clearing house under the Financial Services and Markets Act 2000( 2 );

β€œEMCF” means European Multilateral Clearing Facility NV, a company which is a recognised clearing house under the Financial Services and Markets Act 2000;

β€œthe Facility” means the multilateral trading facility operated by Baikal Global Limited, a company which is permitted to operate a multilateral trading facility for the purposes of Part IV of the Financial Services and Markets Act 2000;

β€œnominee” means a person whose business is or includes holding traded securities as a nominee for either CC&G or EMCF acting in their capacity as a person providing clearing services in connection with a transaction made on the Facility, or as a nominee for a clearing participant (as the case may be);

β€œnon-clearing firm” means a participant in the Facility other than a clearing participant; and

β€œtraded securities” means stocks and shares which are issued or raised by a company but does not include stocks and shares issued by a company not incorporated in the United Kingdom unlessβ€”

(a)

the stocks and shares are registered in a register kept in the United Kingdom by or on behalf of the company; or

(b)

in the case of shares, they are paired, within the meaning of section 99(6A) of the Finance Act 1986( 3 ), with shares issued by a company incorporated in the United Kingdom.

Prescription of recognised investment exchanges and recognised clearing houses

3. For the purpose of sections 116 and 117 of the Finance Act 1991β€”

(a) The Facility is prescribed as a recognised investment exchange;

(b) CC&G is prescribed as a recognised clearing house; and

(c) EMCF is prescribed as a recognised clearing house.

Prescribed circumstances for the purposes of sections 116 and 117

4. β€”(1) In the circumstances prescribed in this regulation, a charge to stamp duty or stamp duty reserve tax shall be treated as not arising.

(2) The circumstances prescribed are where, in connection with a transaction made on the Facility, conditions A and B below are met.

(3) Condition A is that traded securities of a particular kind are issued or transferred, or agreed to be issued or transferred, fromβ€”

(a) a clearing participant or a nominee of a clearing participant to another clearing participant or a nominee of another clearing participant;

(b) a non-clearing firm or its client to a clearing participant or a nominee of a clearing participant;

(c) a clearing participant or a nominee of a clearing participant to CC&G or EMCF, or to a nominee of either CC&G or EMCF;

(d) a person other than a clearing participant to CC&G or EMCF, or to a nominee of CC&G or EMCF, as a result of a failure by a clearing participant to fulfil his obligations in respect of the transaction concerned to transfer traded securities to CC&G or EMCF, or to a nominee of either CC&G or EMCF;

(e) CC&G or EMCF, or a nominee of either CC&G or EMCF, to a clearing participant or a nominee of a clearing participant;

(f) CC&G or a nominee of CC&G to EMCF or a nominee of EMCF; or

(g) EMCF or a nominee of EMCF to CC&G or a nominee of CC&G.

(4) Condition B is that the person to whom those securities are agreed to be transferred under any of the agreements specified in paragraph (3) (β€œthe relevant agreement”) is required on receipt of those securities to transfer traded securities under a matching agreement to another person or, in the case of an agreement falling within paragraph (3)(d), would have been so required if the failure referred to in that paragraph had not occurred.

(5) In paragraph (4)β€”

(a) a β€œmatching agreement” means an agreement under whichβ€”

(i) the traded securities agreed to be transferred are of the same kind as the traded securities agreed to be transferred under the relevant agreement, and

(ii) the number and transfer price of the traded securities agreed to be transferred are identical to the number and transfer price of the traded securities agreed to be transferred under the relevant agreement;

(b) references to CC&G or EMCF are references to that clearing house in its capacity as a person providing clearing services in connection with a transaction made on the Facility;

(c) references to a clearing participant are references to a clearing participant in its capacity as such.

Consequential provision

5. β€”(1)Traded securities which are the subject of an agreement specified in regulation 4(3) shall be dealt with by a clearing participant who is party to the agreement in a separate designated account, and not otherwise.

(2) In paragraph (1) β€œdesignated account” means an account designated by CC&G or EMCF for a clearing participant in connection with the traded securities concerned.

Dave Watts

Frank Roy

Two of the Lords Commissioners of Her Majesty’s Treasury

9th July 2009

( 1 )

1991 c. 31 . Section 116(4) was amended by paragraph 5 of Schedule 20 to the Financial Services and Markets Act 2000 (c. 8) and by paragraph 7 of Schedule 21 to the Finance Act 2007 (c. 11) .

( 3 )

1986 c. 41 . Subsections (3) to (6A) was amended by section 113(2) of the Finance Act 1990 (c.29) . The whole of Part 4 of the 1986 Act is to be repealed from a date to be appointed (see sections 110 and 111(1) of the 1990 Act).

Status: This is the original version (as it was originally made). This item of legislation is currently only available in its original format.
The Stamp Duty and Stamp Duty Reserve Tax (Investment Exchanges and Clearing Houses) Regulations (No. 11) 2009 (2009/1832)

Displaying information

Status of this instrument

footnotecommentarytransitional and savingsin force statusrelated provisionsgeo extentinsert/omitsource countin force adj
Defined TermSection/ArticleIDScope of Application
clearing participant 2.clearing_p_rtkup1G
client 2.client_rtQ1vhe
designated account 5.designated_rtW4DP0
EMCF 2.EMCF_rthSstz
matching agreement 4.matching_a_rtk6CMu
nominee 2.nominee_rtETRfs
non-clearing firm 2.non-cleari_rtjmWTO
the Facility 2.the_Facili_rt7sJ9N
the relevant agreement 4.(β€œ_prnG3mgw
traded securities 2.traded_sec_rtEiQcJ
This instrument is derived from the version at www.legislation.gov.uk. To see a list of all amendments (including any to be made) check the resources page for this instrument on their website. Note, the status of this instrument is given above.
This instrument is derived from the version at www.legislation.gov.uk. To see original commencement information, check the resources page associated with this instrument. n.b. commencement information for marked amendments is embedded in the relevant footnote.

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