Part 2Anti-avoidance and revenue protection
Stamp taxes
54SDRT: depositary receipt systems and clearance services systems
1
Part 4 of FA 1986 (stamp duty reserve tax) is amended as follows.
2
In section 95(1)
(depositary receipts: exceptions), before “there shall be” insert “
subject to section 97C,
”
.
3
In section 97(1)
(clearance services: exceptions), before “there shall be” insert “
subject to section 97C,
”
.
4
In section 97B (transfer between depositary receipt system and clearance system), after subsection (1) insert—
1A
Subsection (1) is subject to section 97C.
5
After that section insert—
97CTransfers to non-EU depositary receipt and clearance services systems
1
This section applies where arrangements are made in accordance with which chargeable securities are—
a
issued to an EU system, and
b
subsequently transferred from an EU system to a non-EU system.
2
Nothing in section 95(1), 97(1) or 97B(1) disapplies a charge to tax under section 93 or 96 in respect of that transfer if—
a
the chargeable securities have not previously been transferred, or
b
where they have previously been transferred, the transfer (or, if more than one, each of them) was an exempt transfer.
3
For the purposes of subsection (1)(a) chargeable securities are issued to an EU system if—
a
pursuant to an arrangement of the kind mentioned in section 93(1), they are issued to a nominee in respect of an EU depositary receipt issuer, or
b
pursuant to an arrangement of the kind mentioned in section 96(1), they are issued to a nominee in respect of an EU clearance service operator.
4
For the purposes of subsection (1)(b)—
a
a transfer is from an EU system if it is from a company which is incorporated under the law of a member State and at the time of the transfer falls within section 67(6) or 70(6), and
b
a transfer is to a non-EU system if it is to a company which is not incorporated under the law of a member State and at the time of the transfer falls within section 67(6) or 70(6).
5
In this section—
“arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable);
“EU clearance service operator” means a person—
- a
whose business is or includes the provision of clearance services for the purchase and sale of chargeable securities, and
- b
who—
- i
if it is a company, is incorporated under the law of a member State, and
- ii
in any other case, is resident in a member State;
“EU depositary receipt issuer” means a person—
- a
whose business is or includes issuing depositary receipts for chargeable securities, and
- b
who—
- i
if it is a company, is incorporated under the law of a member State, and
- ii
in any other case, is resident in a member State;
“exempt transfer” means a transfer in respect of which, by reason of section 90(5), 95(1), 97(1) or 97B(1), no charge to stamp duty reserve tax arises;
“nominee”—
- a
in respect of an EU clearance service operator, means a person whose business is or includes holding chargeable securities as nominee for the EU clearance service operator, and
- b
in respect of an EU depositary receipt issuer, means a person whose business is or includes holding chargeable securities as nominee or agent for the EU depositary receipt issuer.
6
The amendments made by this section have effect in relation to transfers of chargeable securities on or after 1 October 2009.
55SDLT: partnerships
1
In section 75C of FA 2003 (SDLT anti-avoidance: supplemental)—
a
in subsection (8), omit paragraph (b) (and the “and” before it), and
b
after that subsection insert—
8A
Nothing in Part 3 of Schedule 15 applies to the notional transaction under section 75A.
2
The amendments made by subsection (1) have effect in relation to any notional transaction of which the effective date is on or after 24 March 2010.
3
But those amendments do not have effect in relation to a notional transaction if any scheme transaction is—
a
completed before that date,
b
effected in pursuance of a contract entered into and substantially performed before that date, or
c
effected in pursuance of a contract entered into before that date and not excluded by subsection (4).
4
A scheme transaction effected in pursuance of a contract entered into before 24 March 2010 is excluded by this subsection if—
a
there is any variation of the contract, or assignment (or assignation) of rights under the contract, on or after 24 March 2010,
b
the transaction is effected in consequence of the exercise on or after that date of any option, right of pre-emption or similar right, or
c
it is a land transaction and on or after that date there is an assignment (or assignation), subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.