Jessica Kemp (Travers Smith) considers two recent developments concerning the stamp charge in relation to the issue and transfer of UK shares to clearance services and depositaries.
The history of the charge: a summary
The Finance Act 1986 contains provision at ss 67 70 93 and 96 for the application of a 1.5% stamp duty charge on the issue and/or transfer of shares in a UK company into a depositary or clearance service.
The origin of the 1.5% charge was a probably accurate perception on the part of the government of the day that it would be impractical to enforce the 0.5% stamp duty reserve tax (SDRT) charge that would otherwise arise on the transfer of depositary receipts or of interests in UK securities within clearance systems. The 1.5% charge was therefore introduced as a ‘season...
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Jessica Kemp (Travers Smith) considers two recent developments concerning the stamp charge in relation to the issue and transfer of UK shares to clearance services and depositaries.
The history of the charge: a summary
The Finance Act 1986 contains provision at ss 67 70 93 and 96 for the application of a 1.5% stamp duty charge on the issue and/or transfer of shares in a UK company into a depositary or clearance service.
The origin of the 1.5% charge was a probably accurate perception on the part of the government of the day that it would be impractical to enforce the 0.5% stamp duty reserve tax (SDRT) charge that would otherwise arise on the transfer of depositary receipts or of interests in UK securities within clearance systems. The 1.5% charge was therefore introduced as a ‘season...
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
