The recent decision of the First-tier Tribunal in HSBC Holdings PLC and The Bank of New York Mellon Corporation v HMRC [2012] UK FTT 163 has held that the Capital Duties Directive prohibits the UK's 1.5% SDRT charge on issues or transfers of shares into an American Depository Receipt (ADR) programme, where that issue or transfer forms an integral part of the raising of capital.
In HSBC Holdings PLC and Vidacos Nominees Ltd v HMRC (C-569/07) the CJEU held in 2009 that the Capital Duties Directive prohibited the UK's 1.5% SDRT charge on the issue of shares to a clearance service within the EU. Following Vidacos the outstanding question was whether it would apply where the depository or clearance service was...
