HC Deb 18 July 2000 vol 354 cc257-8

'.—(1) In Part III of the Finance Act 1986 (stamp duty), after section 72 insert—

"Transfers between depositary receipt system and clearance

system

72A.—(1) Where an instrument transfers relevant securities of a company incorporated in the United Kingdom between a depositary receipt system and a clearance system—

  1. (a) the provisions of section 67(2) to (5) or, as the case may be, section 70(2) to (5) above shall not apply, and
  2. (b) the stamp duty chargeable on the instrument is £5.

(2) A transfer between a depositary receipt system and a clearance system means a transfer—

  1. (a) from (or to) a company that at the time of the transfer falls within section 67(6) above, and
  2. (b) to (or from) a company that at that time falls within section 70(6) above.

(3) This section does not apply to a transfer from a clearance system (that is, from such a company as is mentioned in subsection (2)(b) above) if at the time of the transfer an election is in force under section 97A below in relation to the clearance services for the purposes of which the securities are held immediately before the transfer.".

(2) In Part IV of the Finance Act 1986 (stamp duty reserve tax), after section 97A insert—

"Transfer between depositary receipt system and clearance

system

97B.—(1) There shall be no charge to tax under section 93 or 96 above where securities are transferred between a depositary receipt system and a clearance system.

(2) A transfer between a depositary receipt system and a clearance system means a transfer—

  1. (a) from (or to) a company which at the time of the transfer falls within section 67(6) above, and
  2. (b) to (or from) a company which at that time falls within section 70(6) above.

(3) This section does not apply to a transfer from a clearance system (that is, from such a company as is mentioned in subsection (2)(b) above) if at the time of the transfer an election is in force under section 97A above in relation to the clearance services for the purposes of which the securities are held immediately before the transfer.".

(3) In sections 67(9), 70(9), 95(1) and 97(1) of the Finance Act 1986 (transfers between depositary receipt systems or between clearance systems), the words "and is resident in the United Kingdom" and "and is so resident" shall cease to have effect.

(4) In section 97A of that Act (clearance services: election for alternative system of charge), after subsection (12) add— (13) Nothing in section 70(9) or 97(1) above has effect to prevent a charge to stamp duty or stamp duty reserve tax arising—

  1. (a) on a transfer to which subsection (5) above applies, or
  2. (b) on a deemed transfer under subsection (11) above.".

(5) The amendments in this section have effect as follows—

  1. (a) subsection (1), and subsections (3) and (4) as they apply for stamp duty purposes, apply in relation to instruments executed after the day on which this Act is passed;
  2. (b) subsection (2), and subsections (3) and (4) as they apply for the purposes of stamp duty reserve tax, apply where the securities are transferred after that day.'.—[Mr. Jamieson.]

Brought up, read the First and Second time, and added to the Bill.

Forward to