§ Mr. DykesTo ask the Chancellor of the Exchequer how many representations he has received on the issue of the imposition of stamp duty reserve tax on American depositary receipts issued on behalf of United Kingdom companies; and from whom.
§ Mr. Nelson[holding answer 17 December 1993]: I have received a few representations on this matter.
§ Mr. DykesTo ask the Chancellor of the Exchequer (1) what assessment he has made about the impact of stamp duty reserve tax on rights and scrip issues arising from American depositary receipts issued on behalf of United Kingdom companies on inward investment into the United Kingdom;
(2) if he will outline the Government's policy on the taxation of rights offers and scrip issues taken up by American shareholders of American depositary receipts issued on behalf of United Kingdom companies.
§ Mr. Nelson[holding answer 17 December 1993]: Higher rate stamp duty reserve tax applies to all new shares going into depositary receipt form, including rights and scrip issues. This reflects the fact that stamp duty reserve is not charged on transactions in the depositary receipts themselves. These arrangements provide a fair balance between investment in depositary receipt form and investment through direct shareholdings.