Draft legislation (accessible version)
Published 14 September 2023
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1 Stamp duty and SDRT: capital-raising arrangements etc
Schedule 1 makes provision for and in connection with ensuring that it continues to be the case that바카라 사이트�
(a) no 1.5% charge to stamp duty or stamp duty reserve tax arises in relation to바카라 사이트�
(i) issues of securities or stock, and
(ii) transfers of securities made in the course of capital-raising arrangements, and
(b) no charge to stamp duty arises in relation to the issue of bearer instruments.
SCHEDULE 1
STAMP DUTY AND SDRT: CAPITAL-RAISING ARRANGEMENTS ETC
PART 1
DEPOSITARY RECEIPTS AND CLEARANCE SERVICES
Introduction
1 FA 1986 is amended as follows.
Stamp duty
2 In section 67 (stamp duty: depositary receipts)바카라 사이트�
(a) in the heading, at the end insert 바카라 사이트�1.5% charge바카라 사이트�;
(b) in subsection (1) omit 바카라 사이트�(other than a bearer instrument)바카라 사이트�;
(c) after that subsection insert바카라 사이트�
바카라 사이트�(1A) For the purposes of subsection (1) 바카라 사이트渋nstrument바카라 사이트� does not include바카라 사이트�
(a) a bearer instrument (see subsection (9A));
(b) an exempt capital-raising instrument (see section 72ZA).바카라 사이트�
3 In section 70 (stamp duty: clearance services)바카라 사이트�
(a) in the heading, at the end insert 바카라 사이트�1.5% charge바카라 사이트�;
(b) in subsection (1) omit 바카라 사이트�(other than a bearer instrument)바카라 사이트�;
(c) after that subsection insert바카라 사이트�
바카라 사이트�(1A) For the purposes of subsection (1) 바카라 사이트渋nstrument바카라 사이트� does not include바카라 사이트�
(a) a bearer instrument (see subsection 9A);
(b) an exempt capital-raising instrument (see section 72ZA).바카라 사이트�
4 After section 72 (clearance services: supplementary) insert바카라 사이트�
바카라 사이트淢eaning of 바카라 사이트渆xempt capital-raising instrument바카라 사이트�
72ZA Meaning of 바카라 사이트渆xempt capital-raising instrument바카라 사이트�
(1) For the purposes of sections 67 and 70, an instrument is an 바카라 사이트渆xempt capital-raising instrument바카라 사이트� if either of the following conditions is met.
(2) The first condition is that the instrument transfers relevant securities in the course of capital-raising arrangements.
(3) The second condition is that바카라 사이트�
(a) a person (바카라 사이트渢he transferor바카라 사이트�) acquires relevant securities바카라 사이트�
(i) before capital-raising arrangements are entered into, or
(ii) in the course of capital-raising arrangements,
(b) the transferor is subject to a prohibition that has the effect of preventing the transfer of the relevant securities in the course of the capital-raising arrangements, and
(c) the instrument transfers the relevant securities as soon as reasonably practicable after the time at which the prohibition ceases to have effect.
(4) In this section 바카라 사이트渃apital-raising arrangements바카라 사이트� means arrangements pursuant to which relevant securities are issued by a company for the purpose of raising new capital.바카라 사이트�
Stamp duty reserve tax
5 (1) In the italic heading before section 93 (SDRT: depositary receipts), at the end insert 바카라 사이트�: depositary receipts바카라 사이트�.
(2) In that section바카라 사이트�
(a) in the heading, at the end insert 바카라 사이트�: 1.5% charge바카라 사이트�;
(b) in subsection (1)바카라 사이트�
(i) in the words before paragraph (a) omit 바카라 사이트淪ubject to subsection (7) below and section 95 below,바카라 사이트�;
(ii) in paragraph (b) omit 바카라 사이트渙r issued바카라 사이트�;
(c) after that subsection insert바카라 사이트�
바카라 사이트�(1A) The following provisions contain exceptions to the charge to stamp duty reserve tax under this section바카라 사이트�
(a) subsection (7) of this section (exception so far as stamp duty is chargeable);
(b) section 95 (general exceptions);
(c) section 95A (replacement securities);
(d) section 97ZB (exempt capital-raising transfers);
(e) section 97B (transfers between depositary receipt system and clearance system).바카라 사이트�;
(d) in subsection (4) omit paragraph (a);
(e) omit subsection (10).
6 In section 95 (depositary receipts: exceptions)바카라 사이트�
(a) in subsection (1), in the words after paragraph (b) omit 바카라 사이트渟ubject to section 97C,바카라 사이트�;
(b) in subsection (2), in the words before paragraph (a) omit 바카라 사이트�, issue바카라 사이트�;
(c) omit subsections (3) to (5);
(d) omit subsection (7).
7 In section 95A (depositary receipts: exception for replacement securities)바카라 사이트�
(a) in subsection (1) omit 바카라 사이트�, issue바카라 사이트�;
(b) in subsection (3)바카라 사이트�
(i) in paragraph (a), in the words before sub-paragraph (i) omit 바카라 사이트�, issue바카라 사이트�;
(ii) in paragraph (b) omit 바카라 사이트渙r (3)바카라 사이트�;
(c) in subsection (4), in paragraph (a) omit 바카라 사이트�, issued바카라 사이트�.
8 (1) Before section 96 (SDRT: clearance services) insert바카라 사이트�
바카라 사이트淥ther charges: clearance services바카라 사이트�.
(2) In that section바카라 사이트�
(a) in the heading, at the end insert 바카라 사이트�: 1.5% charge바카라 사이트�;
(b) in subsection (1)바카라 사이트�
(i) in the words before paragraph (a) omit 바카라 사이트淪ubject to subsection (5) below and sections 97 and 97A below,바카라 사이트�;
(ii) in paragraph (b) omit 바카라 사이트渙r issued바카라 사이트�;
(c) after that subsection insert바카라 사이트�
바카라 사이트�(1A) The following provisions contain exceptions to the charge to stamp duty reserve tax under this section바카라 사이트�
(a) subsection (5) of this section (exception so far as stamp duty is chargeable);
(b) section 97 (general exceptions);
(c) section 97ZA (exception for replacement securities);
(d) section 97A (election for alternative system of charge);
(e) section 97ZB (exempt capital-raising transfers);
(f) section 97B (transfers between depositary receipt system and clearance system).바카라 사이트�;
(d) in subsection (2) omit paragraph (a);
(e) omit subsection (8).
9 (1) Section 97 (clearance services: exceptions) is amended as follows.
(2) In subsection (1), in the words after paragraph (b) omit 바카라 사이트渟ubject to section 97C,바카라 사이트�.
(3) In subsection (3), in the words before paragraph (a) omit 바카라 사이트渙r issue바카라 사이트�.
(4) Omit subsections (4) to (6).
10 (1) Section 97AA (clearance services: further exception) is renumbered section 97ZA.
(2) In that section바카라 사이트�
(a) in the heading, for 바카라 사이트渇urther exception바카라 사이트� substitute 바카라 사이트渆xception for replacement securities바카라 사이트�;
(b) in subsection (1) omit 바카라 사이트渙r issue바카라 사이트�;
(c) in subsection (3)바카라 사이트�
(i) in paragraph (a), in the words before sub-paragraph (i) omit 바카라 사이트渙r issue바카라 사이트�;
(ii) in paragraph (b) omit 바카라 사이트渙r (4)바카라 사이트�;
(d) in subsection (4), in paragraph (a) omit 바카라 사이트渙r issued바카라 사이트�.
11 (1) Section 97A (clearance services: election for alternative system of charge) is amended as follows.
(2) In subsection (3), in paragraph (a) omit 바카라 사이트渙r issue바카라 사이트�.
(3) In subsection (4), in both places it occurs omit 바카라 사이트�, issue바카라 사이트�.
12 Before section 97B insert바카라 사이트�
바카라 사이트淒epositary receipts and clearance services: further exceptions
97ZB Exempt capital-raising transfers
(1) There is to be no charge to tax under section 93 or 96 in respect of an exempt capital-raising transfer.
(2) For the purposes of subsection (1), a transfer of chargeable securities is an 바카라 사이트渆xempt capital-raising transfer바카라 사이트� if either of the following conditions is met.
(3) The first condition is that the transfer is in the course of capital-raising arrangements.
(4) The second condition is that바카라 사이트�
(a) a person (바카라 사이트渢he transferor바카라 사이트�) acquires the chargeable securities바카라 사이트�
(i) before capital-raising arrangements are entered into, or
(ii) in the course of capital-raising arrangements,
(b) the transferor is subject to a prohibition that has the effect of preventing the transfer of the chargeable securities in the course of the capital-raising arrangements, and
(c) the transfer is made as soon as reasonably practicable after the time at which the prohibition ceases to have effect.
(5) In this section 바카라 사이트渃apital-raising arrangements바카라 사이트� means arrangements pursuant to which relevant securities are issued by a company for the purpose of raising new capital.바카라 사이트�
13 In section 97B (transfer between depositary receipt system and clearance system) omit subsection (1A).
14 Omit section 97C (transfers to non-EU depositary receipt and clearance services systems).
PART 2
BEARER INSTRUMENTS
15 (1) Schedule 15 to FA 1999 (stamp duty: bearer instruments) is amended as follows.
(2) Omit paragraph 1 (charge on issue of instrument) and the italic heading before it.
(3) In paragraph 2 (charge on transfers of stock by means of instrument), in the words before paragraph (a) omit 바카라 사이트渄uty was not chargeable under paragraph 1 on the issue of the instrument and바카라 사이트�.
(4) In paragraph 4 (1.5% rate of duty) omit 바카라 사이트渙r 6바카라 사이트�.
(5) Omit paragraph 7 (ascertainment of market value for charge on issue of instrument).
(6) In paragraph 17 (exemption for issue of instruments relating to non-sterling stock), in sub-paragraph (1)바카라 사이트�
(a) in the words before paragraph (a) omit 바카라 사이트� the issue of바카라 사이트�;
(b) omit the words after paragraph (b).
(7) Omit the italic heading before paragraph 21.
(8) Omit paragraph 21 (procedure for stamping instruments where duty chargeable on issue).
(9) Omit paragraph 22 (consequences of default in complying with procedure for stamping).
PART 3
MINOR AND CONSEQUENTIAL AMENDMENTS
16 (1) In section 126 of FA 1984 (tax exemptions in relation to designated international organisations), subsection (3) is amended as follows.
(2) In paragraph (c) omit 바카라 사이트渙n the issue of any instrument by the organisation or바카라 사이트�.
(3) Omit paragraph (d).
17 In section 99 of FA 1986 (interpretation), in subsection (10), in the words before paragraph (a), for 바카라 사이트�97AA바카라 사이트� substitute 바카라 사이트�97ZA바카라 사이트�.
18 In section 131 of FA 1976 (Inter-American Development Bank), in subsection (3) omit 바카라 사이트渙n the issue of any instrument by the Bank or바카라 사이트�.
19 In section 79 of FA 1986 (loan capital: new provisions), in subsection (2) omit 바카라 사이트渙n the issue of an instrument which relates to loan capital or바카라 사이트�.
20 (1) Section 50 of FA 1987 (warrants to purchase 바카라 사이트 stock etc) is amended as follows.
(2) In subsection (2)바카라 사이트�
(a) omit paragraph (a);
(b) in paragraph (b), for 바카라 사이트渟uch an instrument바카라 사이트� substitute 바카라 사이트渁n instrument which relates to an interest, right or option within subsection (1)바카라 사이트�.
(3) In subsection (3) omit paragraph (b).
21 (1) Section 143 of FA 1988 (stamp duty: paired shares) is amended as follows.
(2) Omit subsections (2) and (3).
(3) In subsection (5), in paragraph (a), for 바카라 사이트渟uch as is mentioned in subsection (3)(a) above바카라 사이트� substitute 바카라 사이트渇or sale of such units to the public made at the same time and at a broadly equivalent price in a country other than the United Kingdom or the foreign country바카라 사이트�.
PART 4
COMMENCEMENT AND TRANSITIONAL PROVISION
Commencement
22 The amendments made by this Schedule have effect바카라 사이트�
(a) as they apply for the purposes of stamp duty, in relation to instruments executed on or after 1 January 2024;
(b) as they apply for the purposes of stamp duty reserve tax, in relation to the transfer or issue of chargeable securities on or after that day.
Transitional provision: depositary receipts: exception from SDRT for replacement securities
23 (1) This paragraph applies for the purposes of section 95A of FA 1986 (depositary receipts: exception for replacement securities) where the securities (바카라 사이트渢he pre-commencement securities바카라 사이트�) mentioned in subsection (3)(a) of that section were issued before 1 January 2024.
(2) The amendments made by paragraphs 5 and 7 are to be disregarded in determining whether the condition in subsection (3) of section 95A of FA 1986 is met.
Transitional provision: clearance services: exception from SDRT for replacement securities
24 (1) This paragraph applies for the purposes of section 97ZA of FA 1986 (clearance services: exception for replacement securities) where the securities (바카라 사이트渢he pre-commencement securities바카라 사이트�) mentioned in subsection (3)(a) of that section were issued before 1 January 2024.
(2) The amendments made by paragraphs 8 and 10 are to be disregarded in determining whether the condition in subsection (3) of section 97ZA of FA 1986 is met.
Transitional provision: bearer instruments
25 (1) This paragraph applies in relation to bearer instruments issued before 1 January 2024바카라 사이트�
(a) in the United Kingdom, or
(b) outside the United Kingdom by or on behalf of a UK company.
(2) The amendment made by paragraph 15(3) is to be disregarded in determining whether stamp duty is chargeable under paragraph 2 of Schedule 15 to FA 1999 (stamp duty charge on transfer of stock by means of bearer instrument).
(3) In sub-paragraph (1) 바카라 사이트渂earer instrument바카라 사이트� and 바카라 사이트淯K company바카라 사이트� have the same meaning as in Schedule 15 to FA 1999 (see paragraphs 3 and 11 of that Schedule).
Transitional provision: warrants to purchase government stock etc
26 (1) This paragraph applies in relation to securities constituted by or transferable by means of an instrument issued before 1 January 2024.
(2) The amendments made by paragraph 20 are to be disregarded in determining whether the securities are 바카라 사이트渆xempt securities바카라 사이트� for the purposes of section 50 of FA 1987 (warrants to purchase government stock etc).