PART 1Direct taxes

Miscellaneous

34Debt traded on a multilateral trading facility

1

In section 987 of ITA 2007 (meaning of “quoted Eurobond”)—

a

the current text becomes subsection (1);

b

in paragraph (b) of that subsection, after “exchange” insert “ or admitted to trading on a multilateral trading facility operated by an EEA-regulated recognised stock exchange ”;

c

after that subsection insert—

2

For the purposes of this section—

a

a recognised stock exchange is an “EEA-regulated recognised stock exchange” if it is regulated in the European Economic Area, and

b

“multilateral trading facility” has the same meaning as in Article 4.1.22 of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments.

2

In each of section 151N of TCGA 1992, section 564G of ITA 2007 and section 507 of CTA 2009 (investment bond arrangements)—

a

in subsection (1)(h), after “exchange” insert “ or admitted to trading on a multilateral trading facility operated by an EEA-regulated recognised stock exchange ”;

b

in subsection (2)—

i

omit the “and” at the end of paragraph (h);

ii

after paragraph (i) insert—

j

a recognised stock exchange is an “EEA-regulated recognised stock exchange” if it is regulated in the European Economic Area, and

k

“multilateral trading facility” has the same meaning as in Article 4.1.22 of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments.

3

The amendments made by subsection (1) have effect in relation to payments made on or after 1 April 2018.

4

The amendments made by subsection (2) have effect—

a

for corporation tax purposes, in relation to accounting periods beginning on or after 1 April 2018;

b

for income tax and capital gains tax purposes, for the tax year 2018-19 and subsequent tax years.