Part IVStamp Duty Reserve Tax

Other charges: clearance services

F1Depositary receipts and clearance services: further exceptions

97ABExempt 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 “exempt capital-raising transfer” if the transfer is in the course of capital-raising arrangements.

(3)

In this section, “capital-raising arrangements” means arrangements pursuant to which chargeable securities are issued by a company for the purpose of raising new capital.

(4)

A transfer of chargeable securities is not prevented from being an exempt capital-raising transfer by reason only of a delay in transferring the chargeable securities where—

(a)

a person (“the transferor”) acquires the chargeable securities—

(i)

before capital-raising arrangements are entered into, or

(ii)

in the course of capital-raising arrangements,

(b)

the transferor is subject to a restriction 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 restriction ceases to have effect.