http://www.legislation.gov.uk/ukpga/1998/36/section/151Finance Act 1998An Act to grant certain duties, to alter other duties, and to amend the law relating to the National Debt and the Public Revenue, and to make further provision in connection with Finance.1998-07-31texttext/xmlenStatute Law Database2026-04-22Expert Participation2026-03-18 Part V Other Taxes Stamp duty reserve tax Depositary receipts and clearance services: exchanges of shares.1511In section 95 of the Finance Act 1986 (depositary receipts; exceptions) in subsection (3) (exchanges) after paragraph (b) there shall be added— “ and the shares in company Y are held under a depositary receipt scheme. ”2At the end of that section there shall be added—5For the purposes of subsection (3) above, the cases where shares are held under a depositary receipt scheme are those cases where, in pursuance of an arrangement,—aa depositary receipt for chargeable securities has been, or is to be, issued by a person falling within section 93(2) above in respect of the shares in question or shares of the same kind and amount; andbthe shares in question are held by that person, or by a person whose business is or includes holding chargeable securities as nominee or agent for that person, towards the eventual satisfaction of the entitlement of the receipt’s holder to receive chargeable securities.6Where an arrangement is entered into under which—ashares in a company (company X) are issued to persons in respect of their holdings of shares in another company (company Y), andbthe shares in company Y are cancelled,the issue shall be treated for the purposes of subsection (3) above as an issue by company X in exchange for the shares in company Y.7In this section “depositary receipt for chargeable securities” has the same meaning as in section 93 above (see section 94 above).3In section 97 of the Finance Act 1986 (clearance services: exceptions) in subsection (4) (exchanges) after paragraph (b) there shall be added— “ and the shares in company Y are held under a clearance services scheme. ”4At the end of that section there shall be added—6For the purposes of subsection (4) above, the cases where shares are held under a clearance services scheme are those cases where—aan arrangement falling within paragraph (a) of subsection (1) of section 96 above has been entered into; andbin pursuance of that arrangement, the shares are held by the person referred to in that paragraph as A or by a person whose business is or includes holding chargeable securities as nominee for that person.7Where an arrangement is entered into under which—ashares in a company (company X) are issued to persons in respect of their holdings of shares in another company (company Y), andbthe shares in company Y are cancelled,the issue shall be treated for the purposes of subsection (4) above as an issue by company X in exchange for the shares in company Y.5In section 99(10) of the Finance Act 1986 (which makes provision in relation to the interpretation of “chargeable securities” in sections 93, 94, 96 and 97A)—aafter “94," there shall be inserted “ 95, ”; andbafter “96" there shall be inserted “ , 97 ”.6This section applies where the issue by company X referred to in section 95(3) or (6) or 97(4) or (7) of the Finance Act 1986 is an issue on or after 1st May 1998.1986 c. 41. 1986 c. 41. 1986 c. 41.