1A

Subsection (1) is subject to section 97C.

97CTransfers to non-EU depositary receipt and clearance services systems

1

This section applies where arrangements are made in accordance with which chargeable securities are—

a

issued to an EU system, and

b

subsequently transferred from an EU system to a non-EU system.

2

Nothing in section 95(1), 97(1) or 97B(1) disapplies a charge to tax under section 93 or 96 in respect of that transfer if—

a

the chargeable securities have not previously been transferred, or

b

where they have previously been transferred, the transfer (or, if more than one, each of them) was an exempt transfer.

3

For the purposes of subsection (1)(a) chargeable securities are issued to an EU system if—

a

pursuant to an arrangement of the kind mentioned in section 93(1), they are issued to a nominee in respect of an EU depositary receipt issuer, or

b

pursuant to an arrangement of the kind mentioned in section 96(1), they are issued to a nominee in respect of an EU clearance service operator.

4

For the purposes of subsection (1)(b)—

a

a transfer is from an EU system if it is from a company which is incorporated under the law of a member State and at the time of the transfer falls within section 67(6) or 70(6), and

b

a transfer is to a non-EU system if it is to a company which is not incorporated under the law of a member State and at the time of the transfer falls within section 67(6) or 70(6).

5

In this section—

• “arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable);

• “EU clearance service operator” means a person—

  1. a

     whose business is or includes the provision of clearance services for the purchase and sale of chargeable securities, and

  2. b

     who—

     1. i

        if it is a company, is incorporated under the law of a member State, and

     2. ii

        in any other case, is resident in a member State;

• “EU depositary receipt issuer” means a person—

  1. a

     whose business is or includes issuing depositary receipts for chargeable securities, and

  2. b

     who—

     1. i

        if it is a company, is incorporated under the law of a member State, and

     2. ii

        in any other case, is resident in a member State;

• “exempt transfer” means a transfer in respect of which, by reason of section 90(5), 95(1), 97(1) or 97B(1), no charge to stamp duty reserve tax arises;

• “nominee”—

  1. a

     in respect of an EU clearance service operator, means a person whose business is or includes holding chargeable securities as nominee for the EU clearance service operator, and

  2. b

     in respect of an EU depositary receipt issuer, means a person whose business is or includes holding chargeable securities as nominee or agent for the EU depositary receipt issuer.