PART 9

Other taxes and duties

Stamp duty and stamp duty reserve tax

SDRT: transfers to depositaries or providers of clearance services
139
1
Part 4 of FA 1986 (stamp duty reserve tax) is amended as follows.
2
In section 93 (depositary receipts)—
a
in subsection (4)(b), for the words from “worth,” to the end substitute
worth—
i
the amount or value of the consideration, or
ii
where subsection (4A) applies, the amount or value of the consideration or, if higher, the value of the securities;
, and
b
after subsection (4) insert—
4A
This subsection applies where the transfer of the securities is pursuant to—
a
the exercise of an option to buy or to sell the securities, and
b
either—
i
a term of the option which provides for the securities to be transferred to the person falling within subsection (2) or (3), or
ii
a direction, given by or on behalf of the person entitled or bound to acquire the securities pursuant to the exercise of the option, for the securities to be so transferred.
3
In section 94 (depositary receipts: supplementary), in subsection (4), for “section 93(4)(c)” substitute “ section 93(4)(b)(ii) and (c) ”.
4
In section 96 (clearance services)—
a
in subsection (2)(b), for the words from “worth,” to the end substitute
worth—
i
the amount or value of the consideration, or
ii
where subsection (2A) applies, the amount or value of the consideration or, if higher, the value of the securities;
,
b
after subsection (2) insert—
2A
This subsection applies where the transfer of the securities is pursuant to—
a
the exercise of an option to buy or to sell the securities, and
b
either—
i
a term of the option which provides for the securities to be transferred to A or (as the case may be) to the person whose business is or includes holding chargeable securities as nominee for A, or
ii
a direction, given by or on behalf of the person entitled or bound to acquire the securities pursuant to the exercise of the option, for the securities to be so transferred.
, and
c
in subsection (10), for “subsection (2)(c)” substitute “ subsection (2)(b)(ii) and (c) ”.
5
The amendments made by this section have effect in relation to a transfer pursuant to the exercise of an option where—
a
the option was granted on or after 25 November 2015, and
b
the option was exercised on or after 23 March 2016.