PART 9Other taxes and duties

Stamp duty and stamp duty reserve tax

139SDRT: transfers to depositaries or providers of clearance services

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;

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.

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.