Clearing relief

HMRC Stamp Taxes has received enquiries seeking clarification as to whether securities transactions that are reported to and cleared via an investment exchange or a multilateral trading facility are eligible for clearing relief from stamp duty or stamp duty reserve tax under existing Investment exchange and clearing house regulations.

In essence in certain circumstances HM Treasury can under FA 1991 s 116 and s 117 make regulations relieving transactions involving prescribed recognised investment exchanges or clearing houses from stamp duty and stamp duty reserve tax (known as 'clearing relief').

The regulations provide that there shall be no charge to stamp duty or stamp duty reserve tax where securities are transferred between the entities in the prescribed circumstances 'in connection with a transaction made on the facility [or exchange]'.

The meaning of...