1186. Overview of higher-rate charge to stamp duty reserve tax in respect of arrangements; clearance services.

Subject to certain exceptions1, a charge to stamp duty reserve tax is made where:

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    (1)     a person ('A') whose business is or includes the provision of clearance services for the purchase and sale of chargeable securities2 has entered into an arrangement to provide such clearance services for another person; and

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    (2)     in pursuance of the arrangement, chargeable securities are transferred or issued to A or to a person whose business is or includes holding chargeable securities as nominee for A3.

The tax is charged at the rate of 1.5 per cent of the following4:

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    (a)     in a case where the