Q&As

According to section 89AA(2A) of the Finance Act 1986, one of the conditions that must be satisfied in order for relief from SDRT to be available for repos or stock lending arrangements requires that ‘securities of the kind concerned are regularly traded on a regulated market’. What does ‘regularly traded’ and ‘securities of the kind concerned’ mean?

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Published on LexisPSL on 05/02/2020

The following Tax Q&A provides comprehensive and up to date legal information covering:

  • According to section 89AA(2A) of the Finance Act 1986, one of the conditions that must be satisfied in order for relief from SDRT to be available for repos or stock lending arrangements requires that ‘securities of the kind concerned are regularly traded on a regulated market’. What does ‘regularly traded’ and ‘securities of the kind concerned’ mean?

As noted in Practice Note: Stock lending and repo relief from stamp duty and SDRT, for the relief from SDRT to apply to a repo or stock lending arrangement involving chargeable securities, a number of conditions must be satisfied.

One of those conditions requires ‘that securities of the kind concerned are regularly traded’ on a regulated market (section 89AA(2A)(b) of the Finance Act 1986 (FA 1986)), which applies if one of the parties to the repo or securities lending arrangement (referred to in the legislation as P or Q) is authorised under the law of an EEA state to provide certain investment services, or, in a case where the transaction is reported to a regulated market, multilateral trading facility (MTF) or a recognised foreign exchange, the requirement is for ‘securities of the kind concerned’ to be ‘regularly traded on that market, facility or exchange’

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