Q&As

Can AIM shares qualify for the recognised growth market exemption from stamp duty and SDRT?

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Published on LexisPSL on 27/11/2019

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

  • Can AIM shares qualify for the recognised growth market exemption from stamp duty and SDRT?

The recognised growth market exemption from stamp duty and SDRT applies to securities that are admitted to trading on a recognised growth market but not listed on any market.

While AIM shares are colloquially referred to as ‘listed on AIM’ or ‘AIM listed’, they are unlisted so it would be preferable to refer to them as ‘AIM traded shares’ or ‘AIM shares’.

AIM shares are unlisted because they are not included in the UK’s official list. The definition of listed in section 1005(3) of Income Tax Act 2007 (ITA 2007) requires shares admitted to trading on a UK recognised stock exchange to be included in the UK official list. Section 99A(3) of Finance Act 1986 makes it clear that the definition of listed in ITA 2007, s 1005(3)–(5) applies also to the references to ‘listed’ in the recognised growth market exemption from stamp duty and SDRT. There is, of course, the possibility that a share could be admitted to AIM and also be (or become) admitted to trading on another recognised stock exchange, whether that other market is inside or outside the UK, in which case it is important to check that the AIM shares are not listed on that other exchange (for the purposes of a non-UK listing, this means admitted to trading on the relevant exchange and officially listed in that country in accordance

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