The Stamp Duty and Stamp Duty Reserve Tax (Investment Exchanges and Clearing Houses) (Eurex Clearing AG) Regulations 2007

• Citation: S.I. 2007/1097
• Sections: 5

Section 1 Citation, commencement and effect

(1) These Regulations may be cited as the Stamp Duty and Stamp Duty Reserve Tax (Investment Exchanges and Clearing Houses) ( Eurex Clearing AG ) Regulations 2007 and shall come into force on 23rd April 2007.

(2) These Regulations shall have effect—

(a) for the purposes of the charge to stamp duty, in relation to instruments executed on or after 23rd April 2007;

(b) for the purposes of the charge to stamp duty reserve tax—

(i) in the case of agreements to transfer equities which are not conditional, in relation to agreements made on or after 23rd April 2007;

(ii) in the case of agreements to transfer equities which are conditional, in relation to agreements where the condition is satisfied on or after that date.

Section 2 Interpretation

(1) In these Regulations—

“clearing member” means—

a member of Eurex Clearing AG who—

is also a member of the Eurex exchange (as defined by this regulation); and

is permitted by that exchange and that clearing house to clear options contracts; or

a member of Eurex Clearing AG who—

is not a member of the Eurex exchange; and

is permitted by that clearing house to clear options contracts on behalf of a member of that exchange who is not a clearing member (as defined by this regulation),

in his capacity as such a member;

“equities” means stocks and shares which are issued or raised by a company but does not include stocks and shares issued or raised by a company not incorporated in the United Kingdom unless—

they are registered in a register kept in the United Kingdom by or on behalf of the company; or

in the case of shares, they are paired, within the meaning of section 99(6A) of the Finance Act 1986 , with shares issued by a company incorporated in the United Kingdom;

“Eurex Clearing AG” means Eurex Clearing Aktiengesellschaft, a company registered in Germany which is a recognised clearing house under the Financial Services and Markets Act 2000 in its capacity as a person providing clearing services in connection with a transaction made on the Eurex exchange or otherwise permitted to be cleared by the rules of that clearing house;

“the Eurex exchange” means either one of the investment exchanges known as Eurex Deutschland and Eurex Zurich;

“option” means an option, to buy or sell equities, which—

is listed by and traded on the Eurex exchange (as defined by this regulation); or

is otherwise permitted to be cleared by the rules of Eurex Clearing AG.

Section 3 Prescription of recognised clearing house

For the purposes of sections 116 and 117 of the Finance Act 1991 Eurex Clearing AG is prescribed as a recognised clearing house.

Section 4 Transfers of securities to Eurex Clearing AG – prescribed circumstances

A charge to stamp duty or to stamp duty reserve tax shall be treated as not arising where, as a result of the exercise of an option, equities are transferred or issued, or agreed to be transferred or issued, to—

(a) Eurex Clearing AG, or

(b) a person whose business is or includes holding such equities as a nominee for Eurex Clearing AG.

Section 5 Transfers of securities from Eurex Clearing AG – prescribed circumstances

A charge to stamp duty or to stamp duty reserve tax shall be treated as not arising where, in order to meet an obligation to receive equities resulting from the exercise of an option, equities are transferred, or agreed to be transferred, from—

(a) Eurex Clearing AG, or

(b) a person whose business is or includes holding such equities as a nominee for Eurex Clearing AG,

to a clearing member or a nominee of a clearing member.