Designation of the Cyprus Stock Exchange as a recognised stock exchange for tax purposes

With effect from 22 June 2009 HM Revenue & Customs (HMRC) have designated the Cyprus Stock Exchange as a 'recognised stock exchange' under section 1005 (1) (b) Income Tax Act 2007.

Securities admitted to trading and listed on the EU regulated markets of the Cyprus Stock Exchange (those regulated under Title III of the Markets in Financial Instruments Directive (MiFID) will meet the HMRC interpretation of ‘listed’ as set out in section 1005 (3) (a) and (3) (b) Income Tax Act 2007. However, please note that securities traded on a new market (a multi-lateral trading facility) soon to be launched which will be called the Emerging Companies Market will not meet the HMRC definition of ‘listed’.

The list of overseas stock exchanges designated as recognised stock exchanges under section 1005 (1) (a) and (1) (b) Income Tax Act 2007 can be found at Recognised stock exchanges

With effect from 22 June 2009 CSE will also be regarded as a recognised stock exchange for Inheritance Tax purposes.

Notes

The term 'recognised stock exchange' occurs throughout the Tax Acts and in various tax regulations. For example it is used in connection with close companies in section 415 (1) (b) Income and Corporation Taxes Act 1988, and in the definition of investments which may be held in ISAs. The term is often used in the phrase 'listed on a recognised stock exchange'.

The definition of a recognised stock exchange is given in section 1005 Income Tax Act 2007. It includes the London Stock Exchange and Plus-listed market and any such stock exchange outside the UK as is designated in an Order of the Commissioners of HM Revenue and Customs.

Recognition under section 1005 Income Tax Act 2007 is for tax purposes only and confers no other status on the exchange concerned: it does not constitute any form of recognition or approval for regulatory or other purposes nor does it provide any form of approval or recommendation of any of the investments which are listed or traded on that exchange.