Recognised Stock Exchanges
- The term "recognised stock exchange" occurs throughout the Taxes Acts and in various tax regulations. For example it is used in the definition of a close company in section 415 Income and Corporation Taxes Act (ICTA) 1988, and in the definition of investments which may be held in PEPs and ISAs.
- The term is often used in the phrase "listed on a recognised stock exchange" or in similar or related expressions. For all designations following the enactment of Finance Act 2007 on 19 July 2007 we will publish which markets meet the HMRC definition of ‘listed’ as set out in paragraph 3 below’. For designations prior to 19 July 2007, please contact HMRC at the number below if there is doubt about whether a particular market of a recognised stock exchange would meet the HMRC definition of ‘listed’.
- The phrase "listed on a recognised stock exchange" in respect of
shares and securities is now defined at section 1005(4) Income Tax Act
(ITA) 2007 and means shares and securities which are admitted to trading
on that exchange and included in the official UK list maintained by
the Financial Services Authority as the UK Listing Authority or are
officially listed in a qualifying country outside the UK in accordance
with provisions corresponding to those generally applicable in EEA states.
- The definition of a recognised stock exchange is given in section
1005(1) ITA. It includes any market of a recognised investment exchange
designated as a recognised stock exchange by an order made by the Commissioner
for HMRC and any market outside the UK designated in such an order.
- Recognition under section 1005 ITA 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.
- The approach to the recognition of stock exchanges overseas announced in the policy statement published at PBR on 27 November 2002 has not changed. HMRC will consider recognition on receipt of a request made by an overseas stock exchange so, the fact that a particular exchange is not recognised may simply mean that recognition has not been requested.
- Section 48A(3) Finance Act (FA) 2005 requires ‘alternative
finance investment bonds’ (Shari’a-compliant financial instruments
commonly known as ‘sukuk’) to be listed on a recognised
stock exchange. An alternative finance investment bond listed on an
exchange recognised under section 1005 ITA will meet this requirement.
In addition, certain other exchanges are designated only for the purposes
of section 48A FA 2005. An alternative finance investment bond listed
on such an exchange will meet the listing requirement in section 48A(3)
FA 2005, but the exchange is not a recognised stock exchange for any
other purpose. Designation has effect from 1 April 2007. Please see
the table Recognised Stock Exchanges solely for the
Purposes of section 48a(3)
List of Stock Exchanges designated as "recognised stock exchanges" by Order of the Board under section 841(1)(b) ICTA 1988 and section 1005 ITA 2007 as at current date; and date of recognition. Recognised Stock Exchanges Date of Recognition The Athens Stock Exchange 14 Jun 1993 The Australian Stock Exchange and any of its stock exchange subsidiaries 22 Sep 1988 The Bermuda Stock Exchange (please note the entire exchange meets the HMRC interpretation of ‘listed’) 4 Dec 2007 The Bond Exchange of South Africa
(please note that the over-the –counter market of this exchange will not meet the HMRC interpretation of ‘listed’)16 April 2008 The Cayman Islands Stock Exchange 4 March 2004 The Colombo Stock Exchange 21 Feb 1972 The Copenhagen Stock Exchange 22 Oct 1970 The Helsinki Stock Exchange 22 Oct 1970 The Iceland Stock Exchange 31 March 2006 The Johannesburg Stock Exchange 22 Oct 1970 The Korea Stock Exchange 10 Oct 1994 The Kuala Lumpur Stock Exchange 10 Oct 1994 The London Stock Exchange (please note the Stock Exchange or London Stock Exchange was specifically named in legislation prior to 19 July 2007) 19 July 2007 The Malta Stock Exchange 29 Dec 2005 The Mexico Stock Exchange 10 Oct 1994 The New Zealand Stock Exchange 22 Sep 1988 The Plus-listed market 19 July 2007 The Rio De Janeiro Stock Exchange 17 Aug 1995 The Sao Paulo Stock Exchange 11 Dec 1995 The Singapore Stock Exchange 30 Jun 1977 The Stockholm Stock Exchange 16 Jul 1985 The Stock Exchange of Thailand 10 Oct 1994 The Swiss Stock Exchange 12 May 1997 Any stock exchange in the following countries which is a stock exchange within the meaning of the law of the particular country relating to stock exchanges (or as specified below) Recognised Stock Exchanges Date of Recognition Austria 22 Oct 1970 Belgium 22 Oct 1970 Canada - Any stock exchange prescribed for the purpose of the Canadian Income Tax Act. 22 Oct 1970 France 22 Oct 1970 Germany 5 Aug 1971 Guernsey 10 Dec 2002 Hong Kong - Any stock exchange which is recognised under Section 2A (1) of the Hong Kong Companies Ordinance 26 Feb 1971 Italy 3 May 1972 Ireland (Republic of) 22 Oct 1970 Japan 22 Oct 1970 Luxembourg 21 Feb 1972 Netherlands 22 Oct 1970 Norway 22 Oct 1970 Portugal 21 Feb 1972 Spain 5 Aug 1971 USA - Any exchange registered with the Securities and Exchange Commission of the United States as a national securities exchange. 22 Oct 1970 USA - The NASDAQ Stock Market as maintained through the facilities of the National Association of Securities Dealers, Inc and its subsidiaries. 10 Mar 1992 Contact for queries
1. General Recognised Stock Exchanges Enquiries
HMRC
CT & VAT Products and Processes
100 Parliament Street
LONDON
SW1A 2BQ
Tel 020 7147 3195
2. Queries about stock exchanges recognised for the purposes of Alternative
Finance Bonds
Tony Sadler
HMRC
CT & VAT Products and Processes
100 Parliament Street
LONDON
SW1A 2BQ
Tel 020 7147 2608
