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Stamp duty tax relief

UK stamp duty reserve tax relief

On 16th February 2006, a Statutory Instrument came into effect allowing eligibility for recognised intermediaries for SDRT relief for UK trades executed on Chi-X Europe.

These regulations extend the UK stamp duty reserve tax exemptions for sales of stock to intermediaries and for repurchase and stock lending. The legislation is outlined here.

To register for UK SDRT exemption requires the following steps:

Trading Participant completes SDRT relief self certification form and submits it to Chi-X Europe
Chi-X Europe registers the application with HM Treasury
HM Treasury confirms whether the applicant has been approved for stamp duty relief
Chi-X Europe adds the Trading Participant and links it to the TSO of N via Crest

Irish stamp duty relief

On 15th August 2008, Chi-X Europe was designated as a market for the purposes of section 75(5)(a) of the Stamp Duties consolidation Act 1999. To register for Irish Stamp Duty exemption:

If already approved for Irish stamp duty intermediary relief on an exchange or designated market:

Trading Participants that already have approval as a recognised intermediary by the Irish Revenue Commission (IRC) for trading on other exchanges or designated markets do not need to apply for a separate approval for trades conducted on Chi-X.

If not approved for Irish stamp duty intermediary relief on an exchange or designated market:

Trading Participants wishing to apply for intermediary relief should complete the form on the following link *: IRC Recognised Intermediary Application

Trading Participants should send completed forms to the IRC details below:

Where a Participant firm is not certain that it is entitled to apply as a "recognised intermediary" it should seek clarification from the Crest unit of the IRC.

Mary O'Keeffe
CREST Unit
Large Cases Division
Office of the Revenue Commissioners
2nd Floor, Setanta Centre
Nassau Street
Dublin 2
Ireland

The IRC will notify participants directly regarding the approval process and update Euroclear UK & Ireland.

Euroclear UK & Ireland will link the Participant to Chi-X as a designated market.