Exemption from stamp duty and SDRT on growth shares – action required by 23 April 2014

Thu 17 Apr 2014

Under Finance Bill 2014, an exemption will be introduced with effect from 28^th April 2014 from stamp duty and SDRT on dealings in equities and other securities  which are admitted to trading on recognised growth markets such as AIM, ISDX and the LSE’s High Growth Segment, provided the securities are not also listed on a recognised stock exchange.  The exemption is intended to encourage investment in growth markets and facilitate the raising of equity finance by growing companies.  Eligible securities qualify for the exemption wherever they are traded. Securities are designated as exempt from stamp tax at a statistic data level by Euroclear UK & Ireland Ltd (‘Euroclear’), the operator the CREST system which settles securities transactions in the UK.  The LSE requires companies issuing shares and other securities on these markets to certify to Euroclear that the securities are eligible by completing a Stamp Duty Exemption form and submitting it to Euroclear.  The deadline for submitting the form in order to take advantage of the stamp duty exemption from the earliest opportunity is 23 April 2014.

Further details are included in The London Stock Exchange’s market notice.

The market notice is silent about companies on ISDX.  We understand that ISDX companies do not have to self-certify and file a form to be eligible for the exemption but will be automatically exempt.