Introduction Details of the Section
2.Subsections (2)-(4) amend sections 95(1), 97(1) and 97B of the Finance Act (FA) 1986 to make the provisions of those sections subject to new section 97C.
3.Subsection (5) inserts new section 97C into FA 1986.
4.New section 97C(1) provides that the section applies where, under arrangements, chargeable securities are issued to an EU system and are subsequently transferred to a non-EU system.
5.New section 97C(2) provides that the reliefs available under sections 95(1), 97(1) and 97B(1) of FA 1986 will not apply to the subsequent transfer to the non-EU system if the securities have not previously been subject to any 1.5 per cent SDRT charges.
6.New section 97C(3)-(4) describe what is meant by issues and transfers to and from EU and non-EU systems.
7.New section 97C(5) provides definitions of “arrangements”, “EU clearance service operator”, “EU depositary receipt issuer”, “exempt transfer” and “nominee”.
8.Subsection (6) provides that the new section 97C has effect in relation to any transfer of chargeable securities on or after 1 October 2009.