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HMRC internal manual

Capital Gains Manual

Definitions: recognised stock exchanges: London stock exchange: history: the Alternative Investment Market

In the recent past shares and securities traded through the Stock Exchange were in one of four categories:

  • shares and securities listed on the Stock Exchange Daily Official List (SEDOL)
  • shares and securities on the Unlisted Securities Market (USM)
  • shares and securities traded under a facility known as ‘Rule 4.2’
  • shares and securities traded on a so-called ‘third market’, the regulatory requirements of which were less than for SEDOL or the USM

SEDOL is still issued, but the USM closed in 1996 and the Rule 4.2 facility for ‘off-market trading’ was discontinued in 1995. The ‘third market’ operated only until 1990.

The Stock Exchange introduced a new, less regulated, market in June 1995. This is the Alternative Investment Market (AIM). It is intended primarily to enable trading in new, small and growing companies. A Press Release dated 20 February 1995 confirmed that shares and securities traded on AIM do not fall to be treated as quoted or listed for tax purposes.