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HMRC internal manual

Inheritance Tax Manual

Qualifying investments: foreign stock exchanges

You may treat listed investments on the stock exchanges described in the list below as qualifying investments for the purposes of loss on sale of shares relief.  If a claim is made in respect of investments on any other foreign stock exchange you should refer the IHT 35 to Technical (IHTM01081) for advice.

  • The Athens Stock Exchange
  • The Australian Stock Exchange (and any of its stock exchange subsidiaries, but note that the Sydney Futures Exchange Market is not a registered stock exchange)
  • The Bahamas International Securities Exchange (BISX) (with effect from 19 April 2010)
  • The Bermuda Stock Exchange (with effect from 4 December 2007)
  • The Bond Exchange of South Africa (BESA) (with effect from 16 April 2008)
  • The Channel Islands Securities Exchange Authority Limited (with effect from 20 December 2013)
  • The Colombo Stock Exchange
  • The Copenhagen Stock Exchange
  • The Cyprus Stock Exchange (with effect from 22 June 2009)
  • The Helsinki Stock Exchange
  • The Iceland Stock Exchange (with effect from 31 March 2006)
  • The Johannesburg Stock Exchange
  • The Korea Stock Exchange
  • The Kuala Lumpur Stock Exchange
  • The Stock Exchange operated in the UK by the company LIFFE Administration and Management, including securities traded on the NYSE Euronext London market of LIFFE (with effect from 26 September 2011)   
  • The Stock Exchange of Mauritius – excluding the Development and Enterprise market of this exchange (with effect from 31 January 2011)
  • The Malta Stock Exchange (with effect from 29 December 2005)
  • The Mexico Stock Exchange
  • MICEX Stock Exchange – but only securities listed on Quotation List A 1st and 2nd levels (with effect from 5 January 2011)
  • The NASDAQ OMX Tallinn exchange – excluding the First North market of this exchange (with effect from 5 May 2010)
  • The NASDAQ OMX Vilnius exchange – excluding the First North market of this exchange (with effect from 12 March 2012)
  • The National Stock Exchange of Australia (with effect from 19 June 2014)
  • The New Zealand Stock Exchange
  • The Rio De Janeiro Stock Exchange
  • The Sao Paulo Stock Exchange
  • The Singapore Exchange Ltd (From 7 October 2014) (To note that the Singapore Exchange Securities Trading Ltd is a registered stock exchange, but the Singapore Exchange Derivatives Trading Ltd is not a registered stock exchange.)
  • The Singapore Stock Exchange (until 7 October 2014)
  • The Stockholm Stock Exchange
  • The Stock Exchange of Thailand
  • The Swiss Stock Exchange
  • The Warsaw Stock Exchange (with effect from 25 February 2010)

Also investments on any stock exchange in the following countries which is a stock exchange within the meaning of the law of that particular country, or as specified below, will be qualifying investments for the purpose of loss on the sale of shares relief.    

  • Austria
  • Belgium
  • Canada – any stock exchange prescribed for the purposes of the Canadian Income Tax Act
  • France
  • Germany
  • Hong Kong – any stock exchange recognised under Section 2A(1) of the Hong Kong Companies Ordinance
  • Republic of Ireland (The Official List only)
  • Italy
  • Japan
  • Luxembourg
  • Netherlands
  • Norway
  • Portugal
  • Spain
  • USA – any exchange registered with the Securities and Exchange Commission of the United States as a nation securities exchange
  • USA – The NASDAQ Stock Market as maintained through the facilities of the National Association of Securities Dealers Inc. and its subsidiaries.

Although the Dutch Caribbean Securities Exchange (DCSX) has been designated as a recognised stock exchange, securities listed on the DCSX do not meet HMRC’s definition of ‘listed’ and so the shares will not qualify for loss on sale of shares relief.

When calculating the loss on foreign shareholdings see (IHTM34178) for further guidance.