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HMRC internal manual

International Exchange of Information Manual

HM Revenue & Customs
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Non-Financial Entity: Regularly Traded Definition

IEIM 404040 states that a Non-Financial Entity is an Active NFE where its stock is regularly traded on one or more established securities markets or it is a Related Entity of such an entity. For the purposes of this section stock is regularly traded if there is a meaningful volume of trading with respect to the stock on an on-going basis.

An established securities market is an exchange that is officially recognised and supervised by a governmental authority and has a meaningful annual value of shares traded.  The following UK markets are considered to meet this definition:

  • London Stock Exchange
  • Alternative Investment Market
  • Plus Market Group

A class of stock is considered to meet the ‘meaningful volume’ requirement for a calendar year provided each share class of stock is traded on an established market for at least 60 business days during the calendar year, and at least 10% of the average number of shares in that class is traded during the year.

Each share class of the stock means one or more classes of the stock of the corporation that were listed on one or more established securities markets and in aggregate represent more than 50% of (a) the total combined voting power of all class of stock entitled to vote and (b) the total value of the stock of such corporation.