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HMRC internal manual

Stamp Taxes on Shares Manual

Exemptions and reliefs: exemptions: growth market shares - stamp duty exemption

FA 2014 Sch 24 para 5 provides a general exemption from the stamp duty charge at FA 1999 Sch 13 for instruments relating to stock or marketable securities admitted to trading on a recognised growth market but not listed on any recognised stock exchange. (As there is no charge under FA 1999 Sch 13, there is no charge under FA 1999 Sch 13 para 7 i.e. a contract or agreement for the sale of any equitable interest in securities that are admitted to trading on a recognised growth market but not listed on any recognised stock exchange).

The exemption applies to other scenarios:

returns under s66 FA 1986 relating to a company’s purchase of own shares which are admitted to trading on a recognised growth market but not listed on any market;

stock or marketable securities vested by Act of Parliament or purchased under statutory power where the stock or securities are admitted to trading on a recognised growth market but not listed on any market;

instruments that transfer to a depositary receipt regime or clearance service, stock or marketable securities admitted to trading on a recognised growth market but not listed on any market; transfers of partnership interests to the extent that the partnership property includes stock or marketable securities admitted to trading on a recognised growth market but not listed on any market;

‘Admitted to trading’ refers to the admission to trading of securities on a market in accordance with the rules of that market.

‘Listed’ is defined at s1005(3)-(5) Income Tax Act 2007 - broadly it means listed on a recognised stock exchange and included in an official list

A list of recognised stock exchanges can be seen at HM Revenue & Customs: recognised stock exchanges. (please see ) Tables 1 and 2 show which exchanges are recognised stock exchanges.

A list of recognised growth markets can be seen at STSM041330.

The exemption applies from 28 April 2014.

A stock transfer form is usually used for share transfers in paper form. To claim the exemption for growth market shares, certificate 2, which is on the back of the form, should be completed.