STSM042105 - Exemptions and Reliefs: reliefs: Intermediary Relief –shares regularly traded only on an multilateral trading facility (MTF)

Where shares are acquired that are regularly traded only on a multilateral trading facility (MTF), a recognised foreign exchange, or a recognised foreign options exchange (i.e. the shares are not regularly traded on a regulated market), the transaction will be eligible for intermediary relief only if the transaction is effected on and reported to that MTF/exchange.

HM Revenue and Customs (HMRC) understands that the rules of some MTFs/exchanges may not contain a requirement to report a transaction to the MTF/exchange. This means that members of those trading venues are strictly unable to fulfil the requirement in the legislation that transactions must be reported to the MTF/exchange.

HMRC acknowledges that a strict reading of the legislation would result in intermediary relief not being granted. HMRC will not refuse relief where the rules of an MTF/exchange are either silent about the need to report transactions, or specifically state that a report is not required, provided the CREST Trade System of Origin (TSO) field is populated with the relevant trading venue upon which the securities were traded.

See STSM042100 for more information on ‘regularly traded’.