STSM042110 - Exemptions and reliefs: reliefs: Intermediary Relief - applying to a market to be a recognised intermediary

As noted in STSM042070 recognition as an intermediary can be obtained by making an application to the relevant regulated market, multilateral trading facility (MTF), recognised foreign exchange or foreign options exchange upon which recognition as an intermediary is sought, in accordance with arrangements approved by HM Revenue and Customs (HMRC)

Application Process

An application to become a recognised intermediary is sent to the relevant exchange or MTF confirming that the qualifying conditions for relief are met. In accordance with its approved arrangements with HMRC, the exchange/MTF concerned checks the application and then forwards it to HMRC Stamp Taxes - SDRT Operations.

If and when HMRC authorise and confirm the status of the person as a recognised intermediary, the details are sent to the various share transaction settlement systems (CREST and section 97A FA1986 elected clearance service operators (see STSM058000)) as appropriate. The relevant systems then ensure that intermediary relief is applied to on-exchange transactions involving that intermediary.

Information on the process for making a direct application to HMRC for recognised intermediary status is given in STSM042075