STSM125030 - Financial markets: central counterparties: clearing relief
Relief from Stamp Duty and Stamp Duty Reserve Tax (SDRT) is available to prescribed recognised investment exchanges (RIE) and prescribed recognised clearing houses (RCH), and their nominee and clearing members which clear transactions undertaken on a recognised investment exchange or ‘over-the- counter’. This relief is commonly referred to as ‘clearing relief’.
The purpose of the relief is to avoid multiple charges where a number of parties are involved in what is effectively a single transaction.
To qualify for the relief the RIE or RCH must be ‘prescribed’ by regulations made under sections 116 and 117 of the Finance Act 1991. See STSM042340 and STSM042345 for more information.