Abolishment of the UK SDRT Charge for Clearing Systems

more+
less-

HM Revenue & Customs has announced the abolition of the 1.5% Stamp Duty Reserve Tax (SDRT) on the entry of UK shares and some types of debt securities into certain clearing systems. This comes after the decision of the European Court of Justice (ECJ) yesterday in HSBC Holdings plc, Vidacos Nominees Ltd v HMRC ruling that the UK tax is unlawful under EU law on the basis that it infringes on EU principles of the free movement of capital. This case is the latest in a series of decisions against the UK government, the most notable being the ECJ decision in Marks & Spencer plc v David Halsey (HM Inspector of Taxes) on 7 April, 2005.

Please see full update below for more information.

The decision of the ECJ yesterday was a success for HSBC who can now recover £27 million of UK SDRT it was charged in 2000 when it acquired French Bank CCF.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

more+
less-

Morrison & Foerster LLP on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×