STSM041260 | Exemptions and reliefs: exemptions: growth market shares - stamp duty exemption

Paragraph 5 of Schedule 24 to FA2014 provides an exemption from the principal Schedule 13 FA1999 Stamp Duty charge for instruments transferring stock or marketable securities admitted to trading on a recognised growth market (whether one or more than one recognised growth market) but not listed on any market (shares are not “listed” on recognised growth markets – they are admitted to trading).

There is also no charge under paragraph 7 of Schedule 13, to FA1999 for 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 market.

In addition:

• Owing to paragraph 6 of Schedule 24 to FA2014, no charge arises under section 66 FA1986 on returns (form SH03) 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.

• Owing to paragraph 7 of Schedule 24 to FA2014, no charge arises under section 12 FA1895 on 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.

• Owing to section 67 (8A) and section 70 (8A) FA1986 respectively (introduced by paragraphs 9 and 10 of Schedule 24 to FA2014), no 1.5% Stamp Duty charge arises on instruments that transfer stock or marketable securities admitted to trading on a recognised growth market but not listed on any market to a depositary receipt issuer or clearance service. Further information on the 1.5% charge can be found in guidance beginning at STSM050000.

• Owing to paragraph 33 (8A) of Schedule 15 to FA2003, no Stamp Duty charge arises on 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. In practical terms this is because any shares which are only admitted to trading on recognised growth markets are excluded from the calculation of Stamp Duty arising on the transfer of partnership interests. More information on Stamp Duty and partnerships can be found at STSM090000 onwards.

Further Information

‘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 is published on gov.uk. Tables 1 and 2 show which exchanges are recognised stock exchanges, and which markets on those stock exchanges have “listed” and “not listed” status.

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

The exemption was introduced on 28 April 2014.

To claim the exemption for growth market shares, certificate 2 on the stock transfer form should be completed to certify that the transfer is exempt. The stock transfer form does not need to be presented to HMRC when certificate 2 is completed.