STSM042070 | Exemptions and reliefs: reliefs: Intermediary Relief - recognition of intermediary

A person has to be recognised as an intermediary to benefit from Stamp Duty/Stamp Duty Reserve Tax (SDRT) intermediary relief. Recognition can be obtained in two ways.

1. An application can be sent 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) or;

2. A direct application for recognition can be made to HMRC.

For a list of regulated markets, MTFs, recognised foreign exchanges and recognised foreign options exchanges with approved HMRC arrangements, see STSM123040 and STSM123050

A person making a direct application to HMRC must either:

1. be authorised under the law of an EEA state, or Gibraltar, to provide any of the investment services or activities listed in Section A 2 or 3 of Annex I to the Directive (execution of orders on behalf of clients and dealing on own account), whether or not the person is authorised under the Directive, or;

2. have permission under the Financial Services and Markets Act 2000 to carry on any of the investment services or activities in paragraph 2 or 3 of Part 3 of Schedule 2 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001.

“The Directive” means Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments (MiFID).

Details of the key information which should be included in a direct application to HMRC is given in STSM042075

See STSM022230 for the definition of regulated market, MTF, recognised foreign exchange and recognised foreign options exchange.