The Stamp Duty and Stamp Duty Reserve Tax (LCH SA) Regulations 2022
| Year | 2022 |
2022 No. 102
Stamp Duty
Stamp Duty Reserve Tax
The Stamp Duty and Stamp Duty Reserve Tax (LCH SA) Regulations 2022
Made 3rd February 2022
Laid before the House of Commons 7th February 2022
Coming into force 28th February 2022
The Treasury make the following Regulations in exercise of the powers conferred by sections 116 and 117 of the Finance Act 19911.
Citation, commencement and effect
1.—(1) These Regulations may be cited as the Stamp Duty and Stamp Duty Reserve Tax (LCH SA) Regulations 2022 and come into force on 28th February 2022.
(2) These Regulations have effect—
(a)
(a) for the purposes of the charge to stamp duty, in relation to instruments executed on or after 28th February 2022;
(b)
(b) for the purposes of the charge to stamp duty reserve tax—
(i) in the case of agreements to transfer traded securities or options which are not conditional, in relation to agreements made on or after 28th February 2022;
(ii) in the case of agreements to transfer traded securities or options which are conditional, in relation to agreements where the condition is satisfied on or after 28th February 2022.
Interpretation
2. In these Regulations—
“clearing member client contract” has the same meaning as in section 155 of the Companies Act 1989 (market contracts)2;
“clearing participant” means a member of LCH SA who as such is permitted by the rules of LCH SA to clear facility transactions and/or over the counter transactions;
“client” means a person who gives instructions to a non-clearing firm for traded securities or options to be sold in a facility transaction or an over the counter transaction;
“default rules”, “defaulting” and “non-defaulting” have the same meaning as in section 188 of the Companies Act 19893;
“facility transaction” means a transaction in traded securities or options that is made on or reported to a recognised investment exchange4;
“nominee” means, save in relation to a non-clearing firm or its client (regulation 4(4)(b) and (e)), a person whose business is or includes holding traded securities or options as a nominee for LCH SA, or another prescribed5recognised clearing house or prescribed third country central counterparty6acting in its capacity as a person providing clearing services in connection with an over the counter transaction or a facility transaction, or as a nominee for a clearing participant;
“non-clearing firm” means a person other than a clearing participant who has an agreement with a clearing participant to clear over the counter transactions or facility transactions or both;
“option” means an option to buy or sell traded securities;
“over the counter transaction” means a transaction in traded securities or options made other than on a recognised investment exchange;
“traded securities” means stocks and shares which are issued or raised by a body corporate but does not include stocks and shares issued or raised by a body corporate not incorporated in the United Kingdom unless—
(a) the stocks and shares are registered in a register kept in the United Kingdom by or on behalf of the body corporate; or
(b) in the case of shares, they are paired, within the meaning of section 99(6A) of the Finance Act 19867, with shares issued by a body corporate incorporated in the United Kingdom.
Prescription of LCH SA
3. LCH SA8is a prescribed relevant entity for the purposes of sections 116 and 117 of the Finance Act 1991.
Prescribed circumstances for the purposes of sections 116 and 117
4.—(1) In the circumstances prescribed by paragraphs (2) and (3), the charges to stamp duty and stamp duty reserve tax shall be treated as not arising.
(2) The circumstances prescribed by this paragraph are that, in connection with a facility transaction or an over the counter transaction—
(a)
(a) a clearing member client contract entered into by a defaulting clearing participant (“DCP”) is transferred from the DCP to a non-defaulting clearing participant in accordance with the default rules of LCH SA; and
(b)
(b) the clearing member client contract does not represent the end transaction in the clearing of that contract either before or after the transfer.
(3) The circumstances prescribed by this paragraph are that, in connection with a facility transaction or an over the counter transaction (excluding transactions that come...
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