Emily McCarthy and Callum Fowers (Hogan Lovells) look at where the EU prohibition of charging 1.5% SDRT on an issue of shares to clearance services and depositary receipt systems stands in the event of a no-deal Brexit.
Buried in Autumn Budget 2017 was the following statement: ‘The government will not reintroduce the ... [SDRT] 1.5% charge on the issue of shares ... into overseas clearance services and depositary receipt systems following the UK’s exit from the EU’ (Budget Report para 3.39). The charge is not currently collected because it was found to be contrary to EU law in two cases involving HSBC Holdings: HSBC Holdings Plc and Vidacos Nominees Ltd v HMRC (Case C-569/07) before the CJEU (Vidacos); and HSBC Holdings Plc and The Bank of New York Mellon Corporation v HMRC [2012] UKFTT 163 before the First-tier Tribunal (BNY).
Comforting as the Budget statement is the charging provisions remain on the statute...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
Emily McCarthy and Callum Fowers (Hogan Lovells) look at where the EU prohibition of charging 1.5% SDRT on an issue of shares to clearance services and depositary receipt systems stands in the event of a no-deal Brexit.
Buried in Autumn Budget 2017 was the following statement: ‘The government will not reintroduce the ... [SDRT] 1.5% charge on the issue of shares ... into overseas clearance services and depositary receipt systems following the UK’s exit from the EU’ (Budget Report para 3.39). The charge is not currently collected because it was found to be contrary to EU law in two cases involving HSBC Holdings: HSBC Holdings Plc and Vidacos Nominees Ltd v HMRC (Case C-569/07) before the CJEU (Vidacos); and HSBC Holdings Plc and The Bank of New York Mellon Corporation v HMRC [2012] UKFTT 163 before the First-tier Tribunal (BNY).
Comforting as the Budget statement is the charging provisions remain on the statute...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
.tmb-editorspic.jpg?sfvrsn=c9a7a0cc_1)
