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1.5% SDRT and no-deal Brexit

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The UK’s 1.5% SDRT charge on an issue of shares to a clearance service or depositary receipt system is not currently being collected because it was found to be contrary to EU law. The government has said it will not reinstate this charge after the UK leaves the EU. Further comfort can be taken from the legal position: an analysis of the Vidacos and BNY cases, EU law and the European Union (Withdrawal) Act 2018 suggests that, in the event of a no-deal Brexit, the charge will still not apply.
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...
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