Stamp Duty and Stamp Duty Reserve Tax: revocation of 2 obsolete regulations
Published 14 October 2015
© Crown copyright 2015
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This publication is available at https://www.gov.uk/government/publications/stamp-duty-and-stamp-duty-reserve-tax-revocation-of-2-sets-of-obsolete-regulations/stamp-duty-and-stamp-duty-reserve-tax-revocation-of-2-obsolete-regulations
Who is likely to be affected
No one will be affected. The change merely revokes regulations which are no longer necessary.
General description of the measure
The measure will revoke:
- Stamp Duty and Stamp Duty Reserve Tax (Investment Exchanges and Clearing Houses) Regulations (No. 9) 2009 (SI 2009/1828) (‘the 2009 Regulations’) which prescribe LCH.Clearnet Limited as a recognised clearing house in connection with transactions on the London International Financial Futures and Options Exchange (LIFFE); and which prescribe LIFFE Administration and Management (LIFFE A&M) as a recognised investment exchange
- Stamp Duty Reserve Tax (European Central Counterparty Limited) Regulations 2011 (SI 2011/667) (‘the 2011 Regulations’) which prescribe European Central Counterparty Limited as a recognised clearing house
Policy objective
The revoking regulations will remove the 2009 and 2011 regulations, as they are no longer necessary.
Background to the measure
A recognised clearing house, its members and their nominees can obtain relief from stamp taxes when clearing transactions made on a recognised investment exchange or over the counter.
The 2009 regulations prescribed LCH.Clearnet Limited as a recognised clearing house in connection with transactions on LIFFE, and prescribed LIFFE A&M (the company that operated LIFFE) as a recognised investment exchange.
LCH.Clearnet Limited ceased clearing transactions for LIFFE in 2013. The clearing of transactions on LIFFE was taken over by ICE Clear Europe. LIFFE A&M business was transitioned to ICE Futures Europe in 2014. As LCH.Clearnet Limited no longer clears transactions for LIFFE, and as LIFFE A&M is no longer trading, the 2009 regulations can be revoked.
The 2011 Regulations prescribed European Central Counterparty Limited as a recognised clearing house. European Central Counterparty Limited combined with another recognised clearing house in 2013, and formed a new entity, European Central Counterparty N.V. As European Central Counterparty Limited is no longer trading, the 2011 regulations can be revoked.
The measure follows informal consultations.
Detailed proposal
Operative date
This measure will have effect on and after 10 November 2015.
Current law
The current law is in:
- Stamp Duty and Stamp Duty Reserve Tax (Investment Exchanges and Clearing Houses) Regulations (No. 9) 2009 (SI 2009/1828)
- Stamp Duty Reserve Tax (European Central Counterparty Limited) Regulations 2011 (SI 2011/667)
Proposed revisions
The Stamp Duty and Stamp Duty Reserve Tax (Investment Exchanges and Clearing Houses) (Revocation) Regulations 2015 will revoke both the 2009 Regulations and the 2011 Regulations.
Summary of impacts
Exchequer impact (£m)
| 2015 to 2016 | 2016 to 2017 | 2017 to 2018 | 2018 to 2019 | 2019 to 2020 | 2020 to 2021 |
|---|---|---|---|---|---|
| nil | nil | nil | nil | nil | nil |
This measure is not expected to have an Exchequer impact.
Economic impact
The measure is not expected to have any economic impact.
Impact on individuals, households and families
The measure is not expected to impact on individuals, households and families.
Equalities impacts
It is not expected that this measure has any impacts on groups sharing protected characteristics.
Impact on business including civil society organisations
The measure will maintain clear legislation. It is expected to have no other impact on businesses or civil society organisations.
Operational impact (£m) (HM Revenue and Customs (HMRC) or other)
This measure can be implemented within HMRC’s current funding allocation. Implementing and delivering this policy will have no costs impact
Other impacts
Other impacts have been considered and none have been identified.
Monitoring and evaluation
The measure will be monitored as part of HMRC’s normal assurance process.
Further advice
If you have any questions about this change, please contact Anne Berriman on Telephone: 03000 585901 or email: anne.berriman@hmrc.gsi.gov.uk.
Declaration
David Gauke MP, Financial Secretary to the Treasury has read this tax information and impact note and is satisfied that, given the available evidence, it represents a reasonable view of the likely costs, benefits and impacts of the measure.