Pre-Budget Report – Stamp Duty Anti-Avoidance
New anti-avoidance rules have been introduced for UK based companies that arrange schemes under which new shares are issued to an EU clearance service or depositary receipt system without the payment of 1.5 per cent stamp duty or stamp duty reserve tax. The new measures will have effect for scheme transfers made on or after 1 October 2009.
This follows a landmark European Court of Justice Decision ruling that the 1.5% Stamp Duty Reserve Tax charge was contrary to the Capital Duty Directive and the Free Movement of Capital. This move is intended to minimise tax loss to the Exchequer.