The application of tax provisions to shares and securities is
frequently determined by whether the shares and securities are
listed on a “recognised stock exchange”. Now, the Inland Revenue
intends to clarify the rules with a revised interpretation of the
listed terms.26 Apr 2001
The proposed interpretation covers all recognised stock exchanges. It reflects new listing arrangements in the UK, and the Revenue's understanding of the application of the EU Admissions Directive, both in the UK and the rest of Europe. If it was adopted, this interpretation would preserve the treatment of AIM (the Stock Exchange Alternative Investment Market) shares and securities as unlisted. However, it would represent a change of view for some EU markets whose shares and securities have, until now, counted as listed.
Before confirming the position, the Government therefore wishes to consult on the interpretation and on the measures that might be taken to ensure that taxpayers are not disadvantaged should the revised view be confirmed.
Details of the proposed interpretation and the suggested protective measures can be found on the Revenue’s web site, here.
Comments are invited to bridget.micklem@ir.gsi.gov.uk and should be sent by 18th July 2001.