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.
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.
