STSM056020 - Depositary receipt and clearance services: liable and accountable person: notification requirement FA86/S68 and FA86/S71
The provisions in sections
68 and 71 FA1986 require the following:
Depositary Receipt Issuer and Clearance Service Notifications
A depositary receipt issuer or an operator of a clearance service (or their respective nominee or agent) shall notify the Commissioners for HM Revenue & Customs of the business being undertaken before the end of the period of one month beginning with the date on which he first issues a depositary receipt for relevant securities, or provides clearance services or holds relevant securities. Failure to notify HMRC may result in a penalty not exceeding £1,000.
Company Notifications
A United Kingdom (UK) incorporated company that becomes aware that its shares are held by a depositary receipt issuer (or its nominee) or clearance service (or its nominee) shall notify the Commissioners for HM Revenue & Customs of that fact before the end of the period of one month beginning with the date on which the company first became aware of that fact. Failure to notify HMRC may result in a penalty not exceeding £100.
Further information
See STSM056040 for a list of depositary receipt issuers (or their nominee) and clearance services (or their nominee) which are accountable for 1.5% Stamp Duty or Stamp Duty Reserve Tax (SDRT) charges.
In addition to those listed, a depositary receipt issuer (or its nominee) or clearance service (or its nominee) can open and maintain an account with a third party in the UK, commonly a stock exchange member firm, under which a 1.5% SDRT charge will be accounted for and paid by the third party in CREST.
See STSM053020 for the meaning of "relevant securities".