ABSTRACT
UK company (ie: a company which is not formed or established in the UK) is
exempt from the s 87 charge.
2 UK bearer instrument (FA 1986 ss 90(3A), (3C)-(3F)) ➤ An agreement to transfer a bearer instrument issued by or on behalf of a UK
company (ie: a company formed or established in the UK) is exempt from the
s 87 charge if either:
a) i) the instrument was issued by a body corporate incorporated in the
UK, and
ii) on issue stamp duty was not chargeable as the instrument was a non-
sterling bearer instrument for the purposes of FA 1999 Sch 15 para 17,
and
iii) the chargeable securities are, or a depositary receipt for them is, listed
on a recognised stock exchange, and
iv) the agreement to transfer the chargeable securities is not made in con-
templation of, or as part of an agreement for, the takeover of the body
corporate which issued the securities (FA 1986 ss 90(3C)-(3D)), or
b) i) the instrument was issued by a body corporate incorporated in the
UK, and
ii) on issue stamp duty was not chargeable as the instrument was either:
loan capital (and therefore within FA 1986 s 79(2)), or
a non-sterling bearer instrument for the purposes of FA 1999 Sch
15 para. 17, and
iii) an instrument transferring loan capital to which such an instruments relates
would be chargeable to stamp duty as such an instrument would not qualify
for the exemption accorded to exempt loan capital in FA 1986 ss 79(5)-(6),
and
iv) the chargeable securities are, or a depositary receipt for them is, listed on a
recognised stock exchange (eg: the London or Luxembourg stock ex-
changes), and
v) the agreement to transfer the chargeable securities is not made in contem-
plation of, or as part of an agreement for, the takeover of the body corporate
which issued the securities, and
vi) the chargeable securities do not carry any right of a kind described in FA
1986 s 79(5) by the exercise of which chargeable securities which are not
listed on a recognised stock exchange may be obtained (FA 1986 ss 90(3E)-
(3F)).
