Recognised stock exchanges clarifying tax law on recognised stock exchanges in the light of the UK’s new listing arrangements

The Inland Revenue is now confirming the revised interpretation the expression “listed on a recognised stock exchange” which was put out for consultation in PR 76/01 issued on 25 April 2001. The revised interpretation will be applied from 28 November 2001. A statement of practice will be issued shortly.

The arrangements proposed in PR 76/01 to protect the interests of taxpayers who have made investments in good faith on the basis of the Revenue’s existing view are confirmed. In particular amendments to the Personal Equity Plan Regulations 1989 and the Individual Savings Account Regulations 1998 which will ensure that qualifying shares and securities already held in an ISA or PEP at the date the revised interpretation takes effect, and which would not qualify under the revised interpretation, can remain within the ISA or PEP as qualifying investments.