PIMA welcomes Maltese investments to ISA status
PIMA is pleased that HMRC has designated the[b] Malta Stock Exchange as a "recognised stock exchange" [/b] under section 841(1)(b) ICTA 1988.
This means that the tests for qualifying shares and qualifying securities which require official listing on a “recognised stock exchange” will allow Malta listed investments from that date, provided they meet the other requirements of the PEP/ISA Regulations. Guidance 7.74 will be amended in due course.
[b]PIMA Director-General Tony Vine-Lott said,
‘This just demonstrates the ever-increasing diversity available to investors in tax-preferred savings products like ISAs and CTFs. As investors desire access to a much greater range of investments, PIMA is extremely pleased to see the yet another recognised exchange added.’[/b]
For more information:
Tony Vine-Lott, Director-General, PIMA
07790 006108
Iain Anderson or Jacob Coy, Cicero Consulting
020 7665 9535
078 8619 7086
[b]Notes for journalists[/b]
Recognised Stock Exchanges Overseas
•The term "recognised stock exchange" occurs throughout the Taxes Acts and in various tax regulations. For example it is used in the definition of a close company in Section 415 Income and Corporation Taxes Act (ICTA) 1988, and in the definition of investments which may be held in PEPs and ISAs.
•The term is often used in the phrase "listed on a recognised stock exchange" or in similar or related expressions. As announced on 28 November 2001, the Her Majesty’s Revenue and Customs now interprets these expressions in the following way:
[indent][list][*]in EU countries and members of the European Free Trade Association who have ratified the European Economic Area Agreement (Iceland, Liechtenstein and Norway), in the light of the EC Directive on admission of securities to official stock exchange listing (2001/34/EC) and domestic legislation to give effect to that directive, the phrases will denote listing by a competent authority and admission to trading on a recognised stock exchange;
[indent][list][*]outside these countries, where there is no system directly analogous to the European listing regime, the phrases will continue to denote admission to trading by a recognised stock exchange. [/indent][/list]
•The definition of a recognised stock exchange is given in Section 841 ICTA 1988. It includes the London Stock Exchange and any such stock exchange outside the UK as is designated in an Order of the Board of the Inland Revenue.
•Recognition under Section 841 ICTA is for tax purposes only and confers no other status on the exchange concerned: it does not constitute any form of recognition or approval for regulatory or other purposes nor does it provide any form of approval or recommendation of any of the investments which are listed or traded on that exchange.
•The Inland Revenue announced a new approach to the recognition of stock exchanges overseas in a policy statement published at PBR on 27 November 2002. The Inland Revenue will also consider recognition on receipt of a request made by an overseas stock exchange so, the fact that a particular exchange is not recognised may simply mean that recognition has not been requested.
•The current list of recognised stock exchanges is set out below and can be verified on the HMRC website at www.hmrc.gov.uk/fid/rse.htm
List of Stock Exchanges designated as "recognised stock exchanges" by Order of the Board
under Section 841(1)(b) ICTA 1988 as at current date; and date of recognition.
• The Athens Stock Exchange 14 Jun 1993
• The Australian Stock Exchange and any of its stock exchange subsidiaries 22 Sep 1988
• The Cayman Islands Stock Exchange 4 Mar 2004
• The Colombo Stock Exchange 21 Feb 1972
• The Copenhagen Stock Exchange 22 Oct 1970
• The Helsinki Stock Exchange 22 Oct 1970
• The Johannesburg Stock Exchange 22 Oct 1970
• The Korea Stock Exchange 10 Oct 1994
• The Kuala Lumpur Stock Exchange 10 Oct 1994
• The Malta Stock Exchange 29 Dec 2005
• The Mexico Stock Exchange 10 Oct 1994
• The New Zealand Stock Exchange 22 Sep 1988
• The Rio De Janeiro Stock Exchange 17 Aug 1995
• The Sao Paulo Stock Exchange 11 Dec 1995
• The Singapore Stock Exchange 30 Jun 1977
• The Stockholm Stock Exchange 16 Jul 1985
• The Stock Exchange of Thailand 10 Oct 1994
• The Swiss Stock Exchange 12 May 1997
Any stock exchange in the following countries which is a stock exchange within the meaning of the law of the particular country relating to stock exchanges (or as specified below)
• Austria 22 Oct 1970
• Belgium 22 Oct 1970
• Canada – Any stock exchange prescribed for the purpose of the Canadian Income Tax Act. 22 Oct 1970
• France 22 Oct 1970
• Germany 5 Aug 1971
• Guernsey 10 Dec 2002
• Hong Kong – Any stock exchange which is recognised under Section 2A (1) of the Hong Kong Companies Ordinance. 26 Feb 1971
• Italy 3 May 1972
• Ireland (Republic of) 22 Oct 1970
• Japan 22 Oct 1970
• Luxembourg 21 Feb 1972
• Netherlands 22 Oct 1970
• Norway 22 Oct 1970
• Portugal 21 Feb 1972
• Spain 5 Aug 1971
• USA – Any exchange registered with the Securities and Exchange Commission of the United States as a national securities exchange. 22 Oct 1970
• USA – The NASDAQ Stock Market as maintained through the facilities of the National Association of Securities Dealers, Inc and its subsidiaries. 10 Mar 1992