Commencement of section 109 of the Finance Act 2007

Stamp Duty on transfers of Irish securities – New reliefs for certain market participants

The Minister for Finance has signed an order that will commence the provisions of section 109 of the Finance Act 2007 with effect from 1 October 2007. Section 109 amends existing provisions of the Stamp Duties Consolidation Act 1999 and inserts two new sections, section 75 and section 75A into that Act.

As a consequence of that, as on and from 1 October 2007 –

• stamp duty exemption for market makers on the Irish Stock Exchange and the London Stock Exchange is abolished;
• stamp duty relief for member firms (broker/dealer relief) of those exchanges is abolished;
• entitlement to repayment of stamp duty (“closings relief”) under section 73(1)(b) of the Stamp Duties Consolidation Act 1999 is, subject to transitional arrangements^*
  abolished;
• a new stamp duty relief is available for “recognised intermediaries” where they acquire Irish securities on –
  • any exchange or market operated by the Irish Stock Exchange Limited,
  • any exchange or market operated by the London Stock Exchange plc,
  • Plus Markets plc and markets operated by it, and
  • POSIT operated by Investment Technology Group Limited^**
    and
• a specific stamp duty exemption is available on certain transfers of Irish securities in a settlement chain involving a Central Counterparty.

* See the Guidance Notes issued by the Revenue Commissioners in August 2007.

** The Revenue Commissioners have designated, with effect from 1 October 2007, Plus Markets plc and markets operated by it, and POSIT operated by Investment Technology Group Limited, as an exchange or market, as the case may be, for the purposes of the new intermediary relief.;