The Gibraltar Stock Exchange (GSX) is pleased to announce that with effect from 16 August 2016, the Board of the United Kingdom’s HM Revenue & Customs (HMRC) have designated the Gibraltar Stock Exchange as a “recognised stock exchange” under section 1005 (1) (a) Income Tax Act 2007 (ITA).
The designation extends to the entire Gibraltar Stock Exchange and is a significant development that allows GSX to expand its services and offering to issuers. In particular, HMRC recognition extends eligibility to the UK SIPPs and ISAs market for GSX-listed securities.
The decision follows recognition of GSX by ESMA in January 2016 and the Cayman Islands Monetary Authority (CIMA) in March 2015.
Nick Cowan, Managing Director of GSX said:
“GSX’s growth, as an EU regulated market, has been built on providing a robust prospectus approval and listing process that is fast to market, commercially attractive and well-regulated for issuers of debt securities (including Corporate Bonds, Asset-backed securities, Insurance linked securities, Convertible Bonds, and Derivative securities) and issuers of shares in funds. It opens up new channels of distribution for our Issuers and provides an alternative to the current listing venues. We look forward to further growing the business of the Exchange.”
GSX opened in November 2014 as an EU regulated market providing listings of Debt Securities and Investment Funds. GSX is regulated by the Gibraltar Financial Services Commission (GFSC) who act as both the Competent Authority responsible for maintaining the Official List and the Listing Authority responsible for admissions to GSX.
Recognised Stock Exchange:
1) 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.
2) The phrase “listed on a recognised stock exchange” in respect of shares and securities is now defined at section 1005(4) Income Tax Act (ITA) 2007 and means shares and securities which are admitted to trading on that exchange and included in the official UK list maintained by the Financial Conduct Authority as the UK Listing Authority or are officially listed in a qualifying country outside the UK in accordance with provisions corresponding to those generally applicable in EEA states.
3) The definition of a recognised stock exchange is given in section 1005(1) ITA. It includes any market of a recognised investment exchange designated as a recognised stock exchange by an order made by the Commissioner for HMRC and any market outside the UK designated in such an order.
4) Recognition under section 1005 ITA 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.
5) The approach to the recognition of stock exchanges overseas announced in the policy statement published at PBR on 27 November 2002 has not changed. HMRC will 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.
6) Section 48A(3) Finance Act (FA) 2005 requires Ìƒalternative finance investment bonds’ (Sharia-compliant financial instruments commonly known as Ìƒsukuk’) to be listed on a recognised stock exchange. An alternative finance investment bond listed on an exchange recognised under section 1005 ITA will meet this requirement. In addition, certain other exchanges are designated only for the purposes of section 48A FA 2005. An alternative finance investment bond listed on such an exchange will meet the listing requirement in section 48A(3) FA 2005, but the exchange is not a recognised stock exchange for any other purpose. Designation has effect from 1 April 2007. Please see the table Recognised Stock Exchanges solely for the Purposes of section 48a(3).