Schedule 26

Finance Bill – in a Public Bill Committee at 1:30 pm on 7th June 2007.

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Meaning of “Recognised Stock Exchange” etc

Photo of Edward Balls Edward Balls The Economic Secretary to the Treasury 1:45 pm, 7th June 2007

I beg to move amendment No. 118, in schedule 26, page 281, line 17, at end insert—

‘8A In paragraph 4(2C)(b) of Schedule 26 to FA 2002 (derivative contracts: contracts excluded by virtue of their underlying subject matter), for “quoted” substitute “listed”.’.

Schedule 26 amends the legislation defining a recognised stock exchange to enable a more competitive market. It will also modernise the rules and definitions to provide greater clarity and consistency. Current rules do not permit the extension of recognised status to any UK stock exchange other than the London stock exchange. The measure will ensure equal tax treatment for Financial Services Authority listed shares regardless of which recognised investment exchange is used as the primary market.

Amendment No. 118 will ensure that all known consequential amendments have been made. As I said, the legislation’s aim is to ensure competition for markets and to modernise the terminology used. This consequential amendment, which was omitted from the original list, should now be included. If it is not added to the list, it could create uncertainty for the industry and unnecessary administrative burdens in clarifying that there is no essential difference between “quoted” and “listed” for the purpose of schedule 26. I commend the amendment to the Committee.

Photo of Theresa Villiers Theresa Villiers Shadow Chief Secretary to the Treasury

I rise to ask a question that, now that I come to think about it, probably would have been better directed to a schedule stand part debate, but if the Committee will allow me, I shall ask it. Does the schedule impact in any way on the tax benefits and tax status related to shares listed on AIM?

Amendment agreed to.

Schedule 26, as amended, agreed to.

Clauses 109 and 110 ordered to stand part of the Bill.