The list of overseas stock exchanges designated as recognised stock exchanges under section 841 (1)(b) Income and Corporation Taxes Act 1998 can be found at www.HMRC.gov.uk/fid/rse/htm.
Background
The term "recognised stock exchange" occurs throughout the Tax Acts and in various tax regulations. For example it is used in connection with close companies in section 415 Income and Corporation Taxes Act 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".
The definition of a recognised stock exchange is given in section 841 Income and Corporation Taxes Act 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 HM Revenue and Customs.
Recognition under section 841 Income and Corporation Taxes Act 1988 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.
With effect from 31 March 2006, the Iceland Stock Exchange will also be regarded as a recognised stock exchange for Inheritance Tax purposes.
