A third occasion of charge to SDRT is on the transfer or issue of securities into a depositary-receipt system. In broad terms, a depositary receipt is an instrument acknowledging that a person holds stocks or shares, but that another person is entitled to rights in relation to stocks and shares of the same kind including the right to receive such securities (Stamp Taxes on Shares Manual (henceforth, ‘Manual’), para. STSM051020).

More precisely, a depositary receipt for chargeable securities is defined for the purposes of the charge under FA 1986, s. 93 as an instrument acknowledging:

that a person (A) holds chargeable securities or evidence of the right to receive them;

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