Cyprus Stock Exchange recognized by UK for tax purposes

The Cyprus Stock Exchange (CSE) has been designated as a “recognized stock exchange” for tax purposes by the UK organisation HM Revenue & Customs (HMRC). The designation came into effect from June 22, 2009.

HM Revenue & Customs announced that securities to be admitted to trading and listed on the EU regulated markets of the Cyprus Stock Exchange (those regulated under Title III of the MiFID) will meet the HMRC interpretation of “listed” as set out in section 1005 (3) (a) and (3) (b) Income Tax Act 2007. It is clarified though that the recognition is for tax purposes only and does constitute any form of approval or recommendation of any of the investments, which are listed or traded on CSE or any other recognised stock exchange.

Furthermore, it is noted that securities traded on a new market soon to be launched by CSE which will be called the Emerging Companies Market will not meet the HMRC definition of listed.