Mauritius Stock Exchange Recognized By UK Taxman

by Phillip Morton, Investors Offshore.com

08 February 2011

The Stock Exchange of Mauritius has been designated as a recognised stock exchange for the purposes of HM Revenue and Customs's (HMRC) tax treatment.

With effect from January 31, 2011, HMRC has designated the Stock Exchange of Mauritius as a recognised stock exchange under section 1005 (1) (b) Income Tax Act 2007. Securities admitted to trading and listed on the Official Market of the Stock Exchange of Mauritius will meet the HMRC interpretation of ‘listed’ as set out in section 1005 (3) (a) and (3) (b) Income Tax Act 2007.

However, the Development and Enterprise Market of the Stock Exchange of Mauritius will not meet the HMRC definition of ‘listed.’

The term 'recognized stock exchange' occurs throughout the UK Tax Acts and in various tax regulations. For example it is used in connection with close companies in section 415.1b Income and Corporation Taxes Act 1988, and in the definition of investments which may be held in Individual Savings Accounts.

HMRC said that recognition under section 1005 Income Tax Act 2007 is for tax purposes only and does not constitute any form of recognition or approval for regulatory or other purposes.

HMRC recognizes stock exchanges in a number of 'low-tax' jurisdictions including Bermuda, the Cayman Islands, the Channel Islands, Hong Kong, Ireland, Luxembourg, Malta, Singapore and Switzerland.

Recommended