Market Taxation Guide - UK

17.11.2022

This Market Taxation Guide (United Kingdom) provides the following details:

  • Reference information about all taxes applied at source, to securities deposited in Clearstream Banking1; and
  • Instructions for obtaining relief at source or a refund of withholding tax, where these are available, through Clearstream Banking.

Additional and improved tax information and procedures that are available will be included on an ongoing basis.

Important note:
This Market Taxation Guide (including any attachments and other links) is for informational purposes only and is not intended and should not be considered to be legal advice on any subject matter. Readers of this Market Taxation Guide, whether customers or otherwise, should not act or refrain from acting on the basis of any information included in this Market Taxation Guide without seeking appropriate legal or other professional advice.

Types of securities

This market taxation guide covers income distributed by Global Bearer Certificates issued on original UK certificates that are classified as:

  • Corporate bonds;
  • Government bonds (UK Gilts);
  • Equities;
  • Real Estate Investment Trusts

The list of Global Bearer Certificates (including both the ISIN of the Global Bearer Certificate and the ISIN of the original certificate) is available under Global Bearer Certificates.

Withholding tax

The default tax rates applicable to the income distributed on the global bearer certificate depends on the classification of the original UK security.

Classification of the original UK security

Holding restriction?

Withholding tax rate

Relief at source

Quick refund

Standard refund

Unlisted corporate bonds

No

20

No

No

No

Listed corporate bonds

0

N/A

N/A

N/A

Government bonds (UK Gilts)

0

N/A

N/A

N/A

Equities

0

N/A

N/A

N/A

Real Estate Investment Trusts (non-property income distribution)

0

N/A

N/A

N/A

Real Estate Investment Trusts (property income distribution)

20

No

No

No

Capital gains tax

Typically, there is no capital gains tax withheld through Clearstream Banking on securities held in Clearstream Banking. However, Capital gains tax may be payable on specific gains. Clearstream Banking does not assist in this regard. Please consult your tax advisor for further information.

Stamp Duty

There is no stamp duty withheld through Clearstream Banking on Global Bearer Certificates held in Clearstream Banking. Stamp duty may however be payable on specific transactions. Clearstream Banking does not assist in this regard. Please consult your tax advisor for further information.

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1. “Clearstream Banking” refers to Clearstream Banking AG