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»Ê¹ÚÌåÓýapp holder of a depositary receipt can, at any time, require the depositary receipt issuer (or its nominee) to cancel the receipt in exchange for the underlying shares. Where a receipt is cancelled, the depositary receipt issuer must deliver the same security and quantity of shares that was originally deposited with the bank against the issue of the receipt.

»Ê¹ÚÌåÓýappre is no ad valorem stamp duty or 0.5 per cent Stamp Duty Reserve Tax (SDRT) charge when a receipt is cancelled and the underlying shares are transferred to the holder, as the transfer is in satisfaction of the holder’s rights under the depositary receipt.

»Ê¹ÚÌåÓýapp execution of a paper instrument i.e. a stock transfer form, to effect the transfer of the underlying shares, is not subject to stamp duty, although a £5 fixed stamp duty charge applied by virtue of FA99/SCH13/PARA16 where the instrument was executed before 13 March 2008 and the shares represented ‘relevant securitiesâ€�.

See STSM053020 for the meaning of ‘relevant securities�.