Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Illegal charge

02 October 2009
Issue: 4226 / Categories: Tax cases , Land & property
HSBC Holdings plc and Vidacos Nominees Ltd v CRC (Case C-569/07), European Court of Justice

HSBC made a public offer to acquire the shares in Credit Commercial de France a company incorporated and resident in France.

The offer included a share exchange alternative for which HSBC had to obtain a listing on the Paris Stock Exchange.

As a result HSBC had to have an account opened in its name in the French settlement system (Sicovam). The bank agreed to pay any stamp duty reserve tax on shares traded through Sicovam although strictly it was Sicovam’s liability.

The HSBC shares were chargeable securities within the meaning of FA 1986 s 99(3). Where they were issued to a clearance service - i.e. Vidacos Nominees Ltd (Sicovam’s nominee for the UK) - SDRT was payable at 1.5% on the price of the shares under s 96(1) and

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

Download the exclusive Xero
free report here.

New queries
Please email any questions you might have

back to top icon