April 19, 2022 - The UK’s tax authority, HM Revenue and Customs (HMRC), has today (19 April 2022) announced its intention to revoke the Moscow Stock Exchange’s (MOEX) status as a recognised stock exchange. The move means that new investors will not be able to access certain UK tax benefits in future when trading securities on MOEX, although existing investments will be protected.
The announcement from HMRC states that the revocation of the recognition, "comes alongside the unprecedented sanctions the UK Government has placed upon Russia because of their illegal invasion of Ukraine".
Financial Secretary to the Treasury, Lucy Frazer, said, "As we continue to isolate Russia in response to their illegal war on Ukraine, revoking Moscow Stock Exchange’s recognised status sends a clear message – there is no case for new investments in Russia."
Recognised stock exchange status is a classification given by HMRC for tax purposes, on application, to qualifying stock exchanges. Securities traded on a recognised stock exchange are eligible for certain tax treatments and reliefs.
HMRC proposes to remove MOEX’s recognised stock exchange status, limiting access to certain UK treatments and reliefs for future investments in securities traded on MOEX. Access to those treatments and reliefs for existing investments will remain unaffected.
The official release from the HMRC provided further information on the move to revoke recognition:
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