Dan Spanish tax11 Oct 2023 06:36
We are due to credit your account with a refund of Spanish Financial Transaction Tax (‘FTT’) for the period January 2021 – September 2022.
What does this amount relate to?
When you buy shares through a regulated market such as HL’s platform that are issued by a Spanish company with a market capitalisation of more than EUR 1 billion, Spanish FTT is charged on the purchase price at 0.2%.
Why are you receiving a refund of Spanish FTT?
Spanish FTT is due on the net number of shares purchased at the close of trading on that day - this process is called ‘Intraday Netting’ which only applies when you buy and sell the same shares on the same day. It does not matter the order in which the shares were bought or sold for intraday netting to apply.
If for example shares were purchased on a Monday and then sold on a Tuesday, there would not be a refund of Spanish FTT for those shares purchased on Monday as the purchase and sale did not occur on the same day.
As Spanish FTT is due on the net number of shares bought there can either be a full or partial refund of Spanish FTT collected.
Full refund - 1,000 shares in Company X are bought for £1,000 on 1 July 2022 resulting in a payment of Spanish FTT of £2. If all 1,000 shares in Company X are sold on 1 July 2022 a refund of £2 would be due.
Partial refund –1,000 shares in Company X are bought for £1,000 on 1 July 2022 resulting in a payment of Spanish FTT of £2. If 500 shares in Company X are sold on 1 July 2022 a refund of £1 would be due.
The refund will be visible in the capital account in the account the original purchase was made. This line will display the trade date of the purchase and the stock ISIN the refund relates to.
Why am I only getting this refund now?
Spanish FTT was announced in October 2020 and came into force from January 2021. Due to the short turnaround time and a lack of initial guidance, we had to work quickly to put in place appropriate systems to comply.
In combination with a number of partners, we’ve been working continuously to improve processes since the introduction of Spanish FTT. As part of process improvements, you have been identified as being due a refund.
As a gesture of goodwill, we have included a simple rate of 8% interest on top of the refund which is shown on a separate line in your Loyalty Bonus account.
From November 2022, we aim to refund Spanish FTT before the 15th of the month. For example, any trades in October 2022 that create a refund will be credited to your account before the 15th November 2022. No interest will be included on refund payments going forward.
Hope this helps
Sign In
Follow the stocks
