UK revoking Moscow Exchange's 'recognized' status, depriving investors trading on it of tax benefits

MOSCOW. April 19 (Interfax) - The United Kingdom is revoking the Moscow Exchange's status as a "recognized" exchange and thus depriving investors trading on it of tax benefits, HM Treasury said in a press release.

"This means 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 statement said.

Financial Secretary to the Treasury Lucy Frazer said that this step sends a clear message, that "there is no case for new investments in Russia," as part of a continuing policy of isolating Russia in connection with its special operation in Ukraine.

"Recognized stock exchange status is a classification given by HM Revenue and Customs for tax purposes, on application, to qualifying stock exchanges. Securities traded on a recognized stock exchange are eligible for certain tax treatments and reliefs," the statement said.

"The status of a recognized stock exchange allows UK residents to receive tax preferences on certain classes of assets. If this status is revoked, these tax preferences will no longer apply to new investments. The tax preferences will remain for investments already made on the Moscow Exchange," the exchange said.

"Recognized stock exchange status is a classification given by HM Revenue and Customs for tax purposes, on application, to qualifying stock exchanges. Securities traded on a recognized stock exchange are eligible for certain tax treatments and reliefs," the statement said.