Quoted Eurobond Exemption

The Channel Islands Stock Exchange (CISX) provides a fast-track listing procedure for debt and equity securities and currently has over 2,500 listings of all types of securities. One of the key drivers for this growth has been the ability of the CISX to list Eurobonds which qualify for exemption from the requirement to pay UK withholding tax.

Conditions for Eurobond exemption

If interest arising in the UK is to be paid to a person who is resident outside the UK, the person paying the interest (or its paying agent) must deduct UK withholding tax. However, an exemption from this requirement is available where interest is payable on a quoted Eurobond. A quoted Eurobond is a security that (a) carries a right to interest; (b) is issued by a corporate; and (c) is listed on a 'recognised stock exchange'.