80/02
8 August 2002
British Government Stock: transfer of registrar
Following the Bank of Ireland's decision to discontinue its stock registration business, the Government has decided to close its registers of British Government Stock (also known as UK gilts) currently managed by the Bank of Ireland. The holdings will be transferred to the main UK gilts register, managed by the Bank of England in Gloucester.
The closure and transfer is scheduled to take place at close of business on Friday 25 October 2002, and the amalgamated register will be operative from Monday 28 October 2002.
Stockholders currently registered on the Dublin or Belfast register need take no action in respect of their stockholdings, and should experience no change on the timing of associated payments.
After the transfer, the affected holdings will be mostly managed on the same basis as at present. There will be no need to exchange stock certificates. Instructions concerning the destination of dividends and/or the deduction of, or exemption from, UK income tax, will continue to be honoured. However, the Bank of England will have no powers to deduct Irish income tax from holdings currently registered in Dublin. If the income on stockholdings is liable for Irish income tax, stockholders will be paid gross, and will need to declare the income directly to the Irish Revenue at the appropriate time.
Notes to Editors
1. The Treasury currently uses two agents for the registration of British Government Stock - Bank of England (in respect of the Gloucester register) and Bank of Ireland (in respect of the Belfast and Dublin registers). These are historic arrangements, which date back to before Irish partition and independence. Both Banks have offered a high quality, good value service to the British taxpayer, who pays the costs of registration, and to the stock-holders who invest in UK Government securities.
2. Recently, the Bank of Ireland has made a commercial decision to divest itself of its registration business. Consequently a new operator was needed for the Belfast and Dublin Registers. As operator of by far the largest of the three registers, the Bank of England is best placed to act as registrar for all holdings of UK government stock. The Government has therefore decided to close the Belfast and Dublin registers, and transfer the holdings onto the register managed by the Bank of England, in Gloucester.
3. The primary legal basis for the transfer is the Finance Act 2002. The transfer is scheduled to take place on the weekend of 26 October, which is the first practical opportunity, allowing for the passage of the necessary secondary legislation and for preparation by the Banks of England and Ireland.
4. Affected stockholders will receive written notification of the change, including a question and answer factsheet. Every effort will be made to ensure that the rights and privileges of stockholders will be protected throughout the transfer and into the future.
5. Media enquirers should call HM treasury press office, tel. 020 7270 5238. Routine enquiries relating to stockholders? present stockholdings should continue to be addressed to the Bank of Ireland at the usual address until 25 October 2002.
6. The Dublin Register is limited to five stocks: 2.5% Consolidated; 2.5% Annuities; 2.75% Annuities; 3.5% War Stock and 3.5% Conversion Stock. In contrast, the Gloucester and Belfast Registers are available to holders of all UK Government stocks.