H.M. Revenue and Customs have designated the Malta Stock Exchange as a "recognised stock exchange" under section 841 (1) (b) Income and Corporation Taxes Act 1988 with effect from December 29, 2005.

The list of overseas stock exchanges designated as recognised stock exchanges under this act can be found at Recognised Stock Exchanges Overseas.

Note: The term "recognised stock exchange" occurs throughout the Income Tax Acts and in various tax regulations. For example, it is used in connection with close companies in section 415 Income and Corporation Taxes Act 1988, and in the definition of investments which may be held in PEPs and ISAs.

The term is often used in the phrase "listed on a recognised stock exchange". The definition of a recognised stock exchange is given in section 841 Income and Corporation Taxes Act 1988. It includes the London Stock Exchange and any such stock exchange outside the UK as is designated in an Order of the Board of HM Revenue and Customs.

Recognition under section 841 of this act is for tax purposes only and confers no other status on the exchange concerned. It does not constitute any form of recognition or approval for regulatory or other purposes, nor does it provide any form of approval or recommendation of any of the investments which are listed or traded on that exchange. With effect from last December, the MSE is also regarded as a recognised stock exchange for inheritance tax purposes.