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HMRC internal manual

Stamp Duty Land Tax Manual

HM Revenue & Customs
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Companies: Unit trust schemes FA03/S101

This section provides that the trustees of a unit trust scheme are treated as if theywere a company. For the purposes of paying stamp duty land tax when a unit trust schemeacquires land see SDLTM30200+.

Except for the deemed market value rule under FA03/S53 and FA03/SCH7 in respect of grouprelief, reconstruction and acquisition reliefs do not apply. See SDLTM23000+.

The rights of unit holders are treated as if they are shares in the company. The issue,surrender and transfer of units within the scheme are not within the scope of stamp dutyland tax. They continue to be subject to stamp duty reserve tax.

A unit trust scheme has the same meaning as in the Financial Services and Markets Act 2000and a unit holder means a person entitled to a share of the investments subject to thetrusts of a unit trust scheme.

An umbrella scheme is a unit trust scheme which has arrangements for separate pooling ofthe contributions of participants and the profits or income out of which payments are tobe made and under which the participants are entitled to exchange rights in one pool forrights in another. A part of an umbrella scheme means such of the arrangements as relateto a separate pool.

Where there is an umbrella scheme each part is regarded as a separate unit trust and thescheme as a whole is not treated as a unit trust scheme for stamp duty land tax purposes.Therefore, where part of an umbrella scheme acquires land, that part is treated as a unittrust scheme in its own right and the trustees of that part will be treated as a companyby virtue of FA03/S101(1)(a).

See FA03/S64A for details of the conditions to be met for the relief on the initialtransfer of assets to the trustees of a unit trust scheme.