SDLTM31800 - Application - Transactions involving Pension Funds
You should check the other guidance available on GOV.UK from HMRC as Brexit updates to those pages are being prioritised before manuals.
Any transaction, where a pension fund is the purchaser, is subject to Stamp Duty Land Tax (SDLT) in the same way as any other transaction. There are no special rules for pension funds. SDLT will only be due where there is chargeable consideration (paragraph1, Schedule 4, Finance Act 2003) for the transaction.
Where there is a transfer of assets and obligations from one pension fund to another, e.g. on the payment of a statutory cash equivalent transfer value for an individual, or on a merger of funds, the transfer of land from the trustees of one pension fund to the trustees of another is the acquisition of a chargeable interest under FA03/S48. This means it is within the scope of SDLT.
The normal charge to tax under SDLT arises on the consideration given for the land transaction.
In our view the assumption by the transferee fund or by the trustees of the transferee fund, of obligations to provide benefits is not chargeable consideration.
If other consideration is given by the transferee fund, or trustees of the transferee fund, in the form of money or money’s worth then that will be chargeable consideration.
There would also be chargeable consideration if the transfer of obligations were in consideration of a defined monetary sum to be satisfied by the release of obligations by the former trustees.