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HMRC internal manual

Stamp Taxes on Shares Manual

Trusts and pension schemes: pension schemes: contributions of assets to an occupational pension, personal pension scheme or Self Invested Personal Pension - s195 FA 2004

Special rules in FA04/S195 permit an individual entitled to shares maturing in a Save As You Earn (SAYE) or Share Incentive Plan (SIP) to transfer those shares, within 90 days, to a pension plan or SIPP. When this occurs the beneficial ownership of the shares is transferred from the individual to the pension scheme/SIPP. A transfer of the ownership in these circumstances is not regarded as an in specie contribution as there no debtor/creditor relationship is created and no debt is satisfied by the transfer.

However, where:

  • the transfer is made more than 90 days after the maturity of the SAYE/SIP, or
  • the transfer is made in such a way that it is, in fact, a sale for consideration (for example where the shares in the maturing SAYE/SIP are sold, the cash contributed to the scheme and the same shares re-acquired by the scheme) then the normal stamp duty and SDRT rules will and apply and relevant charges arise.

Similarly, where the transfer comprises a mixed portfolio of shares, or shares of the same type acquired at different times or outside the SAYE/SIP schemes (i.e. some that qualify for FA04/S195 treatment and some that do not) then stamp duty or SDRT will be payable by the pension scheme/SIPP on the acquisition of the securities that do not qualify under FA04/S195.