Collectives: the Schedule 19 charge: scope of Stamp Duty Reserve Tax charge (SDRT)
A charge to Stamp Duty Reserve Tax (SDRT) under FA99/SCH19 can arise on the surrender of a unit in a unit trust or a share in an Open-Ended Investment Company (OEIC) provided such units or OEIC shares come within the definition of ‘chargeable securities’ for the purposes of FA86/S99(3) . This generally means that the units or OEIC shares must be in:
- a unit trust or OEIC fund which is incorporated in the United Kingdom (UK); or
- a unit trust or OEIC fund where the trustees of the fund are resident within the UK; or
- an overseas OEIC that keeps and maintains a register of its shares in the UK; or
- a unit trust/OEIC, the terms of which the trust or OEIC property is able to invest in and hold investments that come within the definition of ‘chargeable securities’ at FA86/S99(3) .
In this situation, the FA99/SCH19 SDRT charge is mandatory and global, and arises irrespective of whether the surrender of units/OEIC shares was made or effected in the UK or whether any party to the transaction is resident or located within or outside of the UK (Regulation 2(2) of FA99/SCH99).
See STSM101020 for the meaning of a unit trust.
See STSM101050 for the meaning of an Open-Ended Investment Company (OEIC).