Collectives: contributions, mergers and other matters: investments acquired by, or transferred to, a collective investment scheme
When chargeable securities are purchased by a Collective Investment Scheme (such as a unit trust or an Open-Ended Investment Company), the transfer is subject to a FA86/S87 Stamp Duty Reserve Tax (SDRT) charge, calculated by reference to the consideration paid in money or money’s worth.
Under FA86/S92 the SDRT charge may be cancelled, however, if:
- A formal written instrument affecting the transfer of the securities is executed (in pursuance of the agreement),
- On which ad valorem Stamp Duty under FA99/SCH13 is paid and impressed or
- The instrument is not chargeable with Stamp Duty or otherwise required to be stamped.
See STSM031090 for the meaning of ‘chargeable securities’.
See STSM101010 for the meaning of a Collective Investment Scheme.
See STSM101020 for the meaning of a unit trust.
See STSM101050 for the meaning of an OEIC.