Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Stamp Taxes on Shares Manual

From
HM Revenue & Customs
Updated
, see all updates

Collectives: contributions, mergers and other matters: mergers, partitions and reconstructions of authorised unit trusts and Open-Ended Investment Companies - Stamp Duty

HMRC accepts that following the principles established in the case of Save & Prosper Securities Ltd v CIR (Sp.C 251), an amalgamation, partition or reconstruction of Authorised Unit Trusts (AUTs) or Open-Ended Investment Companies (OEICs) (or sub-funds of a AUT or OEIC) that takes its effect under a scheme of arrangement will not be regarded as a transfer on sale and therefore not subject to ad valorem stamp duty.

The scheme of arrangement, however, must take its effect by virtue of:

  • section 251 of the Financial Services and Markets Act 2000 or Regulation 21 of the Open-Ended Investment Companies Regulations 2001 (SI 2001/1228); and
  • The appropriate section of the Financial Conduct Authority Handbook of Rules & Guidance.

See STSM101030 for the meaning of an authorised unit trust.

See STSM101050 for the meaning of an Open-Ended Investment Company.

See STSM107050 for stamp implications on the conversion of an authorised unit trust to an Open-Ended Investment Company.

See STSM107060 for stamp implications on the amalgamation of an authorised unit trust to an Open-Ended Investment Company.