STSM082030 | Trusts and pension schemes: pension schemes: Stamp Duty and Stamp Duty Reserve Tax on investments

When a pension scheme buys stock or marketable securities any instrument of transfer executed to complete the sale is chargeable with ad valorem stamp duty on the consideration (cash, debt or other securities) given for the transfer.

If no transfer instrument is executed, and the assets acquired are chargeable securities within the definition at FA86/S99, a Stamp Duty Reserve Tax (SDRT) charge arises on the pension scheme calculated by reference to the amount of consideration in money or money’s worth.