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STSM102000 | Collectives: Transfer of units in a unit trust or units issued as consideration

From HM Revenue & Customs · Stamp Taxes on Shares Manual

Transfer on sale of units in a unit trust (or shares in an Open-Ended Investment Company (OEIC))

With effect from 6 February 2000, no Stamp Duty is chargeable on a transfer or other instrument relating to a unit in a unit (or a share in an OEIC) by virtue of paragraph1(1) of Schedule 19 FA1999.

Transfer on sale of property (other than units in a unit trust or shares in an OEIC) in consideration (whole or part) of units in a unit trust or shares in an OEIC

A Stamp Duty charge can arise, however, on the transfer on sale of property other than units in a unit trust or shares in an OEIC, where the whole or part of the consideration payable for the transfer of the property comprises units in a unit trust or shares in an OEIC.

This is because 'units' and OEIC shares are regarded as chargeable consideration, being 'stock' for the purposes of Stamp Duty (section 55 SA1891 and paragraph 19 of Schedule 19 FA1999). Whilst Sch.19 only refers to unit trusts, it also extends to OEICs due to Regulation 3 of SI1997/1156.