STSM107010 | Collectives: contributions, mergers and other matters: overview - contribution to a unit trust / Open-Ended Investment Company

Contributions on or after 30 March 2014

Where an investor contributes and transfers property other than cash which takes the form of ‘stock or marketable securities’ (Stamp Duty) or ‘chargable securities’ (Stamp Duty Reserve Tax (SDRT)) to a new or existing unit trust (or sub-fund of the trust), or to a new or existingOpen-Ended Investment Company (OEIC) (or sub-fund of the OEIC), for consideration in the form of new units/OEIC shares, this can have various implications.

See STSM107020 and STSM107030 for more information.

Contributions prior to 30 March 2014

Where a contribution of property other than cash to a unit trust or OEIC occurs prior to the abolition of FA99/SCH19 on 30 March 2014, the fund manager of the scheme must not include the number of units/OEIC shares issued as consideration in his monthly SDRT computation for FA99/SCH19 purposes.

More information regarding the monthly Schedule 19 computation can be found at STSM104000 and abolition of FA99/SCH19 at STSM103005

See STSM101020 for the meaning of a unit trust.

See STSM101050 for the meaning of an open-ended investment company.

See STSM104080 for information of a SDRT monthly notice.

See STSM103070 for the meaning of a ‘relevant two-week period’.

See STSM021040 for the meaning of ‘stock or marketable securities’.

See STSM031090 for the meaning of ‘chargeable securities’.