STSM107040 | 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 (OEIC)), the transfer is subject to a 0.5% section 87 FA1986 Stamp Duty Reserve Tax (SDRT) charge, calculated by reference to the consideration paid in money or money’s worth.

Under section 92 FA1986 the SDRT charge may be cancelled, however, if:

• An instrument which effects the transfer of the securities is executed (in pursuance of the agreement)

• The instrument is duly stamped following payment of Stamp Duty; or

• The instrument is not chargeable with Stamp Duty or otherwise required to be stamped

More information

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.