STSM101230 - Authorised Contractual Schemes: Stamp Duty and Stamp Duty Reserve Tax (SDRT)
Stamp Duty and Stamp Duty Reserve Tax (SDRT) apply in the normal way to acquisitions of securities by an Authorised Contractual Scheme (ACS), subject to the exemptions described below. The operator of the ACS may account for the duty or tax on behalf of the participants.
The following transactions are exempt from Stamp Duty and SDRT:
Stamp Duty
- Transfers of securities to an ACS in consideration solely for the issue of units in the ACS -FA99/SCH13 (para 25A(1)(a);
- Transfers of securities between depositaries under the same ACS, that is, between sub-schemes of an umbrella scheme -FA99/SCH13 para 25A(1)(b) and;
- Transfers of units in an ACS - FA99/SCH13 para 25A (1)(c).
SDRT
-
Agreements to transfer securities to an ACS in consideration solely for the issue of units in the ACS - FA86 S90(7B)(a)(i);
- Agreements to transfer securities between depositaries under the same ACS, that is, between sub-schemes of an umbrella scheme - FA86/S90 (7B)(a)(ii) and;
- Agreements to transfer units in an ACS - FA86/S90 (7B)(b).
These exemptions do not apply where the transactions form part of arrangements for the avoidance Stamp Duty (FA99/SCH13 para 25A (3)) or SDRT (FA86/S90 (7D)).
Where units in an ACS form the whole, or any part of the consideration for the sale and transfer of stock or marketable securities, or an interest in a partnership holding stock or marketable securities, the units are not regarded as chargeable consideration for Stamp Duty purposes but can represent ‘money’s worth’ for the purposes of a charge to SDRT.
See STSM101210 for more information on ACS.