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

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

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 FA99/SCH19/PARA1(1).

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

An ad valorem 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 chargable consideration being ‘stock’ for the purposes of Stamp Duty (SA1981/S55 and FA99/SCH19/PARA19). Whilst Sch. 19 only refers to unit trusts, it also extends to shares in an OEIC due to Regulation 3 of SI1997/1156.

See STSM101020 for the meaning of a until trust.

See STSM101050 for the meaning of OEIC