Finance Act 1999 (c. 16)

SCHEDULES

SCHEDULE 19 Stamp duty and stamp duty reserve tax: unit trusts

Part II Stamp duty reserve tax on dealings with units in unit trusts

Proportionate reduction of tax by reference to assets held

5 (1) The amount of tax chargeable after any reduction under paragraph 4 shall be further reduced if in the relevant two-week period the trust property is invested in both exempt and non-exempt investments.

(2) The reduction is made by applying the following fraction to that amount—

Where:

• N is the average market value of the non-exempt investments over the relevant two-week period, and

• E is the average market value of the exempt investments over that period.

(3) In this paragraph “exempt investment” has the same meaning as in section 99(5A)(b) of the [1986 c. 41.] Finance Act 1986; and “non-exempt investment” means any investment that is not an exempt investment.