Finance Act 1946

57 Interpretation of Part VII.

(1) In this Part of this Act, except in so tar as the context otherwise requires, the following expressions have the meanings hereby respectively assigned to them, that is to say :—

• " the enactments relating to stamp duty " means the Stamp Act, 1891, and any enactment which amends or is required to be construed together with that Act ;

• " unit trust scheme " means any arrangements. made for the purpose, or having the effect, of providing, for persons having funds available for investment, facilities for the participation by them, as beneficiaries under a trust, in any profits or income arising from the acquisition holding, management or disposal of any property whatsoever;

• " trust instrument " means, in relation to a unit trust scheme, the trust deed or other instrument (whether under seal or not) creating or recording the trusts by virtue of which persons are to participate as aforesaid ;

• " trust property " means, in relation to a unit trust scheme, the property subject to the trusts of the trust instrument;

• " trust property represented by units " means, in relation to a unit trust scheme, all trust property except, where the trust instrument provides for periodical distributions, any such dividends, interest or other property arising from trust property as is required under the instrument to be distributed at the next such distribution ;

• " unit " means, in relation to a unit trust scheme, a right or interest (whether described as a unit, as a sub-unit, or otherwise) of a beneficiary under the trust instrument;

• " certificate to bearer " means, in relation to a unit under a unit trust scheme, a document by the delivery of which the unit can be transferred or the delivery of which, by the usage of any market on which there are dealings in such units, is treated as sufficient for the purpose of a sale of such a unit on the market.

(2) Where a person authorises or requires the trustees or managers under a unit; trust scheme to treat him as no longer interested in a unit under the scheme and authorises or requires them to treat another person as entitled to that unit, he shall be deemed for the purposes of this Part of this Act to transfer that unit, and any instrument whereby he gives the authority or makes the requirement shall be deemed for the purposes of the enactments relating to stamp duty to be a conveyance or transfer on sale, a conveyance or transfer operating as a voluntary disposition inter vivos within the meaning of section seventy-four of the Finance (1909-10) Act, 1910, or a conveyance or transfer falling within the heading " Conveyance or Transfer of any kind not hereinbefore described " in the First Schedule to the Stamp Act, 1891, according to the nature of the transaction as between him and the person whom he authorises the trustees-or managers to treat as entitled to the unit.

(3) Where a person authorises or requires the trustees or managers under a unit trust scheme to treat him as no longer interested in a unit under that scheme and does not authorise or require them to treat another person as entitled to that unit, he shall be deemed for the purposes of this Part of this Act to transfer that unit to the managers, and any instrument whereby he gives the authority or makes the requirement shall be deemed for the purposes of the enactments relating to stamp duty to be a conveyance or transfer of the unit on sale.

(4) Where the managers under a unit trust scheme authorise or require the trustees under the scheme to treat a person as entitled to a unit thereunder and their power so to do arises from a previous transfer to them of that unit or some other unit, they shall be deemed for the purposes of this Part of this Act to transfer the first mentioned unit to that person, and any instrument whereby they give the authority or make the requirement shall be deemed for the purposes of the enactments relating to stamp duty to be a conveyance or transfer of the unit :

Provided that this subsection does not apply to anything done by the managers for the purpose merely of recognising or giving effect to a transmission of a unit by operation of law.