The Stamp Duty and Stamp Duty Reserve Tax (Open-ended Investment Companies) (Amendment No. 2) Regulations 1999

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the Stamp Duty and Stamp Duty Reserve Tax (Open-ended Investment Companies) Regulations 1997 (S.I. 1997/1156) (“the principal Regulations”).

The purpose of the amendments is to ensure that the enactments relating to stamp duty and stamp duty reserve tax continue to have effect in relation to open-ended investment companies in a manner corresponding to that in which they have effect in relation to unit trusts following the Finance Act 1999. Schedule 19 to that Act abolishes stamp duty on transfers of units under a unit trust but introduces a new charge to stamp duty reserve tax on certain dealings with units in unit trusts with effect from 6th February 2000.

Regulation 1 provides for citation and commencement, and regulation 2 for interpretation.

Regulation 3 amends and adds definitions in regulation 2 of the principal Regulations.

Regulation 4 substitutes regulation 3 of the principal Regulations. The substituted regulation 3 provides that, subject to the modifications in new regulations 4 to 4B of the principal Regulations (substituted by regulation 5 of these Regulations), the relevant enactments relating to stamp duty or stamp duty reserve tax have effect in relation to open-ended investment companies in a manner corresponding to that in which they have effect in relation to unit trust schemes.

Regulation 5 substitutes regulations 4 to 4B for regulation 4 of the principal Regulations. New regulation 4 makes general modifications of the relevant enactments relating to stamp duty or stamp duty reserve tax. New regulations 4A and 4B make specific modifications of Schedule 19 to the Finance Act 1999 and the Finance Act 1986 respectively.

Regulation 6 amends regulation 5 of the principal Regulations.

Regulation 7 revokes regulation 6 of the principal Regulations.