# The Stamp Duty and Stamp Duty Reserve Tax (Exchange Traded Funds) (Exemption) Regulations 2014

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U.K.

Statutory Instruments

# 2014 No. 911

Stamp Duty

Stamp Duty Reserve Tax

# The Stamp Duty and Stamp Duty Reserve Tax (Exchange Traded Funds) (Exemption) Regulations 2014

Made

3rd April 2014

Laid before the House of Commons

7th April 2014

Coming into force

2*8*th April 2014                        

The Treasury, in exercise of the powers conferred by section 217(1) to (3) and (7) of the Finance Act 2012 F1, make the following Regulations:                        

F12012 c. 14.

## Citation and commencementU.K.

1.  These Regulations may be cited as the Stamp Duty and Stamp Duty Reserve Tax (Exchange Traded Funds) (Exemption) Regulations                     2014 and come into force on 28th April 2014.                  

## InterpretationU.K.

2.  In these Regulations—                  

“the Act” means the Financial Services and Markets Act 2000 F2;                  

“collective investment scheme” has the meaning given in section 235 of the Act;                  

“multilateral trading facility” and “regulated market” have the same meaning as they have for the purposes of [F3Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014] on markets and financial instruments, as amended from time to time F4;                  

“open-ended investment company” has the meaning given in section 236 of the Act F5;                  

“units” has the meaning given in section 237(2) of the Act.                  

F22000 c. 8.

F3Words in reg. 2 substituted (3.1.2018) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017 (S.I. 2017/701), reg. 1(6), **Sch. 5 para. 19**

F4OJ No L 145, 30.4.2004, p 1.

F5Section 236 was amended by S.I. 2009/1941.

## Exemption from stamp duty reserve taxU.K.

3.  Stamp duty reserve tax shall not be chargeable on a transfer or an agreement to transfer units in an exchange traded fund.                  

## Exemption from stamp dutyU.K.

4.—(1) Stamp duty shall not be chargeable on an instrument which transfers units in an exchange traded fund.                  

(2) Where units in an exchange traded fund form the whole or part of the consideration, paragraph (1) does not affect any charge                     to stamp duty on the transfer on sale of other property.                  

## Meaning of exchange traded fundU.K.

5.  In these Regulations an “exchange traded fund” means a collective investment scheme which—                  

(a)is an open-ended investment company, units in which are admitted to trading on—                  

(i)a regulated market, or                  

(ii)a multilateral trading facility, and                  

(b)is authorised as a UCITS within the meaning of and pursuant to Directive 2009/65/EC of the European Parliament and of the Council on the co-ordination of laws, regulations and administrative provisions relating                        to undertakings for collective investments in transferable securities (UCITS), as amended from time to time F6.                  

F6OJ No L 302, 17.11.2009, p 32.

David Evennett

Mark Lancaster

 Two of the Lords Commissioners of Her Majesty's Treasury

## Explanatory Note

(This note is not part of the Regulations)

These Regulations provide for exemptions from stamp duty and stamp duty reserve tax for transfers of interests in exchange                        traded funds (ETF). An ETF is defined in regulation 5 using terms that are themselves defined in regulation 2.                     

Regulation 3 provides an exemption from stamp duty reserve tax. Regulation 4(1) provides exemption from stamp duty. Regulation 4(2)                        ensures that interests in an ETF should still be regarded as consideration for stamp duty purposes if they are given for the                        acquisition of other property subject to stamp duty.                     

A Tax Information and Impact Note covering this instrument was published on 13th February 2014 and is available on the HMRC                        website at http://hmrc.gov.uk/thelibrary/tiins.htm alongside draft legislation. It remains an accurate summary of the impacts                        that apply to this instrument.