174Unit trusts.U.K.
(1)The following section shall be substituted for section 101 of the Finance Act 1980[1980 c. 48.] —
“(101)Unit trusts
(1)No stamp duty shall be chargeable on any transfer of any unit in an authorised unit trust scheme to which subsection (2) below applies.
(2)This subsection applies to any authorised unit trust scheme under the terms of which the funds of the trust —
(a)cannot be invested in such a way that income can arise to the trustees which will be chargeable to tax in the hands of the trustees otherwise than under Schedule C as profits arising from United Kingdom public revenue dividends or under Case III of Schedule D, and
(b)cannot be invested in any investment on the transfer of which ad valorem stamp duty would be chargeable.
(3)In this section —
“authorised unit trust scheme” has the same meaning as in the Financial Services Act 1986[1986 c. 60.] , and
“United Kingdom public revenue dividends” means public revenue dividends payable in the United Kingdom (whether they are also payable outside the United Kingdom or not) out of the public revenue of the United Kingdom.”
(2)This section shall have effect in relation to the transfer of units on or after the day on which this Act is passed.