Strict compliance for SDRT exemption for in specie redemptions (Henderson v HMRC)

Table of contents

• Original news
• What are the practical implications of this decision?
• What was this case about?
• What did the UT decide?
• UT's reasoning
• UT's rejection of taxpayer's arguments
• Case details

Article summary

Tax analysis: In Henderson, the Upper Tribunal (UT) upheld the decision of the First-tier Tax Tribunal (FTT). The exemption for in specie redemptions of unit trust units from the (now abolished) Schedule 19 charge to Stamp Duty Reserve Tax (SDRT) that used to apply to the surrender of units in a unit trust was an ‘all or nothing’ exemption. It only applied if the unit holder received a proportionate (or as nearly as practicable proportionate) share of all the trust assets.