SDRT on in specie transfer to ISA or Pension

Does anyone have a link to the HMRC/ pages (or any other provider documentation) relating to the treatment of SDRT on the in-specie transfer of funds from an investment account to an ISA or pension?

Transact offer this facility but tell me that SDRT is payable on both the transfer out and the transfer in - even if transferring an asset that would not normally attract SDRT on a purchase with cash. They tell me it's a 'separate SDRT rule for platforms' that offer bed and pension/ISA etc.

I just can't find the evidence to back it up and need to have a read!

Thank you :-)


  • RichardARichardA Member

    Hello Jo,
    I was looking up the same subject and saw your question. I see it's quite old so you probably already have the answer but I thought this might help others. You can find more information here It's worth noting that this only applies to Bed and ISA where it's off market not where you sell, transfer, and repurchase.

    SDRT implications – units surrendered on or after 30 March 2014

    Where the fund supermarket undertakes netting, provided it also separately notifies the fund manager of the gross 10,000 units to be surrendered and 12,000 units to be purchased respectively, no FA86/S87 SDRT charge will arise due to the FA86/S90(1) exemption.

    However, if ABC fund manager is only instructed by the fund supermarket to purchase 2,000 further units, two principal FA86/S87 SDRT charges may, dependent on the circumstances, arise:

    1.    On the agreement to transfer 10,000 units from unit holder A to the fund supermarket for £10,000 consideration, and
    2.    On the agreement to transfer 10,000 registered units from the fund supermarket to investor B for £10,000 consideration.
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