REV BN 12: Stamp Duty Reserve Tax: Demutualisation of Insurance Companies

Who is likely to be affected?

1. Mutually owned insurance companies that restructure on demutualisation.

General description of the measure

2. A stamp duty relief was introduced in 1997 to remove all stamp duty and stamp duty reserve tax (SDRT) charges when an insurance company demutualises.

This measure will ensure that the relief continues to apply as originally intended.

Operative date

3. The measure will apply from Royal Assent to the Finance Bill.

Current law and proposed revisions

4. Subject to certain conditions, the relief introduced in 1997 removed all stamp duty and SDRT charges when a mutually owned insurance company restructures and moves its investments to a new company on demutualisation.

5. Following changes that have been made to the stamp duty and SDRT legislation since 1997, this new measure will ensure that the transfer of investments in collective investment schemes from the mutual to the new company will continue to qualify for relief.

Further advice

6. If you have any questions about this change, please contact Ian Burton on 020 7147 2788. Information about Budget measures is available on the Inland Revenue website Inland Revenue website