Taxman loses out as Fidelity unit trust splits

The taxman is set to lose out on millions of pounds when unit trust Fidelity
Special Situations splits.

The £6bn trust, which splits today, will invest half its assets overseas and
deprive HM Revenue & Customs of up to £15m of stamp duty.

As just half of the assets in the trusts were turned over last year, the
amount lost from the UK is expected to be nearer £7.5m, reported the Daily

Fidelity UK managing director Richard Wastcoat said the move was not made to
avoid the tax, but bemoaned the UK being one of the few jurisdictions to impose
the tax.

‘In the interests of ensuring that the UK stock market remains globally
competitive, the chancellor should reconsider removing stamp duty from shares,’
said Wastcoat.

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