The Principal Act is amended -

(a) by substituting the following for subsection (2) of section 88B:

"(2) Stamp duty shall not be chargeable on any instrument made for the purposes of or in connection with any arrangement between a foreign fund and a domestic fund, being an arrangement entered into for the purposes of or in connection with a scheme of reconstruction or amalgamation under which the foreign fund transfers assets to the domestic fund and the domestic fund -

(a) issues units to persons who hold units in the foreign fund in respect of and in proportion to (or as nearly as may be in proportion to) their holdings of units in the foreign fund, or

(b) issues units directly to the foreign fund.",

and

(b) by inserting the following after section 88D:

"Transfer of assets within unit trusts.

88E.

(1) In this section -

'investment undertaking' means -

(a) an investment undertaking to which paragraph (a) of the definition of 'investment undertaking' in section 739B(1) of the Taxes Consolidation Act 1997 relates, and

(b) an investment undertaking that is a 'unit trust';

'relevant Regulations' has the same meaning as in section 739B(1) of the Taxes Consolidation Act 1997;