Finance Act 1999 (c. 16)

(The document as of February, 2008)

-- Back --

Page 14

Pages: P.1 | P.2 | P.3 | P.4 | P.5 | P.6 | P.7 | P.8 | P.9 | P.10 | P.11 | P.12 | P.13 | P.14 | P.15 | P.16 | P.17 | P.18

Surrender

23 Stamp duty of £5 is chargeable on a surrender of property unless the instrument constitutes a conveyance or transfer on sale.

Part IV General exemptions

24 The following are exempt from stamp duty under this Schedule--

(a) transfers of shares in the government or parliamentary stocks or funds or strips (within the meaning of section 47 of the [1942 c. 21.] Finance Act 1942) of such stocks or funds;

(b) instruments for the sale, transfer, or other disposition (absolutely or otherwise) of any ship or vessel, or any part, interest, share or property of or in a ship or vessel;

(d) renounceable letters of allotment, letters of rights or other similar instruments where the rights under the letter or other instrument are renounceable not later than six months after its issue.

25 Stamp duty is not chargeable under this Schedule on any description of instrument in respect of which duty was abolished by--

(a) section 64 of the [1971 c. 68.] Finance Act 1971 or section 5 of the [1971 c. 27(N.I.).] Finance Act (Northern Ireland) 1971 (abolition of duty on mortgages, bonds, debentures etc.), or

(b) section 173 of the [1989 c. 26.] Finance Act 1989 (life insurance policies and superannuation annuities).

26 Nothing in this Schedule affects any other enactment conferring exemption or relief from stamp duty.

Section 112(4).

SCHEDULE 14 Stamp duty: amendments consequential on section 112

General amendments

1 (1) Any reference (express or implied) in any enactment, instrument or other document to any of the headings in Schedule 1 to the [1891 c. 39.] Stamp Act 1891 (other than the heading "Bearer Instrument") shall be construed, so far as is required for continuing its effect, as being or, as the case may require, including a reference to the corresponding provision of Schedule 13 to this Act.

(2) Sub-paragraph (1)--

(a) has effect subject to any express amendment made by this Act, and

(b) is without prejudice to the general application of section 17(2) of the [1978 c. 30.] Interpretation Act 1978 (general effect of repeal and re-enactment).

2 In the enactments relating to stamp duty for "lease or tack", wherever occurring, substitute "lease".

Finance Act 1930 (c. 28)

3 In section 42(1) of the Finance Act 1930 (relief from transfer duty in case of transfer between associated companies) for "the heading "Conveyance or Transfer on Sale" in the First Schedule to the Stamp Act 1891" substitute "Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale)".

Finance Act (Northern Ireland) 1954 (c. 23 (N.I.))

4 In section 11(1) of the Finance Act (Northern Ireland) 1954 (relief from transfer duty in case of transfer between associated companies) for "the heading "Conveyance or Transfer on sale" in the First Schedule to the Stamp Act 1891" substitute "Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale)".

Finance Act 1970 (c. 24)

5 In section 33(1) of the Finance Act 1970 (composition by stock exchange in respect of transfer duty), for the words from "the heading" to "1891" substitute "Part I or paragraph 16 of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale or otherwise)".

Finance Act 1980 (c. 48)

6 In section 97(1) of the Finance Act 1980 (shared ownership transactions)--

(a) for "the heading "Lease or Tack" in Schedule 1 to the Stamp Act 1891" substitute "Part II of Schedule 13 to the Finance Act 1999 (lease)"; and

(b) for "the heading "Conveyance or Transfer on Sale" in that Schedule" substitute "Part I of that Schedule (conveyance or transfer on sale)".

Finance Act 1982 (c. 39)

7 In section 129(1) of the Finance Act 1982 (exemption from duty on grants, transfers to charities, etc.) for the words from "by virtue of any of the following headings" to ""Lease or Tack"," substitute "under Part I or II, or paragraph 16, of Schedule 13 to the Finance Act 1999".

Finance Act 1985 (c. 54)

8 (1) Section 81 of the Finance Act 1985 (renounceable letters of allotment, etc.) is amended as follows.

(2) For subsection (2) substitute--

" (2) The instrument shall not be exempt by virtue of paragraph 24(d) of Schedule 13 to the Finance Act 1999 (renounceable letters of allotment, etc.) from stamp duty under or by reference to Part I of that Schedule (conveyance or transfer on sale). " .

(3) In subsection (3) for the words from "section 126(1)" to "126(2) or (3)" substitute "section 79(4) of the Finance Act 1986 does not apply by virtue of section 79(5) or (6)".

9 In section 82(5) of the Finance Act 1985 for "the heading "Conveyance or Transfer on Sale" in Schedule 1 to the Stamp Act 1891" substitute "Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale)".

10 In section 83 of the Finance Act 1985 (duty on transfers in connection with divorce etc.)--

(a) in subsection (1) for "the heading "Conveyance or Transfer on Sale" in Schedule 1 to the Stamp Act 1891" substitute "Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale)";

(b) in subsection (2) for "50p" substitute "£5".

11 In section 84 of the Finance Act 1985 (duty on instruments varying dispositions on death etc.)--

(b) in subsection (8) for "50p" substitute "£5".

Finance Act 1986 (c. 41)

12 (1) Section 67 of the Finance Act 1986 (depositary receipts) is amended as follows.

(2) For subsections (2) and (3) substitute--

" (2) If stamp duty is chargeable on the instrument under Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale), the rate at which that duty is chargeable is 1.5% of the amount or value of the consideration for the sale to which the instrument gives effect.

(3) If stamp duty is chargeable on the instrument under paragraph 16 of Schedule 13 to the Finance Act 1999 (conveyance or transfer otherwise than on sale), then, subject to subsection (5), the rate at which that duty is chargeable is 1.5 of the value of the securities at the date the instrument is executed. " .

(3) In subsection (9) (duty on transfers between one depositary company and another) for "maximum stamp duty chargeable on the instrument shall be 50p" substitute "stamp duty chargeable on the instrument is £5".

13 (1) Section 70 of the Finance Act 1986 (clearance services) is amended as follows.

(2) For subsections (2) and (3) substitute--

" (2) If stamp duty is chargeable on the instrument under Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale), the rate at which that duty is chargeable is 1.5 of the amount or value of the consideration for the sale to which the instrument gives effect.

(3) In subsection (9) (duty on transfers between one clearance service company and another) for "maximum stamp duty chargeable on the instrument shall be 50p" substitute "stamp duty chargeable on the instrument is £5".

14 In section 75(2) of the Finance Act 1986 (acquisitions: further provisions about reliefs) for "the heading "Conveyance or Transfer on Sale" in Schedule 1 to the Stamp Act 1891" substitute "Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale)".

15 (1) Section 76 of the Finance Act 1986 (relief from stamp duty on company acquisition) is amended as follows.

(2) In subsection (2) for "the heading "Conveyance or Transfer on Sale" in Schedule 1 to the Stamp Act 1891" substitute "Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale)".

(3) In subsection (4) (limit on rate of duty), for "the rate of 50p for every £100 or part of £100" substitute "0.5".

16 In section 77(1) of the Finance Act 1986 (acquisition of target company's share capital) for "the heading `Conveyance or Transfer on Sale' in Schedule 1 to the Stamp Act 1891" substitute "Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale)".

17 In section 79 of the Finance Act 1986 (loan capital: new provisions), for subsection (8) substitute--

" (8) Where stamp duty is chargeable under Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale) on an instrument which transfers loan capital, the rate at which duty is charged under that Part shall be 0.5 of the amount or value of the consideration for the sale to which the instrument gives effect. " .

18 In section 80B(7) of the Finance Act 1986 (intermediaries: power of Treasury to specify rate of duty), for "10p for every £100 or part of £100" substitute "0.1".

19 In section 80C(8) of the Finance Act 1986 (repos and stock lending: power of Treasury to specify rate of duty), for "10p for every £100 or part of £100" substitute "0.1".

20 (1) Section 88 of the Finance Act 1986 (stamp duty reserve tax: special cases) is amended as follows.

(2) In subsection (1) for paragraphs (aa) and (ab) substitute--

" (aa) paragraph 24(d) of Schedule 13 to the Finance Act 1999 (renounceable letters of allotment etc.), " .

(3) In subsection (1A)(b) for "50p" substitute "£5".

Finance Act 1987 (c. 16)

21 In section 50(1) of the Finance Act 1987 (warrants to purchase government stock etc.), for the words from "either of the following headings" to the end substitute "Part I, or paragraph 16, of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale or otherwise)".

22 In section 55(1) of the Finance Act 1987 (Crown exemption), for the words from "by virtue of any of the following headings" to ""Lease or Tack"," substitute "under Part I or II, or paragraph 16, of Schedule 13 to the Finance Act 1999".

Finance Act 1989 (c. 26)

23 In section 175(1) of the Finance Act 1989 (stock exchange nominees: power to exclude double charge), in paragraph (a) (circumstances in which power exercisable) for "the heading "Conveyance or Transfer on Sale" in Schedule 1 to the Stamp Act 1891" substitute "Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale)".

National Health Service and Community Care Act 1990 (c. 19)

24 In section 61(3) of the National Health Service and Community Care Act 1990 for the words from "by virtue of any of the following headings" to ""Lease or Tack"," substitute "under Part I or II, or paragraph 16, of Schedule 13 to the Finance Act 1999".

Finance Act 1991 (c. 31)

25 In section 110 of the Finance Act 1991 (stamp duty to be abolished in certain cases), for subsections (1) to (4) substitute--

" (1) Where apart from this section stamp duty under any of the provisions of Schedule 13 to the Finance Act 1999 would be chargeable on an instrument, stamp duty shall not be so chargeable if the property consists entirely of exempt property. " .

26 In section 111(1) of the Finance Act 1991 (stamp duty to be reduced in certain cases) for "the heading "conveyance or transfer on sale" in Schedule 1 to the Stamp Act 1891" substitute "Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale)".

27 In section 113 of the Finance Act 1991 (certification of instruments for stamp duty purposes), for subsections (1) to (3) substitute--

" (1) For the purposes of paragraph 6(1) of Schedule 13 to the Finance Act 1999 (meaning of instrument being certified at an amount)--

(a) a sale or contract or agreement for the sale of exempt property within the meaning of section 110 above shall be disregarded; and

(b) any statement as mentioned in that provision shall be construed as leaving out of account any matter which is to be so disregarded. " .

Finance Act 1993 (c. 34)

28 (1) Section 202 of the Finance Act 1993 (rent to mortgage: England and Wales) is amended as follows.

(3) In subsection (4)(a)--

(a) for "the heading ‘Lease or Tack' in Schedule 1 to the Stamp Act 1891" substitute "Part II of Schedule 13 to the Finance Act 1999 (lease)"; and

(b) for "the heading ‘Conveyance or Transfer on Sale' in that Schedule" substitute "Part I of that Schedule (conveyance or transfer on sale)".

(4) In subsection (4)(b) for "the heading ‘Conveyance or Transfer on Sale'" substitute "Part I of that Schedule".

29 In section 203(2) of the Finance Act 1993 (rent to loan: Scotland), for "the heading "Conveyance or Transfer on Sale" in Schedule 1 to the Stamp Act 1891" substitute "Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale)".

Finance Act 1994 (c. 9)

30 In section 241(1) of the Finance Act 1994 (consideration consisting of property)--

(a) in paragraph (a) for "lease or tack" substitute "lease";

(b) in paragraph (b) for "the heading "Conveyance or Transfer on Sale" in Schedule 1 to the Stamp Act 1891" substitute "Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale)".

31 (1) Section 242 of the Finance Act 1994 (consideration not ascertainable from conveyance or lease) is amended as follows.

(2) In subsections (1) (twice), (2) and (3) (twice) for "lease or tack" substitute "lease".

(3) In the opening words of subsection (1) for "the heading "Conveyance or Transfer on Sale" in Schedule 1 to the Stamp Act 1891" substitute "Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale)".

(4) In subsection (2) for "paragraph (3) of the heading "Lease or Tack" in Schedule 1 to that Act" substitute "paragraph 12 of Schedule 13 to the Finance Act 1999".

32 In section 243 of the Finance Act 1994 (agreements to surrender leases) for "any duty chargeable under the Stamp Act 1891" substitute "stamp duty".

Finance Act 1995 (c. 4)

33 In section 151 of the Finance Act 1995 (lease or tack: associated bodies)--

(a) in subsection (1) for "the heading "Lease or Tack" in Schedule 1 to the Stamp Act 1891" substitute "Part II of Schedule 13 to the Finance Act 1999 (lease)";

(b) in subsections (1) (twice), (2), (3) and (6) (four times) for "lease or tack" substitute "lease".

Section 113(1).

SCHEDULE 15 Stamp duty: bearer instruments

Part I Charging provisions

Charge on issue of instrument

1 (1) Stamp duty is chargeable--

(a) on the issue of a bearer instrument in the United Kingdom, and

(b) on the issue of a bearer instrument outside the United Kingdom by or on behalf of a UK company.

(2) This is subject to the exemptions in Part II of this Schedule.

Charge on transfer of stock by means of instrument

2 Stamp duty is chargeable on the transfer in the United Kingdom of the stock constituted by or transferable by means of a bearer instrument if duty was not chargeable under paragraph 1 on the issue of the instrument and--

(a) duty would be chargeable under Part I of Schedule 13 (conveyance or transfer on sale) if the transfer were effected by an instrument other than a bearer instrument, or

(b) the stock constituted by or transferable by means of a bearer instrument consists of units under a unit trust scheme.

Meaning of "bearer instrument"

3 In this Schedule "bearer instrument" means--

(a) a marketable security transferable by delivery;

(b) a share warrant or stock certificate to bearer or instrument to bearer (by whatever name called) having the like effect as such a warrant or certificate;

(d) any other instrument to bearer by means of which stock can be transferred; or

(e) an instrument issued by a non-UK company that is a bearer instrument by usage.

Rates of duty

4 The duty chargeable under this Schedule is 1.5 of the market value of the stock constituted by or transferable by means of the instrument, unless paragraph 5 or 6 applies.

5 In the case of--

(a) a deposit certificate in respect of stock of a single non-UK company, or

(b) an instrument issued by a non-UK company that is a bearer instrument by usage (and is not otherwise within the definition of "bearer instrument" in paragraph 3),

the duty is 0.2 of the market value of the stock constituted by or transferable by means of the instrument.

6 In the case of an instrument given in substitution for a like instrument stamped ad valorem (whether under this Schedule or not) the duty is £5.

Ascertainment of market value

7 (1) For the purposes of duty under paragraph 1 (charge on issue of instrument) the market value of the stock constituted by or transferable by means of the instrument is ascertained as follows.

(2) If the stock was offered for public subscription (whether in registered or in bearer form) within twelve months before the issue of the instrument, the market value shall be taken to be the amount subscribed for the stock.

(3) In any other case the market value shall be taken to be--

(a) the value of the stock on the first day within one month after the issue of the instrument on which stock of that description is dealt in on a stock exchange in the United Kingdom, or

(b) if stock of that description is not so dealt in, the value of the stock immediately after the issue of the instrument.

8 (1) For the purposes of duty under paragraph 2 (charge on transfer of stock by means of instrument) the market value of the stock constituted by or transferable by means of the instrument is ascertained as follows.

(2) In the case of a transfer pursuant to a contract of sale, the market value shall be taken to be the value of the stock on the date when the contract is made.

(3) In any other case, the market value shall be taken to be the value of the stock on the day preceding that on which the instrument is presented to the Commissioners for stamping, or, if it is not so presented, on the date of the transfer.

Meaning of "deposit certificate"

9 In this Schedule a "deposit certificate" means an instrument acknowledging the deposit of stock and entitling the bearer to rights (whether expressed as units or otherwise) in or in relation to the stock deposited or equivalent stock.

Bearer instruments by usage

10 (1) In this Schedule a "bearer instrument by usage" means an instrument --

(a) which is used for the purpose of transferring the right to stock, and

(b) delivery of which is treated by usage as sufficient for the purposes of a sale on the market, whether that delivery constitutes a legal transfer or not.

(2) A bearer instrument by usage is treated--

(a) as transferring the stock on delivery of the instrument, and

(b) as issued by the person by whom or on whose behalf it was first issued, whether or not it was then capable of being used for transferring the right to the stock without execution by the holder.

Meaning of "company", "UK company" and "non-UK company"

11 In this Schedule--

"company" includes any body of persons, corporate or unincorporate;
"UK company" means a company that is formed or established in the United Kingdom; and
"non-UK company" means a company that is not a UK company.

Meaning of "stock" and "transfer"

12 (1) In this Schedule "stock" includes securities.

(2) References in this Schedule to stock include any interest in, or in any fraction of, stock or in any dividends or other rights arising out of stock and any right to an allotment of or to subscribe for stock.

(3) In this Schedule "transfer" includes negotiation, and "transferable", "transferred" and "transferring" shall be construed accordingly.

Part II Exemptions

Foreign loan securities

13 Stamp duty is not chargeable on a bearer instrument issued outside the United Kingdom in respect of a loan which is expressed in a currency other than sterling and which is not--

(a) offered for subscription in the United Kingdom, or

(b) offered for subscription with a view to an offer for sale in the United Kingdom of securities in respect of the loan.

Stock exempt from duty on transfer

14 Stamp duty is not chargeable under this Schedule on an instrument constituting, or used for transferring, stock (other than units in a unit trust) that is exempt from all stamp duties on transfer.

Instruments in respect of which duty previously abolished

15 Stamp duty is not chargeable under this Schedule on any description of instrument in respect of which duty was abolished by--

(a) section 64 of the [1971 c. 68.] Finance Act 1971 or section 5 of the [1971 c. 27(N.I).] Finance Act (Northern Ireland) 1971 (abolition of duty on mortgages, bonds, debentures etc.), or

(b) section 173 of the [1989 c. 26.] Finance Act 1989 (life insurance policies and superannuation annuities).

Renounceable letters of allotment

16 Stamp duty is not chargeable under this Schedule on renounceable letters of allotment, letters of rights or other similar instruments where the rights under the letter or other instrument are renounceable not later than six months after its issue.

Instruments relating to non-sterling stock

17 (1) Stamp duty is not chargeable under this Schedule on the issue of an instrument which relates to stock expressed--

(a) in a currency other than sterling, or

(b) in units of account defined by reference to more than one currency (whether or not including sterling),

or on the transfer of the stock constituted by or transferable by means of any such instrument.

(2) Where the stock to which the instrument relates consists of a loan for the repayment of which there is an option between sterling and one or more other currencies, sub-paragraph (1) applies if the option is exercisable only by the holder of the stock and does not apply in any other case.

18 Where the capital stock of a company is not expressed in terms of any currency, it shall be treated for the purposes of paragraph 17 as expressed in the currency of the territory under the law of which the company is formed or established.

19 (1) A unit under a unit trust scheme or a share in a foreign mutual fund shall be treated for the purposes of paragraph 17 as capital stock of a company formed or established in the territory by the law of which the scheme or fund is governed.

(2) A "foreign mutual fund" means a fund administered under arrangements governed by the law of a territory outside the United Kingdom under which subscribers to the fund are entitled to participate in, or receive payments by reference to, profits or income arising to the fund from the acquisition, holding, management or disposal of investments.

(3) In relation to a foreign mutual fund "share" means the right of a subscriber, or of another in his right, to participate in or receive payments by reference to profits or income so arising.

Variation of original terms or conditions

20 Where a bearer instrument issued by or on behalf of a non-UK company in respect of a loan expressed in sterling--

(a) has been stamped ad valorem, or

(b) has been stamped with duty under paragraph 6 above (fixed duty on instrument given in substitution for another instrument stamped ad valorem), or

duty is not chargeable under this Schedule by reason only that the instrument is amended on its face pursuant to an agreement for the variation of any of its original terms or conditions.

Part III Supplementary provisions

Duty chargeable on issue of instrument

21 (1) This paragraph applies where duty is chargeable under paragraph 1 of this Schedule.

(2) The instrument--

(a) shall before being issued be produced to the Commissioners, together with such particulars in writing of the instrument as the Commissioners may require, and

(b) shall be deemed to be duly stamped if and only if it is stamped with a particular stamp denoting that it has been produced to the Commissioners.

(3) Within six weeks of the date on which the instrument is issued, or such longer time as the Commissioners may allow, a statement in writing containing the date of the issue and such further particulars as the Commissioners may require in respect of the instrument shall be delivered to the Commissioners.

(4) The duty chargeable in respect of the instrument shall be paid to the Commissioners on delivery of that statement or within such longer time as the Commissioners may allow.

22 (1) If default is made in complying with paragraph 21--

(a) the person by whom or on whose behalf the instrument is issued, and

(b) any person who acts as the agent of that person for the purposes of the issue,

are each liable to a penalty not exceeding the aggregate of £300 and the duty chargeable.

(2) Those persons are also jointly and severally liable to pay to Her Majesty--

(a) the duty chargeable, and

(b) interest on the unpaid duty from the date of the default until the duty is paid.

Duty chargeable on transfer of stock by means of instrument

23 (1) This paragraph applies where duty is chargeable under paragraph 2 of this Schedule.

(2) Where the instrument is presented to the Commissioners for stamping--

(a) the person presenting it, and

(b) the owner of the instrument,

shall furnish to the Commissioners such particulars in writing as the Commissioners may require for determining the amount of duty chargeable.

(3) If the instrument is not duly stamped each person who in the United Kingdom--

(a) transfers any stock by or by means of the instrument, or

(b) is concerned as broker or agent in any such transfer,

is liable to a penalty not exceeding the aggregate of £300 and the amount of duty chargeable.

(4) Those persons are also jointly and severally liable to pay to Her Majesty--

(a) the duty chargeable, and

(b) interest on the unpaid duty from the date of the transfer in question until the duty is paid.

Supplementary provisions as to interest

24 (1) The following provisions apply to interest under paragraph 22(2) or 23(4).

(2) If an amount is lodged with the Commissioners in respect of the duty, the amount on which interest is payable is reduced by that amount.

(3) Interest is payable at the rate prescribed under section 178 of the [1989 c. 26.] Finance Act 1989 for the purposes of section 15A of the [1891 c. 39.] Stamp Act 1891 (interest on late stamping).

Pages: P.1 | P.2 | P.3 | P.4 | P.5 | P.6 | P.7 | P.8 | P.9 | P.10 | P.11 | P.12 | P.13 | P.14 | P.15 | P.16 | P.17 | P.18

-- Back --

Stat