§ Acts considered in Committee.
§ (In the Committee.)
§ THE CHANCELLOR OF THE EXCHEQUERrose to propose certain Resolutions, in addition to the general Resolution to which he had referred in the financial statement. The first Resolution had been only considered since the financial statement and referred to the transfer of mortgages. The law on the subject at present was very defective, and it was proposed to amend it by imposing on the transfer of 712 mortgages a duty analogous to that which was imposed on the original making of the mortgage, but only to one-fifth of the amount. The practical effect would be to impose an equal instead of an unequal charge, and to give relief to all mortgages under £7,000, while upon mortgages above that sum the charge would remain the same, or would become higher than at present. The present law was this—if the sum did not exceed £1,400 it was chargeable with an ad valorem duty of 2s. 6d. the £100; but if it exceeded £1,400 it was only chargeable with a fixed sum of 35s. That was a state of the law which was altogether in favour of large transactions and bore hard upon small ones. His Resolution, therefore, proposed in lieu of the present duties—for every £100, or any fractional part of £100, of the amount or value of the principal money or stock already secured by such mortgage, wadset, or other such security transferred, or assigned or disposed, the duty of 6d.; and if any further sum of money or stock should be added to the principal money of stock already secured, there should be charged the same duty as on a mortgage or wadset, for the amount or value of such further money or stock. The right hon. Gentleman then moved the first Resolution.
§ MR. WALPOLEwas of opinion that as much revenue could be obtained by keeping the duty at a moderate amount.
§ THE CHANCELLOR OF THE EXCHEQUERsaid, that the Resolution involved an equal scale of charge, reduced by one-fifth.
§
1. Resolved, That, in lieu of the Stamp Duties now Chargeable upon any transfer or assignment, disposition, or assignation of any mortgage or wadset, or of any security chargeable as a mortgage, or of the benefit thereof, or of the money or stock thereby secured, there shall be charged and paid for and upon every such transfer or assignment, disposition, or assignation as aforesaid, the following Stamp Duties (that is to say):
For every £100, or any fractional part of £100, of the amount or value of the principal money or stock already secured by such mortgage, wadset, or other such security as aforesaid, thereby transferred, or assigned or disposed, the Duty of sixpence;
And if any further sum of money or stock shall be added to the principal money or stock already secured as aforesaid, there shall be charged and paid also the same Duty as on a mortgage or wadset, for the amount or value of such further money or stock.
§ THE CHANCELLOR OF THE EXCHEQUERthen proposed the second Resolution, the object of which he stated to be to 713 bring under the law applicable to loans or shares raised for companies or corporations at home, loans or shares for companies abroad, a penny stamp for the receipt of money.
§
Motion made, and Question proposed,
That the Stamp Duty now chargeable on receipts given for or upon the payment of money shall extend to and be chargeable upon all receipts and acknowledgments, by whomsoever given, for sums paid or deposited for or in respect of allotments of shares, and calls upon scrip or shares, of or in any loan or proposed or intended loan raised or proposed to be raised by or on behalf of any Foreign or Colonial Government, State, Corporation, or Company.
§ MR. HENNESSYsaid, that in order to give effect to what he understood to be the intentions of the Chancellor of the Exchequer, it would be necessary to insert the words "in this country," otherwise a loan raised in Canada for Canadian purposes would be liable to the duty.
§ Amendment proposed, in line 5, after the word "raised," to insert the words "in this Country."—(Mr. Hennessy.)
§ Question proposed, "That those words be there inserted."
§ THE CHANCELLOR OF THE EXCHEQUERhoped the hon. Gentleman would not press his Amendment. If the limitation were inserted in the present instance great inconvenience might arise in its absence in other cases.
§ MR. WALPOLEhoped that the right hon. Gentleman would not agree to the Amendment. The Resolution was according to the usual form, and the Government were quite right to make it general.
§ MR. HENNESSYsaid, he would withdraw the Amendment, but in doing so would remind the Committee that the Chancellor of the Exchequer had used the words "raised at home" in his description of the loans to be raised under this Resolution.
§
Amendment, by leave, withdrawn.
2. Resolved, That the Stamp Duty now chargeable on receipts given for or upon the payment of money shall extend to and be chargeable upon all receipts and acknowledgments, by whomsoever given, for sums paid or deposited for or in respect of allotments of shares, and calls upon scrip or shares, of or in any loan or proposed or intended loan raised or proposed to be raised by or on behalf of any Foreign or Colonial Government, State, Corporation, or Company.
§ THE CHANCELLOR OF THE EXCHEQUERsaid, that in the next Resolution it was necessary that the distinction should be inserted, because the question 714 turned entirely on the place where the transaction took place. A practice had sprung up of effecting the insurances abroad, by which course, although the security was British, the stamp duty was evaded. The Resolution which he now proposed, was to enable the Government to apply the provisions of the Stamp Acts to such policies when they came into this country.
§ 3. Resolved, That the Stamp Duties chargeable under any Act for the time being in force, upon or in respect of any Policy of Insurance of any description, shall extend to and be deemed to be payable upon and in respect of any Policy or other Instrument of Insurance which shall be made or signed out of the United Kingdom, by or on behalf of any person carrying on the business of Insurance within the United Kingdom, or by which, according to any stipulation, agreement, or understanding expressed or implied, any loss or damage, or any sum of money shall be payable or recoverable in the United Kingdom, upon the happening of any contingency whatever.
§ THE CHANCELLOR OF THE EXCHEQUERsaid, that the fourth Resolution was somewhat complicated, and involved minute details with which he would not now detain the Committee. The principal branches of insurance were three—namely, Life Insurance, Fire Insurance, and Marine Insurance; but of late years there had sprung up a business in insurance of a very varied character. For example, there was now cattle insurance against loss by disease; hailstorm insurance against loss by hailstorms; plate-glass insurance against loss by breakage, and chiefly applicable to shop windows; railway accidents and accidental death insurance; and for all these kinds of insurance the arrangements made were more or less anomalous and unequal, and in some the duty was higher than it ought to be. With regard to railway accident insurance, 5 per cent was paid on the gross receipts of the Company. The Company was satisfied with that arrangement, and the Exchequer was satisfied also, as the duty was levied in a way which secured its easy collection and just payment, and they, therefore, did not intend to disturb that arrangement. He was anxious that it should be understood that these new duties would apply only to contracts made after the passing of the Act, and to all renewals of existing insurances if it be found to the interest of the parties to preserve the old rates. As regarded the new rates, their object was to come as near as they could to 5 per cent with all the rest, but they could not in all cases 715 come at it from the books so well as by the Railway Accident Company's payments.
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4. Resolved, That, in lieu of the Duties now payable thereon, there shall be charged and paid for and upon any Policy of Assurance, whereby any lawful Insurance not chargeable with Stamp Duty, as Life Insurance, Fire Insurance, or Sea Insurance, shall be made upon any property or interest whatever from loss or damage of any kind; or whereby any sum of money shall be assured or agreed to be paid only upon the death of any person from accident or violence, or other wise than from a natural cause, or as compensation for a personal injury; or whereby any sum of money shall be assured or agreed to be paid as or for loss or damage, or compensation for or indemnity against loss or damage, arising from or consequent upon the happening of any accident, the following Duties (that is to say):—
Where the Assurance shall be made for any period of time not exceeding one year, and shall not be expressed in the Policy to be renewable,—
| £ | s. | d. | |
| If the premium or consideration for such Assurance shall not exceed 2s. 6d. | 0 | 0 | 1 |
| And if the same shall exceed 2s. 6d and shall not exceed 5s. | 0 | 0 | 3 |
| And if the same shall exceed 5s. then for every 5s., and also for any fractional part of 5s., of such premium or consideration | 0 | 0 | 3 |
And where any such Assurance, as aforesaid, shall be made for any certain period of time exceeding one year, or shall be renewable for any certain period of time over and above or after one year, then, in addition to the respective rates of Duties aforesaid, there shall be charged and paid upon the said Policy the same rates of Duties respectively for every year and every fractional part of a year over and above the first year for which the same shall be made or be renewable; Provided always, That, where the Policy shall be made or be renewable for the term of five years or upwards, then an abatement of one-fifth of the said duties shall be made for every entire period of five years of the said term; and, where the Policy shall be made or be renewable for any indefinite or unlimited period of time, then there shall be charged and paid upon the said Policy the same amount of Duty, subject to the like abatement, as on a Policy renewable for a certain term of five years:
And where any such Assurance, as aforesaid, shall be made on such terms or conditions, either with regard to its duration or the rate of premium or otherwise, that the rates of Duty aforesaid cannot be applied to the same, or the Policy charged therewith, then, in lieu of the foregoing rates of Duty, there shall be charged and paid upon such Policy, in respect of the amount of the sum insured, the same rate of Stamp Duty as is now chargeable by Law on a Policy of Life Assurance.
§ 5. Resolved, That it is expedient to amend the Laws relating to the Inland Revenue.
§ House resumed.
§ Resolutions to be reported To-morrow;
§ Committee to sit again To-morrow.