(1) Stamp duty under the heading "Conveyance or Transfer on Sale" in the First Schedule to the Stamp Act, 1891, shall not be chargeable on an instrument to which this section applies:
Provided that no such instrument shall be deemed to be duly stamped unless either it is stamped with the duty to which it would but for this section be liable or it has in accordance with the provisions of section twelve of the said Act been stamped
with a particular stamp denoting either that it is not chargeable with any duty or that it is duly stamped.
§ (2) This section applies to any instrument as respects which it is shown to the satisfaction of the Commissioners of Inland Revenue—
- (a) that the effect thereof is to convey or transfer a beneficial interest in property from one company with limited liability to another such company; and
- (b) that either—
- (i) one of the companies is beneficial owner of not less than ninety per cent. of the issued share capital of the other company; or
- (ii) not less than ninety per cent. of the issued share capital of each of the companies is in the beneficial ownership of a third company with limited liability.—[Major Nathan.]
§ Brought up, and read the First time.
§ Major NATHAN
I beg to move, "That the Clause be read a Second time."
This Clause takes some 20 lines to express what is, in fact, a very simple proposition. It has been found in practice that there is a gap in the provisions of the law on the remission of stamp duties in the case of amalgamations. The object of the Clause is to secure that when an amalgamation is in existence and transactions are to take place for the reorganisation of the businesses of that amalgamation within the limits and the scope of that amalgamation, no stamp duty shall be charged upon the transfers necessary for that purpose. I should be prepared to argue this matter at length, but I leave it where it stands, because I understand that it is not unlikely to receive sympathetic consideration from the Chancellor.
§ Clauses added to the Bill.