HC Deb 01 July 1958 vol 590 cc1278-9
Mr. Maudling

I beg to move, in page 25, line 6, at the end to insert: This subsection shall not be taken as affecting the duty chargeable on an instrument under the said heading "Mortgage, Bond, Debenture, Covenant" in respect of any security by way of charge on property or in respect of an agreement to give such a security. The purpose of the Amendment is to clear up certain doubt which, we have been advised, might arise. The purpose of subsection (1) of the Clause is to reduce Stamp Duty payable on certain contracts for the sale or hire of goods, and the execution of building works. The object, as the Committee will be aware, was to assist our exporters who might be hampered by the existing duty. We have been advised that this wording as it stood might be construed to cover a mortgage created in order to build a house.

Clearly, that was not the intention. If such an interpretation were given to the legislation it would create a serious anomaly, for instance, if a mortgage to build a house were subject to only 6d. or 10s. duty while a mortgage for purchasing an existing house were liable to ad valorem duty.

The purpose of the Amendment is to avoid any doubt that the Clause is intended to refer to contracts for the hire and sale of goods, the construction of installations, machinery, and so forth.

Amendment agreed to.

Mr. Maudling

I beg to move, in page 25, line 24, at the end to insert: (3) Any discharge (by re-conveyance, surrender or otherwise) of a security for sums payable to a local authority in respect of the sale or letting of houses by that authority under any of the enactments mentioned below in this subsection shall be exempt from stamp duty. The enactments in question are—

  1. (a) as regards England and Wales, paragraph (d) of subsection (1) of section fifty-nine of the Housing Act, 1925, paragraph (d) of subsection (1) of section seventy-nine of the Housing Act, 1936, and subsection (1) of section one hundred and four of the Housing Act, 1957; and
  2. (b) as regards Scotland, paragraph (d) of subsection (1) of section forty-five of the Housing (Scotland) Act, 1925, and paragraph (d) of subsection (1) of section sixty-five of the Housing (Scotland) Act, 1950.
A number of Sections under which there is power to grant mortgages are specified in subsection (3) of this Clause. It now appears that the subsection as drafted is not quite exhaustive. We have been informed that other Sections are Section 104 of the Housing Act, 1957, and Section 65 of the Housing (Scotland) Act, 1950. Therefore, the purpose of the Amendment is to make it quite clear that the relief is given to all discharges on mortgages taken by local authorities for the sale or lease of council houses by virtue of the powers given in those Sections 104 and 65. The purpose of the Amendment is to repair an omission which, I think, is now repaired.

Mr. Mitchison

Are the Government satisfied that they have now stopped all the holes?

Mr. Maudling

The Government are satisfied that they have done their best. Beyond that they will not go.

Mr. Mitchison

Will there be retrospective legislation if the Government have omitted from this Bill the provisions of some other Act?

Amendment agreed to.

Clause, as amended, ordered to stand part of the Bill.