HC Deb 17 July 1986 vol 101 cc1226-8

Amendments made: No. 189, in page 82, line 4, after 'below', insert 'and section (Clearance services: stamp duty reserve tax: exceptions) below'.

No. 217, in page 82, line 14, leave out 'and' and insert `to'.

No. 190, in page 82, leave out lines 24 to 33 and insert—

  1. (a) the transfer is effected by an instrument on which stamp duty under the heading "Conveyance or Transfer of any kind not hereinbefore described" in Schedule I to the Stamp Act 1891 is chargeable,
  2. (b) at the time of the transfer the transferor is a qualified dealer in securities of the kind concerned or a nominee of such a qualified dealer,
  3. (c) the transfer is made for the purposes of the dealer's business,
  4. (d) at the time of the transfer the dealer is not a market maker in securities of the kind concerned, and
  5. (e) the instrument contains a statement that paragraphs (b) to (d) above are fulfilled.'.

No. 218, in page 82, line 36, at end insert— '(3A) In a case where—

  1. (a) securities are issued, or securities sold are transferred, and (in either case) they are to be paid for in instalments.
  2. (b) the person to whom they are issued or transferred holds them and transfers them to another person when the last instalment is paid,
  3. (c) subsection (2)(c) above applies in the case of the transfer to the other person,
  4. (d) before the making of the transfer to the other person an instrument is received by A or a person whose business is or includes holding chargeable securities as nominee for A,
  5. (e) the instrument so received evidences all the rights which (by virtue of the terms under which the securities are issued or sold as mentioned in paragraph (a) above) subsist in respect of them at the time of the receipt, and
  6. (f) the transfer to the other person is effected by an instrument containing a statement that paragraphs (a), (b) and (e) above are fulfilled,
subsection (2)(c) above shall have effect as if the reference to the value there mentioned were to an amount (if any) equal to the total of the instalments payable, less those paid before the transfer to the other person is effected.'.

No. 219, in page 82, line 42, leave out 'and (3)' and insert `to (3A)'.

No. 220, in page 83, line 3, after 'under' insert 'the preceding provisions of'.

No. 191, in page 83, line 4, after 'shall', insert '(subject to subsection (5A) below)'.

No. 221, in page 83, line 4, at end insert— `(5A) Where tax is charged under the preceding provisions of this section in a case where securities are transferred to a person other than A, and at the time of transfer A is not resident in the United Kingdom and had no branch or agency in the United Kingdom, the person liable for the tax shall be the person to whom the securities are transferred. (5B) Where chargeable securities are issued or transferred on sale under terms providing for payment in instalments and for an issue of other chargeable securities, and (apart from this subsection) tax would be charged under this section in respect of that issue, tax shall not be so charged but—

  1. (a) if any of the instalments becomes payable by A or by a person whose business is or includes holding chargeable securitee as nominies for A, there shall he a charge to stamp duty reserve tax under this section when the instalment becomes payable;
  2. (b) the charge shall be at the rate of £1.50 for every £100 or part of £100 of the instalment payable;
  3. (c) the person liable to pay the instalment shall be liable for the tax.'.

No. 193, in page 83, line 13, leave out from 'above' to second 'at' in line 14 and insert '"qualified dealer" and "market maker" have at any particular time the same meanings as they have'.

No. 194, in page 83, line 20, leave out 'This' and insert 'Subject to subsection (11) below, this'.

No. 195, in page 83, line 22, at end insert— `(11) This section does not apply, in the case of securities which are transferred, if the Board are satisfied—

  1. (a) that on or before 18th March 1986 the transferor (or, where the transferor transfers as agent, the 1228 principal) agreed to sell securities of the same kind and amount to the person (other than A) referred to in subsection (1)(a) above, and
  2. (b) that the transfer is effected in pursuance of that agreement.'.—[Mr. Ian Stewart.]

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