HC Deb 17 July 1986 vol 101 cc1225-6

Amendments made: No. 181, in page 79, line 23, leave out 'subsections (4) and (7)' and insert 'subsection (7) below and section (Depositary receipts: stamp duty reserve tax: exceptions)'. No. 182, in page 79, line 39, leave out subsection (4).

No. 211, in page 80, line 5, leave out 'and' and insert `to'.

No. 183, in page 80, leave out lines 15 to 24 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 1 to the Stamp Act 1891 is chargeable,
  2. (b) at the time of the transer 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. 212, in page 80, line 27, at end insert— '(6A) 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 (5)(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 person falling within subsection (3) above.
  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 (5)(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. 213, in page 80, line 33, leave out 'and (6)' and insert `to (6A)'.

No. 214, in page 80, line 38, after 'under', insert 'the preceding provisions of'.

No. 184, in page 80, line 38, leave out from 'person' to end of line 40 and insert 'liable for the tax shall (subject to subsection (8A) below) be the person who has issued or is to issue the depositary receipt.'.

No. 215, in page 80, line 40, at end insert— '(8A) Where tax is charged under the preceding provisions of this section in a case where securities are transferred, and at the time of the transfer the person who has issued or is to issue the depositary receipt is not resident in the United Kingdom and has no branch or agency in the United Kingdom, the person liable for the tax shall be the person to whom the securities are transferred. (8B) 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 person falling within subsection (2) or (3) above, there shall be 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. 186, in page 81, line 6, leave out `issued on or before that date' and insert '(whether issued on or before that date or to be issued after that date).'.—[Mr. Ian Stewart.]

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