HC Deb 24 March 1986 vol 94 cc728-9

Resolved, That the following provisions shall have effect for the period beginning 25th March 1986 and ending 31 days after the earliest of the dates mentioned in section 50(2) of the Finance Act 1973—

(1) The following provisions shall cease to have effect—

  1. (a) in section 62 of the Finance Act 1963, subsections (2) and (6) (commonwealth stock);
  2. (b) in section 11 of the Finance Act (Northern Ireland) 1963, subsections (2) and (5) (commonwealth stock);
  3. (c) section 29 of the Finance Act 1967 (local authority capital);
  4. (d) section 6 of the Finance Act (Northern Ireland) 1967 (local authority capital);
  5. (e) section 126 of the Finance Act 1967 (loan capital).

(2) Stamp duty under the heading "Bearer Instrument" in Schedule 1 to the Stamp Act 1891 shall not be chargeable on the issue of an instrument which relates to loan capital or on the transfer of the loan capital constituted by or transferable by means of, such an instrument.

(3) Stamp duty shall not be chargeable on an instrument which transfers loan capital issued or raised by—

  1. (a) the financial support fund of the Organisation for Economic Co-operation and Development,
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  2. (b) the Inter-American Development Bank, or
  3. (c) an organisation which was a designated international organisation at the time of the transfer (whether or not it was such an organisation at the time the loan capital was issued or raised).

(4) Stamp duty shall not be chargeable on an instrument which transfers short-term loan capital.

(5) Where stamp duty under the heading "Conveyance or Transfer on Sale" in Schedule 1 to the Stamp Act 1891 is chargeable on an instrument which transfers loan capital, the rate at which the duty is charged under that heading shall be the rate of 50p for every £100 or part of £100 of the amount or value of the consideration for the sale to which the instrument gives effect.

(6) In this Resolution "loan capital" means—

  1. (a) any debenture stock, corporation stock or funded debt, by whatever name known, issued by a body corporate or other body of persons (which here includes a local authority and any body whether formed or established in the United Kingdom or elsewhere);
  2. (b) any capital raised by such a body if the capital is borrowed or has the character of borrowed money, and whether it is in the form of stock or any other form;
  3. (c) stock or marketable securities issued by the government of any country or territory outside the United Kingdom.

(7) In this Resolution "short-term loan capital" means loan capital the date (or latest date) for the repayment of which is not more than five years after the date on which it is issued or raised.

(8) In this Resolution "designated international organisation" means an international organisation designated for the purposes of section 126 of the Finance Act 1984 by an order made under subsection (1) of that section.

(9) In construing sections 80(3) and 81(3) of the Finance Act 1985 (definitions by reference to section 126 of the Finance Act 1976) the effect of this Resolution shall be ignored.

(10) This Resolution applies to any instrument which falls within section 60(1) of the Finance Act 1963 and is issued after 24th March 1986.

(11) This Resolution applies to any instrument which falls within section 60(2) of that Act if the loan capital constituted by or transferable by means of it is transferred after 24th March 1986.

(12) This Resolution applies, in the case of instruments not falling within section 60(1) or (2) of that Act, to any instrument which is executed after 24th March 1986, unless it is executed in pursuance of a contract made on or before 18th March 1986.

(13) In this Resolution references to section 60(1) of the Finance Act 1963 include references to section 9(1)(a) of the Finance Act (Northern Ireland) 1963 and references to section 60(2) of the former Act include references to section 9(1)(b) of the latter.

And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of section 50 of the Finance Act 1973.