Finance Act 1971

65 Stamp duty-composition in respect of transfer duty on certain loan capital

(1) The Commissioners may if they think it proper to do so enter into an agreement with any person proposing to issue loan capital to which this section applies whereby that person is to pay to them, by way of composition for the stamp duty chargeable on transfers of the capital, a sum calculated in accordance with subsection (3) below; and any transfer of the capital effected after payment of the composition shall be exempt from stamp duty:

Provided that the exemption conferred by this subsection in the case of any capital shall cease to have effect if any variation in the terms on which it was issued is made otherwise than with the approval of the Commissioners.

(2) In this section “loan capital ” has the same meaning as in Section 8 of the [1899 c. 9.] Finance Act 1899; and the loan capital to which this section apples is any loan capital which is to be offered for public subscription on or after 1st August 1971 and the date for repayment of which cannot be less than five years or more than ten years from the date of issue.

(3) The sum payable by way of composition in respect of any loan capital to which an agreement under subsection (1) above relates shall be calculated at the following rate for every £100 or part of £100 of the nominal amount of the capital, that is to say, 15p multiplied by the number of years from the date of issue to the latest date for repayment, a part of a year being treated for this purpose as a whole year.

(4) This section shall be construed as one with the [1891 c. 39.] Stamp Act 1891.