- Latest available (Revised)
- Original (As enacted)
Finance Act 1997, Section 98 is up to date with all changes known to be in force on or before 17 August 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
Revised legislation carried on this site may not be fully up to date. Changes and effects are recorded by our editorial team in lists which can be found in the ‘Changes to Legislation’ area. Where those effects have yet to be applied to the text of the legislation by the editorial team they are also listed alongside the legislation in the affected provisions. Use the ‘more’ link to open the changes and effects relevant to the provision you are viewing.
Whole provisions yet to be inserted into this Act (including any effects on those provisions):
(1)After section 80B of the M1Finance Act 1986 there shall be inserted the following section—
(1)This section applies where a person (A) has entered into an arrangement with another person (B) under which—
(a)B is to transfer stock of a particular kind to A or his nominee, and
(b)stock of the same kind and amount is to be transferred by A or his nominee to B or his nominee,
and the conditions set out in subsection (3) below are fulfilled.
(2)Stamp duty shall not be chargeable on an instrument transferring stock to B or his nominee or A or his nominee in accordance with the arrangement.
(3)The conditions are—
(a)that the arrangement is effected on an EEA exchange or a recognised foreign exchange; and
(b)that stock of the kind concerned is regularly traded on that exchange.
(4)An arrangement does not fall within subsection (1) above if—
(a)the arrangement is not such as would be entered into by persons dealing with each other at arm’s length; or
(b)under the arrangement any of the benefits or risks arising from fluctuations, before the transfer to B or his nominee takes place, in the market value of the stock accrues to, or falls on, A.
(5)An instrument on which stamp duty is not chargeable by virtue only of subsection (2) above shall not be deemed to be duly stamped unless it has been stamped with a stamp denoting that it is not chargeable with any duty; and notwithstanding anything in section 122(1) of the M2Stamp Act 1891, the stamp may be a stamp of such kind as the Commissioners may prescribe.
(6)An arrangement is effected on an exchange for the purposes of subsection (3) above if (and only if)—
(a)it is subject to the rules of the exchange; and
(b)it is reported to the exchange in accordance with the rules of the exchange.
(7)In this section—
“EEA exchange” has the meaning given in section 80B(2) above; and
“recognised foreign exchange” has the meaning given in section 80B(3) above.
(8)The Treasury may by regulations provide that if stamp duty would be chargeable on an instrument but for subsection (2) above, stamp duty shall be chargeable on the instrument at a rate, specified in the regulations, which shall not exceed 10p for every £100 or part of £100 of the consideration for the transfer.
(9)The Treasury may by regulations amend this section (as it has effect for the time being) in order—
(a)to change the conditions for exemption from duty under this section; or
(b)to provide that this section does not apply in relation to kinds of arrangement specified in the regulations.
(10)The power to make regulations under subsection (8) or (9) above shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.”
(2)Section 82 of that Act (borrowing of stock by market makers) shall be omitted.
(3)This section applies to instruments executed on or after the commencement day.
(4)For the purposes of this section the commencement day is such day as the Treasury may by order made by statutory instrument appoint.
Subordinate Legislation Made
P1S. 98(4) power fully exercised (8.10.1997): 20.10.1997 appointed by S.I. 1997/2428, art. 2
Marginal Citations
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: