London Regional Transport Act 1984

64 Stamp duty

(1) Stamp duty shall not be chargeable under section 47 of the [1973 c. 51.] Finance Act 1973 in respect of the formation by London Regional Transport of a company in pursuance of section 4 of this Act, if the formation of that company is certified by the Treasury—

(a) as being effected in pursuance of section 4 ; and

(b) as satisfying the requirements of subsection (5) below.

(2) Stamp duty shall not be so chargeable in respect of—

(a) the formation of a company (otherwise than in pursuance of section 4 of this Act); or

(b) any increase in the capital of a company ;

if the transaction concerned is certified by the Treasury as satisfying the requirements of subsections (3) to (5) below.

(3) A transaction satisfies the requirements of this subsection if it relates to a public transport company and—

(a) in a case within subsection (2)(a) above, the company will on its formation be owned by London Regional Transport; or

(b) in a case within subsection (2)(b) above, the company is owned by London Regional Transport immediately before and immediately after the increase in its capital takes effect.

(4) A transaction satisfies the requirements of this subsection if it is effected solely for the purpose—

(a) of facilitating such an eventual disposal as is mentioned in section 9(5) of this Act; or

(b) of complying with a direction given by the Secretary of State under section 10(1) of this Act.

(5) A transaction satisfies the requirements of this subsection if it is entered into solely in connection with a relevant transfer, takes place on or before the transfer date and does not give rise to an excess of capital. In this subsection, " relevant transfer " means—

(a) in a case within subsection (1) above, a transfer to be effected in pursuance of a scheme made under section 4 of this Act;

(b) in a case within subsection (2) above, a transfer to be effected in pursuance of a scheme made under section 9(6) of this Act.

(6) For the purposes of subsection (5) above a transaction gives rise to an excess of capital if—

(a) in a case within subsection (1) or (2)(a) above, he total issued capital of the company exceeds on the transfer date, the total value of the assets less liabilities transferred; or , .

(b) in a case within subsection (2)(b) above the aggregate amount of the increase in issued capital of the company exceeds, on that date, that total value ;

and in this subsection "issued capital" means issued share capital or loan capital.

(7) Stamp duty shall not be chargeable on any instrument which is certified to the Commissioners of Inland Revenue by London Regional Transport as having been made or executed in pursuance of Schedule 4 to the 1968 Act as it applies—

(a) by virtue of section 27 of this Act to a transfer in pursuance of a scheme made under section 4 of this Act or to a transfer made in pursuance of a scheme made under section 9(6) of this Act in compliance with a direction given by the Secretary of State under section 10 of this Act; or

(b) by virtue of section 47 of this Act to a transfer in pursuance of an order made by the Secretary of State under that section;

but no such instrument shall be treated as duly stamped unless it is stamped with the duty to which it would but for this subsection be liable or it has, in accordance with the provisions of section 12 of the [1891 c. 39.] Stamp Act 1891, been stamped with a particular stamp denoting that it is not chargeable with any duty or that it is duly stamped.

(8) For the purposes of subsection (3) above—

(a) " public transport company " means a company whose objects include the provision of public passenger transport services; and

(b) a company is to be treated as owned by London Regional Transport at any time when more than half in nominal value of that company's issued share capital is held by London Regional Transport or by nominees on their behalf.