C2C3C4C5C6 Part IVStamp Duty Reserve Tax
Pt. 4: power to restrict conferred (27.7.1999) by Finance Act 1999 (c. 16), s. 119 (with s. 123(4))
Pt. 4: power to extend conferred (1.5.1995) by Finance Act 1995 (c. 4), s. 152(2)(b)(6)
Pt. 4: 2019 c. 1, s. 48 construed as one with this Part (with effect in accordance with s. 48(12) of the amending Act) by Finance Act 2019 (c. 1), s. 48(11)
Pt. 4: 2019 c. 1, s. 48A construed as one with this Part by 2019 c. 1, s. 48A(9) (as inserted (22.7.2020) by Finance Act 2020 (c. 14), s. 78)
The principal charge
C192Repayment or cancellation of tax
1
If, as regards an agreement to transfer securities to B or his nominee, tax is charged under section 87 above and it is proved to the Board's satisfaction that at a time F1on or after the relevant day (as defined in section 87(3)) but before the expiry of the period of six years F2(beginning with that day) the conditions mentioned in F3subsections (1A) and (1B) below have been fulfilled, F4subsections (2) to (4A) of this section shall apply.
F51A
The first condition is that an instrument is (or instruments are) executed in pursuance of the agreement and the instrument transfers (or the instruments between them transfer) to B or, as the case may be, to his nominee all the chargeable securities to which the agreement relates.
F141B
The second condition is that the instrument (or each instrument) transferring the chargeable securities to which the agreement relates—
a
so far as those securities are stock or marketable securities within the meaning of section 125 of the Finance Act 2003 (abolition of stamp duty except on instruments relating to stock or marketable securities)—
i
is duly stamped in accordance with the enactments relating to stamp duty, or
ii
is not chargeable with stamp duty or otherwise required to be stamped under those enactments; or
b
so far as those securities are not stock or marketable securities within the meaning of that section, is an instrument that, disregarding that section, would not be chargeable with any ad valorem stamp duty under those enactments.
F121C
If, as regards an agreement to transfer shares in a company to that company (“the own-shares agreement”)—
a
tax is charged under section 87 above, and
b
it is proved to the Board’s satisfaction that at a time in the period of six years beginning on the relevant day (as defined in section 87(3)) the conditions mentioned in subsection (1D) have been fulfilled in respect of those shares,
subsections (2) to (4A) apply.
1D
The conditions referred to in subsection (1C) are—
a
b
that any such return has been duly stamped in accordance with section 66.
2
If any of the tax charged has been paid, and a claim for repayment is made within the period of six years mentioned in subsection (1) F13or, as the case may be, (1C) above, the tax paid shall be repaid; and where the tax paid is not less than £25 it shall be repaid with interest on it at the F6rate applicable under section 178 of the Finance Act 1989 from the time it was paid.
3
To the extent that the tax charged has not been paid, the charge shall be cancelled by virtue of this subsection.
4
F7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F84A
Interest paid under subsection (2) above shall not constitute income for any tax purposes.
5
F9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F106
In this section “the enactments relating to stamp duty” means the Stamp Act 1891 M1 and any enactment which amends or is required to be construed together with that Act.
F117
This section shall have effect in relation to a person to whom the chargeable securities are transferred by way of security for a loan to B as it has effect in relation to a nominee of B.
Pt. 4: construed as one with 1999 c. 16, Pt. VI (27.7.1999) by Finance Act 1999 (c. 16), s. 123(1)