Finance Act 1987

Stamp duty U.K.

48 Unit trusts. U.K.

—In section of the M1 Finance Act 1946 and in section 28 of the M2 Finance (No. 2) Act (Northern Ireland) 1946—

(a) for the definition in subsection (1) of “unit trust scheme” there shall be substituted—

““unit trust scheme” has the same meaning as in the Financial Services Act 1986 (but subject to subsection (1A) of this section)”;

(b) in the definition in subsection (1) of “trust instrument”, for the words from “by virtue” to “aforesaid” there shall be substituted the words “ on which the property in question is held ”;

(c) after subsection (1) there shall be inserted—

“(1A) The Treasury may by regulations provide that any scheme of a description specified in the regulations shall be treated as not being a unit trust scheme for the purposes of this Part of this Act.

(1B) Regulations under this section—

(a) may contain such supplementary and transitional provisions as appear to the Treasury to be necessary or expedient, and

(b) shall be made by statutory instrument, which shall be subject to annulment in pursuance of a resolution of the House of Commons.”.

Marginal Citations

M1 1946 c. 64.

M2 1946 c. 17 (N.I.)9.

49 Contract notes. U.K.

(1) Sections 77 to 79 of the M3 Finance (1909–10) Act 1910, so far as unrepealed, shall cease to have effect.

(2) Subsection (1) above shall come into force on such day as the Treasury may appoint by order made by statutory instrument.

Modifications etc. (not altering text)

C1 Power of appointment conferred by s. 49(2) fully exercised: 29.4.1988 appointed by S.I. 1988/780

Marginal Citations

M3 1910 c. 8.

50 Warrants to purchase Government stock, etc. U.K.

(1) Where an interest in, a right to an allotment of or to subscribe for, or an option to acquire [F1 or to dispose of], exempt securities is transferred to or vested in any person by any instrument, no stamp duty shall be chargeable on the instrument by virtue of either of the following headings in Schedule 1 to the Stamp Act 1891 F2 —

(a) “Conveyance or Transfer on Sale”;

(b) “Conveyance or Transfer of any kind not hereinbefore described”.

(2) No stamp duty under the heading “Bearer Instrument” in Schedule 1 to the Stamp Act 1891 shall be chargeable —

(a) on the issue of an instrument which relates to such an interest, right or option as is mentioned in subsection (1) above, or

(b) on the transfer of the interest, right or option constituted by, or transferable by means of, such an instrument.

(3) For the purposes of this section, “exempt securities” means —

(a) securities the transfer of which is exempt from all stamp duties,

(b) securities constituted by or transferable by means of an instrument the issue of which is by virtue of section 30 of the Finance Act 1967 F3 or section 7 of the Finance Act (Northern Ireland) 1967 F4 [F5 or section 79(2) of the Finance Act 1986] exempt from stamp duty under the heading “Bearer Instrument” in Schedule 1 to the Stamp Act 1891 F6 , or

(c) securities the transfer of which is exempt by virtue of section 30 of the Finance Act 1967 or section 7 of the Finance Act (Northern Ireland) 1967 [F7 or section 79(2) of the Finance Act 1986] from stamp duty under that heading;

and “securities” means stock or marketable securities and includes loan capital as defined in section 78(7) of the Finance Act 1986 F8 .

(4) Subsection (1) above applies to any instrument executed on or after 1st August 1987.

(5) Subsection (2) above applies —

(a) to any instrument which falls within section 60(1) of the Finance Act 1963, or section 9(1 )(a) of the Finance Act (Northern Ireland) 1963, and is issued on or after 1st August 1987, and

(b) to any instrument which falls within section 60(2) of the Finance Act 1963 F9 , or section 9(1 )(b) of the Finance Act (Northern Ireland) 1963 F10 , if the interest, right or option constituted by or transferable by means of it is transferred on or after 1st August 1987.

Textual Amendments

F1 S. 50(1) words inserted by 1987 c. 51 s. 99(1)

F2 1891 c. 39.

F3 1967 c. 54.

F4 1967 c. 20 (N. I.).

F5 S. 50(3) words inserted by 1987 c. 51 s. 99(2)

F6 1891 c. 39.

F7 S. 50 (3) words inserted by 1987 c. 51 s. 99(2)

F8 1986 c. 41.

F9 1963 c. 25.

F10 1963 c. 22 (N. I.).

51 Bearer instruments relating to stock in foreign currencies U.K.

(1) With respect to the issue of instruments and the transfer of stock on or after the day on which this Act is passed, section 30 of the Finance Act 1967 (stamp duty exemption for bearer instruments relating to stock in foreign currencies) and section 7 of the Finance Act (Northern Ireland) 1967 (the equivalent provision for Northern Ireland) shall have effect subject to the amendments in subsections (2) to (4) below.

(2) In subsection (1) for the words “in the currency of a territory outside the scheduled territories” there shall be substituted “in any currency other than sterling or in any units of account defined by reference to more than one currency (whether or not including sterling) ”.

(3) In subsection (2) for the words from “between” to “other currencies” there shall be substituted “between sterling and one or more other currencies”.

(4) Subsection (4) and, in subsection (5), the definition of “the scheduled territories” shall cease to have effect.

52 Clearance services U.K.

(1) In section 70(6) of the Finance Act 1986 (transfer of securities to clearance system), for the word “relevant” (in each place where it occurs) there shall be substituted the words “shares, stock or other marketable”.

(2) The amendments made by this section have effect in relation to instruments executed on or after 1st August 1987.

53 Borrowing of stock by market makers U.K.

In section 82(6)of the Finance Act 1986 F11 , for the words “subsection (3)” there shall be substituted the words “subsection (4)”.

Textual Amendments

F11 1986 c. 41.

54 Shared ownership transactions. U.K.

(1) In section 97 of the M4 Finance Act 1980 (which provides for certain leases to be stamped as conveyances) in subsection (3)(b)—

(a) for the words “registered under” there shall be substituted the words “ within the meaning of ”, and

(b) for the words “Article 124” there shall be substituted the words “ Part VII ”.

(2) Section 97 of the Finance Act 1980 and section 108(5) and (6) of the M5 Finance Act 1981 shall apply to a lease within subsection (3) below as they apply to a lease granted by a body mentioned in section 97(3) of the Finance Act 1980.

(3) A lease is within this subsection if it is granted—

(a) by a person against whom the right to buy under Part V of the M6 Housing Act 1985 is exercisable by virtue of section 171A of that Act (preservation of right to buy on disposal to private sector landlord), and

(b) to a person who is the qualifying person for the purposes of the preserved right to buy and in relation to whom that dwelling-house is the qualifying dwelling-house.(4) This section applies to leases granted on or after 1st August 1987.

Marginal Citations

M4 1980 c.48.

M5 1981 c.35.

M6 1985 c.68.

55 Crown exemption. U.K.

(1) Where any conveyance, transfer or lease is made or agreed to be made to a Minister of the Crown or to the Solicitor for the affairs of Her Majesty’s Treasury, no stamp duty shall be chargeable by virtue of any of the following headings in Schedule 1 to the M7 Stamp Act 1891—

(a) “Conveyance or Transfer on Sale”,

(b) “Conveyance or Transfer of any kind not hereinbefore described”,

(c) “Lease or Tack”,

on the instrument by which the conveyance, transfer or lease, or the agreement for it, is effected.

(2) In this section “Minister of the Crown” has the same meaning as in the Ministers of the M8 Crown Act 1975.

(3) Article 3(6) of the Secretary of State for the M9 Environment Order 1970 and Article 4(5) of the M10 Secretary of State for Transport Order 1976 (which excempt transfers by, to or with those Ministers) shall cease to have effect.

(4) This section applies to instruments executed on or after 1st August 1987.

Marginal Citations

M7 1891 c.39.

M8 1975 c.26.

M9 S.I. 1970/1681.

M10 S.I. 1976/1775.

56 Stamp duty reserve tax U.K.

Schedule 7 to this Act (which contains miscellaneous amendments of Part IV of the Finance Act 1986 F12 ) shall have effect.

Textual Amendments

F12 1986 c. 41.