Part IIIStamp Duty and Stamp Duty Reserve Tax

Repeals

108Transfer of securities: abolition of stamp duty

(1)

Where defined securities are transferred to or vested in a person by an instrument, stamp duty shall not be chargeable on the instrument.

(2)

In this section “defined securities” means—

(a)

stocks, shares or loan capital,

(b)

interests in, or in dividends or other rights arising out of, stocks, shares or loan capital,

(c)

rights to allotments of or to subscribe for, or options to acquire or to dispose of, stocks, shares or loan capital, and

(d)

units under a unit trust scheme.

(3)

In this section “loan capital” means—

(a)

any debenture stock, corporation stock or funded debt, by whatever name known, issued by a government or a body corporate or other body of persons (which here includes a local authority and any body whether formed or established in the United Kingdom or elsewhere);

(b)

any capital raised by a government, or by such a body as is mentioned in paragraph (a) above, if the capital is borrowed or has the character of borrowed money, and whether it is in the form of stock or any other form;

(c)

stock or marketable securities issued by a government.

(4)

In this section “unit” and “unit trust scheme” have the same meanings as they had in Part VII of the M1Finance Act 1946 immediately before the abolition day.

(5)

In this section references to a government include references to a government department, including a Northern Ireland department.

(6)

In this section “government” means the government of the United Kingdom or of Northern Ireland or of any country or territory outside the United Kingdom.

(7)

Subject to subsection (8) below, this section applies if the instrument is executed in pursuance of a contract made on or after the abolition day.

(8)

In the case of an instrument—

(a)

which falls within section 67(1) or (9) of the M2Finance Act 1986 (depositary receipts) or section 70(1) or (9) of that Act (clearance services), or

(b)

which does not fall within section 67(1) or (9) or section 70(1) or (9) of that Act and is not executed in pursuance of a contract,

this section applies if the instrument is executed on or after the abolition day.