(1)Stamp duty shall not be chargeable on an instrument effecting a transfer of securities if the transferee is a member of an electronic transfer system and the instrument is in a form which will, in accordance with the rules of the system, ensure that the securities are changed from being held in certificated form to being held in uncertificated form so that title to them may become transferable by means of the system.
(2)In this section—
“certificated form” has the same meaning as in the relevant regulations;
“electronic transfer system” means a system and procedures which, in accordance with the relevant regulations, enable title to securities to be evidenced and transferred without a written instrument;
“member”, in relation to an electronic transfer system, means a person who is permitted by the operator of the system to transfer by means of the system title to securities held by him in uncertificated form;
“operator” means a person approved by the Treasury under the relevant regulations as operator of an electronic transfer system;
“the relevant regulations” means regulations under section 207 of the [1989 c. 40.] Companies Act 1989 (transfer without written instrument);
“securities” means stock or marketable securities;
“uncertificated form” has the same meaning as it has in the relevant regulations.
(3)This section applies in relation to instruments executed on or after 1st July 1996.
(4)This section shall be construed as one with the [1891 c. 39.] Stamp Act 1891.