Finance Act 1974

Section 49.

SCHEDULE 11Increase of Certain Stamp Duties

PART IProvisions Having Effect in Great Britain

1(1)This Part of this Schedule, except paragraphs 6 and 7 shall be deemed to have had effect as from 1st May 1974 ; and paragraphs 6(1) and 7 shall have effect as from 1st August 1974.

(2)This Part of this Schedule shall not extend to Northern Ireland.

(3)The Commissioners may make such arrangements operating for such period as they may think proper for the charge of duty on any instrument giving effect to a stock exchange transaction (as denned in section 4 of the [1963 c. 18.] Stock Transfer Act 1963) in respect of which settlement was due before 1st May 1974 to be the same as if this Act had not been passed, and any instrument stamped in accordance with such arrangements shall be deemed to be duly stamped for all purposes.

Bearer instruments

2(1)The heading "Bearer Instrument" inserted in Schedule 1 to the [1891 c. 39.] Stamp Act 1891 by section 59(1) of the [1963 c. 25.] Finance Act 1963 shall be amended as follows.

(2)In paragraph (3), as amended by paragraph 6(2) of Schedule 7 to the [1970 c. 24.] Finance Act 1970 (instrument excepted from paragraph (1) or (2): duty of Is. for every £50, or part of £50, of market value), for " 1s. " (to be read under the [1969 c. 19.] Decimal Currency Act 1969 as 5p) substitute " 10p ".

(3)In paragraph (4), as amended by paragraph 6(3) of the said Schedule 7 (duty of Is. on substituted instrument), for " 1s. " (to be likewise read as 5p) substitute " 10p ".

Conveyance or transfer on sale

3For the Table set out in Part I of Schedule 11 to the [1963 c. 25.] Finance Act 1963 (ad valorem duty on conveyance or transfer on sale), as substituted by paragraph 10 of Schedule 7 to the [1970 c. 24.] Finance Act 1970 and amended by section 125(1) of the [1972 c. 41.] Finance Act 1972, substitute—

4(1)Section 55 of the Finance Act 1963 (rates of ad valorem duty on conveyance or transfer on sale) shall be amended as follows.

(2)For paragraphs (a) to (c) of subsection (1) (exemption from, and reduced and ordinary rates of, such duty), as amended by section 125(1) of the Finance Act 1972, substitute—

“(a)where the amount or value of the consideration is £15,000 or under and the instrument is certified within the meaning of section 34 of the [1958 c. 56.] Finance Act 1958 at £15,000, nil;

(b)where the amount or value of the consideration is £20,000 or under and the instrument is certified as aforesaid at £20,000, the rate specified in column 2 of Part I of Schedule 11 to this Act;

(c)where the amount or value of the consideration is £25,000 or under and the instrument is certified as aforesaid at £25,000, the rate specified in column 3 of Part I of that Schedule ;

(d)where the amount or value of the consideration is £30,000 or under and the instrument is certified as aforesaid at £30,000, the rate specified in column 4 of Part I of that Schedule ;

(e)in any other case, the rate specified in column 5 of Part I of that Schedule.”

(3)In subsection (2), for " paragraphs (a) and (b)" and " paragraph (c)" substitute " paragraphs (a) to (d) " and " paragraph (e) " respectively.

5In section 62(2) of the [1963 c. 25.] Finance Act 1963 (rate of duty in respect of a transfer of commonwealth stock), as amended by paragraph 11 of Schedule 7 to the [1970 c. 24.] Finance Act 1970, for the words from " shall be " to the end substitute " shall be 10p for every £20 or part of £20 of the consideration if the amount or value thereof does not exceed £300 and, in any other case, 50p for every £100 or part of £100 of the consideration. "

Composition in respect of certain transfers etc.

6(1)In section 115(3) of the [1891 c. 39.] Stamp Act 1891 (rate of composition payable in respect of transfers of certain stock etc.) as it has effect by virtue of section 37(2) of the [1920 c. 18.] Finance Act 1920 and section 57(1) of the Finance Act 1963, for " one shilling" (to be read under the [1969 c. 19.] Decimal Currency Act 1969 as 5p) substitute " 10p ".

(2)The duty chargeable under the said section 115 on any half-yearly account required to be delivered on or within seven days before 1st August 1974 shall be the same as if the account had been delivered on that 1st August; and where any such account has been delivered before the passing of this Act and the full amount of the duty thereon has not been paid in accordance with this paragraph, a supplementary account shall be delivered, and the additional duty shall be paid, within fifteen days after the passing of this Act.

(3)The said section 115 shall apply in relation to a neglect or failure to deliver a supplementary account or to pay any additional duty in compliance with the preceding sub-paragraph as it applies in relation to a neglect or failure under that section.

7(1)In subsection (2) of section 37 of the [1939 c. 41.] Finance Act 1939 (rate of composition payable in respect of transfers of commonwealth government stock), as amended by paragraph 13(2) of Schedule 7 to the Finance Act 1970, for " 1s." (to be read under the Decimal Currency Act 1969 as 5p) substitute " 10p ".

(2)Any agreement entered into for the purposes of the said section 37 before the passing of this Act shall, so far as it relates to payments to be made on or after 1st August 1974, have effect as if it provided for the making of those payments at the rate at which duty is chargeable under that section by virtue of the preceding sub-paragraph.

8(1)In subsection (3) of section 65 of the [1971 c. 68.] Finance Act 1971 (rate of composition payable in respect of transfer duty on certain loan capital), for " 15p " substitute " 30p ".

(2)The preceding sub-paragraph shall not apply in relation to any agreement entered into for the purposes of the said section 65 before 1st May 1974.

Duplicates and counterparts

9In the heading " Duplicate or Counterpart of any instrument chargeable with any duty" in Schedule 1 to the Stamp Act 1891 (same duty as on original instrument if that is less than 5s., otherwise duty of 5s.), for " 5s." in both places (to be read under the Decimal Currency Act 1969 as 25p) substitute " 50p ".

Lease or tack

10(1)The heading " Lease or Tack " in Schedule 1 to the [1891 c. 39.] Stamp Act 1891 shall be amended as follows.

(2)The duty chargeable under paragraph (2)(a) and paragraph (4) shall be £1 and £2 respectively (instead of 50p and £1 as provided by section 56(2) of the [1963 c. 25.] Finance Act 1963), and the rates of duty specified in the said paragraphs (2)(a) and (4) shall be amended accordingly.

(3)For the Table set out in paragraph (3), as substituted by section 56(1) of the Finance Act 1963 and amended by section 125(3) of the [1972 c. 41.] Finance Act 1972, substitute—

PART IIProvisions Having Effect in Northern Ireland

11(1)This Part of this Schedule shall have effect as from 1st August 1974.

(2)This Part of this Schedule shall not extend to Great Britain.

(3)The Commissioners may make such arrangements operating for such period as they may think proper for the charge of duty on any instrument giving effect to a stock exchange transaction (as defined in section 4 of the [1963 c. 24 (N.I.).] Stock Transfer Act (Northern Ireland) 1963) in respect of which settlement was due before 1st August 1974 to be the same as if this Act had not been passed, and any instrument stamped in accordance with such arrangements shall be deemed to be duly stamped for all purposes.

Bearer instruments

12(1)The heading " Bearer Instrument" inserted in Schedule 1 to the [1891 c. 39.] Stamp Act 1891 by section 8(1) of the [1963 c. 22 (N.I.).] Finance Act (Northern Ireland) 1963 shall be amended as follows.

(2)In paragraph (3), as amended by paragraph 6(2) of Schedule 2 to the [1970 c. 21 (N.I.).] Finance Act (Northern Ireland) 1970 (instrument excepted from paragraph (1) or (2): duty of Is. for every £50, or part of £50, of market value), for " 1s." (to be read under the [1969 c. 19.] Decimal Currency Act 1969 as 5p) substitute " 10p ".

(3)In paragraph (4), as amended by paragraph 6(3) of the said Schedule 2 (duty of Is. on substituted instrument), for " 1s. " (to be likewise read as 5p) substitute " 10p ".

Conveyance or transfer on sale

13For the Table set out in Part I of Schedule 1 to the Finance Act (Northern Ireland) 1963 (ad valorem duty on conveyance or transfer on sale), as substituted by paragraph 10 of Schedule 2 to the Finance Act (Northern Ireland) 1970 and amended by Article 12(1) of the [S.I. 1972/1100.] Finance (Northern Ireland) Order 1972, substitute—

14(1)Section 4 of the Finance Act (Northern Ireland) 1963 (rates of ad valorem duty on conveyance or transfer on sale) shall be amended as follows.

(2)For paragraphs (a) to (c) of subsection (1) (exemption from, and reduced and ordinary rates of, such duty), as amended by Article 12(1) of the Finance (Northern Ireland) Order 1972, substitute—

“(a)where the amount or value of the consideration is £15,000 or under and the instrument is certified within the meaning of section 7(4) of the [1958 c. 14 (N.I.).] Finance Act (Northern Ireland) 1958 at £15,000, nil;

(b)where the amount or value of the consideration is £20,000 or under and the instrument is certified as aforesaid at £20,000, the rate specified in column 2 of Part I of Schedule 1 to this Act;

(c)where the amount or value of the consideration is £25,000 or under and the instrument is certified as aforesaid at £25,000, the rate specified in column 3 of Part I of that Schedule ;

(d)where the amount or value of the consideration is £30,000 or under and the instrument is certified as aforesaid at £30,000, the rate specified in column 4 of Part I of that Schedule ;

(e)in any other case, the rate specified in column 5 of Part I of that Schedule.”

(3)In subsection (2), for " paragraphs (a) and (b)" and " paragraph (c) " substitute " paragraphs (a) to (d) " and " paragraph (e) " respectively.

15In section 11(2) of the [1963 c. 22 (N.I.).] Finance Act (Northern Ireland) 1963 (rate of duty in respect of a transfer of commonwealth stock), as amended by paragraph 11 of Schedule 2 to the [1970 c. 21 (N.I.).] Finance Act (Northern Ireland) 1970, for the words from " shall be " to the end substitute " shall be 10p for every £20 or part of £20 of the consideration if the amount or value thereof does not exceed £300 and, in any other case, 50p for every £100 or part of £100 of the consideration. "

Composition in respect of certain transfers etc.

16(1)In section 115(3) of the [1891 c. 39.] Stamp Act 1891 (rate of composition payable in respect of transfers of certain stock etc.) as it has effect by virtue of section 37(2) of the [1920 c. 18.] Finance Act 1920 and section 6(1) of the Finance Act (Northern Ireland) 1963, for " one shilling " (to be read under the [1969 c. 19.] Decimal Currency Act 1969 as 5p) substitute " 10p ".

(2)The duty chargeable under the said section 115 on any half-yearly account required to be delivered on or within seven days before 1st August 1974 shall be the same as if the account had been delivered on that 1st August; and where any such account has been delivered before the passing of this Act and the full amount of the duty thereon has not been paid in accordance with this paragraph, a supplementary account shall be delivered, and the additional duty shall be paid, within fifteen days after the passing of this Act.

(3)The said section 115 shall apply in relation to a neglect or failure to deliver a supplementary account or to pay any additional duty in compliance with the preceding sub-paragraph as it applies in relation to a neglect or failure under that section.

17(1)In paragraph (4) of Article 11 of the [S.I. 1972/1100.] Finance (Northern Ireland) Order 1972 (rate of composition payable in respect of transfer duty on certain loan capital), for " 15p " substitute " 30p ".

(2)The preceding sub-paragraph shall not apply in relation to any agreement entered into for the purposes of the said Article 11 before 1st August 1974.

Duplicates and counterparts

18In the heading " Duplicate or Counterpart of any instrument chargeable with any duty" in Schedule 1 to the [1891 c. 39.] Stamp Act 1891 (same duty as on original instrument if that is less than 5s., otherwise duty of 5s.), for " 5s." in both places (to be read under the [1969 c. 19.] Decimal Currency Act 1969 as 25p) substitute " 50p ".

Lease or tack

19(1)The heading " Lease or Tack " in Schedule 1 to the Stamp Act 1891 shall be amended as follows.

(2)The duty chargeable under paragraph (2)(a) and paragraph (4) shall be £1 and £2 respectively (instead of 50p and £1 as provided by section 5(2) of the [1963 c. 22 (N.I.).] Finance Act (Northern Ireland) 1963), and the rates of duty specified in the said paragraphs (2)(a) and (4) shall be amended accordingly.

(3)For the Table set out in paragraph (3), as substituted by section 5(1) of the Finance Act (Northern Ireland) 1963 and amended by Article 12(3) of the [S.I. 1972/1100.] Finance (Northern Ireland) Order 1972, substitute—

PART IIISaving for Certain Transfers of Stock or Marketable Securities

20(1)This Part of this Schedule shall have effect as from 1st August 1974 (but without prejudice to the operation of paragraphs 2 to 4 of this Schedule as regards the period before that date).

(2)For the purposes of this Part of this Schedule—

(a)" authorised depositary" means a person who is an authorised depositary for the purposes of the [1947 c. 14.] Exchange Control Act 1947 ; and

(b)an authorised depositary consisting of a branch of a business shall be treated in all respects as if the branch were a body corporate.

21(1)In the case of a transfer to which this paragraph applies, the enactments relating to stamp duty shall have effect as if paragraphs 2 to 4 of this Schedule and such of the repeals contained in Parts III and IV of Schedule 14 to this Act as are consequential on any of those paragraphs had not been enacted.

(2)This paragraph applies to any transfer of stock or marketable securities as regards which the following conditions are satisfied, that is to say—

(a)the transferee—

(i)is resident outside the scheduled territories and is not acquiring the stock or securities as a nominee ; or

(ii)wherever resident, is acquiring the stock or securities as a nominee for a person who is resident outside the scheduled terrorities ;

(b)the transfer is for full consideration in money or money's worth; and

(c)the instrument of transfer or bearer instrument (as the case may be) in respect of which duty is chargeable in connection with the transfer bears or has attached to or otherwise associated with it, in such manner as the Commissioners may direct, a certificate by an authorised depositary, in such form as the Commissioners may direct, stating or indicating that the conditions mentioned in sub-paragraphs (a) and (b) above are satisfied as regards the transfer.

(3)In this paragraph—

• " resident outside the scheduled territories " means, subject to sub-paragraph (4) below, so resident for the purposes of the Exchange Control Act 1947 ; and

• " the scheduled territories " means the territories specified in Schedule 1 to the Exchange Control Act 1947 as for the time being in force.

(4)A person who, when acting in his capacity as a trustee of a particular trust, is treated by the Bank of England as resident outside the scheduled territories for the purposes of the [1947 c. 14.] Exchange Control Act 1947 shall, when acting in that capacity, be treated likewise for the purposes of this paragraph.

(5)Section 20(5) of the Exchange Control Act 1947 (meaning of nominee and person for whom another is a nominee) shall apply for the purposes of this paragraph as it applies for the purposes of Part m of that Act.

(6)In relation to Northern Ireland sub-paragraph (1) above shall have effect with the substitution for the references to paragraphs 2 to 4 of this Schedule of references to paragraphs 12 to 14 thereof.

22(1)An authorised depositary who for the purposes of the preceding paragraph—

(a)gives with respect to any transfer of stock or marketable securities a certificate containing any statement which is false in a material particular ; or

(b)gives with respect to any such transfer a certificate indicating that the conditions mentioned in sub-paragraph (2)(a) and (b) of that paragraph are satisfied when either of those conditions is not satisfied,

shall be liable to a fine not exceeding the aggregate of £50 and an amount equal to twice the amount by which the stamp duty which ought to be charged in respect of the instrument in respect of which duty is chargeable in connection with the transfer exceeds the stamp duty paid in respect of that instrument.

(2)In any proceedings for the recovery of a fine under this paragraph it shall be a defence for the defendant to prove that at the time when he gave the certificate in question he had made all such enquiries as he ought reasonably to have made with respect to the matters covered by the certificate and neither knew nor had reason to believe that any of those matters was other than as stated in or indicated by the certificate.

23(1)This paragraph applies to the following documents and records that is to say all books, accounts and other documents and records whatsoever which—

(a)relate to any transfer of stock or marketable securities with respect to which a certificate has at any time been given by an authorised depositary for the purposes of paragraph 21 of this Schedule ; and

(b)are, or have at any time been, documents or records of that depositary.

(2)Any person who has under his control any documents or records to which this paragraph applies—

(a)shall, whenever required to do so by an authorised officer of the Commissioners, produce to that officer for inspection all documents and records to which this paragraph applies which that person has under his control, or such of those documents and records as the officer may specify ; and

(b)if he has the documents or records in question under his control in connection with any business or profession carried on by him, shall, if so required by the officer, admit the officer to any premises at which that business or profession is carried on and produce them there to the officer for inspection :

Provided that nothing in this sub-paragraph shall be taken to require any person who has acted as counsel or solicitor for any person to disclose any privileged communication made to him in that capacity.

(3)Any person who fails to comply with any requirement imposed under the preceding sub-paragraph by an authorised officer of the Commissioners shall be liable to a fine of £50.