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.

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.

The second condition is that the instrument (or each instrument) transferring the chargeable securities to which the agreement relates is duly stamped in accordance with the enactments relating to stamp duty if it is an instrument which, under those enactments, is chargeable with stamp duty or otherwise required to be stamped.

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) 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.

To the extent that the tax charged has not been paid, the charge shall be cancelled by virtue of this subsection.

F7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interest paid under subsection (2) above shall not constitute income for any tax purposes.

F9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

In this section “the enactments relating to stamp duty” means the M1Stamp Act 1891 and any enactment which amends or is required to be construed together with that Act.