New Clause. — (Reduction of duty in Ulf-case of certain transfers of stocks and marketable securities.)

Orders of the Day — Finance Bill. – in the House of Commons on 14th July 1920.

Alert me about debates like this

(1) Where stock is transferred on sale to a dealer or his nominee and the transfer bears, in addition to the stamp denoting the duty, an impressed stamp (hereinafter referred to as "the supplementary stamp") denoting that it has been stamped under the provisions of this Section, the maximum duty chargeable on the transfer shall, subject to the provisions of this Section, be ten shillings:

Provided that a transfer shall not be stamped with the supplementary stamp unless it is proved to the satisfaction of the Commissioners of Inland Revenue that the transaction to which effect is to be given by the transfer was a transaction carried out by the dealer in the ordinary course of his business as such dealer.

(2) Where a transfer has been stamped with the supplementary stamp under this Section to whom or to whose nominee the transfer was made shall—

(a) immediately on the expiration of two months from the date of the transfer furnish to the Commissioners of Inland Revenue a certificate in such form as the Commissioners may prescribe, showing what part, if any, of the stock comprised in the transfer has been transferred by him to a bonâ fide purchaser, and what part, if any, of the stock has not been so transferred, and shall produce such further evidence, by way of statutory declara- tion or otherwise, in relation to the matters aforesaid as the Commissioners may require; and

(b) if any part of the stock has not before the expiration of the said two months been so transferred as aforesaid, pay to the Commissioners within fourteen days after the expiration of that period a sum equal to the difference between the amount of the duty actually charged on the transfer and the amount of the ad valorem duty which would have been chargeable thereon if the stock comprised therein had been the stock which was not so transferred as aforesaid.

If any person fails to pay duly any sum which he is liable to pay under the provisions of this Sub-section that sum together with interest thereon at the rate of ten per cent. per annum from the date of the transfer, shall be recoverable from him as a debt due to is Majesty, and if any person fails to comply with any of the other provisions of this Sub-section a sum equal to the difference between the amount of the Stamp Duty actually charged on the transfer and the amount which would but for this Section have been chargeable thereon, together with interest on that sum at the rate of ten per cent. per annum from the date of the transfer, shall be recoverable from him as a debt due to His Majesty.

(3) For the purposes of this Section—

The expression "dealer" means a person who being a member of a stock exchange in the United Kingdom does not deal by way of business otherwise than with or through other members of that stock exchange or otherwise than as a principal, and does not carry on the business of a broker or agent;

The expression "stock" includes marketable security.—[Mr. Chamberlain.]

Brought up; read the First and Second time, and added to the Bill.