For the purpose of section eight of the Finance Act, 1899 (which provides for the payment of stamp duty in respect of the issue of loan capital), the expression "loan capital" shall not include any loan capital which is of euch a description as to be incapable of being dealt in on a stock exchange in the United Kingdom.—[Sir S. Roberts.]
I beg to move, "That the Clause be read a Second time."
It is a growing practice among groups of companies for one member of the group to lend money to other members without security and repayable on demand. The money is thus moved about from company to company where it may be used more profitably. It therefore appears to be desirable that anything which, by reason of its doubtful application, would tend to hamper such commendable movement within a family group should be avoided. Doubts have arisen on the interpretation of this Act, and the new Clause is intended to clear the matter up. Section 8 of the Finance Act, 1899, will not be in any way interfered with, because the Exchequer will still continue to draw duty as heretofore from the sources for which the Section was enacted. I therefore do not think that the Clause is against any of the canons of the Chancellor, and I ask him to accept it.