33. Stamp Duty (Exemption for Transfers of Loan Capital)

Budget Resolutions and Economic Situation – in the House of Commons at 12:00 am on 12th April 1976.

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Motion made, and Question, That the following provisions shall have effect for the period beginning on 17th May 1976 and ending 31 days after the earliest of the dates mentioned in section 50(2) of the Finance Act 1973—(1) Stamp duty shall not be chargeable on any transfer of loan capital unless—

  1. (a) at the time when it is transferred it carries a right (exercisable then or later) of conversion into shares or other securities or to the acquistion of shares or other securities, including loan capital of the same description; or
  2. (b) at that time or earlier it carries or has carried—
    1. (i) a right to interest the amount of which exceeds a reasonable commercial return on the nominal amount of the capital or which falls or has fallen to be determined to any extent by reference to the results of, or of any part of a business or to the value of any property; or
    2. (ii) a right on repayment to an amount which exceeds the nominal amount of the capital and is not reasonably comparable with what is generally repayable (in respect of a similar nominal amount of capital) under the terms of issue of loan capital listed in the Official List of The Stock Exchange.
(2) In this Resolution "loan capital" means any debenture stock, corporation stock or funded debt (by whatever name known) or any capital raised by—
  1. (a) any body corporate or other body of persons formed or established in the United Kingdom; or
  2. (b) the government of any country or territory within the commonwealth outside
the United Kingdom, which is borrowed, or has the character of borrowed money, whether it is in the form of stock or any other form and whether the loan thereof is secured by a mortgage, marketable security or other instrument or is unsecured; and this Resolution shall be construed as if contained in the Stamp Act 1891.
And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of section 50 of the Finance Act 1973.—[Mr. Healey.]

put forthwith pursuant to Standing Order No. 94 (Ways and Means Motions), and agreed to.