Search Legislation

Finance Act 2009

 Help about what version

What Version

 Help about advanced features

Advanced Features

Changes over time for: SCHEDULE 37

 Help about opening options

Alternative versions:

Changes to legislation:

Finance Act 2009, SCHEDULE 37 is up to date with all changes known to be in force on or before 29 March 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

Close

Changes to Legislation

Revised legislation carried on this site may not be fully up to date. Changes and effects are recorded by our editorial team in lists which can be found in the ‘Changes to Legislation’ area. Where those effects have yet to be applied to the text of the legislation by the editorial team they are also listed alongside the legislation in the affected provisions. Use the ‘more’ link to open the changes and effects relevant to the provision you are viewing.

View outstanding changes

Changes and effects yet to be applied to the whole Act associated Parts and Chapters:

Whole provisions yet to be inserted into this Act (including any effects on those provisions):

Section 83

SCHEDULE 37U.K.Stock lending: stamp taxes in the event of insolvency

This schedule has no associated Explanatory Notes

Part 1U.K.Stamp duty

1U.K.FA 1986 is amended as follows.

Modifications etc. (not altering text)

C1The provisions of Sch. 37 cease to have effect in accordance with s. 83(3)

2U.K.In Part 3 (stamp duty), after section 80C insert—

80DRepurchases and stock lending: replacement stock on insolvency

(1)This section applies where—

(a)A and B have entered into an arrangement falling within section 80C(1),

(b)the conditions in subsection (2A) or (3) of that section are met,

(c)stock is transferred to A or A's nominee, and

(d)the conditions in subsection (2) below are met.

(2)The conditions in this subsection are that—

(a)A and B are not connected persons within the meaning of section 839 of the Taxes Act 1988,

(b)after B has transferred stock under the arrangement, A or B becomes insolvent,

(c)it becomes apparent (whether before or after the insolvency occurs) that, as a result of the insolvency, stock will not be transferred to B or B's nominee in accordance with the arrangement,

(d)the party who does not become insolvent (“the solvent party”) or the solvent party's nominee acquires replacement stock, and

(e)the replacement stock is acquired before the end of the period of 30 days beginning with the day on which the insolvency occurs (“the insolvency date”).

(3)Where collateral is provided under the arrangement (or under arrangements of which that arrangement forms part), stamp duty is not chargeable on any instrument transferring to the solvent party or the solvent party's nominee—

(a)replacement stock acquired using the collateral (whether directly or indirectly), or

(b)where the solvent party uses the whole of the value of the collateral to acquire replacement stock, any further replacement stock.

(4)Where no collateral is provided as mentioned in subsection (3), stamp duty is not chargeable on any instrument transferring replacement stock to the solvent party or the solvent party's nominee.

(5)Subsections (3) and (4) may apply as regards more than one instrument (and where those subsections apply as regards more than one instrument, the instruments may be executed by different persons).

(6)But those subsections apply only as regards replacement stock up to the amount of stock which will not be transferred as a result of the insolvency.

(7)An instrument on which stamp duty is not chargeable by virtue only of subsection (3) or (4) is not to be deemed to be duly stamped unless it has been stamped with a stamp denoting that it is not chargeable with any duty.

(8)Despite section 122(1) of the Stamp Act 1891, the stamp mentioned in subsection (7) may be a stamp of such kind as the Commissioners for Her Majesty's Revenue and Customs may prescribe.

(9)For the purposes of this section a person becomes insolvent—

(a)if a company voluntary arrangement takes effect under Part 1 of the Insolvency Act 1986,

(b)if an administration application (within the meaning of Schedule B1 to that Act) is made or a receiver or manager, or an administrative receiver, is appointed,

(c)on the commencement of a creditor's voluntary winding up (within the meaning of Part 4 of that Act) or a winding up by the court under Chapter 6 of that Part,

(d)if an individual voluntary arrangement takes effect under Part 8 of that Act,

(e)on the presentation of a bankruptcy petition (within the meaning of Part 9 of that Act),

(f)if a compromise or arrangement takes effect under Part 26 of the Companies Act 2006,

(g)if a bank insolvency order takes effect under Part 2 of the Banking Act 2009,

(h)if a bank administration order takes effect under Part 3 of that Act, or

(i)on the occurrence of any corresponding event which has effect under or as a result of the law of Scotland or Northern Ireland or a country or territory outside the United Kingdom.

(10)In this section—

  • collateral” means an amount of money or other property which is payable to, or made available for the benefit of, a party to an arrangement or that party's nominee for the purpose of securing the discharge of the requirement to transfer stock to that party or the nominee;

  • “replacement stock”, in the event of a party to an arrangement becoming insolvent, is stock of the same kind as the stock which will not be transferred to the other party or that party's nominee as a result of the insolvency.

Modifications etc. (not altering text)

C2The provisions of Sch. 37 cease to have effect in accordance with s. 83(3)

3(1)In consequence of the amendment made by paragraph 2, section 88(1C) (disregard of certain instruments falling within section 80C(1)) is amended as follows.U.K.

(2)At the beginning of the words after paragraph (c) insert “ then, if section 80D does not apply, ”.

Modifications etc. (not altering text)

C3The provisions of Sch. 37 cease to have effect in accordance with s. 83(3)

Part 2U.K.Stamp duty reserve tax

4U.K.Part 4 of FA 1986 (stamp duty reserve tax) is amended as follows.

Modifications etc. (not altering text)

C4The provisions of Sch. 37 cease to have effect in accordance with s. 83(3)

5U.K.After section 89AA insert—

89ABSection 87: exception for repurchases and stock lending in case of insolvency

(1)This section applies where—

(a)P and Q have entered into an arrangement falling within section 89AA(1),

(b)the only reason that the conditions in subsection (2A) or (3) of that section are not met is that chargeable securities of the same kind and amount as those transferred to P or P's nominee are not transferred to Q or Q's nominee, and

(c)the conditions in subsection (2) below are met.

(2)The conditions in this subsection are that—

(a)P and Q are not connected persons within the meaning of section 839 of the Taxes Act 1988,

(b)after Q has transferred securities under the arrangement, either P or Q becomes insolvent,

(c)it becomes apparent (whether before or after the insolvency occurs) that, as a result of the insolvency, securities will not be transferred to Q or Q's nominee in accordance with the arrangement.

(3)Section 87 does not apply as regards an agreement to transfer chargeable securities to P or P's nominee, or Q or Q's nominee, in accordance with the arrangement.

(4)Subsections (5) and (6) apply if—

(a)the party who does not become insolvent (“the solvent party”) or the solvent party's nominee acquires replacement securities, and

(b)the replacement securities are acquired before the end of the period of 30 days beginning with the day on which the insolvency occurs (“the insolvency date”).

(5)Where collateral is provided under the arrangement (or under arrangements of which that arrangement forms part), section 87 does not apply as regards any agreement to transfer to the solvent party or the solvent party's nominee—

(a)replacement securities acquired using the collateral (whether directly or indirectly), or

(b)where the solvent party uses the whole of the value of the collateral to acquire replacement securities, any further replacement securities.

(6)Where no collateral is provided as mentioned in subsection (5), section 87 does not apply as regards any agreement to transfer replacement securities to the solvent party or the solvent party's nominee.

(7)Subsections (5) and (6) may apply as regards more than one agreement (and where those subsections apply as regards more than one agreement, the agreements may be with different persons).

(8)But those subsections apply only as regards replacement securities up to the amount of securities which will not be transferred as a result of the insolvency.

(9)For the purposes of this section a person becomes insolvent—

(a)if a company voluntary arrangement takes effect under Part 1 of the Insolvency Act 1986,

(b)if an administration application (within the meaning of Schedule B1 to that Act) is made or a receiver or manager, or an administrative receiver, is appointed,

(c)on the commencement of a creditor's voluntary winding up (within the meaning of Part 4 of that Act) or a winding up by the court under Chapter 6 of that Part,

(d)if an individual voluntary arrangement takes effect under Part 8 of that Act,

(e)on the presentation of a bankruptcy petition (within the meaning of Part 9 of that Act),

(f)if a compromise or arrangement takes effect under Part 26 of the Companies Act 2006,

(g)if a bank insolvency order takes effect under Part 2 of the Banking Act 2009,

(h)if a bank administration order takes effect under Part 3 of that Act, or

(i)on the occurrence of any corresponding event which has effect under or as a result of the law of Scotland or Northern Ireland or a country or territory outside the United Kingdom.

(10)In this section—

  • collateral” means an amount of money or other property which is payable to, or made available for the benefit of, a party to an arrangement or that party's nominee for the purpose of securing the discharge of the requirement to transfer securities to that party or the nominee;

  • “replacement securities”, in the event of a party to an arrangement becoming insolvent, are chargeable securities of the same kind as the securities which will not be transferred to the other party or that party's nominee as a result of the insolvency.

Modifications etc. (not altering text)

C5The provisions of Sch. 37 cease to have effect in accordance with s. 83(3)

Back to top

Options/Help

Print Options

You have chosen to open The Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act as a PDF

The Whole Act you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open the Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open Schedules only

The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

Close

See additional information alongside the content

Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.

Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

Explanatory Notes

Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources
Close

Timeline of Changes

This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.

Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources