Finance Act 1974

PART III Saving for Certain Transfers of Stock or Marketable Securities

20 (1) This Part of this Schedule shall have effect as from 1st August 1974 (but without prejudice to the operation of paragraphs 2 to 4 of this Schedule as regards the period before that date).

(2) For the purposes of this Part of this Schedule—

(a) " authorised depositary" means a person who is an authorised depositary for the purposes of the [1947 c. 14.] Exchange Control Act 1947 ; and

(b) an authorised depositary consisting of a branch of a business shall be treated in all respects as if the branch were a body corporate.

21 (1) In the case of a transfer to which this paragraph applies, the enactments relating to stamp duty shall have effect as if paragraphs 2 to 4 of this Schedule and such of the repeals contained in Parts III and IV of Schedule 14 to this Act as are consequential on any of those paragraphs had not been enacted.

(2) This paragraph applies to any transfer of stock or marketable securities as regards which the following conditions are satisfied, that is to say—

(a) the transferee—

(i) is resident outside the scheduled territories and is not acquiring the stock or securities as a nominee ; or

(ii) wherever resident, is acquiring the stock or securities as a nominee for a person who is resident outside the scheduled terrorities ;

(b) the transfer is for full consideration in money or money's worth; and

(c) the instrument of transfer or bearer instrument (as the case may be) in respect of which duty is chargeable in connection with the transfer bears or has attached to or otherwise associated with it, in such manner as the Commissioners may direct, a certificate by an authorised depositary, in such form as the Commissioners may direct, stating or indicating that the conditions mentioned in sub-paragraphs (a) and (b) above are satisfied as regards the transfer.

(3) In this paragraph—

• " resident outside the scheduled territories " means, subject to sub-paragraph (4) below, so resident for the purposes of the Exchange Control Act 1947 ; and

• " the scheduled territories " means the territories specified in Schedule 1 to the Exchange Control Act 1947 as for the time being in force.

(4) A person who, when acting in his capacity as a trustee of a particular trust, is treated by the Bank of England as resident outside the scheduled territories for the purposes of the [1947 c. 14.] Exchange Control Act 1947 shall, when acting in that capacity, be treated likewise for the purposes of this paragraph.

(5) Section 20(5) of the Exchange Control Act 1947 (meaning of nominee and person for whom another is a nominee) shall apply for the purposes of this paragraph as it applies for the purposes of Part m of that Act.

(6) In relation to Northern Ireland sub-paragraph (1) above shall have effect with the substitution for the references to paragraphs 2 to 4 of this Schedule of references to paragraphs 12 to 14 thereof.

22 (1) An authorised depositary who for the purposes of the preceding paragraph—

(a) gives with respect to any transfer of stock or marketable securities a certificate containing any statement which is false in a material particular ; or

(b) gives with respect to any such transfer a certificate indicating that the conditions mentioned in sub-paragraph (2)(a) and (b) of that paragraph are satisfied when either of those conditions is not satisfied,

shall be liable to a fine not exceeding the aggregate of £50 and an amount equal to twice the amount by which the stamp duty which ought to be charged in respect of the instrument in respect of which duty is chargeable in connection with the transfer exceeds the stamp duty paid in respect of that instrument.

(2) In any proceedings for the recovery of a fine under this paragraph it shall be a defence for the defendant to prove that at the time when he gave the certificate in question he had made all such enquiries as he ought reasonably to have made with respect to the matters covered by the certificate and neither knew nor had reason to believe that any of those matters was other than as stated in or indicated by the certificate.

23 (1) This paragraph applies to the following documents and records that is to say all books, accounts and other documents and records whatsoever which—

(a) relate to any transfer of stock or marketable securities with respect to which a certificate has at any time been given by an authorised depositary for the purposes of paragraph 21 of this Schedule ; and

(b) are, or have at any time been, documents or records of that depositary.

(2) Any person who has under his control any documents or records to which this paragraph applies—

(a) shall, whenever required to do so by an authorised officer of the Commissioners, produce to that officer for inspection all documents and records to which this paragraph applies which that person has under his control, or such of those documents and records as the officer may specify ; and

(b) if he has the documents or records in question under his control in connection with any business or profession carried on by him, shall, if so required by the officer, admit the officer to any premises at which that business or profession is carried on and produce them there to the officer for inspection :

Provided that nothing in this sub-paragraph shall be taken to require any person who has acted as counsel or solicitor for any person to disclose any privileged communication made to him in that capacity.

(3) Any person who fails to comply with any requirement imposed under the preceding sub-paragraph by an authorised officer of the Commissioners shall be liable to a fine of £50.