Transport Act 1981

4 (1) Stamp duty shall not be chargeable under section 47 of the [1973 c. 51.] Finance Act 1973 in respect of—

(a) the formation of a subsidiary of the Railways Board ; or

(b) any increase in the capital of such a subsidiary;

if the transaction concerned is certified by the Treasury as satisfying the requirements of sub-paragraphs (2) and (3) below.

(2) A transaction satisfies the requirements of this sub-paragraph if it is effected solely for the purpose—

(a) of facilitating the eventual disposal under section 1 of this Act of any part of the Board's undertaking or of any property, rights or liabilities; or

(b) of complying with a direction given by the Secretary of State under section 3 of this Act.

(3) A transaction satisfies the requirements of this sub-paragraph if—

(a) it is entered into solely in connection with a transfer to be effected by section 7(6) of the [1968 c. 73.] Transport Act 1968, takes place on or before the transfer date and does not give rise to an excess of capital; or

(b) it consists of the conversion of loan stock into share capital or the issue of shares in satisfaction of a debt owed by the subsidiary to the Railways Board or to another of their subsidiaries.

(4) In this paragraph " issued capital" means issued share capital or loan capital; and for the purposes of this paragraph a transaction gives rise to an excess of capital if—

(a) in a case falling within sub-paragraph (1)(a) above the total issued capital of the subsidiary exceeds, on the transfer date, the total value of the assets less liabilities transferred ; or

(b) in a case falling within sub-paragraph (1)(b) above the aggregate amount of the increase of issued capital of the subsidiary exceeds, on that date, that total value.