Search Legislation

Finance Act 1997

Status:

This is the original version (as it was originally enacted).

105Inland bearer instruments

(1)Paragraph (b) of section 90(3) of the Finance Act 1986 (which provides that section 87 shall not apply as regards an agreement to transfer securities constituted by or transferable by means of an inland bearer instrument which does not fall within exemption 3 in the heading “Bearer Instrument” in Schedule 1 to the [1891 c. 39.] Stamp Act 1891) shall cease to have effect.

(2)After section 90(3) of that Act there shall be inserted—

(3A)Section 87 above shall not apply as regards an agreement to transfer chargeable securities constituted by or transferable by means of an inland bearer instrument within the meaning of the heading “Bearer Instrument” in Schedule 1 to the Stamp Act 1891 unless subsection (3B), (3C) or (3E) below applies to the instrument.

(3B)This subsection applies to any instrument which falls within exemption 3 in the heading “Bearer Instrument” in Schedule 1 to the Stamp Act 1891 (renounceable letter of allotment etc. where rights are renounceable not later than six months after issue).

(3C)This subsection applies to an instrument if—

(a)the instrument was issued by a body corporate incorporated in the United Kingdom;

(b)stamp duty under the heading “Bearer Instrument” in Schedule 1 to the [1891 c. 39.] Stamp Act 1891 was not chargeable on the issue of the instrument by virtue only of—

(i)section 30 of the [1967 c. 54.] Finance Act 1967 (exemption for bearer instruments relating to stock in foreign currencies); or

(ii)section 7 of the [1967 c. 20 (N.I.).] Finance Act (Northern Ireland) 1967 (which makes similar provision for Northern Ireland); and

(c)the instrument is not exempt.

(3D)An instrument is exempt for the purposes of subsection (3C) above if—

(a)the chargeable securities in question are, or a depositary receipt for them is, listed on a recognised stock exchange; and

(b)the agreement to transfer those securities is not made in contemplation of, or as part of an arrangement for, a takeover of the body corporate which issued the instrument.

(3E)This subsection applies to an instrument if—

(a)the instrument was issued by a body corporate incorporated in the United Kingdom;

(b)stamp duty under the heading “Bearer Instrument” in Schedule 1 to the Stamp Act 1891 was not chargeable on the issue of the instrument—

(i)by virtue only of subsection (2) of section 79 above (exemption for bearer instruments relating to loan capital); or

(ii)by virtue only of that subsection and one or other of the provisions mentioned in subsection (3C)(b)(i) and (ii) above;

(c)by virtue of section 79(5) (convertible loan capital) or 79(6) (loan capital carrying special rights) above, stamp duty would be chargeable on an instrument transferring the loan capital to which the instrument relates; and

(d)the instrument is not exempt.

(3F)An instrument is exempt for the purposes of subsection (3E) above if—

(a)the chargeable securities in question are, or a depositary receipt for them is, listed on a recognised stock exchange;

(b)the agreement to transfer those securities is not made in contemplation of, or as part of an arrangement for, a takeover of the body corporate which issued the instrument; and

(c)those securities do not carry any right of the kind described in section 79(5) above (right of conversion into, or acquisition of, shares or other securities) by the exercise of which securities which are not listed on a recognised stock exchange may be obtained.

(3)At the end of that section there shall be added—

(8)For the purposes of subsections (3D) and (3F) above—

(a)references to a depositary receipt for chargeable securities shall be construed in accordance with section 94(1) below;

(b)“recognised stock exchange” has same meaning as it has in the Tax Acts by virtue of section 841 of the [1988 c. 1.] Income and Corporation Taxes Act 1988;

(c)there is a takeover of a body corporate if a person, on his own or together with connected persons, loses or acquires control of it.

(9)For the purposes of subsection (8) above—

(a)any question whether a person is connected with another shall be determined in accordance with section 286 of the [1992 c. 12.] Taxation of Chargeable Gains Act 1992;

(b)“control” shall be construed in accordance with section 416 of the Income and Corporation Taxes Act 1988.

(4)This section applies to an agreement if the inland bearer instrument in question was issued on or after 26th November 1996 and—

(a)in the case of an agreement which is not conditional, the agreement is made on or after 26th November 1996; or

(b)in the case of a conditional agreement, the condition is satisfied on or after 26th November 1996.

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

Opening Options

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

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

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