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Finance Act 1920

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This is the original version (as it was originally enacted).

Part IIIStamps

34Stamp duty on receipts

The stamp duty chargeable under the heading " Receipt " given for, or upon the payment of, money amounting to 21. " or upwards " in the First Schedule to the principal Act, shall be twopence instead of one penny.

35Stamp duty on scrip certificates, &c

The stamp duty chargeable under the heading " Scrip Certificate, Scrip, or other document " in the ,First Schedule to the principal Act shall be twopence instead of one penny.

36Stamp duty on transfers of stocks and marketable securities

(1)The proviso to section seventy-three of the Finance (1909-10) Act, 1910 (which exempts from the operation of that section certain conveyances and transfers), shall not have effect as regards any conveyances or transfers whatsoever of any stocks or marketable securities, and accordingly the stamp duties chargeable on any such conveyances or transfers under the heading " Conveyance or Transfer on sale of any property " in the First Schedule to the principal Act shall be double those specified in that schedule.

(2)The stamp duties chargeable under the heading " Conveyance or Transfer whether on sale or otherwise " in the First Schedule to the principal Act shall, in the case of conveyances or transfers on sale or conveyances or transfers operating as voluntary dispositions inter vivos, be double those specified in that schedule.

37Stamp duty on transfer of certain colonial and foreign stocks

(1)The stamp duty chargeable by way of composition for stamp duty under section one hundred and fourteen of the ' principal Act, as extended by section thirty-nine of the Finance Act, 1894, and section five of the Finance Act, 1898, shall be double the amount charged by the said section one hundred and fourteen.

(2)The stamp duty chargeable under section one hundred and fifteen of the principal Act by way of composition for stamp duty shall, in the case of accounts required to be delivered on or within seven days before the first day of August nineteen hundred and twenty, be eleven pence, and in the case of all accounts delivered subsequently be one shilling, for every hundred pounds and any fraction of one hundred pounds over any multiple of one hundred pounds.

(3)Any agreement entered into before the passing of this Act between the Commissioners of Inland Revenue and any persons under any Act, other than the principal Act, for the payment to the Commissioners of any sums by way of composition for any stamp duty of a class in respect of which a composition may be made under section one hundred and fifteen of the principal Act shall cease to have effect as from the first day of September nineteen hundred and twenty, without prejudice to the power of the Commissioners and those persons to make any fresh agreement.

38Stamp duty on marketable securities transferable by delivery, &c

The stamp duties chargeable on any marketable securities transferable by delivery under paragraphs (1) (a) and (c), 3, and 4 of the heading " Marketable Security " in the First Schedule to the principal Act, and the stamp duty chargeable on marketable securities transferable by delivery, share warrants, stock certificates, and other instruments to bearer under subsection (1) of section four and section five of the Finance Act, 1899, on stock certificates to bearer under section eight of the Colonial Stock Act, 1877, and on certain marketable securities under section thirteen of the Finance Act, 1911, shall respectively be double the duties which would have been chargeable on these instruments immediately before the passing of this Act.

39Stamp duty on statements as to capital of companies, &c

(1)On and after the twentieth day of April, nineteen hundred and twenty, one pound shall be substituted for five shillings—

(a)as the ad valorem stamp duty imposed by sections one hundred and twelve and one hundred and thirteen of the principal Act, as extended by section twelve of the Finance Act, 1896, on statements as regards the capital of the companies referred to in those sections; and

(b)as the ad valorem stamp duty payable under or by virtue of any private Act on any statements as regards the capital of any company; and

(c)as the ad valorem stamp duty imposed by section eleven of the Limited Partnerships Act, 1907, on statements with regard to the amounts contributed by limited partners to limited partnerships.

(2)In the case of a company registered or otherwise incorporated, or an increase of capital authorised, on or after the twentieth day of April, nineteen hundred and twenty, and before the passing of this Act, a supplementary statement of the nominal share capital of the company or of the amount of the increase so authorised, as the case may be, shall, within fifteen days after the commencement of this Act, be delivered to the Commissioners of Inland Revenue duly stamped with the additional duty of fifteen shillings for every one hundred pounds and any fraction of one hundred pounds over any multiple of one hundred pounds of the capital, or increase of capital, as the case may be. If any supplementary statement required to be delivered under this subsection is not duly delivered in accordance with the requirements thereof, the duty chargeable on the statement, together with interest thereon at the rate of five per centum per annum from the date of the commencement of this Act, shall be recoverable from the company as a debt due to His Majesty.

40Stamp duty on accident and indemnity policies

(1)The stamp duty chargeable under the heading " Policy op Insurance against Accident and Policy of insurance for any payment agreed to be made during the sickness of any person or his incapacity from personal injury or. by way of indemnity against loss or damage of or to any property " in the First Schedule to the principal Act shall be sixpence instead of one penny.

(2)The word " sixpence " shall be substituted for the words

one pennyin sections ninety-eight, ninety-nine, and one hundred and sixteen of the principal Act.

41Stamp duty on policies of sea insurance

For the stamp duties chargeable under paragraph (2) of the heading " Policy op Sea Insurance " in the First Schedule to the principal Act there shall be substituted the duties at the following rates, that is to say :—

(a) For or upon any voyage—s.d.

where the sum insured—

does not exceed 250l.

03
exceeds 250l. but does not exceed 500l.06
exceeds 500l. but does not exceed 750l.09
exceeds 750l. but does not exceed 1,000l.10
exceeds 1,000l., for every 500l. and any fractional part of 500l.06

(6)For time—

where the insurance is made for any time not exceeding six months, an amount equal to three times the amount which would be payable if the insurance were made upon a voyage;

where the insurance is made for any time exceeding six months and not exceeding twelve months, six times the amount which would be payable if the insurance were made upon a voyage.

42Reduction of duty in the case of certain transfers of stocks and marketable securities

(1)Where stock is transferred on sale to a dealer or his nominee, and the transfer bears, in addition to the stamp denoting the duty, an impressed stamp (hereinafter referred to as " the supplementary stamp") denoting that it has been stamped under .the provisions of this section, the maximum duty chargeable on the transfer shall, subject to the provisions of this section, be ten shillings :

Provided that a transfer shall not be stamped with the supplementary stamp unless it is proved to the satisfaction of the Commissioners of Inland Revenue that the transaction to which effect is to be given by the transfer was a transaction carried out by the dealer in the ordinary course of his business as such dealer.

(2)Where a transfer has been stamped with the supplementary stamp under this section the dealer to whom or to whose nominee the transfer was made shall—

(a)immediately on the expiration of two months from the date of the transfer, furnish to the Commissioners of Inland Revenue a certificate in such form as the Commissioners may prescribe, showing what part, if any, of the stock comprised in the transfer has been transferred by him to a bona fide purchaser, and what part, if any, of the stock has not been so transferred, and shall produce such further evidence, by way of statutory declaration or otherwise, in relation to the matters aforesaid as the Commissioners may require; and

(b)if any part of the stock has not, before the expiration of the said two months, been so transferred as aforesaid, pay to the Commissioners within fourteen days after the expiration of that period a sum equal to the difference between the amount of the duty actually charged on the transfer and the amount of the ad valorem duty which would have been chargeable thereon if the stock comprised therein had been the stock which was not so transferred as aforesaid. If any person fails to pay duly any sum which he is liable to pay under the provisions of this subsection, that sum, together with interest thereon at the rate of ten per cent. per annum from the date of the transfer, shall be recoverable from him as a debt due to His Majesty, and if any person fails to comply with any of the other provisions of this subsection a sum equal to the difference between the amount of the stamp duty actually charged on the transfer and the amount which would but for this section have been chargeable thereon, together with interest on that sum at the rate of ten per cent. per annum from the date of the transfer, shall be recoverable from him as a debt due to His Majesty.

(3)For the purposes of this section—

The expression " dealer" means a person who, being a member of a stock exchange in the United Kingdom, does not deal by way of business otherwise than with or through other members of that stock exchange or otherwise than as a principal, and does not carry on the business of a broker or agent;

The expression " stock " includes marketable security.

43Interpretation and commencement

(1)In this Part of this Act the expression "principal Act " means the Stamp Act, 1891, and references to the principal Act or to any provision of the principal Act shall include references to that Act or to that provision as amended and extended by any subsequent enactment.

(2)This Part of this Act shall, save as therein other-wise expressly provided, come into operation on the first day of September nineteen hundred and twenty.

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