Transport Act 1982

6 Stamp duty on certain transactions

(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 Bus Company ; 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 subsections (2) and (3) below.

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

(a) of facilitating such an eventual disposal as is mentioned in section 2(1) of this Act; or

(b) of complying with a direction given by the Secretary of State under section 3(1) of this Act.

(3) A transaction satisfies the requirements of this subsection if it is entered into solely in connection with a transfer to be effected under section 2 of this Act, takes place on or before the transfer date and does not give rise to an excess of capital.

(4) For the purposes of subsection (3) above a transaction gives rise to an excess of capital if—

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

and in this subsection " issued capital" means issued share capital or loan capital.