122 Marketable securities transferred etc for exempt property.U.K.
(1)Subsection (2) applies where—
(a)an instrument transferring marketable securities would not, apart from this section, be or fall to be treated as a transfer on sale for the purposes of stamp duty; but
(b)the transfer of the marketable securities is for consideration; and
(c)the consideration is or includes any qualifying property (“the other property”).
(2)For the purposes of Part I of Schedule 13 to the Finance Act 1999 (stamp duty on conveyance or transfer on sale) the instrument transferring the marketable securities shall be taken to be a transfer on sale of those securities.
(3)If the amount or value of the consideration for that transfer on sale would (apart from this subsection) exceed the market value of the marketable securities immediately before the execution of the instrument transferring them, the amount or value of the consideration shall be taken to be equal to that market value.
For this purpose the market value of property at any time is the price which that property might reasonably be expected to fetch on a sale at that time in the open market.
(4)Subsection (2) has effect even though—
(a)the transfer of the marketable securities is the whole or part of the consideration for a sale of the other property; or
(b)the transaction is by way of exchange.
(5)Subsection (2) does not affect any charge to stamp duty in respect of the same or any other instrument so far as it relates to the transfer of the other property.
(6)In this section “qualifying property” means any debt due, stock or securities, to the extent that the debt, stock or securities are not chargeable securities, within the meaning of Part IV of the M1Finance Act 1986 (stamp duty reserve tax).
(7)This section shall be construed as one with the M2Stamp Act 1891.
(8)This section applies to instruments executed on or after 28th March 2000.
(9)But this section does not apply to an instrument giving effect to a contract made on or before 21st March 2000, unless—
(a)the instrument is made in consequence of the exercise after that date of any option, right of pre-emption or similar right; or
(b)the instrument transfers the property in question to, or vests it in, a person other than the purchaser under the contract, because of an assignment (or, in Scotland, assignation) or further contract made after that date.
(10)This section shall be deemed to have come into force on 28th March 2000.