Part IV

Stamp duty and Stamp duty reserve tax

Stamp duty and Stamp duty reserve tax

Loan capital where return bears inverse relationship to results.
133
1
In section 79 of the
Finance Act 1986 (loan capital), after subsection (7) insert—
7A
Subsection (4) above shall not be prevented from applying to an instrument by virtue of subsection (6)(b) above by reason only that the loan capital concerned carries a right to interest which—
a
reduces in the event of the results of a business or part of a business improving, or the value of any property increasing, or
b
increases in the event of the results of a business or part of a business deteriorating, or the value of any property diminishing.
.
2
For the purposes of stamp duty, subsection (1) above has effect where the instrument is executed on or after 21st March 2000.
3
For the purposes of stamp duty reserve tax, subsection (1) above has effect—
a
in relation to the charge to tax under section 87 of the Finance Act 1986, where—
i
the agreement to transfer is conditional and the condition is satisfied on or after 21st March 2000, or
ii
the agreement is not conditional and is made on or after that date;
b
in relation to the charge to tax under section 93(1) of that Act, where securities are transferred, issued or appropriated on or after 21st March 2000 (whenever the arrangement was made);
c
in relation to the charge to tax under section 96(1) of that Act, where securities are transferred or issued on or after 21st March 2000 (whenever the arrangement was made);
d
in relation to the charge to tax under section 93(10) of that Act, where securities are issued or transferred on sale, under terms there mentioned, on or after 21st March 2000;
e
in relation to the charge to tax under section 96(8) of that Act, where securities are issued or transferred on sale, under terms there mentioned, on or after 21st March 2000.
S. 133 repealed (with effect as mentioned in Sch. 40 Pt. III Note 3 of the amending Act) by 2000 c. 17, s. 156, Sch. 40 Pt. III
1986 c. 41.