FINANCE ACT 1920 - SECT 42 Reduction of duty in the case of certain transfers of stocks and marketable securities.

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FINANCE ACT 1920 - SECT 42

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

42.(1) Where stock is transferred on sale to a [jobber] or his nominee [or to
a qualified dealer], 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 [50p]:

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 [jobber] [or qualified dealer] in the ordinary
course of his business as such [jobber] [or qualified dealer].

(2) Where a transfer has been stamped with the supplementary stamp under this
section the [jobber] to whom or to whose nominee the transfer was made [or, as
the case may be, the qualified dealer to whom 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 "jobber" means a member of The Stock Exchange who is
recognised by the Council thereof as carrying on the business of a jobber and
carries on that business in the United Kingdom;]

The expression "stock" includes marketable security [but, in the case of a
transfer to a qualified dealer, does not include

(a)stock issued by any body corporate or other body of persons formed or
established outside the United Kingdom, or

(b)stock which is listed in the Official List of The Stock Exchange;

The expression "qualified dealer" means a person who

(a)holds a principal's licence within the meaning of the Prevention of Fraud
(Investments) Act 1958 or the Prevention of Fraud (Investments) Act (Northern
Ireland) 1940, or

(b)is an exempted dealer within the meaning of either of those Acts, or

(c)is a member of a body which is a recognised association of dealers in
securities for the purposes of either of those Acts, or

(d)is a Stock Exchange broker, that is to say a member of The Stock Exchange
who is recognised by the Council thereof as carrying on the business of a
broker and carries on that business in the United Kingdom.]

S.43(1) spent; subs.(2) rep. by SLR 1927

S.58 rep. by SLR 1927; SLR 1959. S.59 rep. by 1923 c.14 s.39(4) sch.; 1958 c.6
(7 Eliz.2) s.17 sch. S.60 rep. by SLR 1927. S.61 rep. by SLR 1927; 1952 c.10
s.527 sch.25; SLR 1964. S.62 rep. by SLR 1927

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Northern Irish Legislation

FINANCE ACT 1920 - SECT 42