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FINANCE ACT (NORTHERN IRELAND) 1954 - SECT 11

Relief from stamp duty in case of transfer of property between associated companies.

11.(1) Stamp duty shall not be chargeable under or by reference to the heading
"Conveyance or Transfer on sale" in the First Schedule to the Stamp Act, 1891,
on any instrument to which this section applies.

(2) This section applies to any instrument as respects which it is shown to
the satisfaction of the Ministry that

(a)the effect thereof is to convey or transfer, or demise for any term
exceeding one hundred years, a beneficial interest in property from one [body
corporate] (in this section referred to as "the transferor") to another [body
corporate] associated therewith (in this section referred to as "the
transferee"); and

Para.(b) rep. by 1968 c.17 (NI) s.23 sch.6 Pt.II

(c)the instrument was not executed in pursuance of or in connection with an
arrangement whereunder

(i)the consideraton [or any part of the consideration] for the conveyance,
transfer or lease was to be provided [or received] directly or indirectly by a
person other than a [body corporate] which at the time of the execution of the
instrument was associated with either the transferor or the transferee; or

(ii)the beneficial interest in the property was previously conveyed,
transferred or demised directly or indirectly by such a person as aforesaid [;
or

<(iii)the transferor and the transferee were to cease to be associated by reason of a change in the percentage of the issued share capital of the transferee in the beneficial ownership of the transferor or a third body corporate;


(c)and, without prejudice to the generality of sub-paragraph (i), an
arrangement shall be treated as within that sub-paragraph if it is one
whereunder the transferor or the transferee, or a body corporate associated
with either, was to be enabled to provide any of the consideration, or was to
part with any of it, by or in consequence of the carrying out of a transaction
or transactions involving, or any of them involving, a payment or other
disposition by a person other than a body corporate so associated].

(3) For the purpose of this section, a [body corporate] shall be deemed to be
associated with another [body corporate], if, but not unless, ... either

(i)one of them is the beneficial owner of not less than ninety per cent. of
the issued share capital of the other; or

(ii)not less than ninety per cent. of the issued share capital of each of them
is in the beneficial ownership of a third company ....

[(3A) The ownership referred to in paragraphs (i) and (ii) of sub-section (3)
is ownership either directly or through another body corporate or other bodies
corporate, or partly directly and partly through another body corporate or
other bodies corporate, and Part I of Schedule 4 to the Finance Act 1938
(determination of amount of capital held through other bodies corporate) shall
apply for the purposes of this section with the substitution of references to
issued share capital for references to ordinary share capital.]

Subs.(3B) rep. by 1968 c.17 (NI) s.23 sch.6 Pt.II

(4) An instrument to which this section applies shall not be deemed to be duly
stamped unless either

(a)it is stamped with the stamp duty to which it would but for this section be
liable; or

(b)it has in accordance with the provisions of section twelve of the
Stamp Act, 1891, been stamped with a particular stamp denoting either that it
is not chargeable with any duty or that it is duly stamped.

Subs.(5) repeals s.2 of 1954 c.3 (NI)

S.16 rep. by SLR 1973

© 1954 Crown Copyright

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