Finance Act 1999

(12) (1) Subject to such regulations as the Commissioners may think fit to make, the Commissioners may be required by any person to adjudicate with reference to any executed instrument upon the questions— (a) whether it is chargeable with duty; (b) with what amount of duty it is chargeable; (c) whether any penalty is payable under section 15B (penalty on late stamping); (d) what penalty is in their opinion correct and appropriate. (2) The Commissioners may require to be furnished with an abstract of the instrument and with such evidence as they may require as to the facts and circumstances relevant to those questions. (3) The Commissioners shall give notice of their decision upon those questions to the person by whom the adjudication was required. (4) If the Commissioners decide that the instrument is not chargeable with any duty, it may be stamped with a particular stamp denoting that it has been the subject of adjudication and is not chargeable with any duty. (5) If the Commissioners decide that the instrument is chargeable with duty and assess the amount of duty chargeable, the instrument when stamped in accordance with their decision may be stamped with a particular stamp denoting that it has been the subject of adjudication and is duly stamped. (6) Every instrument stamped in accordance with subsection (4) or (5) shall be admissible in evidence and available for all purposes notwithstanding any objection relating to duty. (12A) (1) An instrument which has been the subject of adjudication by the Commissioners under section 12 shall not, if it is unstamped or insufficiently stamped, be stamped otherwise than in accordance with the Commissioners’ decision on the adjudication. (2) If without reasonable excuse any such instrument is not duly stamped within 30 days after the date on which the Commissioners gave notice of their decision, or such longer period as the Commissioners may allow, the person by whom the adjudication was required is liable to a penalty not exceeding £300. (3) A statutory declaration made for the purposes of section 12 shall not be used against the person making it in any proceedings whatever, except in an inquiry as to the duty with which the instrument to which it relates is chargeable or as to the penalty payable on stamping that instrument. (4) Every person by whom any such declaration is made shall, on payment of the duty chargeable upon the instrument to which it relates, and any interest or penalty payable on stamping, be relieved from any penalty to which he may be liable by reason of the omission to state truly in the instrument any fact or circumstance required by this Act to be so stated.

.

2

For section 13 of the Stamp Act 1891 (appeal against assessment of duty) substitute—

(13) (1) A person who is dissatisfied with a decision of the Commissioners on an adjudication under section 12 may appeal against it. (2) The appeal must be brought within 30 days of notice of the decision on the adjudication being given under section 12(3). (3) An appeal may only be brought on payment of— (a) duty and any penalty in conformity with the Commissioners’ decision, and (b) any interest that in conformity with that decision would be payable on stamping the instrument on the day on which the appeal is brought. (4) An appeal which relates only to the penalty payable on late stamping may be brought to the Special Commissioners in accordance with section 13A below. (5) Any other appeal may be brought in accordance with section 13B below to the High Court of the part of the United Kingdom in which the case has arisen. (13A) (1) The following provisions apply in relation to an appeal under section 13(4). (2) Notice of appeal must be given in writing to the Commissioners, specifying the grounds of appeal. (3) On the hearing of the appeal the Special Commissioners may allow the appellant to put forward a ground not specified in the notice of appeal, and take it into consideration, if satisfied that the omission was not wilful or unreasonable. (4) The powers conferred by sections 46A(1)(c) and (2) to (4) and sections 56B to 56D of the Taxes Management Act 1970 (power of Lord Chancellor to make regulations as to jurisdiction, practice and procedure in relation to appeals) are exercisable in relation to appeals to which this section applies. (5) On the appeal the Special Commissioners may— (a) if it appears to them that no penalty should be paid, set the decision aside; (b) if the amount determined appears to them to be appropriate, confirm the decision; (c) if the amount determined appears to them to be excessive, reduce it to such other amount (including nil) as they consider appropriate; (d) if the amount determined appears to them to be insufficient, increase it to such amount as they consider appropriate. (6) Section 56A of the Taxes Management Act 1970 (general right of appeal on point of law) applies in relation to a decision of the Special Commissioners under this section. (7) Without prejudice to that right of appeal, an appeal lies against the amount of a penalty determined by the Special Commissioners under this section, at the instance of the person liable to the penalty, to the High Court. (8) On an appeal under subsection (7) the court has the same powers as are conferred on the Special Commissioners by subsection (5) above. (13B) (1) The following provisions apply in relation to an appeal under section 13(5). (2) The appellant may for the purposes of the appeal require the Commissioners to state and sign a case setting out the questions upon which they were required to adjudicate and their decision upon them. (3) The Commissioners shall thereupon state and sign a case and deliver the same to the person by whom it is required, and the case may, within 30 days thereafter, be set down by him for hearing. (4) On the appeal the court shall determine the questions submitted and may give such directions as it thinks fit with respect to the repayment of any duty or penalty paid in conformity with the Commissioners’ decision.

.

3

• (1) Section 14 of the Stamp Act 1891 (terms upon which instruments not duly stamped may be received in evidence) is amended as follows.

• (2) In subsection (1)—

• (a) for the words from “if the instrument” to “it may” substitute “ the instrument may ”, and

• (b) for “the penalty” substitute “ any interest or penalty ”.

• (3) In subsection (2) for “the duty and penalty” (three times) substitute “ the duty and any interest or penalty ”.

• (4) In subsection (3)—

• (a) for “any duty or penalty” substitute “ any duty, interest or penalty ”, and

• (b) for “the duty and penalty” substitute “ the duty, interest and penalty ”.

• (5) In subsection (4) for “first executed” substitute “ executed ”.

Finance Act 1994 (c. 9)

4

For section 240 of the Finance Act 1994 (time for presenting agreements for leases) substitute—

(240) (1) This section applies if there are presented for stamping at the same time in pursuance of Schedule 13 to the Finance Act 1999— (a) an agreement for a lease, and (b) the lease which gives effect to the agreement, and the duty (if any) chargeable on the agreement is paid. (2) Section 15A of that Act (interest payable on late stamping) applies in relation to the agreement as if the reference to the day on which the instrument was executed were to the day on which the lease was executed. (3) For the purposes of section 15B of that Act (penalty on late stamping) the agreement is treated— (a) as if it had been executed at the same time and place as the lease, and (b) where the lease was executed outside the United Kingdom, as if it had been first received in the United Kingdom at the same time as the lease. (4) For the purposes of this section a lease gives effect to an agreement if the lease is granted subsequent to the agreement and either is in conformity with the agreement or relates to substantially the same property and term as the agreement. (5) References in this section to an agreement for a lease include missives of let in Scotland. (240A) (1) A lease shall not be treated as duly stamped unless— (a) it contains a certificate that there is no agreement to which it gives effect, or (b) it is stamped with a stamp denoting— (i) that there is an agreement to which it gives effect which is not chargeable with duty, or (ii) the duty paid on the agreement to which it gives effect. (2) For the purposes of this section a lease gives effect to an agreement if the lease is granted subsequent to the agreement and either is in conformity with the agreement or relates to substantially the same property and term as the agreement. (3) References in this section to a lease do not include, and references in this section to an agreement do include, missives of let in Scotland.

SCHEDULE 13

Part I — Conveyance or transfer on sale

Charge

1

• (1) Stamp duty is chargeable on a conveyance or transfer on sale.

• (2) For this purpose “transfer on sale” includes every instrument, and every decree or order of a court or commissioners, by which any property, or any estate or interest in property, is, on being sold, transferred to or vested in the purchaser or another person on behalf of or at the direction of the purchaser.

• (3) Sub-paragraph (1) is subject to sub-paragraphs (3A) to (6).

• (3A) Stamp duty is not chargeable under sub-paragraph (1) on a transfer of stock or marketable securities where—

• (a) the amount or value of the consideration for the sale is £1,000 or under, and

• (b) the instrument is certified at £1,000.

• (4) Where a company acquires any shares in itself by virtue of section 690 of the Companies Act 2006 (power of company to purchase own shares) or otherwise, sub-paragraph (1) does not apply to any instrument by which the shares are transferred to the company.

• (5) Where a company holds any shares in itself by virtue of section 724 of that Act (treasury shares) or otherwise, sub-paragraph (1) does not apply to any instrument to which sub-paragraph (6) applies.

• (6) This sub-paragraph applies to any instrument for the sale or transfer of any of the shares by the company, other than an instrument which, in the absence of sub-paragraph (5), would be an instrument in relation to which—

• (a) section 67(2) of the Finance Act 1986 (transfer to person whose business is issuing depositary receipts etc), or

• (b) section 70(2) of that Act (transfer to person who provides clearance services etc),

applied.

Rates of duty

2

Duty under this Part is chargeable by reference to the amount or value of the consideration for the sale.

3

In the case of a conveyance or transfer of stock or marketable securities the rate is 0.5%.

4

In the case of any other conveyance or transfer on sale the rates of duty are as follows—

5

The above provisions are subject to any enactment setting a different rate or setting an upper limit on the amount of duty chargeable.

Meaning of instrument being certified at an amount

6

• (1) The references in paragraphs 1(3A) and 4 above to an instrument being certified at a particular amount mean that it contains a statement that the transaction effected by the instrument does not form part of a larger transaction or series of transactions in respect of which the amount or value, or aggregate amount or value, of the consideration exceeds that amount.

• (2) For this purpose a sale or contract or agreement for the sale of goods, wares or merchandise shall be disregarded—

• (a) in the case of an instrument which is not an actual conveyance or transfer of the goods, wares or merchandise (with or without other property);

• (b) in the case of an instrument treated as such a conveyance or transfer only by virtue of paragraph 7 (contracts or agreements chargeable as conveyances on sale);

and any statement as mentioned in sub-paragraph (1) shall be construed as leaving out of account any matter which is to be so disregarded.

Contracts or agreements chargeable as conveyances on sale

7

• (1) A contract or agreement for the sale of—

• (a) any equitable estate or interest in property, or

• (b) any estate or interest in property except—

• (i) land,

• (ii) goods, wares or merchandise,

• (iii) stock or marketable securities,

• (iv) any ship or vessel, or a part interest, share or property of or in any ship or vessel, or

• (v) property of any description situated outside the United Kingdom,

is chargeable with the samead valorem duty, to be paid by the purchaser, as if it were an actual conveyance on sale of the estate, interest or property contracted or agreed to be sold.

• (2) Where the purchaser has paidad valorem duty and before having obtained a conveyance or transfer of the property enters into a contract or agreement for the sale of the same, the contract or agreement is chargeable, if the consideration for that sale is in excess of the consideration for the original sale, with thead valorem duty payable in respect of the excess consideration but is not otherwise chargeable.

• (3) Where duty has been paid in conformity with sub-paragraphs (1) and (2), the conveyance or transfer to the purchaser or sub-purchaser, or any other person on his behalf or by his direction, is not chargeable with any duty.

• (4) In that case, upon application and upon production of the contract or agreement (or contracts or agreements) duly stamped, the Commissioners shall either—

• (a) denote the payment of thead valorem duty upon the conveyance or transfer, or

• (b) transfer thead valorem duty to the conveyance or transfer.

8

• (1) Where a contract or agreement would apart from paragraph 7 not be chargeable with any duty and a conveyance or transfer made in conformity with the contract or agreement is presented to the Commissioners for stamping with the ad valorem duty chargeable on it—

• (a) within the period of six months after the execution of the contract or agreement, or

• (b) within such longer period as the Commissioners may think reasonable in the circumstances of the case,

the conveyance or transfer shall be stamped accordingly, and both it and the contract or agreement shall be deemed to be duly stamped.

• (2) Nothing in this paragraph affects the provisions as to the stamping of a conveyance or transfer after execution.

9

Thead valorem duty paid upon a contract or agreement by virtue of paragraph 7 shall be repaid by the Commissioners if the contract or agreement is afterwards rescinded or annulled or is for any other reason not substantially performed or carried into effect so as to operate as or be followed by a conveyance or transfer.

Part II — Lease

Charge

10

Stamp duty is chargeable on a lease.

Rates of duty

11

In the case of a lease for a definite term less than a year the duty is as follows—

12

• (1) In the case of a lease of land for any other definite term, or for an indefinite term, the duty is determined as follows.

• (2) If the consideration or part of the consideration moving to the lessor or to any other person consists of any money, stock, security or other property, the duty in respect of that consideration is the same as that on a conveyance on a sale for the same consideration.

But if—

• (a) part of the consideration is rent, and

• (b) that rent exceeds £600 a year,

the duty is calculated as if paragraph 1 of the Table in paragraph 4 of this Schedule were omitted.

• (3) If the consideration or part of the consideration is rent, the duty in respect of that consideration is determined by reference to the rate or average rate of the rent (whether reserved as a yearly rent or not), as follows.

1.	Term not more than 7 years or indefinite—(a) if the rent is £5000 or less(b) if the rent is more than £5000	Nil1%
2.	Term more than 7 years but not more than 35 years	2%
3.	Term more than 35 years but not more than 100 years	12%
4.	Term more than 100 years	24%

13

Stamp duty of £5 is chargeable on a lease not within paragraph 11 or 12 above.

Agreement for a lease charged as a lease

14

• (1) An agreement for a lease is chargeable with the same duty as if it were an actual lease made for the term and consideration mentioned in the agreement.

• (2) Where duty has been duly paid on an agreement for a lease and subsequent to that agreement a lease is granted which either—

• (a) is in conformity with the agreement, or

• (b) relates to substantially the same property and term as the agreement,

the duty which would otherwise be charged on the lease is reduced by the amount of the duty paid on the agreement.

• (3) Sub-paragraph (1) does not apply to missives of let in Scotland that constitute an actual lease.

Subject to that, references in this paragraph to an agreement for a lease include missives of let in Scotland.

Lease for fixed term and then until determined

15

• (1) For the purposes of this Part a lease granted for a fixed term and thereafter until determined is treated as a lease for a definite term equal to the fixed term together with such further period as must elapse before the earliest date at which the lease can be determined.

• (2) Paragraph 14 (agreement for a lease charged as a lease) shall be construed accordingly.

Part III — Other instruments

...

16

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

...

17

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Dispositions in Scotland

18

• (1) The following are chargeable with duty as a conveyance on sale—

• (a) a disposition of heritable property in Scotland to singular successors or purchasers;

• (b) a disposition of heritable property in Scotland to a purchaser containing a clause declaring all or any part of the purchase money a real burden upon, or affecting, the heritable property thereby disponed, or any part of it;

• (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Duplicate or counterpart

19

• (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (2) The duplicate or counterpart of an instrument chargeable with duty is not duly stamped unless—

• (a) it is stamped as an original instrument, or

• (b) it appears by some stamp ... on it that the full and proper duty has been paid on the original instrument of which it is the duplicate or counterpart.

• (3) Sub-paragraph (2) does not apply to the counterpart of an instrument chargeable as a lease, if that counterpart is not executed by or on behalf of any lessor or grantor.

Instrument increasing rent

20

• (1) An instrument (not itself a lease)—

• (a) by which it is agreed that the rent reserved by a lease should be increased, or

• (b) which confirms or records any such agreement made otherwise than in writing,

is chargeable with the same duty as if it were a lease in consideration of the additional rent made payable by it.

• (2) Sub-paragraph (1) does not apply to an instrument giving effect to provision in the lease for periodic review of the rent reserved by it.

Partition or division

21

• (1) Where on the partition or division of an estate or interest in land consideration exceeding £100 in amount or value is paid or given, or agreed to be paid or given, for equality, the principal or only instrument by which the partition or division is effected is chargeable with the same ad valorem duty as a conveyance on sale for the consideration, and with that duty only.

• (2) Where there are several instruments for completing the title of either party, the principal instrument is to be ascertained, and the other instruments shall be charged with duty, as provided by sections 58(3) and 61 of the Stamp Act 1891 in the case of several instruments of conveyance.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

...

22

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

...

23

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part IV — General exemptions

24

The following are exempt from stamp duty under this Schedule—

• (a) transfers of shares in the government or parliamentary stocks or funds or strips (within the meaning of section 47 of the Finance Act 1942) of such stocks or funds;

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (c) testaments, testamentary instruments and dispositionsmortis causa in Scotland;

• (d) renounceable letters of allotment, letters of rights or other similar instruments where the rights under the letter or other instrument are renounceable not later than six months after its issue.

25

Stamp duty is not chargeable under this Schedule on any description of instrument in respect of which duty was abolished by—

• (a) section 64 of the Finance Act 1971 or section 5 of the Finance Act (Northern Ireland) 1971 (abolition of duty on mortgages, bonds, debentures etc.), or

• (b) section 173 of the Finance Act 1989 (life insurance policies and superannuation annuities).

26

Nothing in this Schedule affects any other enactment conferring exemption or relief from stamp duty.

SCHEDULE 14

General amendments

1

• (1) Any reference (express or implied) in any enactment, instrument or other document to any of the headings in Schedule 1 to the Stamp Act 1891 (other than the heading “Bearer Instrument”) shall be construed, so far as is required for continuing its effect, as being or, as the case may require, including a reference to the corresponding provision of Schedule 13 to this Act.

• (2) Sub-paragraph (1)—

• (a) has effect subject to any express amendment made by this Act, and

• (b) is without prejudice to the general application of section 17(2) of the Interpretation Act 1978 (general effect of repeal and re-enactment).

2

In the enactments relating to stamp duty for “lease or tack”, wherever occurring, substitute “ lease ”.

Finance Act 1930 (c. 28)

3

In section 42(1) of the Finance Act 1930 (relief from transfer duty in case of transfer between associated companies) for “the heading “Conveyance or Transfer on Sale” in the First Schedule to the Stamp Act 1891” substitute “ Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale) ”.

Finance Act (Northern Ireland) 1954 (c. 23 (N.I.))

4

In section 11(1) of the Finance Act (Northern Ireland) 1954 (relief from transfer duty in case of transfer between associated companies) for “the heading “Conveyance or Transfer on sale” in the First Schedule to the Stamp Act 1891” substitute “ Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale) ”.

Finance Act 1970 (c. 24)

5

In section 33(1) of the Finance Act 1970 (composition by stock exchange in respect of transfer duty), for the words from “the heading” to “1891” substitute “ Part I or paragraph 16 of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale or otherwise) ”.

Finance Act 1980 (c. 48)

6

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Finance Act 1982 (c. 39)

7

In section 129(1) of the Finance Act 1982 (exemption from duty on grants, transfers to charities, etc.) for the words from “by virtue of any of the following headings” to “ “Lease or Tack”,” substitute “ under Part I or II, or paragraph 16, of Schedule 13 to the Finance Act 1999 ”.

Finance Act 1985 (c. 54)

8

• (1) Section 81 of the Finance Act 1985 (renounceable letters of allotment, etc.) is amended as follows.

• (2) For subsection (2) substitute—

(2) The instrument shall not be exempt by virtue of paragraph 24(d) of Schedule 13 to the Finance Act 1999 (renounceable letters of allotment, etc.) from stamp duty under or by reference to Part I of that Schedule (conveyance or transfer on sale).

.

• (3) In subsection (3) for the words from “section 126(1)” to “126(2) or (3)” substitute “ section 79(4) of the Finance Act 1986 does not apply by virtue of section 79(5) or (6) ”.

9

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10

In section 83 of the Finance Act 1985 (duty on transfers in connection with divorce etc.)—

• (a) in subsection (1) for “the heading “Conveyance or Transfer on Sale” in Schedule 1 to the Stamp Act 1891” substitute “ Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale) ”;

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11

In section 84 of the Finance Act 1985 (duty on instruments varying dispositions on death etc.)—

• (a) in subsection (1) for “the heading “Conveyance or Transfer on Sale” in Schedule 1 to the Stamp Act 1891” substitute “ Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale) ”;

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Finance Act 1986 (c. 41)

12

• (1) Section 67 of the Finance Act 1986 (depositary receipts) is amended as follows.

• (2) For subsections (2) and (3) substitute—

(2) If stamp duty is chargeable on the instrument under Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale), the rate at which that duty is chargeable is 1.5% of the amount or value of the consideration for the sale to which the instrument gives effect. (3) If stamp duty is chargeable on the instrument under paragraph 16 of Schedule 13 to the Finance Act 1999 (conveyance or transfer otherwise than on sale), then, subject to subsection (5), the rate at which that duty is chargeable is 1.5% of the value of the securities at the date the instrument is executed.

.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13

• (1) Section 70 of the Finance Act 1986 (clearance services) is amended as follows.

• (2) For subsections (2) and (3) substitute—

(2) If stamp duty is chargeable on the instrument under Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale), the rate at which that duty is chargeable is 1.5% of the amount or value of the consideration for the sale to which the instrument gives effect. (3) If stamp duty is chargeable on the instrument under paragraph 16 of Schedule 13 to the Finance Act 1999 (conveyance or transfer otherwise than on sale), then, subject to subsection (5), the rate at which that duty is chargeable is 1.5% of the value of the securities at the date the instrument is executed.

.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14

In section 75(2) of the Finance Act 1986 (acquisitions: further provisions about reliefs) for “the heading “Conveyance or Transfer on Sale” in Schedule 1 to the Stamp Act 1891” substitute “ Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale) ”.

15

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16

In section 77(1) of the Finance Act 1986 (acquisition of target company’s share capital) for “the heading ’Conveyance or Transfer on Sale’ in Schedule 1 to the Stamp Act 1891” substitute “ Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale) ”.

17

In section 79 of the Finance Act 1986 (loan capital: new provisions), for subsection (8) substitute—

(8) Where stamp duty is chargeable under Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale) on an instrument which transfers loan capital, the rate at which duty is charged under that Part shall be 0.5% of the amount or value of the consideration for the sale to which the instrument gives effect.

.

18

In section 80B(7) of the Finance Act 1986 (intermediaries: power of Treasury to specify rate of duty), for “10p for every £100 or part of £100” substitute “ 0.1% ”.

19

In section 80C(8) of the Finance Act 1986 (repos and stock lending: power of Treasury to specify rate of duty), for “10p for every £100 or part of £100” substitute “ 0.1% ”.

20

• (1) Section 88 of the Finance Act 1986 (stamp duty reserve tax: special cases) is amended as follows.

• (2) In subsection (1) for paragraphs (aa) and (ab) substitute—

(aa) paragraph 24(d) of Schedule 13 to the Finance Act 1999 (renounceable letters of allotment etc.),

.

• (3) In subsection (1A)(b) for “50p” substitute “ £5 ”.

Finance Act 1987 (c. 16)

21

In section 50(1) of the Finance Act 1987 (warrants to purchase government stock etc.), for the words from “either of the following headings” to the end substitute “ Part I, or paragraph 16, of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale or otherwise) ”.

22

In section 55(1) of the Finance Act 1987 (Crown exemption), for the words from “by virtue of any of the following headings” to “ “Lease or Tack”,” substitute “ under Part I or II, or paragraph 16, of Schedule 13 to the Finance Act 1999 ”.

Finance Act 1989 (c. 26)

23

In section 175(1) of the Finance Act 1989 (stock exchange nominees: power to exclude double charge), in paragraph (a) (circumstances in which power exercisable) for “the heading “Conveyance or Transfer on Sale” in Schedule 1 to the Stamp Act 1891” substitute “ Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale) ”.

National Health Service and Community Care Act 1990 (c. 19)

24

In section 61(3) of the National Health Service and Community Care Act 1990 for the words from “by virtue of any of the following headings” to “ “Lease or Tack”,” substitute “ under Part I or II, or paragraph 16, of Schedule 13 to the Finance Act 1999 ”.

Finance Act 1991 (c. 31)

25

In section 110 of the Finance Act 1991 (stamp duty to be abolished in certain cases), for subsections (1) to (4) substitute—

(1) Where apart from this section stamp duty under any of the provisions of Schedule 13 to the Finance Act 1999 would be chargeable on an instrument, stamp duty shall not be so chargeable if the property consists entirely of exempt property.

.

26

In section 111(1) of the Finance Act 1991 (stamp duty to be reduced in certain cases) for “the heading “conveyance or transfer on sale” in Schedule 1 to the Stamp Act 1891” substitute “ Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale) ”.

27

In section 113 of the Finance Act 1991 (certification of instruments for stamp duty purposes), for subsections (1) to (3) substitute—

(1) For the purposes of paragraph 6(1) of Schedule 13 to the Finance Act 1999 (meaning of instrument being certified at an amount)— (a) a sale or contract or agreement for the sale of exempt property within the meaning of section 110 above shall be disregarded; and (b) any statement as mentioned in that provision shall be construed as leaving out of account any matter which is to be so disregarded.

.

Finance Act 1993 (c. 34)

28

• (1) Section 202 of the Finance Act 1993 (rent to mortgage: England and Wales) is amended as follows.

• (2) In subsection (2) for “the heading “Conveyance or Transfer on Sale” in Schedule 1 to the Stamp Act 1891” substitute “ Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale) ”.

• (3) In subsection (4)(a)—

• (a) for “the heading ’Lease or Tack’ in Schedule 1 to the Stamp Act 1891” substitute “ Part II of Schedule 13 to the Finance Act 1999 (lease) ”; and

• (b) for “the heading ’Conveyance or Transfer on Sale’ in that Schedule” substitute “ Part I of that Schedule (conveyance or transfer on sale) ”.

• (4) In subsection (4)(b) for “the heading ’Conveyance or Transfer on Sale’” substitute “ Part I of that Schedule ”.

29

In section 203(2) of the Finance Act 1993 (rent to loan: Scotland), for “the heading “Conveyance or Transfer on Sale” in Schedule 1 to the Stamp Act 1891” substitute “ Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale) ”.

Finance Act 1994 (c. 9)

30

In section 241(1) of the Finance Act 1994 (consideration consisting of property)—

• (a) in paragraph (a) for “lease or tack” substitute “ lease ”;

• (b) in paragraph (b) for “the heading “Conveyance or Transfer on Sale” in Schedule 1 to the Stamp Act 1891” substitute “ Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale) ”.

31

• (1) Section 242 of the Finance Act 1994 (consideration not ascertainable from conveyance or lease) is amended as follows.

• (2) In subsections (1) (twice), (2) and (3) (twice) for “lease or tack” substitute “ lease ”.

• (3) In the opening words of subsection (1) for “the heading “Conveyance or Transfer on Sale” in Schedule 1 to the Stamp Act 1891” substitute “ Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale) ”.

• (4) In subsection (2) for “paragraph (3) of the heading “Lease or Tack” in Schedule 1 to that Act” substitute “ paragraph 12 of Schedule 13 to the Finance Act 1999 ”.

32

In section 243 of the Finance Act 1994 (agreements to surrender leases) for “any duty chargeable under the Stamp Act 1891” substitute “ stamp duty ”.

Finance Act 1995 (c. 4)

33

In section 151 of the Finance Act 1995 (lease or tack: associated bodies)—

• (a) in subsection (1) for “the heading “Lease or Tack” in Schedule 1 to the Stamp Act 1891” substitute “ Part II of Schedule 13 to the Finance Act 1999 (lease) ”;

• (b) in subsections (1) (twice), (2), (3) and (6) (four times) for “lease or tack” substitute “ lease ”.

SCHEDULE 15

Part I — Charging provisions

...

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Charge on transfer of stock by means of instrument

2

Stamp duty is chargeable on the transfer in the United Kingdom of the stock constituted by or transferable by means of a bearer instrument if ...—

• (a) duty would be chargeable under Part I of Schedule 13 (conveyance or transfer on sale) if the transfer were effected by an instrument other than a bearer instrument, or

• (b) the stock constituted by or transferable by means of a bearer instrument consists of units under a unit trust scheme.

Meaning of “bearer instrument”

3

In this Schedule “bearer instrument” means—

• (a) a marketable security transferable by delivery;

• (b) a share warrant or stock certificate to bearer or instrument to bearer (by whatever name called) having the like effect as such a warrant or certificate;

• (c) a deposit certificate to bearer;

• (d) any other instrument to bearer by means of which stock can be transferred; or

• (e) an instrument issued by a non-UK company that is a bearer instrument by usage.

Rates of duty

4

The duty chargeable under this Schedule is 1.5% of the market value of the stock constituted by or transferable by means of the instrument, unless paragraph 5 ... applies.

5

In the case of—

• (a) a deposit certificate in respect of stock of a single non-UK company, or

• (b) an instrument issued by a non-UK company that is a bearer instrument by usage (and is not otherwise within the definition of “bearer instrument” in paragraph 3),

the duty is 0.2% of the market value of the stock constituted by or transferable by means of the instrument.

6

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Ascertainment of market value

7

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8

• (1) For the purposes of duty under paragraph 2 (charge on transfer of stock by means of instrument) the market value of the stock constituted by or transferable by means of the instrument is ascertained as follows.

• (2) In the case of a transfer pursuant to a contract of sale, the market value shall be taken to be the value of the stock on the date when the contract is made.

• (3) In any other case, the market value shall be taken to be the value of the stock on the day preceding that on which the instrument is presented to the Commissioners for stamping, or, if it is not so presented, on the date of the transfer.

Meaning of “deposit certificate”

9

In this Schedule a “deposit certificate” means an instrument acknowledging the deposit of stock and entitling the bearer to rights (whether expressed as units or otherwise) in or in relation to the stock deposited or equivalent stock.

Bearer instruments by usage

10

• (1) In this Schedule a “bearer instrument by usage” means an instrument —

• (a) which is used for the purpose of transferring the right to stock, and

• (b) delivery of which is treated by usage as sufficient for the purposes of a sale on the market, whether that delivery constitutes a legal transfer or not.

• (2) A bearer instrument by usage is treated—

• (a) as transferring the stock on delivery of the instrument, and

• (b) as issued by the person by whom or on whose behalf it was first issued, whether or not it was then capable of being used for transferring the right to the stock without execution by the holder.

Meaning of “company”, “UK company” and “non-UK company”

11

In this Schedule—

• “company” includes any body of persons, corporate or unincorporate;

• “UK company” means— a company that is formed or established in the United Kingdom (other than an SE which has its registered office outside the United Kingdom following a transfer in accordance with Article 8 of Council Regulation (EC) 2157/2001 on the Statute for a European Company (Societas Europaea)), ora UK Societas;

• “non-UK company” means a company that is not a UK company.

Meaning of “stock” and “transfer”

12

• (1) In this Schedule “stock” includes securities.

• (2) References in this Schedule to stock include any interest in, or in any fraction of, stock or in any dividends or other rights arising out of stock and any right to an allotment of or to subscribe for stock.

• (3) In this Schedule “transfer” includes negotiation, and “transferable”, “transferred” and “transferring” shall be construed accordingly.

Part II — Exemptions

Foreign loan securities

13

Stamp duty is not chargeable on a bearer instrument issued outside the United Kingdom in respect of a loan which is expressed in a currency other than sterling and which is not—

• (a) offered for subscription in the United Kingdom, or

• (b) offered for subscription with a view to an offer for sale in the United Kingdom of securities in respect of the loan.

Stock exempt from duty on transfer

14

Stamp duty is not chargeable under this Schedule on an instrument constituting, or used for transferring, stock (other than units in a unit trust) that is exempt from all stamp duties on transfer.

Instruments in respect of which duty previously abolished

15

Stamp duty is not chargeable under this Schedule on any description of instrument in respect of which duty was abolished by—

• (a) section 64 of the Finance Act 1971 or section 5 of the Finance Act (Northern Ireland) 1971 (abolition of duty on mortgages, bonds, debentures etc.), or

• (b) section 173 of the Finance Act 1989 (life insurance policies and superannuation annuities).

Renounceable letters of allotment

16

Stamp duty is not chargeable under this Schedule on renounceable letters of allotment, letters of rights or other similar instruments where the rights under the letter or other instrument are renounceable not later than six months after its issue.

Instruments relating to non-sterling stock

17

• (1) Stamp duty is not chargeable under this Schedule on ... an instrument which relates to stock expressed—

• (a) in a currency other than sterling, or

• (b) in units of account defined by reference to more than one currency (whether or not including sterling).

...

• (2) Where the stock to which the instrument relates consists of a loan for the repayment of which there is an option between sterling and one or more other currencies, sub-paragraph (1) applies if the option is exercisable only by the holder of the stock and does not apply in any other case.

18

Where the capital stock of a company is not expressed in terms of any currency, it shall be treated for the purposes of paragraph 17 as expressed in the currency of the territory under the law of which the company is formed or established.

19

• (1) A unit under a unit trust scheme or a share in a foreign mutual fund shall be treated for the purposes of paragraph 17 as capital stock of a company formed or established in the territory by the law of which the scheme or fund is governed.

• (2) A “foreign mutual fund” means a fund administered under arrangements governed by the law of a territory outside the United Kingdom under which subscribers to the fund are entitled to participate in, or receive payments by reference to, profits or income arising to the fund from the acquisition, holding, management or disposal of investments.

• (3) In relation to a foreign mutual fund “share” means the right of a subscriber, or of another in his right, to participate in or receive payments by reference to profits or income so arising.

Variation of original terms or conditions

20

Where a bearer instrument issued by or on behalf of a non-UK company in respect of a loan expressed in sterling—

• (a) has been stampedad valorem, or

• (b) has been stamped in accordance with paragraph 12A, or

• (c) has been stamped with the denoting stamp referred to in paragraph 21(2)(b) below,

duty is not chargeable under this Schedule by reason only that the instrument is amended on its face pursuant to an agreement for the variation of any of its original terms or conditions.

Part III — Supplementary provisions

...

21

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

22

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Duty chargeable on transfer of stock by means of instrument

23

• (1) This paragraph applies where duty is chargeable under paragraph 2 of this Schedule.

• (2) Where the instrument is presented to the Commissioners for stamping—

• (a) the person presenting it, and

• (b) the owner of the instrument,

shall furnish to the Commissioners such particulars in writing as the Commissioners may require for determining the amount of duty chargeable.

• (3) If the instrument is not duly stamped each person who in the United Kingdom—

• (a) transfers any stock by or by means of the instrument, or

• (b) is concerned as broker or agent in any such transfer,

is liable to a penalty not exceeding the aggregate of £300 and the amount of duty chargeable.

• (4) Those persons are also jointly and severally liable to pay to Her Majesty—

• (a) the duty chargeable, and

• (b) interest on the unpaid duty from the date of the transfer in question until the duty is paid.

Supplementary provisions as to interest

24

• (1) The following provisions apply to interest under paragraph 22(2) or 23(4).

• (2) If an amount is lodged with the Commissioners in respect of the duty, the amount on which interest is payable is reduced by that amount.

• (3) Interest is payable at the rate prescribed under section 178 of the Finance Act 1989 for the purposes of section 15A of the Stamp Act 1891 (interest on late stamping).

• (4) The amount of interest shall be rounded down (if necessary) to the nearest multiple of £5.

No interest is payable if the amount is less than £25.

• (5) The interest shall be paid without any deduction of income tax and shall not be taken into account in computing income or profits for any tax purposes.

Penalty for false statement

25

A person who in furnishing particulars under this Part of this Schedule wilfully or negligently furnishes particulars that are false in any material respect is liable to a penalty not exceeding the aggregate of £300 and twice the amount by which the stamp duty chargeable exceeds that paid.

26

An instrument in respect of which duty is chargeable under paragraph 2 of this Schedule which—

• (a) has been stampedad valorem, ...

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

shall be treated as duly stamped for all purposes other than paragraph 25.

SCHEDULE 16

General amendment

1

• (1) Any reference (express or implied) in any enactment, instrument or other document to the heading “Bearer Instrument” in Schedule 1 to the Stamp Act 1891 shall be construed, so far as is required for continuing its effect, as being or, as the case may require, including a reference to Schedule 15 to this Act.

• (2) Sub-paragraph (1)—

• (a) has effect subject to any express amendment made by this Act, and

• (b) is without prejudice to the general application of section 17(2) of the Interpretation Act 1978 (general effect of repeal and re-enactment).

Finance Act 1963 (c. 25)

2

In section 67 of the Finance Act 1963 (prohibition of circulation of blank transfers) for subsection (4) substitute—

(4) In this section— (a) “stock” includes securities; (b) references to stock include any interest in, or in any fraction of, stock or in any dividends or other rights arising out of stock and any right to an allotment of or to subscribe for stock; and (c) “transfer” includes any instrument used for transferring stock. (4A) Nothing in this section applies to— (a) an instrument which is chargeable with duty at the rate specified in paragraph 5 of Schedule 15 to the Finance Act 1999 (certain bearer instruments issued by or on behalf of non-UK companies) and is duly stamped, or (b) renounceable letters of allotment, letters of rights or other similar instruments where the rights under the letter or other instrument are renounceable not later than six months after its issue.

.

Finance Act 1976 (c. 40)

3

In section 131(3) of the Finance Act 1976 (exemption for instruments issued by Inter-American Development Bank) for “the heading “Bearer Instrument” in Schedule 1 to the Stamp Act 1891” substitute “ Schedule 15 to the Finance Act 1999 (bearer instruments) ”.

Finance Act 1984 (c. 43)

4

In section 126(3)(c) and (5) of the Finance Act 1984 (exemption for bearer instruments issued by designated international organisations) for “the heading “Bearer Instrument” in Schedule 1 to the Stamp Act 1891” substitute “ Schedule 15 to the Finance Act 1999 (bearer instruments) ”.

Finance Act 1986 (c. 41)

5

In section 79(2) of the Finance Act 1986 (exemption for instruments relating to loan capital), for “the heading “Bearer Instrument” in Schedule 1 to the Stamp Act 1891” substitute “ Schedule 15 to the Finance Act 1999 (bearer instruments) ”.

6

• (1) Section 90 of the Finance Act 1986 (exceptions from general charge to stamp duty reserve tax) is amended as follows.

• (2) In subsection (3) for paragraph (a) substitute—

(a) a non-UK bearer instrument;

.

• (3) In subsection (3A) for “an inland bearer instrument within the meaning of the heading “Bearer Instrument” in Schedule 1 to the Stamp Act 1891” substitute “ a UK bearer instrument ”.

• (4) In subsection (3B) for “exemption 3 in the heading “Bearer Instrument” in Schedule 1 to the Stamp Act 1891” substitute “ the exemption conferred by paragraph 16 of Schedule 15 to the Finance Act 1999 (renounceable letters of allotment etc.) ”.

• (5) In subsection (3C) for paragraph (b) substitute—

(b) stamp duty under Schedule 15 to the Finance Act 1999 was not chargeable on the issue of the instrument by virtue only of the exemption conferred by paragraph 17 of that Schedule (non-sterling bearer instruments); and

.

• (6) In subsection (3E) for paragraph (b) substitute—

(b) stamp duty under Schedule 15 to the Finance Act 1999 was not chargeable on the issue of the instrument— (i) by virtue only of the exemption conferred by section 79(2) above (bearer instruments relating to loan capital), or (ii) by virtue only of that provision and paragraph 17 of that Schedule (non-sterling bearer instruments);

.

7

• (1) In section 95 of the Finance Act 1986 (exceptions from charge to stamp duty reserve tax on entry into depositary receipt system), for subsection (2) substitute—

(2) There shall be no charge to tax under section 93 above in respect of a transfer, issue or appropriation of a UK bearer instrument, except in the case of— (a) an instrument within the exemption conferred by paragraph 16 of Schedule 15 to the Finance Act 1999 (renounceable letters of allotment etc. where rights are renounceable not later than six months after issue), or (b) an instrument within the exemption conferred by paragraph 17 of that Schedule (non-sterling instruments) which— (i) does not raise new capital, and (ii) is not issued in exchange for an instrument raising new capital.

.

• (2) There shall be no charge to tax under section 93 of that Act by virtue of paragraph (b) of subsection (2) of section 95 as substituted by sub-paragraph (1) above in the case of an instrument which gives effect to an agreement for a company merger or takeover entered into in writing by the companies involved before 30th January 1999.

8

• (1) In section 97 of the Finance Act 1986 (exceptions from charge to stamp duty reserve tax on entry into clearance system), for subsection (3) substitute—

(3) There shall be no charge to tax under section 96 above in respect of a transfer or issue of a UK bearer instrument, except in the case of— (a) an instrument within the exemption conferred by paragraph 16 of Schedule 15 to the Finance Act 1999 (renounceable letters of allotment etc. where rights are renounceable not later than six months after issue), or (b) an instrument within the exemption conferred by paragraph 17 of that Schedule (non-sterling instruments) which— (i) does not raise new capital, and (ii) is not issued in exchange for an instrument raising new capital.

.

• (2) There shall be no charge to tax under section 96 of that Act by virtue of paragraph (b) of subsection (3) of section 97 as substituted by sub-paragraph (1) above in the case of an instrument which gives effect to an agreement for a company merger or takeover entered into in writing by the companies involved before 30th January 1999.

9

In section 99 of the Finance Act 1986 (interpretation of Part IV), after subsection (1) insert—

(1A) “Bearer instrument” has the same meaning as in Schedule 15 to the Finance Act 1999. An instrument is a “UK bearer instrument” or “non-UK bearer instrument” according to whether it is issued by or on behalf of a UK company or a non-UK company within the meaning of that Schedule.

.

Finance Act 1987 (c. 16)

10

• (1) Section 50 of the Finance Act 1987 (warrants to purchase government stock etc.: exempt securities) is amended as follows.

• (2) In subsection (2) for “the heading “Bearer Instrument” in Schedule 1 to the Stamp Act 1891” substitute “ Schedule 15 to the Finance Act 1999 (bearer instruments) ”.

• (3) In subsection (3)(b) for the words from “by virtue of section 30” to “1891” substitute “ exempt from stamp duty under paragraph 1 of Schedule 15 to the Finance Act 1999 (issue of bearer instrument) by virtue of paragraph 17 of that Schedule (certain non-sterling instruments) ”.

• (4) In subsection (3)(c) for the words from “by virtue of section 30” to “that heading” substitute “ exempt from stamp duty under that Schedule by virtue of paragraph 17 of that Schedule or section 79(2) of the Finance Act 1986 ”.

Finance Act 1988 (c. 39)

11

• (1) Section 143 of the Finance Act 1988 (paired shares) is amended as follows.

• (2) For subsection (2) substitute—

(2) In relation to an instrument to which this subsection applies, no duty is chargeable under paragraph 1 of Schedule 15 to the Finance Act 1999 (bearer instruments: charge on issue); but this does not affect the other requirements of that Schedule.

.

• (3) In subsection (3) for “This subsection applies” substitute “ Subsection (2) above applies ”.

• (4) For subsection (4) substitute—

(4) In relation to an instrument to which this subsection applies— (a) the foreign company shall be treated for the purposes of Schedule 15 to the Finance Act 1999 (stamp duty on bearer instruments) as a UK company, and (b) paragraph 17 of that Schedule (exemption for non-sterling instruments) shall not apply.

.

• (5) In subsection (5) for “This subsection applies” substitute “ Subsection (4) above applies ”.

Finance Act 1990 (c. 29)

12

For section 107 of the Finance Act 1990 (bearers: abolition of stamp duty) substitute—

(107) (1) Stamp duty shall not be chargeable under Schedule 15 to the Finance Act 1999 (bearer instruments). (2) Subsection (1) above applies in relation to the charge under paragraph 1 of that Schedule (charge on issue) where the instrument is issued on or after the abolition day. (3) Subsection (1) above applies in relation to the charge under paragraph 2 of that Schedule (charge on transfer of stock) where the stock constituted by or transferable by means of the instrument is transferred on or after the abolition day.

.

SCHEDULE 17

Part I — Amendments of penalties

Introduction

1

The amendments in this Part of this Schedule—

• (a) replace administrative fines by penalties;

• (b) amend provisions imposing a fine or penalty of a specified amount so as to impose a penalty not exceeding a specified amount;

• (c) increase or modernise in certain cases the maximum penalty.

Stamp Duties Management Act 1891 (c. 38)

2

• (1) The Stamp Duties Management Act 1891 is amended as follows.

• (2) In section 12A (lost or spoiled instruments), in subsection (2)(b) for “, fine or penalty” (twice) substitute “ or penalty ”.

• (3) In section 21 (penalty for frauds in relation to duties), for “a fine of fifty pounds” substitute “ a penalty not exceeding £3,000 ”.

Stamp Act 1891 (c. 39)

3

• (1) The Stamp Act 1891 is amended as follows.

• (2) In section 5 (failure to set out in instrument facts and circumstances affecting duty), for “a fine of ten pounds” substitute “ a penalty not exceeding £3,000 ”.

• (3) In section 9(1) (penalty for frauds in relation to instrument bearing adhesive stamp), for the words from “he shall” to the end substitute “ he is liable to a penalty not exceeding £3,000 ”.

• (4) In section 16 (rolls, books, etc. to be open to inspection), for “a fine of ten pounds” substitute “ a penalty not exceeding £300 ”.

• (5) In section 17 (penalty for enrolling, etc. instrument not duly stamped), for “a fine of ten pounds” substitute “ a penalty not exceeding £300 ”.

• (6) In section 83 (penalty on issuing etc. foreign etc. security not duly stamped), for “a fine of twenty pounds” substitute “ a penalty not exceeding £300 ”.

Finance Act 1946 (c. 64)

4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Finance (No. 2) Act (Northern Ireland) 1946 (c. 17 (N.I.))

5

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Finance Act 1963 (c. 25)

6

In section 67(1) of the Finance Act 1963 (prohibition of circulation of blank transfers), for “fine” substitute “ penalty ” and for “£50” substitute “ £300 ”.

Finance Act (Northern Ireland) 1963 (c. 22 (N.I.))

7

In section 16(1) of the Finance Act (Northern Ireland) 1963 (prohibition of circulation of blank transfers), for “fine” substitute “ penalty ” and for “fifty pounds” substitute “ £300 ”.

Finance Act 1986 (c. 41)

8

In section 68(4) and (5) and section 71(4) and (5) of the Finance Act 1986 (depositary receipts and clearance services: failure to comply with requirements as to notification), for “fine” substitute “ penalty ”.

Part II — Determination of penalty, reviews and appeals

Introduction

9

• (1) This Part of this Schedule applies to penalties under the enactments relating to stamp duty, other than penalties under section 15B of the Stamp Act 1891 (penalty on late stamping).

• (2) Nothing in this Part of this Schedule affects criminal proceedings for an offence.

• (3) For the purposes of this Part “tribunal” means the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal.

Determination of penalty by officer of Commissioners

10

• (1) An officer of the Commissioners authorised by the Commissioners for the purposes of this paragraph may make a determination—

• (a) imposing the penalty, and

• (b) setting it at such amount as in the officer’s opinion is correct or appropriate.

• (2) Notice of the determination must be served on the person liable to the penalty.

The notice must also state—

• (a) the date on which the notice is issued, and

• (b) the time within which an appeal against the determination may be made.

• (3) After notice of the determination has been served, the determination cannot be altered except—

• (a) in accordance with sub-paragraph (4),

• (b) by agreement in writing, or

• (c) on appeal.

• (4) If it is discovered by an officer of the Commissioners authorised by the Commissioners for the purposes of this paragraph that the amount of a penalty determined under this paragraph is or has become insufficient, the officer may make a determination in a further amount so that the penalty is set at the amount which in the officer’s opinion is correct or appropriate.

• (5) If a person liable to a penalty has died—

• (a) any determination which could have been made in relation to that person may be made in relation to his personal representatives, and

• (b) any penalty imposed on them is a debt due from and payable out of the person’s estate.

• (6) A penalty determined under this paragraph is due and payable at the end of the period of 30 days beginning with the date of the issue of the notice of determination.

11

• (1) An appeal may be made against a determination under paragraph 10.

• (2) Notice of appeal must be given in writing to the officer of the Commissioners by whom the determination was made within 30 days of the date of the notice of the determination.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) The notice of appeal must specify the grounds of appeal.

• (4A) Sections 49A to 49I of the Taxes Management Act 1970 shall apply to appeals under this paragraph, subject to the modifications in sub-paragraphs (4B) to (4E).

• (4B) In the application of section 49C(4) for “contained in an agreement in writing under section 54(1) for the settlement of the matter” there is to be substituted “a written agreement under paragraph 10(3)(b) of Schedule 17 to the Finance Act 1999”.

• (4C) Section 49C(5) and (6) are not to apply.

• (4D) In the application of section 49F(2) for “an agreement in writing under section 54(1) for the settlement of the matter in question” there is to be substituted “a written agreement under paragraph 10(3)(b) of Schedule 17 to the Finance Act 1999”,

• (4E) Sections 49F(3) and (4) are not to apply.

• (4F) References to “the tribunal” are to be taken to be references to the “First-tier Tribunal.

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (6) On an appeal under this paragraph the First-tier Tribunal may—

• (a) if it appears ... that no penalty has been incurred, set the determination aside;

• (b) if the amount determined appears ... to be appropriate, confirm the determination;

• (c) if the amount determined appears ... to be excessive, reduce it to such other amount (including nil) as the First-tier Tribunal considers appropriate;

• (d) if the amount determined appears ... to be insufficient, increase it to such amount not exceeding the permitted maximum as the First-tier Tribunal considers appropriate.

12

• (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (2) In addition to any right of appeal on a point of law under section 11(2) of the Tribunals, Courts and Enforcement Act 2007, the person liable to the penalty may appeal to the Upper Tribunal against the amount of the penalty which had been determined under paragraph 11(6) above, but not against any decision which falls under section 11(5)(d) or (e) of that Act and was made in connection with the determination of the amount of the penalty.

• (2A) Section 11(3) and (4) of the Tribunals, Courts and Enforcement Act 2007 applies to the right of appeal under sub-paragraph (2) as it applies to the right of appeal under section 11(2) of that Act.

• (3) On an appeal under sub-paragraph (2) the Upper Tribunal has the same powers as are conferred on the First-tier Tribunal by paragraph 11(6) above.

Penalty proceedings before the court

13

• (1) Where in the opinion of the Commissioners the liability of a person for a penalty arises by reason of his fraud or the fraud of another person, proceedings for the penalty may be brought—

• (a) in the High Court, or

• (b) in Scotland, in the Court of Session sitting as the Court of Exchequer.

• (2) Proceedings under this paragraph in England and Wales shall be brought—

• (a) by and in the name of the Commissioners as an authorised department for the purposes of the Crown Proceedings Act 1947, or

• (b) in the name of the Attorney General.

Any such proceedings shall be deemed to be civil proceedings by the Crown within the meaning of Part II of the Crown Proceedings Act 1947.

• (3) Proceedings under this paragraph in Scotland shall be brought in the name of the Advocate General for Scotland.

• (4) Proceedings under this paragraph in Northern Ireland shall be brought—

• (a) by and in the name of the Commissioners as an authorised department for the purposes of the Crown Proceedings Act 1947 as for the time being in force in Northern Ireland, or

• (b) in the name of the Attorney General for Northern Ireland.

Any such proceedings shall be deemed to be civil proceedings within the meaning of Part II of the Crown Proceedings Act 1947 as for the time being in force in Northern Ireland.

• (5) If in proceedings under this paragraph the court does not find that fraud is proved but considers that the person concerned is nevertheless liable to a penalty, the court may determine a penalty notwithstanding that, but for the opinion of the Commissioners as to fraud, the penalty would not have been a matter for the court.

• (6) Paragraph 10 above (determination of penalty by officer of Commissioners) does not apply where proceedings are brought under this paragraph.

Supplementary provisions

14

• (1) The Commissioners may in their discretion mitigate any penalty, or stay or compound any proceedings for the recovery of a penalty.

• (2) They may also, after judgment, further mitigate or entirely remit the penalty.

15

A penalty may be determined under paragraph 10, or proceedings for a penalty brought under paragraph 13, at any time within six years after the date on which the penalty was incurred.

Part III — Power to apply provisions as to collection and recovery etc

16

• (1) The Treasury may make regulations applying in relation to penalties to which Part II of this Schedule applies such provisions of the Taxes Management Act 1970 as they think fit.

• (2) The regulations may apply the provisions of that Act with such modifications as the Treasury think fit.

• (3) Regulations under this paragraph shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of the House of Commons.

17

Without prejudice to the generality of the power conferred by paragraph 16, regulations under that paragraph may apply—

• (a) any of the provisions of Part VI of the Taxes Management Act 1970 (collection and recovery), and

• (b) such of the provisions of Part XI of that Act (miscellaneous and supplemental provisions) as appear to the Treasury to be appropriate.

18

Sections 21, 22 and 35 of the Inland Revenue Regulation Act 1890 (proceedings for fines, etc.) do not apply in relation to penalties to which Part II of this Schedule applies.

SCHEDULE 18

Part I — Minor amendments

Introduction

1

The provisions of this Part of this Schedule have effect for the purposes of the enactments relating to stamp duty.

Payment by cheque

2

• (1) Where—

• (a) any payment to the Commissioners is made by cheque, and

• (b) the cheque is paid on its first presentation to the banker on whom it is drawn,

the payment is treated as made on the day on which the cheque was first received by the Commissioners.

• (2) Sub-paragraph (1) applies where the cheque was first received by the Commissioners on or after 1st October 1999.

Admissibility of evidence not affected by offer of settlement, etc.

3

• (1) Statements made or documents produced by or on behalf of a person are not inadmissible in any such proceedings as are mentioned in sub-paragraph (2) by reason only that it has been drawn to that person’s attention—

• (a) that where serious stamp duty fraud has been committed the Board may accept a money settlement and that the Board will accept such a settlement, and will not pursue a criminal prosecution, if he makes a full confession of all stamp duty irregularities, or

• (b) that the extent to which he is helpful and volunteers information is a factor that will be taken into account in determining the amount of any penalty,

and that he was or may have been induced thereby to make the statements or produce the documents.

• (2) The proceedings mentioned in sub-paragraph (1) are—

• (a) any criminal proceedings against the person in question for any form of fraudulent conduct in connection with or in relation to stamp duty, and

• (b) any proceedings against that person for the recovery of any stamp duty or interest on unpaid stamp duty due from him, and

• (c) any proceedings for a penalty, or on appeal against the determination of a penalty, in connection with or in relation to stamp duty.

References to duration of lease

4

In relation to Scotland, the expression “term”, where referring to the duration of a lease, means “period”.

Part II — Obsolete provisions

5

• (1) Section 13 of the Stamp Duties Management Act 1891 (certain offences in relation to dies and stamps provided by the Commissioners to be felonies) is amended as follows.

• (2) For the sidenote substitute “Offences in relation to dies and stamps.”.

• (3) Make the existing provision subsection (1) and at the beginning, for “Every person who” substitute “ A person commits an offence who ”.

• (4) Omit the words from “shall be guilty of felony” to the end.

• (5) After subsection (1) insert—

(2) A person guilty of an offence under this section is liable— (a) on summary conviction, to imprisonment for a term not exceeding six months or a fine not exceeding the statutory maximum, or both; (b) on conviction on indictment, to imprisonment for a term not exceeding ten years or a fine, or both.

.

• (6) This paragraph has effect in relation to things done or omitted on or after 1st October 1999.

6

• (1) The following provisions of the Stamp Duties Management Act 1891 shall cease to have effect—

• in section 2 (recovery of money received for duty), subsections (2) and (3);

• section 3 (power to grant licences to deal in stamps);

• section 4 (penalty for unauthorised dealing in stamps etc.);

• section 5 (provisions as to determination of a licence);

• section 6 (penalty for hawking stamps);

• section 8 (discount on sale of stamps);

• section 9(2) and (3) (cases in which allowance may be made for spoiled adhesive stamps);

• in section 11 (how allowance to be made), the words from “deducting therefrom” to the end;

• section 12 (repurchase of stamps by Commissioners);

• section 17 (proceedings for detection of stamps stolen or fraudulently obtained);

• section 18 (licensed person in possession of forged stamps to be presumed guilty);

• section 19 (mode of proceeding when stamps are seized);

• section 20 (defacement of adhesive stamps);

• section 25 (mode of granting licences).

• (2) This paragraph comes into force on 1st October 1999.

SCHEDULE 19

Part I — Abolition of stamp duty on transfers etc. of units in unit trusts

1

• (1) No stamp duty is chargeable on a transfer or other instrument relating to a unit under a unit trust scheme.

• (2) Sub-paragraph (1) does not affect any charge to stamp duty—

• (a) on a conveyance or transfer on sale of property other than units under a unit trust scheme in relation to which such units form the whole or part of the consideration, or

• (b) under Schedule 15 to this Act (bearer instruments).

• (3) This paragraph has effect in relation to instruments executed on or after 6th February 2000.

Part II — Stamp duty reserve tax on dealings with units in unit trusts

Charge to tax

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Rate of tax

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Proportionate reduction of tax by reference to units issued

4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Proportionate reduction of tax by reference to assets held

5

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Exclusion of charge in certain cases of change of ownership

6

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Exclusion of charge in case of in specie redemption

7

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interpretation

8

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Transitional provision

9

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part III — Minor and consequential amendments

Finance Act 1986 (c. 41)

10

In section 88(1) of the Finance Act 1986 (instruments exempt from stamp duty disregarded for the purpose of repayment etc. of stamp duty reserve tax), after paragraph (b) insert—

, or (c) Part I of Schedule 19 to the Finance Act 1999 (transfers etc. of units in unit trusts),

.

11

• (1) Section 90 of the Finance Act 1986 (exceptions from general charge to stamp duty reserve tax) is amended as follows.

• (2) In subsection (1) (transfer of unit to managers of unit trust scheme) for “to the managers” substitute “ to or from the managers ”.

• (3) After that subsection insert—