 | |
| |
PART VI |
| |
STAMP DUTY AND STAMP DUTY RESERVE TAX |
| |
Stamp duty |
| Interest and penalties on late stamping. |
97. - (1) For section 15 of the Stamp Act 1891 (penalty upon stamping instruments after execution) substitute-
|
| |
| "Stamping after execution. |
15. - (1) An unstamped or insufficiently stamped instrument may be stamped after being executed on payment of the unpaid duty and any interest or penalty payable.
|
 |
(2) Any interest or penalty payable on stamping shall be denoted on the instrument by a particular stamp.
|
| Late stamping: interest. |
15A. - (1) Interest is payable on the stamping of an instrument which-
|
| |
(a) is chargeable with ad valorem duty, and |
| |
(b) is not duly stamped within 30 days after the day on which the instrument was executed (whether in the United Kingdom or elsewhere). |
| |
(2) Interest is payable on the amount of the unpaid duty from the end of the period of 30 days mentioned in subsection (1)(b) until the duty is paid.
|
| |
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 shall be calculated at the rate applicable under section 178 of the Finance Act 1989 (power of Treasury to prescribe rates of interest).
|
| |
(4) The amount of interest shall be rounded down (if necessary) to the nearest multiple of £5.
|
| |
No interest is payable if that amount is less than £25.
|
| |
(5) Interest under this section 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.
|
| Late stamping: penalties. |
15B. - (1) A penalty is payable on the stamping of an instrument which is not presented for stamping within 30 days after-
|
| |
(a) if the instrument is executed in the United Kingdom, the day on which it is so executed; |
| |
(b) if the instrument is executed outside the United Kingdom, the day on which it is first received in the United Kingdom. |
| |
(2) If the instrument is presented for stamping within one year after the end of the 30-day period mentioned in subsection (1), the maximum penalty is £300 or the amount of the unpaid duty, whichever is less.
|
| |
(3) If the instrument is not presented for stamping until after the end of the one-year period mentioned in subsection (2), the maximum penalty is £300 or the amount of the unpaid duty, whichever is greater.
|
| |
(4) The Commissioners may, if they think fit, mitigate or remit any penalty payable on stamping.
|
| |
(5) No penalty is payable if there is a reasonable excuse for the delay in presenting the instrument for stamping.".
|
|
| |
(2) In section 178(2) of the Finance Act 1989 (enactments for purposes of which Treasury may prescribe rates of interest), before paragraph (a) insert-
|
| |
|
"(aa) section 15A of the Stamp Act 1891;". |
|
| |
(3) The consequential amendments in Schedule 12 to this Act have effect.
|
| |
(4) This section applies to instruments executed on or after 1st October 1999.
|
| Interest on repayment of duty overpaid etc. |
98. - (1) A payment by the Commissioners to which this section applies shall be paid with interest at the rate applicable under section 178 of the Finance Act 1989 for the period between the relevant time (as defined below) and the date on which the order for the payment is issued.
|
| |
(2) This section applies to any repayment by the Commissioners of duty, or any penalty on late stamping, under the enactments relating to stamp duty.
|
| |
In that case the relevant time is-
|
| |
(a) 30 days after the day on which the instrument in question was executed, or |
| |
(b) if later, the date on which the payment of duty or penalty was made. |
| |
(3) This section also applies to a money payment made by the Commissioners under section 11 of the Stamp Duties Management Act 1891 (allowances for spoiled or misused stamps).
|
| |
In that case the relevant time is the date on which the duty was paid for the stamp in respect of which the allowance is made.
|
| |
(4) A payment by the Commissioners under section 12A(2)(b) of that Act (allowances for lost or spoiled instruments) is treated for the purposes of this section as a repayment of the duty or penalty by reference to which it is made.
|
| |
In that case the relevant time is the date on which the payment of duty or penalty was made.
|
| |
(5) No interest is payable under this section if the amount of the payment to which this section applies is less than £25.
|
| |
(6) No interest is payable under this section in respect of a payment made in consequence of an order or judgment of a court having power to allow interest on the payment.
|
| |
(7) Interest paid to any person under this section is not income of that person for any tax purposes.
|
| |
(8) In section 178(2) of the Finance Act 1989 (enactments for purposes of which Treasury may prescribe rates of interest), after paragraph (o) add-
|
| |
|
" , and
|
| |
(p) section 98 of the Finance Act 1999.". |
|
| |
(9) This section applies in relation to instruments executed on or after 1st October 1999.
|
| Stamp duty on conveyance or transfer on sale. |
99. - (1) Section 55 of the Finance Act 1963 and section 4 of the Finance Act (Northern Ireland) 1963 (rates of stamp duty on conveyance or transfer on sale) are each amended as follows.
|
| |
(2) In subsection (1)(d) (rate of £2 for every £100 etc. where consideration does not exceed £500,000 and the instrument is certified at that amount) for "£2" substitute "£2.50p".
|
| |
(3) In subsection (1)(e) (rate of £3 for every £100 etc. in cases not otherwise provided for) for "£3" substitute "£3.50p".
|
| |
(4) This section applies to instruments executed on or after 16th March 1999, except where the instrument in question is executed in pursuance of a contract made on or before 9th March 1999.
|
| |
(5) This section shall be deemed to have come into force on 16th March 1999.
|
| Abolition of duty on transfers etc. of units in unit trust. |
100. - (1) No stamp duty is chargeable on a transfer or other instrument relating to a unit under a unit trust scheme.
|
| |
(2) Subsection (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) In this section "unit" and "unit trust scheme" have the same meaning as in Part VII of the Finance Act 1946 or Part III of the Finance (No.2) Act (Northern Ireland) 1946.
|
| |
(4) This section has effect in relation to instruments executed on or after 1st October 1999.
|
