Finance Bill - continued        House of Lords
PART VI, STAMP DUTY AND STAMP DUTY RESERVE TAX - continued
Stamp duty reserve tax - continued

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Power to exempt UK depositary interests in foreign securities.     119. - (1) The Treasury may by regulations make provision excluding from the definition of "chargeable securities" in Part IV of the Finance Act 1986 such rights in or in relation to securities as, in accordance with the regulations, are to be treated as exempt UK depositary interests in foreign securities.
 
      (2) Subject to subsection (3), the regulations may-
 
 
    (a) define "depositary interest", "UK depositary interest" and "foreign securities" for this purpose; and
 
    (b) exempt such descriptions of UK depositary interests in foreign securities (as so defined) as may from time to time be specified in the regulations.
      (3) The regulations shall not make provision for the exemption of a depositary interest unless the terms of issue of the interest are such that it can only be transferred in accordance with regulations under section 207 of the Companies Act 1989 (transfer of securities without written instrument) or by means of a transfer within section 186(1) of the Finance Act 1996 (transfer of securities to member of electronic transfer system).
 
      (4) The regulations may contain such incidental, supplementary, consequential and transitional provision as appears to the Treasury to be appropriate.
 
  This may include provision modifying the enactments relating to stamp duty reserve tax for the purpose of giving effect to the exemption conferred by regulations under this section (or, where earlier regulations are varied or revoked, withdrawing an exemption formerly conferred).
 
      (5) Regulations under this section may make different provision for different cases.
 
      (6) Regulations under this section shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of the House of Commons.
 
Minor amendments of exceptions to general charge.     120. - (1) Section 90 of the Finance Act 1986 (exceptions from the general charge to stamp duty reserve tax) is amended as follows.
 
      (2) In subsection (3F)(c) (conditions of exception under subsection (3E)) for "securities which are not listed" substitute "chargeable securities which are not listed".
 
      (3) In subsection (5) for "by a person" substitute "for the purposes of a business"; and in subsection (6) for "A person is within this subsection if his business is exclusively" substitute "A business is within this subsection if, or so far as, it consists of".
 
      (4) Subsection (2) above applies to instruments issued on or after 9th March 1999.
 
      (5) Subsection (3) above applies to agreements to transfer securities made on or after 9th March 1999.
 
Power to make regulations with respect to administration, etc.     121. - (1) The following provisions have effect with respect to the power conferred on the Treasury by section 98(1) of the Finance Act 1986 (stamp duty reserve tax: regulations with respect to administration, etc.).
 
      (2) That power includes power to make provision-
 
 
    (a) applying the provisions of the Taxes Management Act 1970 relating to penalties and the payment of interest on overdue tax, and
 
    (b) requiring information to be provided, or books, documents or other records to be made available for inspection, and imposing a penalty for failure to do so.
      (3) That power includes, and shall be deemed always to have included, power to make provision requiring specified descriptions of persons to account for and pay tax, and any interest on it, on behalf of the person liable to pay it.
 
 
Units in unit trusts
Stamp duty and stamp duty reserve tax: unit trusts.     122. - (1) The following provisions of this Act (which apply generally to instruments executed on or after 1st October 1999)-
 
 
    (a) section 109 and Schedule 12 (interest and penalties on late stamping),
 
    (b) section 110 (interest on duty overpaid, etc.), and
 
    (c) section 112 and Schedules 13 and 14 (general amendment of charging provisions),
  do not apply to transfers or other instruments relating to units under a unit trust scheme.
 
      (2) Subsection (1) does not affect the operation of those provisions in relation 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 subsections (1) and (2) "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) Schedule 19 to this Act (stamp duty and stamp duty reserve tax: unit trusts) has effect.
 
  This subsection and that Schedule come into force on 6th February 2000.
 
 
Supplementary provisions
Construction of this Part and other supplementary provisions.     123. - (1) This Part-
 
 
    (a) so far as it relates to stamp duty shall be construed as one with the Stamp Act 1891, and
 
    (b) so far as it relates to stamp duty reserve tax shall be construed as one with Part IV of the Finance Act 1986.
      (2) In this Part-
 
 
    (a) "the enactments relating to stamp duty" means the Stamp Act 1891 and any enactment amending or which is to be construed as one with that Act; and
 
    (b) "the enactments relating to stamp duty reserve tax" means Part IV of the Finance Act 1986 and any enactment amending or which is to be construed as one with that Part.
      (3) The following provisions of this Part shall cease to have effect on the day appointed under section 111(1) of the Finance Act 1990 (abolition of stamp duty for securities etc.):
 
 
    section 113;
 
    sections 116 to 121;
 
    subsections (1)(b) and (2)(b) of this section;
 
    in Schedule 13-
 
      paragraph 3,
 
      in paragraph 4 the words "in the case of any other conveyance or transfer on sale",
 
      paragraph 7(1)(b)(ii) to (iv),
 
      paragraph 24(a), (b) and (d);
 
    in Schedule 14, paragraphs 5, 8, 12, 13, 16 to 21 and 23;
 
    Schedule 15;
 
    in Schedule 16, paragraphs 2 to 11;
 
    in Schedule 17, paragraphs 6 to 8;
 
    Parts I to III of Schedule 19;
 
    in Part IV of that Schedule, the words "and the enactments relating to stamp duty reserve tax" in paragraphs 14(1), 15, 16, 17(1) and 18(1).
      (4) The amendment by this Part, or the repeal in consequence of this Part, of any enactment relating to stamp duty does not affect that enactment as applied for any purpose other than stamp duty.
 
 
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