Finance Act, 1996

• Permanent Page URL

Amendment of section 150 (stock borrowing) of Finance Act, 1995.

111.— Section 150 of the Finance Act, 1995 , is hereby amended—

(a) in subsection (1)—

(i) by the insertion of the following definition before the definition of “equivalent stock”:

“‘collateral stock’, in relation to a stock borrowing, means stock which is transferred to the lender by way of security for the performance of the undertaking referred to in paragraph (b) of the definition of ‘stock borrowing’;”,

(ii) by the substitution of the following definition for the definition of “stock borrower”:

“‘stock borrower’ means a member firm or a market maker within the meaning of paragraph (a) of subsection (1) of section 101 of the Finance Act, 1996, or a nominee of such member firm or market maker;”,

and

(iii) by the substitution of the words “broker and dealer or market maker” for the words “broker or dealer” in paragraph (a) of the definition of “stock borrowing”,

and

(b) by the substitution of the following subsection for subsection (2):

“(2) Stamp duty shall not be chargeable—

(a) on a stock borrowing or on a stock return, or

(b) on the transfer of collateral stock to the lender.”.