Finance Act, 1899

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FINANCE ACT 1899

CHAPTER IX.

An Act to grant certain duties of Customs and Inland Revenue, to alter other duties, and to amend the Law relating to Customs and Inland Revenue, and to make other provision for the financial arrangements of the year.[¹] [20th June 1899.]

Part I.

Customs.

[S. 1 rep. 8 Edw. 7. c. 49 (S.L.R.).]

Duties on wine.

2. In lieu of the duties of Customs payable on wine Imported into Great Britain or Ireland there shall    .   .   .   . be charged, levied, and paid the duties following (that is to say):—

Additional duties on spirits.

3. In addition to the duties of Customs payable on spirits imported into Great Britain or Ireland, there shall    .   .   .   . be charged, levied, and paid, the following (that is to say):—

Part II.

Stamps.

Stamp duty on foreign or colonial instruments on which duty is now payable.

30 & 31 Vict. c, 131.

4.—(1) There shall be charged on every marketable security made or issued by or on behalf of any foreign State or Government, or foreign or colonial municipal body, corporation, or company, being a security transferable by delivery, which

(a) is after the first day of August one thousand eight hundred and ninety-nine, assigned, transferred, or in any manner negotiated in the United Kingdom, and

(b) is not, under the law existing at the passing of this Act, chargeable with stamp duty as a marketable security transferable by delivery,

and on every share warrant or stock certificate to bearer by means of which any share or stock of any company or body of persons formed or established out of the United Kingdom is, after the first day of August one thousand eight hundred and ninety-nine, assigned, transferred, or in any manner negotiated in the United Kingdom, a stamp duty of one shilling for every ten pounds, and also for any fractional part of ten pounds in the case of a marketable security of the money thereby secured, and in the case of a share warrant or stock certificate of the nominal value of the share or stock to which the warrant or certificate relates.

(2) There shall be charged on every instrument to bearer, not being a share warrant or stock certificate to bearer charged under the foregoing provision, by means of which any share or stock of any company or body of persons formed or established out of the United Kingdom is, after the first day of August one thousand eight hundred and ninety-nine, assigned, transferred, or in any manner negotiated, in the United Kingdom, a stamp duty of threepence for every twenty-five pounds, and also for every fractional part of twenty-five pounds of the nominal value of the share or stock.

(3) Every person who, in the United Kingdom, assigns, transfers, or in any manner negotiates, or is concerned as broker or agent in assigning, transferring, or in any manner negotiating, any instrument which is chargeable with duty under this section, and is not duly stamped, or any share or stock by means of such an instrument, shall incur a fine of twenty pounds, and the amount of the duty shall be a debt due from any such person to Her Majesty.

(4) For the purposes of this section—

(a) the expression “share warrant to bearer” includes any instrument by whatever name called, having the like effect as a share warrant issued under the provisions of the Companies Act, 1867;[¹] and

(b) the expression “stock certificate to bearer” includes any instrument, by whatever name called having the like effect as a stock certificate to bearer.

Extension of stamp duty on share warrants and stock certificates to bearer.

54 & 55 Vict. c. 39.

5.—(1) The stamp duty charged under the Stamp Act, 1891, on share warrants issued under the provisions of the Companies Act, l867,[¹] shall extend to any instrument to bearer issued by or on behalf of any company or body of persons formed or established in the United Kingdom and having a like effect as such a share warrant, and the stamp duty charged on stock certificates to bearer as defined by the Stamp Act, 1891, shall extend to any instrument to bearer issued by or on behalf of any company or body of persons formed or established in the United Kingdom, and having a like effect as such a stock certificate to bearer.

(2) Section one hundred and seven of the Stamp Act, 1891 (which relates to the penalty for issuing share warrants not duly stamped), shall apply to any instrument chargeable with stamp duty under this section as a share warrant or stock certificate to bearer, in the same manner as it applies to the share warrants named in that section; and section one hundred and nine of the Stamp Act, 1891 (which relates to the penalty for issuing stock certificates unstamped), shall apply to any instrument chargeable with stamp duty under this section as a stock certificate to bearer in the same manner as it applies to the stock certificates to bearer named in that section, and as if “company or body of persons” were mentioned in sub-section one of that section as well as “local authority.”

Provision as to instruments passing by delivery in pursuance of usage.

6. For the purposes of this Part of this Act, an instrument used for the purpose of assigning, transferring, or in any manner negotiating the right to any marketable security, share, or stock shall, if delivery thereof is by usage treated as sufficient for the purpose of a sale on the market, whether that delivery constitutes a legal assignment, transfer, or negotiation or not, be deemed a marketable security transferable by delivery, or an instrument to bearer, as the case may be, and the delivery thereof an assignment, transfer, or negotiation.

Increase of company's capital duty.

59 & 60 Vict. c. 28.

7. Five shillings shall be substituted for two shillings as the ad valorem stamp duty imposed by sections one hundred and twelve and one hundred and thirteen of the Stamp Act, 1891, as extended by section twelve of the Finance Act, 1896, on the statements with regard to the capital of companies referred to in those sections.

Duty on loan capital.

8.[²] –(1) Where any local authority, corporation, company, or body of persons formed or established in the United Kingdom propose to issue any loan capital, they shall, before the issue thereof, deliver to the Commissioners a statement of the amount proposed to be secured by the issue.

(2) Subject to the provisions of this section every such statement shall be charged with an ad valorem stamp duty of two shillings and sixpence for every hundred pounds and any fraction of a hundred pounds over any multiple of a hundred pounds of the amount proposed to be secured by the issue, and the amount of the duty shall be a debt due to Her Majesty.

(3) The duty under this section shall not be charged to the extent to which it is shown to the satisfaction of the Commissioners that the stamp duty payable in respect of a mortgage or marketable security has been paid on any trust deed or other document securing the loan capital proposed to be issued.

(4) If any local authority, corporation, company, or body of persons neglect to deliver a statement, or fail to pay the duty in compliance with this section, that local authority, corporation, company, or body of persons, shall be liable to pay to Her Majesty, in addition to the duty, a sum equal to ten per cent. upon the amount of the duty, and a like sum for every month after the first month during which the neglect or failure continues.

(5) In this section the expression “loan capital” means any debenture stock, county stock, corporation stock, municipal stock, or funded debt, by whatever name known, or any capital raised by any local authority, corporation, company, or body of persons formed or established in the United Kingdom, which is borrowed, or has the character of borrowed money, whether it is in the form of stock or in any other form, but does not include any county council or municipal corporation bills repayable not later than twelve months from their date or any overdraft at the bank or other loan raised for a merely temporary purpose for a period not exceeding twelve months, and the expression “local authority” includes any county council, municipal corporation, district council, dock trustees, harbour trustrees, or other local body by whatever name called.

Increase of duty on letters of allotment and letters of renunciation.

9.—(1) Sixpence shall be substituted for one penny as the stamp duty chargeable under the Stamp Act, 1891, on a letter of allotment, and letter of renunciation, or any other document having the effect of a letter of allotment, where the nominal amount which is allotted or to which the letter of renunciation relates is not less than five pounds.

(2) A separate duty shall be chargeable in respect of letters of allotment and letters of renunciation, although they may be contained in the same document.

(3) The stamp duty of sixpence, chargeable by virtue of this section on a letter of renunciation, may be denoted by an adhesive stamp, which is to be cancelled by the person by whom the letter of renunciation is executed.

Reduction of duty on certain bills of exchange.

10.—(1) The duty payable under the Stamp Act, 1891, on bills of exchange drawn and expressed to be payable out of the United Kingdom, when actually paid or endorsed or in any manner negotiated in the United Kingdom, shall, where the amount of the money for which the bill is drawn exceeds fifty pounds, be reduced so as to be—

(a) where the amount exceeds fifty pounds and does not exceed one hundred pounds, sixpence; and

(b) where the amount exceeds one hundred pounds, sixpence for every one hundred pounds and also for any fractional part of one hundred pounds of that amount.

(2) The stamp duty chargeable under the Stamp Act, 1891, on bills of exchange expressed to be payable at a period not exceeding three days after date or sight shall be one penny, in lieu of the duty now chargeable thereon.

[Addition made to Sehed. of 54 & 55 Vict. c. 39. See that Act.]

Amendment of s. 98 of 54 & 55 Vict. c. 39.

11. The provisions contained in section ninety-eight of the Stamp Act of 1891 in reference to the expression “policy of insurance against accident” shall extend to and include policies of insurance or indemnity against liability incurred by employers in consequence of claims made upon them by workmen who have sustained personal injury when the annual premium on such policies does not exceed [¹ two pounds.]

Amendment of s. 6 of 54 & 55 Vict. c. 39, as to rates of exchange.

12.—(1) Where an instrument other than a bill of exchange or promissory note is charged with an ad valorem duty in respect of any money in any foreign or colonial currency, a rate of exchange for which is specified in the schedule to this Act, the stamp duty on that instrument shall, instead of being calculated as provided by section six of the Stamp Act, 1891, be calculated according to the rate of exchange so specified.

(2) The Commissioners may substitute, as respects any foreign or colonial currency mentioned in the schedule to this Act, any rate of exchange for that specified in the schedule, and may add to the schedule a rate of exchange for any foreign or colonial currency not mentioned therein, and this Act shall be construed as if any rate of exchange for the time being sub-stituted or added were contained in the said schedule, and in the case of the substitution of a rate of exchange as if the rate for which the new rate is substituted were omitted from that schedule.

(3) Any substitution or addition so made by the Commissioners shall not take effect until it has been advertised in the London Gazette for two successive weeks.

[S. 13 adds certain words to s. 52 of 54 & 55 Vict. c. 39. See that Act.]

Construction of Part of Act.

14. This Part of this Act shall be construed together with the Stamp Act, 1891.

[Part III. (Income Tax) rep. 8 Edw. 7. c. 49 (S.L.R.).]

Part IV.

National Debt.

[S. 16 rep. 3 Edw. 7. c. 8 s. 7 (1).]

Creation of terminable annuities.

46 & 47 Vict. c. 54.

54 & 55 Vict. c. 24.

55 & 56 Vict. c. 26.

17.—(1) The Treasury may exchange the existing terminable annuities created in pursuance of section four of the National Debt and Local Loans Act, 1887, for new terminable annuities of equivalent capital value and terminating in the year ending on the last day of March, nineteen hundred and twelve.

(2) The Treasury may convert the sum of fifteen million pounds consolidated stock held by the National Debt Commissioners on account of trustee and post office savings banks into a terminable annuity of equivalent capital value, and terminating in the year ending on the last day of March, nineteen hundred and twenty-three.

(3) A terminable annuity created under the foregoing provisions of this section shall be periodically adjusted in manner provided by section four of the National Debt Act, 1883, as amended by section three of the Public Accounts and Charges Act, 1891, and for that purpose may be increased or reduced, and the National Debt Act, 1883, as so amended, shall apply for the purpose of the adjustment and the calculation of the equivalent capital value of a terminable annuity created under the foregoing provisions of this section.

(4) The Treasury may convert the charge for thirteen million pounds created by section one of the National Debt (Conversion of Exchequer Bonds) Act, 1892, into a terminable annuity terminating in the year ending on the thirty-first day of March one thousand nine hundred and twenty-three, of such amount as will be sufficient to repay, within the period of its currency, the said sum of thirteen million pounds, with interest at the rate of two pounds fifteen shillings per cent. per annum, and as from the date of the conversion[¹] the said Act shall be repealed.

(5) A terminable annuity created under this section shall be charged on the Consolidated Fund or the growing produce thereof, and shall be payable as part of the permanent annual charge for the National Debt yearly, half-yearly, or quarterly, at such times in each year as may be fixed by the warrant creating the annuity.

[Sub-s. (6) rep. 8 Edw. 7. c. 49 (S.L.R.)].

Part V.

General.

Short title.

18. This Act may be cited as the Finance Act, 1899.

SCHEDULE.

Equivalents in Sterling of Foreign Currencies.

Sect. 12 .

[¹ Short title, “The Finance Act, 1899.” See s. 18.]

[¹ Rep. 8 Edw. 7. c. 69, s. 286. See now that Act.]

[¹ See note [¹], p. 754.]

[² Amended as to loan capital issued for the purpose of conversion or consolidation of existing capital by 7 Edw. 7. c. 13, s. 10.]

[¹ Substituted for “one pound” by 7 Edw. 7. c. 13, s. 8 (3).]

[¹ This conversion was effected.]