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FINANCE ACT (NORTHERN IRELAND) 1963

FINANCE ACT (NORTHERN IRELAND) 1963 - LONG TITLE

An Act to amend the law relating to estate duty, stamp duties and
certain excise duties and excise licences; and to make further
provision in connection with finance.
[9th July 1963]
Part I (ss.13)Estate Duty

Reduced duty on conveyance or transfer on sale.

FINANCE ACT (NORTHERN IRELAND) 1963 - SECT 4

4.(1) Subject to sub-sections (2) and (3) and to the following
provisions of this Part the stamp duty chargeable under the heading
"Conveyance or Transfer on sale" in Schedule 1 to the Stamp Act
1891 shall be charged by reference to the amount or value of the
consideration for the sale at the following rates, that is to say

(2) In relation to duty chargeable under or by reference to the
said heading as it applies to a conveyance or transfer of stock or
marketable securities, and to duty chargeable by reference to that
heading by virtue of the heading "Lease or Tack" in Schedule 1 to
the Stamp Act 1891 in a case where part of the consideration
consists of rent and that rent exceeds [#250] a year, sub-section
(1) shall have effect as if [paragraphs (a) to (d)], and the words
"in any other case" in [paragraph (e)], were omitted.

(3) Nothing in this section shall affect any enactment imposing an
upper limit on the amount of duty chargeable ad valorem.

(4) If as respects any instrument this section operates to provide
that stamp duty chargeable under the heading "Conveyance or Transfer
on sale" in Schedule 1 to the Stamp Act 1891 shall be charged at
a nil rate, that instrument shall not be chargeable with stamp duty
under the headings "Deed of any kind whatsoever, not described in
this schedule" ... in the said Schedule 1.

FINANCE ACT (NORTHERN IRELAND) 1963 - SECT 5
Reduced duty on leases.

5.Subs.(1) rep. by 1972 NI 11 art.21 sch.4 Pt.II; 1974 c.30 s.57
sch.14 Pt.IV; subs.(2) rep. by 1974 c.30 s.57 sch.14 Pt.IV

(3) For the purposes of the said heading a lease granted for a
fixed term and thereafter until determined shall be 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; and section 75 of the said Act
of 1891 (agreements for leases) shall be construed accordingly.

Subs.(4) repeals ss.76, 77(3), 78 of 1891 c.39

FINANCE ACT (NORTHERN IRELAND) 1963 - SECT 6
Miscellaneous reductions.

6.(1) The rates of stamp duty chargeable under or by reference to
the following headings, or parts of headings, in Schedule 1 to the
Stamp Act 1891, that is to say

Bond, Covenant or Instrument of any kind whatsoever;

...

Mortgage, Bond, Debenture, Covenant, and Warrant of Attorney;

...

Subs.(2) rep. by 1970 c.21 (NI) s.19 sch.3 Pt.II

Stamp duty on bearer instruments.

FINANCE ACT (NORTHERN IRELAND) 1963 - SECT 8

8.Subs.(1) amends sch.1 to 1891 c.39 and repeals ss.4, 5(1), 6 of
1899 c.9

(2) For the purposes of the heading set out in sub-section (1)

(a)"inland bearer instrument" means any of the following instruments
issued by or on behalf of any company or body of persons corporate
or unincorporate formed or established in the United Kingdom, that
is to say

(i)any marketable security transferable by delivery;

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

<(iii)any deposit certificate to bearer;

<(iv)any other instrument to bearer by means of which any stock can be transferred;

(b)"overseas bearer instrument" means an instrument issued otherwise
than by or on behalf of any such company or body of persons as
is mentioned in paragraph (a), being an instrument described in
sub-paragraphs (i) to (iv) of that paragraph or a bearer instrument
by usage;

(c)"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; and "deposit certificate for overseas stock" means
a deposit certificate in respect of stock of any one company or
body of persons not being such a company or body as is mentioned
in paragraph (a);

(d)"bearer instrument by usage" means an instrument not described in
the said sub-paragraphs (i) to (iv) which is used for the purpose
of transferring the right to any stock, being an instrument delivery
of which is treated by usage as sufficient for the purpose of a
sale on the market, whether that delivery constitutes a legal
transfer or not;

(3) For the purposes of the said heading "the transfer duty" means
the duty which would be chargeable under the heading "Conveyance or
Transfer on sale" in the said Schedule 1 in respect of an
instrument in writing transferring the stock constituted by, or
transferable by means of, the inland or overseas bearer instrument
in question for a consideration equal to the market value of that
stock.

(4) For the purposes of this section and sections 9 and 10,
"stock" includes securities, and references to stock include
references to any interest in, or in any fraction of, stock or in
any dividends or other rights arising out of stock; "transfer"
includes negotiation; and a bearer instrument by usage used for the
purpose of transferring the right to any stock shall be treated as
transferring that stock on delivery of the instrument, and 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.

Subs.(5) repeals s.4 of 1944 c.22 (NI)

FINANCE ACT (NORTHERN IRELAND) 1963 - SECT 9
Payment of duty

9.(1) Duty under the heading set out in section 8(1) shall be
chargeable

(a)in the case of an instrument issued in Northern Ireland, or
issued outside Northern Ireland by or on behalf of any company or
body of persons corporate or unincorporate formed or established in
Northern Ireland, on issue;

(b)in the case of any other instrument, on transfer in Northern
Ireland of the stock constituted by or transferable by means of the
instrument:

Provided that the duty chargeable by virtue of paragraph (b) on the
transfer of stock shall be chargeable only where duty would be
chargeable under or by reference to the heading "Conveyance or
Transfer on sale" in Schedule 1 to the Stamp Act 1891, if the
transfer were effected by an instrument not being a bearer
instrument.

(2) Any instrument which is chargeable under the said heading on
issue shall, before being issued, be produced to the Ministry of
Finance (in this Part referred to as "the Ministry"), together with
such particulars in writing of the instrument as the Ministry may
require, and shall be deemed to be duly stamped if, and only if,
it is stamped with a particular stamp denoting that it has been
produced to the Ministry; and within six weeks of the date on
which any such instrument is issued, or such longer time as the
Ministry may allow, a statement in writing containing the date of
issue and such further particulars as the Ministry may require in
respect of that instrument shall be delivered to the Ministry, and
the duty chargeable in respect of that instrument shall be paid to
the Ministry on delivery of that statement or within such longer
time as the Ministry may allow.

(3) If default is made in complying with sub-section (2) in respect
of any instrument, the person by whom or on whose behalf the
instrument is issued, and any person who acts as the agent of that
person for the purposes of the issue, shall be liable to a fine
not exceeding the aggregate of fifty pounds and an amount equal to
the stamp duty chargeable in respect of that instrument, and shall
also be liable to pay to [Her Majesty] the duty chargeable in
respect of that instrument and interest on the duty at the rate of
five per cent. per annum from the date of the default.

(4) Where any instrument which is chargeable under the said heading
on transfer of the stock constituted by, or transferable by means
of, the instrument is presented to the Ministry for stamping, the
person presenting it, and the owner of the instrument, shall furnish
to the Ministry such particulars in writing as it may require for
determining the amount of duty chargeable on that instrument.

(5) Any person who in Northern Ireland transfers, or is concerned
as broker or agent in transferring, any stock by or by means of
any such instrument as is mentioned in sub-section (4) shall, if
the instrument is not duly stamped, be liable to a fine not
exceeding the aggregate of fifty pounds and an amount equal to the
stamp duty chargeable in respect of that instrument, and shall also
be liable to pay to [Her Majesty] the duty chargeable in respect
of that instrument and interest on the duty at the rate of five
per cent. per annum from the date of the transfer in question.

(6) If any person, in furnishing particulars under this section in
respect of any instrument, wilfully or negligently furnishes any
particulars which are false in any material respect, he shall be
liable to a fine not exceeding the aggregate of fifty pounds and
an amount equal to twice the amount by which the stamp duty which
ought to be charged in respect of that instrument exceeds the stamp
duty paid in respect thereof.

(7) Where any such instrument as is mentioned in sub-section (4)
has been stamped ad valorem or with a stamp indicating that it is
chargeable under paragraph (4) of the said heading and with the
duty specified in that paragraph, that instrument shall be deemed
for all purposes other than sub-section (6) to have been duly
stamped.

FINANCE ACT (NORTHERN IRELAND) 1963 - SECT 10
Ascertainment of market value.

10.(1) In relation to an instrument which is chargeable on issue,
the market value of the stock constituted by, or transferable by
means of, that instrument shall be taken for the purposes of
section 8 to be

(a)where the stock was offered for public subscription (whether in
registered or in bearer form) within twelve months before the issue
of the instrument, the amount subscribed for the stock;

(b)in any other case, the value of the stock on the first day
within one month after the issue of the instrument on which stock
of that description is dealt in on a stock exchange in the United
Kingdom or, if stock of that description is not so dealt in, the
value of the stock immediately after the issue of the instrument.

(2) In relation to an instrument which is chargeable on transfer of
the stock constituted by, or transferable by means of, that
instrument, the market value of that stock shall be taken for the
purposes of section 8 to be the value of that stock

(a)in the case of a transfer pursuant to a contract of sale, on
the date when the contract is made;

(b)in any other case, on the day preceding that on which the
instrument is presented to the Ministry for stamping or, if it is
not so presented, on the date of the transfer.

Commonwealth stock.

FINANCE ACT (NORTHERN IRELAND) 1963 - SECT 11

11.(1) In Schedule 1 to the Stamp Act 1891, the heading "Conveyance
or Transfer whether on sale or otherwise" (which relates to Canadian
and colonial stock) shall be omitted, and any transfer of stock to
which that heading applied shall be chargeable with stamp duty under
the heading appropriate to a like transfer of other stock.

(2) The rate of stamp duty chargeable under or by reference to the
heading "Conveyance or Transfer on sale" in the said Schedule in
respect of a transfer of commonwealth government stock [shall be 10p
for every #20 or part of #20 of the consideration if the amount
or value thereof does not exceed #300 and, in any other case, 50p
for every #100 or part of #100 of the consideration.]

Subs.(3) amends s.83 of 1891 c.39; subs.(4) rep. by SLR 1973

(5) In this section "commonwealth government stock" means stock or
marketable securities issued by the government of any country or
territory within the commonwealth outside the United Kingdom, ....

FINANCE ACT (NORTHERN IRELAND) 1963 - SECT 12
Securities for annual and other payments.

12. In determining whether an instrument is

(a)the only, principal or primary security for any annuity or for
any sum or sums of money within the meaning of paragraph (1) of
the heading "Bond, Covenant or Instrument of any kind whatsoever" in
Schedule 1 to the Stamp Act 1891; or

(b)the only, principal or primary security for the payment or
repayment of money within the meaning of paragraph (1) of the
heading "Mortgage, Bond, Debenture, Covenant and Warrant of Attorney"
in that Schedule;

Gifts in consideration of marriage.

FINANCE ACT (NORTHERN IRELAND) 1963 - SECT 13

13. For the purposes of section 74(5) of the Finance (1909-10) Act
1910 (stamp duty on conveyances and transfers not for valuable
consideration) marriage shall not be deemed to be the consideration
for a conveyance or transfer except in so far as the conveyance or
transfer is a disposition such as, in the case of a person dying
after the commencement of this Part, would be treated for estate
duty purposes as a gift made in consideration of marriage.

FINANCE ACT (NORTHERN IRELAND) 1963 - SECT 14
Miscellaneous exemptions.

14.(1) Any instrument which is exempt from duty under the heading
set out in section 8(1) by virtue of exemption 3 in that heading,
or would be so exempt if it were otherwise chargeable under that
heading, shall be exempt from stamp duty under or by reference to
the heading "Conveyance or Transfer on sale" in Schedule 1 to the
Stamp Act 1891.

(2) In Part III of the Finance (No. 2) Act (Northern Ireland)
1946, and in section 3 of the Finance Act (Northern Ireland) 1962,
the references to a unit trust scheme shall be deemed not to
include references to any unit trust scheme the units in which are,
under the terms of the trust instrument relating to the scheme,
required to be held only by bodies of persons established for
charitable purposes only or trustees of trusts so established.

S.15 rep. by 1967 c.20 (NI) s.20 sch.3 Pt.I; 1973 NI 18 art.16
sch.4

FINANCE ACT (NORTHERN IRELAND) 1963 - SECT 16
Prohibition of circulation of blank transfers.

16.(1) Where a transfer in blank relating to registered stock of
any description has been delivered, pursuant to a sale of that
stock, to or to the order of the purchaser or any person acting
on his behalf, any person who in Northern Ireland parts with
possession of that transfer, or who removes it or causes or permits
it to be removed from Northern Ireland, before it has been duly
completed shall be liable to a fine not exceeding the aggregate of
fifty pounds and an amount equal to twice the stamp duty chargeable
in respect of that transfer.

(2) For the purposes of this section "transfer in blank" means a
transfer in which the name of the transferee has not been inserted,
and a transfer shall be treated as duly completed if, and only if,
the name of the transferee is inserted therein, being the name of

(a)the purchaser of the stock under the sale;

(b)a person entitled to a charge upon the stock for money lent to
that purchaser;

(c)a nominee holding as a bare trustee for that purchaser or for
any such person as is mentioned in paragraph (b); or

(d)a person acting as the agent of that purchaser for the purposes
of the sale.

(3) Sub-sections (1) and (2) shall apply in relation to a transfer
delivered by way of or pursuant to a voluntary disposition inter
vivos, being a transfer to which section 74 of the Finance (190910)
Act 1910 applies, as they apply in relation to a transfer delivered
pursuant to a sale, and as if for any reference to the purchaser
there were substituted a reference to the person (in this section
referred to as the donee) to whom the disposition is made.

(4) In this section references to stock shall be construed in
accordance with sub-section (4) of section 8, and "transfer" includes
any instrument used for transferring stock; but nothing in this
section applies

(a)to any instrument which is chargeable with duty under paragraph
(3) of the heading "Bearer Instrument" set out in sub-section (1)
of that section and is duly stamped; or

(b)to any instrument which is exempt from duty by virtue of
exemption 3 in that heading, or would be so exempt if it were
otherwise chargeable under that heading.

(5) References in this section to the purchaser or donee of any
stock include references to any person to whom the rights of the
purchaser or donee are transmitted by operation of law; and in
relation to a transfer chargeable with duty in accordance with
section 58(4) or (5) of the Stamp Act 1891 (transfers to
sub-purchasers), references in this section to the purchaser and a
sale shall be construed as references to the sub-purchaser and a
sub-sale.

Subs.(6) rep. by SLR 1973

S.21, with Schedule 3, effects repeals

FINANCE ACT (NORTHERN IRELAND) 1963 - SECT 22
Short title and construction.

22.(1) This Act may be cited as the Finance Act (Northern Ireland)
1963.

Subs.(2) rep. by SLR 1973; subs.(3)Estate Duty

(4) Part II shall be construed as one with the Stamp Act 1891.

Subs.(5) rep. by 1972 c.10 (NI) s.37(4) sch.10; subs.(6) rep. by
SLR 1976; 1979 c.4 s.92(2) sch.4 Pt.II

Part I amends the rates of stamp duty on Conveyances or Transfers
on Sale; Part II amends the rates on Leases or Tacks see those
headings in Schedule 1 to the Stamp Act 1891 (c.39) for the rates
applicable at 31.3.1981