PART VII.

Stamp Duties.

75. —(1) In the First Schedule to the Stamp Act, 1891, before the head of charge “Policy of Life Insurance” there shall be inserted the following—

and the head of charge “Policy of Sea Insurance” and the head of charge beginning “Policy of Insurance against Accident” shall be omitted.

(2) The following shall be exempt from all stamp duties:

(a) cover notes, slips and other instruments usually made in anticipation of the issue of a formal policy, not being instruments relating to life insurance;

(b) instruments embodying alterations of the terms or conditions of any policy of insurance other than life insurance;

and an instrument exempted by virtue of paragraph (a) of this subsection shall not be taken for the purposes of the Stamp Act, 1891, to be a policy of insurance.

(3) An instrument shall not be charged with duty exceeding sixpence by reason only that it contains or relates to two or more distinct matters each falling within the head of charge inserted by subsection (1) of this section.

(4) In consequence of subsection (1) of this section, the Stamp Act, 1891, shall be amended as follows:

(a) sections 92 to 97 shall cease to have effect;

(b) section 100 shall have effect as if the exceptions therein as to sea insurance were omitted;

(c) section 116 shall apply in relation to all policies of insurance other than life insurance, and the second part of the Second Schedule shall have effect accordingly;

and the said section 100 shall not apply in relation to an insurance or a policy effecting an insurance if the insurance is such that a policy effecting it is exempt from all stamp duties.

(5) Paragraphs (2) to (5) of section 23 of the Marine Insurance Act, 1906, and subsection (2) of section 25 thereof shall cease to have effect.

(6) Notwithstanding the repeal of section 93 of the Stamp Act, 1891, a contract for such insurance as is mentioned in section 506 of the Merchant Shipping Act, 1894, shall continue to be admissible in evidence although not embodied in a marine policy as required by section 22 of the Marine Insurance Act, 1906.

(7) This section shall come into operation on the 1st day of August, 1959, and shall not have effect with respect to any instrument executed before that day.

76. —(1) Paragraph (b) of subsection (1) of section 19 of Finance Act, 1952 , is hereby amended by the substitution of the following subparagraphs for subparagraphs (i) to (v):

“(i) the transferor was entitled to the entire beneficial interest in the relevant property,

(ii) the entire beneficial interest in the relevant property became vested in the transferee,

(iii) at the time of the execution of the instrument the transferor and transferee were associated with each other to the extent that either was the beneficial owner of not less than ninety per cent, of the issued share capital of the other or that not less than ninety per cent, of the issued share capital of each of them was in the beneficial ownership of a third body corporate, and

(iv) the conveyance or transfer was not made in pursuance of or in connection with an arrangement whereunder either the consideration was to be provided directly or indirectly by a person other than a body corporate which at the time of the execution of the instrument was associated with either the transferor or the transferee to the extent described in subparagraph (iii) of this paragraph, or the beneficial interest in the relevant property was previously conveyed or transferred directly or indirectly by such a person as aforesaid.”

(2) The reference to paragraph (6) of subsection (1) of section 19 of Finance Act, 1952 , in paragraph (a) of that subsection and the reference thereto in paragraph (a) of subsection (4) of that section shall each be construed as a reference to the said paragraph (6) as amended by subsection (1) of this section.