FINANCE ACT, 1027 
815 
the release and assignment of debts of the existing company 
shall not, except in the case of debts due to banks or 
to trade creditors apply to debts which were incurred 
less than two years befove the proper time for making a 
claim for exemption under this section. 
(2) For the purposes of a claim for exemption under paragraph 
(B) of subsection (1) of this section, a company which has, in 
connection with a scheme of reconstruction or amalgamation, 
issued any unissued share capital shall be treated as if it had 
increased its nominal share capital. 
(3) A company shall not be deemed to be a particular existing 
company within the meaning of this section unless it is provided 
by the memorandum of association of, or the letters patent or 
Act incorporating, the transferee company that one of the bbjects 
for which the company is established is the acquisition of the 
undertaking of, or shares in, the existing company, or unless it 
appears from the resolution, Act or other authority for the 
increase of the capital of the transferee company that the in- 
crease 1s authorised for the purpose of acquiring the undertaking 
of. or shares in, the existing company. 
(4) In a case where the undertakings of or shares in two or 
more companies are to be acquired, the amount of the reduction 
to be allowed under this section in respect of the stamp duty 
chargeable in respect of the nominal share capital or the increase 
of the capital of a company shall be computed separately in rela- 
tion to each of those companies. 
(5) Where a claim is made for exemption under this section, the 
Commissioners of Inland Revenue may require the delivery to 
them of a statutory declaration in such form as they may direct, 
made in England by a solicitor of the Supreme Court or in Scot- 
land by an enrolled law agent, and of such further evidence, if any. 
as the Commissioners may reasonably require. 
(6) If— 
(a) 
where any claim for exemption from duty under this section 
has been allowed, it is subsequently found that any 
declaration or other evidence furnished in support of the 
claim was untrue in any material particular, or that the 
conditions specified in subsection (1) of this section are not 
fulfilled in the reconstruction or amalgamation as actuallv 
carried out; or 
where shares in the transferee company have been issued 
to the existing company in consideration of the acquisition, 
the existing company within a period of two years from the 
date, as the case may be, of the registration or incorporation 
or of the authority for the increase of the capital, of the 
transferee company ceases, otherwise than in consequence 
of reconstruction, amalgamation or liquidation, to be the 
beneficial owner of the shares so issued to it: or 
(b)