362 SECRETARIAL PRACTICE
of three years from the date when the duty becomes charge-
able—that is to say, the first issue of the security, or, in
the case of a security not issued in the United Kingdom,
the first transfer, or negotiation in the United Kingdom—
and the date is conspicuously stated on the face of the
security. The reduced duty, which applies to all bearer
securities not being colonial government securities, is for
every £10, or fractional part, 6d., if the security will expire
within a year, and 1s. if the security will expire after a year
and within three years; and it 41s provided that if the security
is not paid off within the stated period, and there is any
subsequent dealing, the full rate of duty shall become
payable, subject to an allowance of the duty already paid.
The duty chargeable in respect of a substituted security
Joes not apply where the reduced rate of duty is paid under
“his section.
Loans repay- The duty is charged on the amount secured, and accord-
ible 5 a ingly, if a debenture is issued upon a loan of a sum repayable
"unconditionally with a premium thereon, the aggregate
amount of the loan and the premium is the amount secured
upon which the duty is payable. This was decided in the
case of Rowell v. The Commissioners of Inland Revenue [(1897),
2 Q.B. 194], but is was subsequently held that if the terms of
the debenture are such that the premium mentioned therein is
only payable if it is paid off upon a notice, so that the payment
of the premium merely depends upon the will and pleasure of
the company, who are under no obligation to give the notice,
the premium is not to be taken into account in computing the
duty [Knights Deep Limited v. Inland Revenue (1900), 1 Q.B.
217], and this principle is considered to be equally applicable
to a premium which will become payable only in the case of
the voluntary winding up of the company issuing the security.
Questions have arisen as to the extent of the charge of
duty on a debenture, and reference may be made to the case
of The British India Steam Navigation Co. v. The Com-
missioners of Inland Revenue, 7 Q.B.D. 165, decided in
1881, which related to an instrument not under seal issued
by an English company, with coupons for interest attached,
and purporting on the face of it to be a debenture, and to
the decision of the House of Lords in 1908 in the case of
Speyer Bros. v. The Commissioners of Inland Revenue (1907),
1 K.B. 246, which related to a Treasury note issued by a
foreign government with coupons for interest attached,
although giving no security to the holder beyond the promise
to pay the face amount of the note, in both of which cases it
was held that the charge of duty applied. It was held in