Secretarial practice

Bibliographic data

Monograph

Identifikator:: 1828236004

URN:: urn:nbn:de:zbw-retromon-249926

Document type:: Monograph

Title:: Secretarial practice

Edition:: fourth edition

Place of publication:: Cambridge

Publisher:: W. Heffer & Sons Ltd

Year of publication:: 1930

Scope:: viii, 987 Seiten

Digitisation:: 2022

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter XXIX. Stamp duties

Collection:: Economics Books

356 SECRETARIAL PRACTICE Loan Capital. The duty on loan capital is charged by s. 8 of the Finance Act, 1899, as amended by s. 10 of the Finance Act, 1907. It is payable by every local authority, corporation, company, or body of persons formed or established in the United Kingdom upon a statement to be delivered to the Com- missioners of Inland Revenue before the issue of the loan, and the duty payable is charged at the rate of 2s. 64. per cent. Loan capital is defined as meaning any debenture stock, or any capital which is borrowed or has the character of borrowed money. It 1s, however, provided that the duty is not to 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. In any such case a statement need not be rendered. Questions have’ arisen as to whether the conversion or consolidation of loan capital is an issue of loan capital. This is illustrated by the case of The Attorney-General v. The Regent's Canal and Dock Com- pany (1904), 1 K.B. 263, which related to the issue of debenture stock at one rate of interest in extinction of exist- ing loans secured by three different debenture stocks at varying rates of interest, the amount of the new stock issued to each holder being such an increased amount as would enable him to receive the same interest as he previously had. By this means the nominal amount of the new stock considerably exceeded the nominal aggregate amount of the three previous stocks, and it was held by the Court of Appeal that there had been an issue of loan capital in respect of which duty was payable under the section. The decision in this case was followed by the Court of Appeal, and was affirmed by the House of Lords in the case of The Attorney-General v. The London and India Docks Com- pany (1909), A.C. 7, relating to an issue of debenture stock in two classes which became merged in a new statutory company where the operation did not involve the raising from the public of any additional capital. There is in this respect a marked difference between a consolidation of nominal share capital and a consolidation of loan capital, seeing that a consolidation of share capital without an increase does not attract duty. The law was accordingly amended by s. 10 of the Finance Act, 1907, which provided that where after August 9, 19o7, duty has been paid relating to loan capital, and there is afterwards a conversion or consolidation of the loan capital to which the statement relates. and a consequent delivery of a new statement

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