Finance Act, 1990

Amendment of section 19 (conveyance or transfer on sale — limit on stamp duty in respect of certain transactions between bodies corporate) of Finance Act, 1952 .

116.Section 19 (inserted by the Finance Act, 1980 ) of the Finance Act, 1952 , is hereby amended—

(a) by the insertion of the following subsection after subsection (2):

“(2A) Notwithstanding that at the time of execution of any instrument the bodies corporate between which the beneficial interest in the property was conveyed or transferred were associated within the meaning of subsection (2) of this section, they shall not be treated as having been so associated unless, additionally, at that time—

(a) one such body was beneficially entitled to not less than 90 per cent. of any profits available for distribution to the shareholders of the other such body or a third such body was beneficially entitled to not less than 90 per cent. of any profits available for distribution to the shareholders of each, and

(b) one such body would be beneficially entitled to not less than 90 per cent. of any assets of the other such body available for distribution to its shareholders on a winding up or a third such body would bebeneficially entitled to not less than 90 per cent. of any assets available for distribution to the shareholders of each on a winding up,

and, for the purposes of this section—

(i) the percentage to which one body corporate is beneficially entitled of any profits available for distribution to the shareholders of another body corporate, and

(ii) the percentage to which one body corporate would be beneficially entitled of any assets of another body corporate on a winding up,

means the percentage to which the first body corporate is, or would be, so entitled either directly or through another body corporate or other bodies corporate or partly directly and partly through another body corporate or other bodies corporate.”,

and

(b) by the substitution of the following paragraph for paragraph (c) of subsection (3):

“(c) the transferor and the transferee were to cease to be associated within the meaning of subsections (2) and (2A) of this section,”.