MCSTLE S. I]. Fax{III 23 Mar '00 13:07 P.A2R€VenueTHE STAMP OFFICE

-Legal Division ?DDAI' The Patent OffrceCardiffRoadNewportOWENT NPg lRH

FMt173

NENQ I59/99/ADB

23 March 2000

DearI

IIIIArtlst nt Dlrestor

15th FloorCale Cross House156 Pilgrim StreetNcwc.rtle upgn Tyne NEI 6TFDX 6l0Zl Newcalrle uoon Tvne

Iel?hry-

FrxlEl

BYF'AXONLY

Abolltion o.f $t$np D,utv on Documents Rerrtinq tp luteflcctrar prop.rtv

Thank you fot yout two lctters dalcd 22 March. I note you agrce rryo no longer nocdto moet,

You alkcd mc, whcn you tetephoned, how ihc ebolition has statutory effect ftom 2Sr4arch wen though the Finance Act is still not lew The measnrc has statutory effectby virtue of e co'mons Resolrrtion and under the provisions of section so oitheFinance Act l973,lafiaah,for.your information, a copy of Sootion 50 andaffi ofthc part of the Resolution relati"g to tMs abolition.

Turyngnow to )'our draff Notice, I bave a few suggestions for you to considcr. lnth€ first.line can I suggest you say "...will no tonglid tevied on do**rnt .ff..tingtrassactions in intellecfual propcrty.".

Please.see subparagaph (I3) of the attached Resorution which sets out thcgetTuti.on of "intellectual property" so far as this exemption is concerned. Therc is nodrubt \it tbe proposod_excmption is very wide ranging and {re majority ofdocuments your office deals with will no tongcr be iiab-k to etamp iuty. But theremay still be s few which are dutiatle. you will be able to say, certainly with morespeclallst knowlodge rhan I, which categories ofpropeny fali outside the definitioaof IP in the Resolutiou.

I think it is therefore importaut to include rhe definition oflp covered by theexomption as the sesond sentence of your Notioe, so that patcnt egcnts arc Dot undsrthe impression that this is an absolute blanket exemption.

You will also know from the Press Relesse that hybrid documents may still be liableto_ stamp duty ia respect of non-Ip and in fact I mentioned this in my lltter of 2lMarch t.o you. Agaiu, you will know bettcr than I whelher 0re maj orig of documentsyou register relate exclusively to Ip or whethcr thcy covgr otler property too, Mo$

The Stemp Oftce k Bn ExecativeOffi..e of the Inl€nd Rtvenuf

fhe Stanp Ollice E comnitted to ptoviding thebert qualw trrvice in the butinest of govemmenL

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astute praotitioners should ouickly appreciale fnt prEparing sop$atc docu[edlsrelating to the IP wilt ensuri they can be rcsistered- without-*v ,tu*p Autv probtcms.

I ftel s lioo ortwo in thc Norice, reminding thcm that documen* which do notr€rateexclwivcly to Ip may nccd to be sramped il rcGciof-otlil ebmcnts of tbetansaction, would help to ctarifr the position.

I hope these observations help.

Yorus sinccrely

1.,1F-

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-IN/CSTLE S.0. Fax:lllh 23 l'lar '00 15:08 p.04- _ G t r . v . r v

59. Stsmn duty (misc€llaneous)

That provislon may be made--

(a) amcnding """1T,15^of *: SrampAc] 1891, secrton 42 of the FhaoceAct 1930,se ction I I of the Finance Act (Northe; Ired;j i es+, ,"rtio* zs ;d 26 ;f th;

,Ffuanco Acr 1996 and section iSf oftfr. fi"*rJ" Act t995; and

. (b) about stamp duty on docurnents relating to the gurrender ot ronuncietiou ofleases.

60. Stamp duty (iDtEilcotual property)

^llg *9 folrowing provisions sha' have effect for thc period beginning 2B0r Mrrch2000 and ending 3 | days after the "artiu"t

oitne arteg mcntioned in section 50(2) oftleFinanceAcl l97j-

,!1) N9 stamp dW is chalgeable on an instrument for tbe sale, transfer or otherdisposition of intellcctual pioperty

J2) \lk* rtu.t duty under part I of Schedulo I 3 to thc Financc Act I 999 isohargeable on an instument and part ofthe ptoprtty ,oo.erued consists ofinteuectualproperty-

(e) thc considcration in rcspect of which duty would otlremiso be charged shall beapportionc4 on such besis as is just and t *orlblr, * br;.;,h-r-p;l"it"'ilrp."ywhlch consists of inteUectual ploparty and the part *^on oo., nor, *d

(b) the instumcnt shall be chrged only in rerpect oftbe considcration attributcd rosuch of the property as is not iateliectual i".p*i-

(3) Where part of the property refetred to in section 5g(l) of the Strlnp Act lgglconsists of intellcctuar lropcrty, that provieion shalr havi effcct as ifltr,o partio, oiotfitrr r€ad (is just arld reasonable",

(4) Where-

. (a) pafi ofthe property,refened to in section 5g(2) ofthe stamp Act I ggl consistr ofintel lectual property, and

(b).both or (as the ca$e may be) all the relevaut persons arc oonnected with oneanother,

out provision shall have effeot as if the words from "for distinot parts of thecolsidcratiou" to thc cnd of thc subsection rcad ", the considomtion is to bcapportioned in such manner aE isjust and reasonable, so that a distinct considerationfor eaeh separate pa,rt or parcer is set forth in the conveyance relating tt *to, *J.*lconveyance is to be charged with ad valorem duty in respect of sueb-di$inct'coasideration.,,.

(5) In a caso where paraEaph (3) or (4) applies and ttre comideration is apportioned ur

hnp://www'parliarnent.the-stationery-ofice.co.ul/palcm lgggl}/cmagendatoboo0322.htn 22103/0064

;*N/CSTLE S.0. Fax:- 2J l4ar- ,00 13:09 .p_on.__.-"

i"TffiH [-i"t just and reasonablc, the enacbrents relating to stamp duty shall

*G) the oonsidcrarion lud becn apportioned h a manner that is just end reasonabre,

(b) the amount of any distinct consirrcration set forth in aay conveyance rerating o aselrarate part or pssoel of poperty wcrc auch amouDt as is found by ijust _d ---,

reasonable apportionm€nt (and not *r" uoro*i..tualy rct forth), ;ft "

.r,achruntrclatingto stamp duty" meurs the stamp t;gti *jr"y";;;;;;6;,which is to be conskged as one witfr Ur.:t eci.---

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(6) For the purposes ofporagraph (4)_

(a) a person is a rercvaflt person if,he is a pcrson by or for whom the property iscortracted to be prucbaset

. (b) the question whe0rcr p_ersons are connected with onc anothcr shal be determinedin accordance with sectiong3g ofthe Income and itrporauou Taxes Aot r9gg.

^(p tjgttggtua_prEcrty sh{l be d]srrgarded for thc purposcs ofparagraph 6 ofSchedule l3 to thc Fioaoca Acr 1999.

(8) Any statcmcnt as mentioned in paragraph 6(1) ofthat Sohcdulc shall be coastrucdas lcaving out of acaount any mattrr wtiJtr i, to LJ so disregarded.

(9) sccion 12 ofthe Fiuanc+ Aet 1g95 docs not rcquirc any pcrson who is authoriscdto purchnse any property as mentioned in tlrat section aftEr 27ih rrru*r, iooo o loJro.any intellectuer properg in the inetrurflcnr ofconvsyanc€ required by that suou* ii tuproduced to thc Commrssr oners,

(10) If the property c,onsistq wholry of inteilectuar pmpcrty no instrument ofconveyance need be produced !o the commissioners under-thst section.

,l_P-!ti:o ro oaragraptr (t^Z), $lprcccding paragraphs of this Rcsolution apply romsutulents Executed on or afier 2gth March 2000.

_(I2) Paragra,phs (9) and (10) appty where thc Act mentioned in section 12 oftheFinaoce Act 1895, and by virtui Lfwhich property is vested or a person is authorised ropurchase property, is passed after 2ZtU Uaictr ZOfiO_

(13) In this Resolution "lntellertuEl property,, mcarur.-

(a) any parenr, trade mark, registered destg& oopltight or dcsign righ!

- - (b) ary plant brecdets' rights and rights undor rcotion 7 ofthc plaot varistics Actt997,

(c) any licence or other right in respect ofanything within paragraph (a) or (b), or

(d) aly dghtr under the law ofa country outsidc the United Kingdom thatconcspond or are sirnilar to those within paragraph (a), (b) or (c).

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http://wwwparliament.the-stationery-office.co.uk/palcm199900/omagenda/ob000322.htra 22/03/0065

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Ancl it is heteby deolared that it is expedicnt in the public interest that t&is R€solutionshould have $Etutory effect under rhiiro]]-Jo* of ,"ction 50 of the Finsncc Act 1973.61. Statp duty (Northcm Ireland Asscmbly Comrrission)

That the fonowing provisions sha'hsve effect f9r the period beginning 2Eth Marchii##ffit,rf,t:l

days aftcr the carti,J oitu" aot s mentioncd-in se.fion toqzl ortn,

(r) sectioa 55 0fttre Finance Acr lggT shalr be amended a8 forows.

(2) hr subseotion (l)..

(a) aft* ',agrced to be madc,' therc ghall be i$sertad "(a),;

O) after ,Ministcr of thc Crown or,,ther6 shall bc inscrtcd ,,(b),,; and

(o) a.fter "Treasury, or,' thcre shall be inserted ,'(o)",

(3) In subsoction (l), after'Natioual Assembty for Wales,', there shall be lnserted,,or(d) to the Norttrern leland Aslcmbly Commissio4,,.

- (4)-paragreph (3) has efiifi in relation to inswmenrs executod on or after 2gth March2000.

'And it is hereby declared that il is cxpcdient in the public interest that this Resotutionshould h.yc statu'ry cffcct undcr ttrc provisions ofiection so of the Fina;; A$ .o73,

62, I*rrdfill tax (ratc)

That--

, .(1) r"n section 42 ofthe Finsac€ Act 1996, in subsections (r)(a) and (2) for ,,frOu thereehall be substituted ufl1",

(2) This Rcsolution has g{ectin relatlon to taxable disposals made, or freated asmadE, on or after lst April 2000.

And it is hereby deslarcd that it is_expcdient in the public interest that this Resolutionshould have stailtory effect under the provisions of ihe p*uirio*r Coi..tion orraxcsAct 1968.

63. Landfill tax (recovery)

. That provision may- be made about the recovery of landffll tax from persons other thanlandfill site operalor8.

64. Rclicfftom tax (incidental and conscqucntial ohargcs)

That it is erpediont to euthorise any incidentat or oonsequeutral chargos to aoy duty or

http://www'parliamcnt.the'stationery-offrce.co.ul/palcm199900/cmageuda/ob000322.htm 22/03/0066

' IIDN/CSTLE S,O. FaX:ITII}

FINANCEACTlgT3

(1973 c 5 l )

50, Tbmporary satutory dllect of Housc of Conmons reeolution sltectingstrsp dudes

( l) Whete the Ho$c of Comrnon$ purses a resolurion which-

23 Mar '00 13 : 10 P.O?

(a) pnrlidc$ lfrr thc variarion or lbolition r{ an exisring.Blarnp duly , , .,;dd

(b) i$ €xprcs$od_k) havc eafsfl for s period $tuod ii.tt$. rg$olution.in accor.dancc with fte tbllowing ppg*hr* of this sectionl rod

(s) cardsitts o dGclaraticn lhal k is cxpcdient in rhc ruhk: int re$r rltrt thcrcsoludun should havc rtaturory effect uuder rhe'provisionc ol: thi.c $e4-q()nl

rfu,n, Bubjcut ro $ubiiqrtion (3) of thh section, thl rcs{tutjon shull for rhcperiod rn rratcd have srnrurory elfect as if contained in an Act of F$liafient,. (?) The. pcried to tlc st{{rd in u rcsolutiun is a p6risd e.xpressed as begin-

rring on r dur. so statod and etrding on, rhi y-one d{ys or sulh less numbc} ofdryr ru may be rrr etatcd alicr. thc carlicrt of the dltec msnrionud iD thifi sut _'-'xioni and thorc datr:s aro.*

(al rbe llhinierhli day on which. afrer rhe day tha rrsoludon is wsncd, rheHoure of Commons sits without a Bill contaiuing provisions to thesrmc cffccr as the re.$olurion hr,ing reul a sr:cond iiire and wir out lrQill heing amended (whethsr bylhe House of Conlr ittee of ftc

.. . H{!u$r.orr Surnding Committee) so as ro include such provirionn;(b) thc rejeL.tion of such.prur'isions during dre pa$$age thrbugh rhe. Housc

or a Et,t c()nl,arnlng lllemi(c) thc diti$olution or prurog!rion rlf Prrlianrnri and(dJ the.expirarion ol'the pcnod of [sixll ntonths beginning with rhe dny or

whtch the rc'l0.lution tal(e$ cllect.iJ) A re$olution $hall cerrse to have st tutory cffect und€r this scction if an

Acl ronrrs into opercriun varying or abolishing the duty.(4) The ending ol ftc perirxl for which a ts.rolution has srarutorv clfecr

under.th{r provisio{$ of thiu rcction :ihall not sffcr-r the vatidiry of aitythingdone during rhat period.

il()TEt

Thirr srction and dre. L9*{xiiared $h}$ and,Mcans R€soludon pl>vide lnwurs whereby]nlic$ rn sti trp duty rnay bs givsn cffcct t0 by mean* of a tsudget Rcsolutioli,

t,ssaule rhd Provisklul ColLsticn (rf Thx$ Afl l9(t8.1(x6 not tpfltro snmp duty.ilung* in thc dury oould in rhc n$rnll rowsr hc givcn rfred ro'dniv afrfi ttie rcli.sunt Finlnce Bill ber.:onrt r lan, Supjcsrions hnvc hcin madc from rimc rr tirp rhar uel$nsiso of thi Provisiond Coller:tion ofTrxcsAct should bs fiadc lo n:v$ fla$nduty. Ho'rgver. theto worrld hcvc btgn diflicultiee ir the wsy of aly nuch cxtu*ioir$implicilcr bccxul*j ths un$c|rc$ ofthetuangclncn$ undcr tlur Ast i$ihlt fftc{ ofdutydcrivcd fnrm its rypjicatitrn arc prrrvii"jo,nal h that rlrcir continulnce in ltrrue dcpcnd,ron a scricli of c'ontingcncics. flris gives rific to no problens in rclation to the oniiruuyu|xci hcfl{usf the litblliry drxs oor iI any c$c h{vr lo be s.nlcd immcdiarcll'and curbt adjusted. Convcrrcly, $ramp duty must bc levied in I fnd md ccmin arnounl onthr c.tc,cution rrl u docunr*nt.'Ihir ir hcclusc many dutiuble irgtrunrcotg ar€ doc!"firfnls of lille whiclr drc iDeffscdvc $[lcs$ appropnrtcly rlampcd tnd rlso bccausc ot'thc sclcrc pnrricd dlffir:ultics which would nrix if a duty oicc leviod upon r doc.u-mcnt had kr_bc rctr$$pecti|ety amcndcd. lte pmblen ha* bcet ovcrcomc'hy tiilt pro-vision.which cun givc a ltudgr:r Rcrrrlution uD st8tnp duty pcnrumcnt smtuior,v rftrcrIor u limied nc.riod.

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