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FINANCE (NO. 2) ACT (NORTHERN IRELAND) 1946

FINANCE (NO. 2) ACT (NORTHERN IRELAND) 1946 - LONG TITLE

An Act to amend the law relating to death duties, entertainments
duty, stamp duty, and certain duties of excise (including duties on
mechanically-propelled vehicles) and to make provision with respect to
certain excise licences, and otherwise to amend the law relating to
finance.
[29th August 1946]
Part I (ss.120)Death Duties

S.23 rep. by 1955 c.19 (NI) s.27 sch.4

FINANCE (NO. 2) ACT (NORTHERN IRELAND) 1946 - SECT 24
Stamp duty on trust instruments under unit trust schemes.

24.Subs.(1) rep. by 1962 c.17 (NI) s.8 sch. Pt.II

(2)Upon every occasion after the execution of the trust instrument
of a unit trust scheme on which any property becomes trust property
represented by units under the scheme, the trustees shall, not later
than one month after the property so becomes trust property, furnish
to the Ministry a statement of the property, and produce therewith
to the Ministry the trust instrument duly stamped with ad valorem
duty or additional ad valorem duty as if it were a new and
separate instrument whereby that property was made trust property,
bearing date on the day on which the property was made trust
property:

Provided that this sub-section shall not apply where the property
is, or results from the investment of, proceeds of the sale,
exchange or redemption of, or is bonus capital distributed in
respect of, other trust property represented by units under the
scheme.

(3) If the trustees under a unit trust scheme fail to comply with
the requirements of the last preceding sub-section, the duty with
interest thereon at the rate of five per cent. per annum from the
date when the property in question is made trust property shall be
a debt due to [Her Majesty] from the trustees.

FINANCE (NO. 2) ACT (NORTHERN IRELAND) 1946 - SECT 25
Units under unit trust schemes to be treated as stock.

25.(1) Any reference in the enactments relating to stamp duty to
stock shall be deemed to include a reference to a unit under a
unit trust scheme, and any reference in any such enactment to a
stock certificate to bearer shall be deemed to include a reference
to a certificate to bearer in relation to a unit under a unit
trust scheme and, subject to the provisions of this Part of this
Act, the said enactments shall have effect accordingly.

(2) Any reference in the enactments relating to stamp duty to the
nominal amount or nominal value of stock shall, in relation to
units under a unit trust scheme, be construed as a reference to
the value of the units in question computed as if each unit were
worth, and worth only, the price at which similar units are first
or were first obtainable under the scheme from the trustees or
managers thereof.

(3) Nothing in this Part of this Act shall render any duty
exceeding [50p] payable in respect of an instrument of transfer
whereby the managers transfer any unit under a unit trust scheme if
their power to transfer the unit arises from the transfer to them
of that or some other unit within the immediately preceding two
months.

(4) Where a unit under a unit trust scheme is transferred to the
managers by an instrument of transfer duly stamped and, before the
expiration of two months from the date of the transfer the managers
and trustees jointly certify

(a)that the certificate, if any, in respect of the unit has been
cancelled; and

(b)that, as a consequence of the transfer, a proportionate part of
the trust property has been realised, and the trust property
diminished accordingly; and

(c)that the unit is extinguished and that the managers have no
power to transfer any other unit in lieu thereof,

Subs.(5) rep. by 1967 c.20 (NI) s.20 sch.3 Pt.I; 1976 c.40 s.132
sch.15 Pt.VI

(6) For the purposes of sections seventy-seven to seventy-nine of
the Finance (1909-10) Act, 1910 (which relate to contract notes in
respect of the sale or purchase of any stock or marketable
security), the managers under a unit trust scheme shall, in relation
to units under that scheme, be treated as a person who by way of
business deals, or holds himself out as dealing, as a principal in
stock:

Provided that the expression "contract note" shall not include

(a)a note sent by the managers to a vendor or purchaser of units
where that vendor or purchaser is acting as a broker or agent for
a principal and is himself either a member of a stock exchange in
the United Kingdom or a stockbroker registered as such in the list
kept by the Ministry under sub-section (3) of section seventy-seven
of the said Act; or

(b)a note sent by the managers notifying the sale of units where
the sale is to be implemented by a document which, under the
provisions of this Part of this Act, is not to be treated as
effecting a transfer.

S.26 rep. by 1963 c.22 (NI) s.21 sch.3 Pt.II

FINANCE (NO. 2) ACT (NORTHERN IRELAND) 1946 - SECT 27
Supplemental provisions.

27.(1) In section sixteen of the Stamp Act, 1891 (which requires
public officers to permit inspection of documents by persons
authorised by the Ministry) the expression "public officer" shall, as
respects rolls, books, records, papers, documents or proceedings
relating to a unit trust scheme, be deemed to include the trustees
and the managers under that scheme, any agent of the said trustees
or the said managers, and any officer of or servant of the said
trustees or the said managers or of any such agent.

(2) In sub-section (1) of section one hundred and nine of the said
Act (which relates to the cancellation of stock certificates to
bearer in certain cases) the reference to the register of the local
authority shall, in relation to units under a unit trust scheme, be
construed as a reference to any register kept under the scheme.

(3) The Ministry may, for the purpose of securing the stamp duties
payable by virtue of this Part of this Act, by regulations require
the trustees and the managers under unit trust schemes to keep such
records of units thereunder, of the persons entitled to units
thereunder, of transfers of units thereunder, and of the issue of
certificates to bearer in respect of units thereunder, as may be
specified in the regulations in relation to the trustees and the
managers respectively, and if the trustees or managers under any
such scheme fail to comply with any requirement of any such
regulations, they shall incur a fine of ten pounds in respect of
each matter which ought to have been but was not recorded.

(4) Notwithstanding anything in the trust instrument of a unit trust
scheme, it shall not be lawful for the trustees or managers under
the scheme to register a transfer of units thereunder unless an
instrument of transfer has been delivered to them:

Provided that nothing in this sub-section shall prejudice any power
of the trustees or managers to register as entitled to a unit any
person to whom the right to that unit has been transmitted by
operation of law.

FINANCE (NO. 2) ACT (NORTHERN IRELAND) 1946 - SECT 28
Interpretation of Part III.

28.(1) In this Part of this Act, except in so far as the context
otherwise requires, the following expressions have the meanings hereby
respectively assigned to them, that is to say:

"the enactments relating to stamp duty" means the Stamp Act, 1891,
and any enactment which amends or is required to be construed
together with that Act;

"unit trust scheme" means any arrangements made for the purpose, or
having the effect, of providing, for persons having funds available
for investment, facilities for the participation by them, as
beneficiaries under a trust, in any profits or income arising from
the acquisition, holding, management or disposal of any property
whatsoever;

"trust instrument" means, in relation to a unit trust scheme, the
trust deed or other instrument (whether under seal or not) creating
or recording the trusts by virtue of which persons are to
participate as aforesaid;

"trust property" means, in relation to a unit trust scheme, the
property subject to the trusts of the trust instrument;

"trust property represented by units" means, in relation to a unit
trust scheme, all trust property except, where the trust instrument
provides for periodical distributions, any such dividends, interest or
other property arising from trust property as is required under the
instrument to be distributed at the next such distribution;

"unit" means, in relation to a unit trust scheme, a right or
interest (whether described as a unit, as a sub-unit, or otherwise)
of a beneficiary under the trust instrument;

"certificate to bearer" means, in relation to a unit under a unit
trust scheme, a document by the delivery of which the unit can be
transferred ....

(2) Where a person authorises or requires the trustees or managers
under a unit trust scheme to treat him as no longer interested in
a unit under the scheme and authorises or requires them to treat
another person as entitled to that unit, he shall be deemed for
the purposes of this Part of this Act to transfer that unit, and
any instrument whereby he gives the authority or makes the
requirement shall be deemed for the purposes of the enactments
relating to stamp duty to be a conveyance or transfer on sale, a
conveyance or transfer operating as a voluntary disposition inter
vivos within the meaning of section seventy-four of the Finance
(1909-10) Act, 1910, or a conveyance or transfer falling within the
heading "Conveyance or Transfer of any kind not hereinbefore
described" in the First Schedule to the Stamp Act, 1891, according
to the nature of the transaction as between him and the person
whom he authorises the trustees or managers to treat as entitled to
the unit.

(3) Where a person authorises or requires the trustees or managers
under a unit trust scheme to treat him as no longer interested in
a unit under that scheme and does not authorise or require them to
treat another person as entitled to that unit, he shall be deemed
for the purposes of this Part of this Act to transfer that unit
to the managers, and any instrument whereby he gives the authority
or makes the requirement shall be deemed for the purposes of the
enactments relating to stamp duty to be a conveyance or transfer of
the unit on sale.

(4) Where the managers under a unit trust scheme authorise or
require the trustees under the scheme to treat a person as entitled
to a unit thereunder and their power so to do arises from a
previous transfer to them of that unit or some other unit, they
shall be deemed for the purposes of this Part of this Act to
transfer the first mentioned unit to that person, and any instrument
whereby they give the authority or make the requirement shall be
deemed for the purposes of the enactments relating to stamp duty to
be a conveyance or transfer of the unit:

Provided that this sub-section does not apply to anything done by
the managers for the purpose merely of recognising or giving effect
to a transmission of a unit by operation of law.

Part IV (ss. 2931) rep. by SLR (NI) 1952; SLR (NI) 1953; 1954
c.17 s.28(1) sch.7

S.33(1) rep. by SLR (NI) 1952; subs.(2)Death Duties

FINANCE (NO. 2) ACT (NORTHERN IRELAND) 1946 - SECT 34
Short title.

34.(1) This Act may be cited as the Finance (No. 2) Act (Northern
Ireland), 1946.

Subs.(2)Death Duties; subs(3)(4) rep. by 1954 c.33 (NI) s.48(1) sch.