Section 105 Stamp Duties Act

Section 105 of Stamp Duties Act 1939 is about Relief from transfer duty in case of transfer of property as between associated companies. It provides as follows:

(1) Duty under the heading “CONVEYANCE OR TRANSFER ON SALE”in the Schedule to this Act shall not be chargeable on an instrument to which this section applies: Provided that no such instrument shall be deemed to be duly stamped unless either it is stamped with the duty to which it would but for this section be liable, or it has in accordance with the provisions of section 15 been certified by a commissioner either that it is not chargeable with any duty or that it is duly stamped.

(2) This section applies to any instrument as respects which it is shown to the satisfaction of the commissioner that the instrument was not executed in pursuance of or in connection with an arrangement whereunder-
(a) the consideration for the transfer or conveyance was to be provided directly or indirectly by a person other than a company which at the time of the execution of the instrument was associated with either the transferor or the transferee; or

(b) the beneficial interest in the property was previously conveyed or transferred directly or indirectly by such person as aforesaid

(3) For the purpose of this section a company shall be deemed to be associated with another company if, but not unless, both are companies with limited liability, and either-
(a) one of them is the beneficial owner of not less than ninety per cent of the issued share capital of the other; or

(b) not less than ninety per cent of the issued share capital of each of them is in the beneficial ownership of a third company with limited liability.

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