SECT. 1.—Contracts generally charged with Duty.

THE Consolidating Stamp Act, 1891, 54 & 55 Vict. c. 39 (a), which reproduces the former consolidating Act of 1870 and its amending Acts with comparatively immaterial amendments, by sect. 14, as we shall see presently (see p. 148), prohibits the giving of unstamped documents in evidence, and the 1st section enacts that, subject to the exemptions contained in the act, and in any other acts for the time being in force (b), there shall be charged on the several instruments specified in the first schedule, the several duties therein specified.

And by the said schedule, an "agreement, or any memorandum Agreements. of an agreement, made in England or Ireland under hand only, or made in Scotland without any clause of registration, and not otherwise specifically charged with any duty, whether the same be only evidence of a contract, or obligatory upon the parties from its being a written instrument," is charged with a duty of 6d., which duty, by sect. 22 of the Act, may be denoted by an adhesive stamp, to be cancelled by the person by whom it is first executed.

But any "agreement or memorandum, the matter whereof is not

of the value of 5l.," is exempt from duty.

And a copy or extract, attested or in any manner authenticated, As to copies. of or from any agreement chargeable with duty, is chargeable with

the same duty as the agreement itself (c).

(a) See this Act and its amending enactments in Chitty's Statutes, 5th ed. tit. "Stamps," and see also Alpe's Law of Stamp Duties, and Highmore's Stamp Acts.

C.C.

(b) The exceptions are numerous, more than seventy being enumerated in Alpe's Digest.

(c) See Sched. "Copy or Extract."

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CH. VI. S. 1. But an examined copy, which is produced by a witness as Stamping of secondary evidence of the contents of an agreement, may be read Charged with without being stamped. For, in point of law, it is used merely

Contracts

Duty.

to refresh the memory of the witness as to the contents of the agreement (d).

SECT. 2.-Agreements specifically charged with Duty.

The following is a list of the agreements specifically charged with duty by the Stamp Act, 1891 :

Agreements for lease

Broker's contract note.

51 Vict. c. 8, ss. 16, 17.

Broker's Contract Note.

Policy of Insurance.

And the following is a list of the agreements which by that Act (see p. 148, post), it is highly penal not to stamp :

Bond, &c., as described in schedule to the Act.

Conveyance.

Lease.
Mortgage.
Settlement.

An agreement for leases for any term not exceeding 35 years is, by sect. 75 of the Act, expressly made subject to the same duty as if it were an actual lease for the term and consideration mentioned in the agreement.

By sects. 52 and 53 of the Stamp Act, 1891, and sched. I., tit. "Contract Note," as amended by s. 3 of the Customs and Inland Revenue Act, 1893, 56 & 57 Vict. c. 7, which reproduces with amendments, sects. 16 and 17 of the Customs and Inland Revenue Act, 1888, 51 Vict. c. 8, a broker's contract note advising the sale or purchase of any stock or marketable security of the value of five pounds and under one hundred pounds, is charged with the duty of one penny, and of the value of one hundred pounds or upwards is charged with the duty of one shilling, to be denoted by an adhesive stamp or stamps to be cancelled by the person by whom the note is executed, and the shilling duty "may be added to the charge for brokerage or agency." By sect. 53 of the Act of 1891, "Any

(d) Braythwayte v. Hitchcock (1842), 10 M. & W. 494.

person who effects any sale or purchase of any stock or marketable CH. VI. s. 2. security as a broker or agent, shall forthwith make and execute a Stamping of Contracts contract note and transmit the same to his principal, and in default (Specific Duties). of so doing shall forfeit the sum of twenty pounds; every person who makes or executes any contract note chargeable with duty and not duly stamped incurs a fine of twenty pounds; and "no broker, agent, or other person shall have any legal claim to any charge for brokerage commission or agency, with reference to the sale or purchase of any stock or marketable security of the value of five pounds or upwards, mentioned or referred to in any contract note, unless the same be duly stamped." A broker however does not lose his commission under this Act by failing to send a contract note to his principal (e).

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Act, 1889.

Sect. 59 of the Stamp Act, 1891, re-enacting sect. 15 of the Contracts Revenue Act, 1889, 52 & 53 Vict. c. 42, enacts, that stamp duty chargeable as conveyances. shall be payable ad valorem by the purchaser as if it were an actual Revenue conveyance of the same on any contract or agreement under seal, or under hand only, for the sale of any equitable estate or interest in any property whatsoever, or for the sale of any estate or interest in any property except lands, tenements, hereditaments, or property locally situate out of the United Kingdom, or goods, wares, or merchandise, or stock, or marketable securities, or any ship or vessel, or part interest, share, or property of or in any ship or vessel."

A charter-party is defined in sect. 49 of the Act of 1891 as Charter-party. including "any agreement or contract for the charter of any ship or vessel, or any memorandum, letter, or other writing between the captain, master, or owner of any ship or vessel and any other person, for or relating to the freight or conveyance of any money, goods, or effects on board of the ship or vessel," and by the same section the duty [sixpence] may be denoted by an adhesive stamp (ƒ), "which is to be cancelled by the person by whom the instrument is last executed, or by whose execution it is to be completed as a binding contract."

The stamp duty on a lease rises with the rent, but by sect. 75, Lease. a lease made in conformity with an agreement for a lease duly stamped is charged with the duty of sixpence only. The duty on a lease for less than a year of a furnished house or apartments or any house for not more than a year, at a rent not exceeding ten pounds a year, may by sect. 99 be denoted by an adhesive stamp. By sect. 21 of the Stamp Act, 1891, except where express Stamp,

(e) Learoyd v. Bracken, [1894] 1 Q. B. 114 (decided on the Acts prior to that of 1891).

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whether impressed or

(f) And see The Belfort (1884), 9 adhesive. P. D. 215.

CH. VI. s. 2. provision is made to the contrary, all duties are to be denoted by Stamping of impressed stamps only."

Contracts

(Specific Duties).

Special penalties for not stamping leases and

other documents.

Cancellation of adhesive stamps.

The Stamp Act, 1891, by sect. 15 in relation to

Bonds,

Covenants,

Conveyances on Sale,

Leases, and

Mortgages, Equitable as well as
Legal,

imposes the special penalty of ten pounds for the offence of not stamping them, to be borne by the obligees, lessees, or mortgagees, as the case may be.

As to cancellation of adhesive stamps, it is enacted by sect. 8 of the same act that

(1) "An instrument, the duty upon which is required or permitted by law to be denoted by an adhesive stamp, is not to be deemed duly stamped with an adhesive stamp, unless the person required by law to cancel the adhesive stamp cancels the same by writing on or across the stamp his name or initials, or the name or initials of his firm, together with the true date of his so writing, or otherwise effectively cancels the stamp and renders the same incapable of being used for any other instrument or for any postal purpose, or unless it is otherwise proved that the stamp appearing on the instrument was affixed thereto at the proper time.

(2) Where two or more adhesive stamps are used to denote the stamp duty upon an instrument, each or every stamp is to be cancelled in the manner aforesaid.

(3) Every person who, being required by law to cancel an adhesive stamp, neglects or refuses duly and effectually to do so in the manner aforesaid, shall incur a fine of ten pounds."

Stamping

after execution.

Notice to be taken by

judge of

SECT. 3.-Stamping after Execution, and for Purposes of
Evidence.

The admissibility in evidence, on payment of duty and penalties, of unstamped documents and the stamping of documents after execution, are regulated by sects. 14 and 15 of the Stamp Act, 1891, 54 & 55 Vict. c. 39, as follows:

14. (1) Upon the production of an instrument chargeable with any duty as evidence in any court of civil judicature in any part of the United Kingdom, or before any arbitrator or referee, notice shall be taken by the judge (g), arbitrator, or referee (h) of any omission or insufficiency of the stamp thereon, and if the instrument is one which may legally be stamped after the execution Admissibility thereof (i), it may on payment to the officer of the court whose duty it is to of unstamped

omission of stamp.

(g) Under the Act of 1870, this was

the duty of the officer of the Court.

(h) The provision as to references is taken from s. 44 of the Customs and Inland Revenue Act, 1881.

(i) See s. 15, by which any instrument may be stamped after execution, save where other express provision" is in the Act made.

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Contracts (After Execution).

read the instrument, or to the arbitrator or referee of the amount of the unpaid CH. VI. s. 3. duty, and the penalty payable on stamping the same, and of a further sum of Stamping of one pound, be received in evidence, saving all just exceptions on other grounds. (2) The officer, or arbitrator, or referee receiving the duty and penalty shall give a receipt for the same, and make an entry in a book kept for that purpose of the payment and of the amount thereof, and shall communicate to the commis- document on sioners the name or title of the proceeding in which and of the party from whom payment of duty and he received the duty and penalty and the date and description of the instrument, penalties. and shall pay over to such person as the commissioners may appoint the money received by him for the duty and penalty.

(3) On production to the commissioners of any instrument in respect of which any duty or penalty has been paid, together with the receipt, the payment of the duty and penalty shall be denoted on the instrument.

(4) Save as aforesaid, an instrument executed in any part of the United Kingdom, or relating, wheresoever executed, to any property situate or to any matter or thing done or to be done in any part of the United Kingdom, shall not, except in criminal proceedings, be given in evidence or be available for any purpose whatever (k), unless it is duly stamped in accordance with the law in force at the time when it was first executed (1).

tion on

payment of

15.—(1) Save where other express provision is in this Act made, any Stamping, unstamped or insufficiently stamped instrument may be stamped after the after execuexecution thereof, on payment of the unpaid duty and a penalty of ten pounds and also by way of further penalty, where the unpaid duty exceeds ten pounds, duty and of interest on such duty, at the rate of five pounds per centum per annum, penalty. from the day upon which the instrument was first executed, up to the time when the amount of interest is equal to the unpaid duty.

(2) In the case of such instruments hereinafter mentioned as are chargeable Special with ad valorem duty, the following provisions shall have effect:— penalty for (a) The instrument, unless it is written upon duly stamped material, shall not stamping leases and be duly stamped with the proper ad valorem duty before the expira- other specified tion of 30 days after it is first executed or after it has been first instruments received in the United Kingdom, in case it is first executed at any within 30 days. place out of the United Kingdom, unless the opinion of the commissioner, with respect to the amount of duty with which the instrument is chargeable, has before such expiration been required under the provisions of this Act. (b) If the opinion of the commissioners with respect to any such instrument has been required, the instrument shall be stamped in accordance with the assessment of the commissioners within 14 days after notice of the assessment.

(c) If any such instrument executed after the 16th day of May, 1888 (m), has not been or is not duly stamped in conformity with the foregoing provisions of this sub-section, the person in that behalf hereinafter specified shall incur a fine of ten pounds, and in addition to the penalty payable on stamping the instrument, there shall be paid

(k) Therefore not even for a collateral purpose, as to prove fraud, for which purpose an unstamped instrument was available under former Stamp Acts. See Coppock v. Bower (1838), 4 M. & W. 36; Chit. Stat. 5th ed. tit. " Stamps," p. 18; Ashling v. Boon, [1891] 1 Ch. 568, where, however, it was held under the Act of 1870 that a promissory note insufficiently stamped could not be admitted in evidence to prove the receipt of the money

for which the note was given.

(7) The Stamp Acts were consolidated by the Stamp Act, 1870, and afterwards by the Stamp Act, 1891, after material amendments by the Customs and Inland Revenue Act, 1888.

(m) The date of the passing of the repealed Customs and Inland Revenue Act, 1888 (51 & 52 Vict. c. 8), as to which see note (n).