Report No. 67
Provisions of the Finance Act, 1959 (7 Sr 8 Eliz. 2, C. 58) Relevant to Stamp Duties on Marine Insurance Policies
Stamp duty on policies of insurance
30.-(1) In the first schedule to the Stamp Act, 1891, before the head of charge "Policy of Life Insurance" there shall be inserted the following-
|"Policy of Insurance other than Life Insurance||£.||s.||d.|
and the head of charge "Policy of Sea Insurance" and the head of charge beginning "Policy of Insurance against Accident" shall be omitted.
(2) The following shall be exempt from all stamp duties:
(a) cover notes, slips and other instruments usually made in anticipation of the issue of a formal policy, not being instruments relating to life insurance;
(b) instruments embodying alterations of the terms or conditions of any policy of insurance other than life insurance;
(c) policies of insurance on baggage or personal and household effects only, if made or executed out of Great Britain; and an instrument exempted by virtue of paragraph (a) of this sub-section shall not be taken for the purposes of the Stamp Act, 1891, to be a policy of insurance.
(3) An instrument shall not be charged with duty exceeding six pence by reason only that it contains or relates to two or more distinct matters each falling within the head of charge inserted by sub-section (1) of this section.
(4) In consequence of sub-section (1) of this section, the Stamp Act, 1891, shall be amended as follows:-
(a) sections 92 to 97 (which make special provision for policies of sea insurance) shall cease, to have effect;
(b) section 100 (which imposes penalties in cases where there is no duly stamped policy of insurance) shall have effect as if the exceptions therein as to sea insurance were omitted;
(c) section 116 (which enables composition to be made for stamp duty on accident policies) shall apply in relation to all policies of insurance other than life insurance, and the second part of the Second Schedule shall have effect accordingly; and the said section 100 shall not apply in relation to an insurance or a policy effecting an insurance if the insurance is such that a policy effecting it is exempt from all stamp duties.
(5) Paragraphs (2) to (5) of section 23 of the Marine Insurance Act, 1906, and sub-section (2) of section 25 thereof (which are derived from provisions contained in section 93 of the Stamp Act, 1891) shall cease to have effect.
(6) Notwithstanding the repeal of section 93 of the Stamp Act, 1891, a contract for such insurance as is mentioned in section 506 of the Merchant Shipping Act, 1894, shall continue to be admissible in evidence although not embodied in a marine policy as required by section 23 of the Marine Insurance Act, 1906.
(7) This section shall apply in relation to instruments made or executed after the beginning of August, 1959."