Section 120A Relief in respect of certain payments of stamp duty
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Amendments
Section 120A inserted by Finance Act 2000 section 132 in relation to transactions executed on or after 15 December 1999.
The statement required to be delivered pursuant to this Part in respect of a transaction specified in section 116(1)(c) shall, in any case where, within the period of 4 years immediately before the date of the transaction and on or after 4 August 1973, there has been a reduction in the issued capital of the capital company concerned as a result of losses sustained by the company, be charged at the rate of zero per cent in respect of so much of the amount determined in accordance with section 118 as corresponds to the reduction in issued capital or to so much of the reduction in issued capital to which the rate of zero per cent had not been applied in respect of an earlier transaction occurring since the reduction in capital.
In what circumstances does relief under this section apply and what is the relief provided?
This rule applies if, in the four years preceding an increase in a company's capital, there was a reduction in the company's capital as a result of losses sustained by the company....
