Stamp Duties Consolidation Act 1999 section 118

Amount on which stamp duty chargeable

Section 118 set out how to calculate the amount on which companies capital duty was charged.

• Capital duty was charged on the actual value of assets contributed to a capital company on its formation, on an increase in its issued share capital, or on an increase in its assets.
• The chargeable amount was reduced by liabilities assumed by the company and expenses incurred in connection with the transaction.
• For other chargeable transactions, the duty was based on the net asset value of the company at the date of the transaction.
• The chargeable amount could not fall below the nominal value of the shares in question, and the duty applied only to transactions occurring before 7 December 2005.