Stamp Duties Consolidation Act 1999 section 63

Letters of renunciation

Section 63 charges stamp duty on an instrument that renounces a right under a letter of allotment of shares in an unquoted company, treating the renunciation as if it were a transfer of those shares.

• It charges stamp duty on any instrument that releases or renounces a right under a letter of allotment to shares in an unquoted company.
• The renunciation is treated as a release or renunciation of stocks or marketable securities under the relevant head of charge in Schedule 1.
• It applies only to unquoted companies, meaning those whose shares, stock or debentures are not listed on a recognised stock exchange or traded on a recognised unlisted securities market.
• The section counters an avoidance scheme that allowed shares in an unquoted company to change hands free of stamp duty by using letters of allotment.