Part 3Special provisions with respect to certain stamp duties

Part 3—Special provisions with respect to certain stamp duties Division 1—Agreements 30—When agreement comprised of several letters In any case where an agreement is constituted by two or more letters, the agreement and all the letters shall be deemed to be duly stamped if any one of the letters is duly stamped with the duty payable upon the agreement. 31—Certain contracts to be chargeable as conveyances on sale (1) Any contract or agreement in writing for the sale of any estate or interest in any property (including goods, wares and merchandise not being goods, wares and merchandise agreed to be sold in the ordinary course of trade by a party whose business is or includes the sale of such goods, wares and merchandise) except— (a) property which cannot vest in the purchaser except upon registration of a conveyance; or (c) stock or shares in the stock, funds or capital of any corporation, company or society, shall be charged with the same ad valorem duty as if it were an actual conveyance on sale of the estate or interest contracted or agreed to be sold. (1a) For the purpose of calculating ad valorem duty payable on a contract or agreement under subsection (1), the value of the estate or interest contracted or agreed to be sold is to be determined on the basis that the consideration specified as being payable for the estate or interest represents the value of the estate or interest. (1b) However, if it appears to the Commissioner that the consideration specified as being payable for the estate or interest may be less than the value of the estate or interest and— (a) no evidence of the value of the estate or interest is furnished to the Commissioner; or (b) evidence of the value of the estate or interest furnished to the Commissioner is, in the Commissioner's opinion, unsatisfactory, the Commissioner may cause a valuation of the estate or interest to be made by a person appointed by the Commissioner and may assess the duty payable by reference to the valuation. (1c) The Commissioner may, having regard to the merits of the case, charge the whole or a part of the expenses of, or incidental to, the making of a valuation under subsection (1b) to the person liable to pay the duty and may recover the amount so charged from the person as a debt due to the Crown. (2) If duty has been duly paid on a contract or agreement in accordance with subsection (1), the following provisions apply: (a) any conveyance made to the purchaser under the contract or agreement is chargeable with duty only if the value of the estate or interest under the conveyance on the date of the conveyance is greater than the consideration specified in the contract or agreement or on account of an assessment under subsection (1b) (as the case requires); (b) if the conveyance is chargeable with duty under paragraph (a), the amount of duty paid on the contract or agreement is to be deducted from the duty payable on the conveyance; (c) if the conveyance is not chargeable with duty under paragraph (a), the Commissioner, on application and on the production of the contract or agreement duly stamped, must stamp the conveyance with a particular stamp denoting that it is duly stamped. (3) For the purposes of this section, a receipt for the payment, in pursuance of any contract or agreement, of any purchase money shall, in the absence of any further or other instrument being or evidencing the contract or agreement, be charged with ad valorem duty. (4) If any such contract or agreement as is mentioned in subsection (1) is afterwards rescinded or annulled, or for any other reason is not substantially performed or carried into effect so as to operate as, or to be followed by, a conveyance, the person who paid the ad valorem duty upon the contract or agreement shall be deemed to be possessed of stamped material rendered useless by being inadvertently spoiled, within the meaning of section 106, and the provisions of that section shall apply accordingly. (5) This section shall not apply to, or in respect of, any hire-purchase agreement within the meaning of this Act. Division 3—Insurance