AD VALOREM. Latin, according to value.
An ad valorem stamp duty is a duty calcu lated according to the value of the subject matter contained in a document. On a cheque for any amount, a bill payable on demand, or at sight, or on presentation, or not exceeding three days after date or sight, the stamp duty is one penny, but on bills and notes of any other kind the duty is an ad valorem one, calculated upon a certain scale according to the amount expressed in the document. A promissory note must always be stamped according to its amount, even though drawn on demand, at sight, etc.
The duty is also ad valorem upon many other documents—assignments of leases, conveyances, mortgages, transfers of stocks and shares, etc.
By the Stamp Act, 1891 : " Section 6. (1) Where an instrument is chargeable with ad valorem duty in respect of— (a) any money in any foreign or colonial currency, or (b) any stock or marketable secu rity, the duty shall be calculated on the value, on the day of the date of the instrument, of the money in British currency according to the current rate of exchange, or of the stock or security according to the average price thereof.
" (2) Where an instrument contains a statement of current rate of ex change, or average price, as the case may require, and is stamped in accordance with that statement, it is, so far as regards the subject matter of the statement, to be deemed duly stamped, unless or until it is shown that the statement is untrue, and ' that the instrument is in fact insuffi ciently stamped."
By the Finance Act, 1S99 : " Section 12. (1) Where an instrument other than a bill of exchange or promissory note is charged with an ad valorem duty in respect of any money in any foreign or colonial currency, a rate of exchange for which is specified in the schedule to this Act, the stamp duty on that instrument shall, instead of being calculated as provided by Section six of the Stamp Act, 1891, be calculated according to the rate of exchange so specified.
" (2) The Commissioners may substitute, as respects any foreign or colonial currency mentioned in the Schedule to this Act, any rate of exchange for that specified in the Schedule, and may add to the Schedule a rate of exchange for any foreign or colonial currency not mentioned therein, and this Act shall be construed as if any rate of exchange for the time being substituted or added were con tained in the said Schedule, and in the case of the substitution of a rate of exchange as if the rate for which the new rate is substituted were omitted from that Schedule.
" (3) Any substitution or addition so made by the Commissioners shall not take effect until it has been advertised in the London Gazette for two successive weeks."