LETTER OF ALLOTMENT and LETTER Of RENUNCIATION, or any other document having the effect of a letter of allotment : (1) Of any share of any company or pro posed company.
(2) In respect of any loan raised, or pro posed to be raised, by any company or proposed company, or by any municipal body or corporation.
(3) Issued or delivered in the United King dom, of any share of any foreign or colonial company or proposed com pany, or in respect of any loan raised or proposed to be raised by or on behalf of any foreign or colonial state, government, municipal body, corporation, or company.
Where the nominal amount which is allotted or to which the letter of renunciation relates is not less than 15, the duty is six pence ; where the amount is less than Z5, the duty is one penny. A separate duty is chargeable in respect of letters of allot ment and letters of renunciation, although they may be contained in the same docu ment. The stamp duty of sixpence on a letter of renunciation may be denoted by an adhesive stamp, which is to be cancelled by the person by whom the letter of renuncia tion is executed (Finance Act, 1899, Section 9).
The word " share " in the above schedule includes a fractional part of a share (Revenue Act, 1909, Section 9).
By the Stamp Act, 1891, Section 79 : " (1) Every person who executes, grants, issues, or delivers out any document chargeable with duty as a letter of allotment, letter of renunciation, or scrip certificate, or as scrip, before the same is duly stamped, shall incur a fine of twenty pounds.
" (2) The stamp duty of one penny on a letter of renunciation may be denoted by an adhesive stamp which is to be cancelled by the person by whom the letter of renunciation is executed." The stamp upon a letter of allotment, however, must be impressed.
Receipts upon a duly stamped letter of allotment are exempt from duty. (See Exemption 11 under heading RECEIPT.) (See ALLOTMENT, COMPANIES.)