STAMP v.—A promissory note of any kind whatsoever (except a bank note) drawn, or expressed to be payable, or actually paid, or indorsed, or in any manner negotiated in the United Kingdom.
When the amount or value of the money for which the note is made does not exceed 1,5 0 1 Exceeds L5 and does not exceed £10 0 2 £10 £25 0 3 ,E50 0 6 £50 ,, (75 0 9 ,P ,. £100 I 0 £100 For every f100, and also for any fractional part of £100, of such amount or value 1 0 On promissory notes payable on demand or at sight, or on presentation, or not exceed ing three days after date or sight, the duty is according to the above table. (Bills of exchange payable in the same way only require ld.) The Stamp Act, 1891, provides : "Section 33. (1) For the purposes of this Act the expression ' promissory note ' includes any document or writing (except a bank note) containing a promise to pay any sum of money.
" (2) A note promising the payment of any sum of money out of any particular fund which may or may not be available, or upon any condition or contingency which may or may not be performed or happen, is to be deemed a promissory note for that sum of money." On all inland promissory notes the stamp must be impressed.
The ad valorem duties upon promissory notes drawn or made out of the United Kingdom are to be denoted by adhesive stamps. (Stamp Act, 1891, Section 34, s.s. 2.)
The adhesive stamps are to be Foreign Bill stamps. Every person into whose hands such a promissory note comes in the United, King dom before it is stamped shall, before he transfers or negotiates or pays the note, affix thereto a proper adhesive stamp and cancel every stamp so affixed. (Section 35, s.s. 1.) An adhesive stamp is to be cancelled, by the person required by law to cancel it, by writing on or across the stamp his name or initials and the true date of his so writing.
The duty is calculated upon the amount of the note. If the note is drawn payable " with interest," the interest does not affect the amount of the stamp.
A bill or note issued by the Bank of England or the Bank of Ireland is exempt from stamp duty.
Where the amount secured by a promis sory note is payable by instalments, the duty is simply upon the one full amount, and not upon each separate instalment.
The various sections of the Stamp Act relating to the stamp duties on bills and promissory notes are given in the article BILL OF EXCHANGE. (See PRESENTMENT