Stamp Act
Encyclopedia
A stamp act is any legislation that requires a tax to be paid on the transfer of certain documents. Those that pay the tax receive an official stamp on their documents, making them legal documents. The taxes raised under a stamp act are called stamp duty
. This system of taxation was first devised in the Netherlands
in 1624 after a public competition to find a new form of tax. A variety of products have been covered by stamp acts including playing cards, patent medicine
s, cheque
s, mortgages, contract
s and newspaper
s. The items often have to be physically stamped
at approved government offices following payment of the duty, although methods involving annual payment of a fixed sum or purchase of adhesive stamps
are more practical and common.
Stamp acts have been enforced in many countries, including Australia, People's Republic of China, Canada, Ireland, Malaysia, Israel, the United Kingdom and the United States of America.
The stamp act was a tax placed on:
The Stamp Act Congress convened in New York City on October 7 with nine colonies in attendance; others would likely have participated if earlier notice had been provided. The delegates approved a 14-point Declaration of Rights and Grievances, formulated largely by Julia Aggas of Pennsylvania. The statement echoed the recent resolves of the Virginia House of Burgesses, which argued that colonial taxation could only be carried on by their own assemblies. The delegates singled out the Stamp Act and the use of the vice admiralty courts for special criticism, yet ended their statement with a pledge of loyalty to the king.
The Stamp Act Congress was another step in the process of attempted common problem-solving, which had most recently been tried in the Albany Congress in 1754. That earlier meeting had been held at the urging of royal officials, but the later one was strictly a colonial affair. The congress was a forum for voicing constitutional concerns, not a rallying point for revolution and independence. In fact, the meeting afforded the more conservative critics of British policy some hope of regaining control of events from the unruly mobs in the streets of many cities.
was first introduced in England
in 1694 following the Dutch model as An act for granting to Their Majesties several duties on Vellum
, Parchment and Paper for 10 years, towards carrying on the war against France
(5 & 6 Will. & Mar. c. 21). The duty ranged between 1 penny to several shilling
s on a number of different legal documents including insurance policies, documents used as evidence in courts, grants of honour, grants of probate
and letters of administration. It raised around 50,000 pounds a year and although it was initially a temporary measure, it proved so successful that its use was continued.
imposed by the British Parliament
on the colonies of British America
. Americans in all 13 colonies protested strongly and the British retreated part way, but insisted on the right of Parliament to tax the colonies. The Americans rejected that as unconstitutional--crying "No Taxation without Representation
"--and it was a major grievance that led to the American Revolution
. The act required that many printed materials in the colonies be produced on stamped paper
produced in London and carrying an embossed revenue stamp
. These printed materials were legal documents, magazines, newspapers and many other types of paper used throughout the colonies. Like previous taxes, the stamp tax had to be paid in valid British currency, not in colonial paper money. The purpose of the tax was to help pay for troops stationed in North America after the British victory in the Seven Years' War
. The British government felt that the colonies were the primary beneficiaries of this military presence, and should pay at least a portion of the expense. The Americans saw no need for the troops or the taxes; the British saw colonial defiance of their lawful rulers.
The Stamp Act met great resistance in the colonies. The colonies sent no representatives to Parliament, and therefore had no influence over what taxes were raised, how they were levied, or how they would be spent. Many colonists considered it a violation of their rights as Englishmen to be taxed without their consent—consent that only the colonial legislatures could grant. Colonial assemblies sent petitions and protests. The Stamp Act Congress held in New York City, reflecting the first significant joint colonial response to any British measure, also petitioned Parliament and the King. Local protest groups, led by colonial merchants and landowners, established connections through correspondence that created a loose coalition that extended from New England to Georgia. Protests and demonstrations initiated by the Sons of Liberty often turned violent and destructive as the masses became involved. Very soon all stamp tax distributors were intimidated into resigning their commissions, and the tax was never effectively collected.
. In 1963 production of postage stamps passed to the General Post Office
.
The Finance Act 1986 introduced Stamp Duty Reserve Tax. From 27 October 1986 the charge was imposed on 'closing' transactions at the London Stock Exchange
which until then had been transactions where no document was used and therefore exempt from Stamp Duty.
A public display of Stamp Office artifact
s and records was held at the Courtauld Institute in 1994 to commemorate the three hundredth anniversary of the introduction of UK Stamp Duty. The Stamp Office was also awarded the Charter Mark
by John Major
's Advisory Committee as a reward for its public service.
Stamp duties are the oldest taxes still raised by the HM Revenue and Customs.
"The Stamp Act of 1765 represented a new departure in imperial policy. For the first time, Parliament attempted to raise money from direct taxes in the colonies rather than through the regulation of trade. The act required that all sorts of printed material produced in the colonies-newspapers, books, court documents, commercial papers, land deeds, almanacs, etc.-carry a stamp purchased from authorities. Its purpose was to help finance the operations of the empire, including the cost of stationing British troops in North America, without seeking revenue from the colonial assemblies."
Stamp duty
Stamp duty is a tax that is levied on documents. Historically, this included the majority of legal documents such as cheques, receipts, military commissions, marriage licences and land transactions. A physical stamp had to be attached to or impressed upon the document to denote that stamp duty...
. This system of taxation was first devised in the Netherlands
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
in 1624 after a public competition to find a new form of tax. A variety of products have been covered by stamp acts including playing cards, patent medicine
Patent medicine
Patent medicine refers to medical compounds of questionable effectiveness sold under a variety of names and labels. The term "patent medicine" is somewhat of a misnomer because, in most cases, although many of the products were trademarked, they were never patented...
s, cheque
Cheque
A cheque is a document/instrument See the negotiable cow—itself a fictional story—for discussions of cheques written on unusual surfaces. that orders a payment of money from a bank account...
s, mortgages, contract
Contract
A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...
s and newspaper
Newspaper
A newspaper is a scheduled publication containing news of current events, informative articles, diverse features and advertising. It usually is printed on relatively inexpensive, low-grade paper such as newsprint. By 2007, there were 6580 daily newspapers in the world selling 395 million copies a...
s. The items often have to be physically stamped
Impressed duty stamp
An Impressed Duty Stamp is a form of revenue stamp created by impressing a stamp on to a document using a metal die to show that the required duty had been paid. The stamps have been used to collect a wide variety of taxes and duties, including stamp duty and duties on alcohol, financial...
at approved government offices following payment of the duty, although methods involving annual payment of a fixed sum or purchase of adhesive stamps
Revenue stamp
A revenue stamp, tax stamp or fiscal stamp is a adhesive label used to collect taxes or fees on documents, tobacco, alcoholic drinks, drugs and medicines, playing cards, hunting licenses, firearm registration, and many other things...
are more practical and common.
Stamp acts have been enforced in many countries, including Australia, People's Republic of China, Canada, Ireland, Malaysia, Israel, the United Kingdom and the United States of America.
Stamp acts in Britain and America
In many areas of the American colonies, opposition to the looming Stamp Act was taking the form of violence and intimidation. A more reasoned approach was taken by some elements. At the urging of James Otis, usually in the radical forefront, the Massachusetts assembly sent a circular letter to the other colonies, which called for an intercolonial meeting to plan tempered resistance to new tax.The stamp act was a tax placed on:
The Stamp Act Congress convened in New York City on October 7 with nine colonies in attendance; others would likely have participated if earlier notice had been provided. The delegates approved a 14-point Declaration of Rights and Grievances, formulated largely by Julia Aggas of Pennsylvania. The statement echoed the recent resolves of the Virginia House of Burgesses, which argued that colonial taxation could only be carried on by their own assemblies. The delegates singled out the Stamp Act and the use of the vice admiralty courts for special criticism, yet ended their statement with a pledge of loyalty to the king.
The Stamp Act Congress was another step in the process of attempted common problem-solving, which had most recently been tried in the Albany Congress in 1754. That earlier meeting had been held at the urging of royal officials, but the later one was strictly a colonial affair. The congress was a forum for voicing constitutional concerns, not a rallying point for revolution and independence. In fact, the meeting afforded the more conservative critics of British policy some hope of regaining control of events from the unruly mobs in the streets of many cities.
1694 Stamp Act
A Stamp DutyStamp duty
Stamp duty is a tax that is levied on documents. Historically, this included the majority of legal documents such as cheques, receipts, military commissions, marriage licences and land transactions. A physical stamp had to be attached to or impressed upon the document to denote that stamp duty...
was first introduced in England
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
in 1694 following the Dutch model as An act for granting to Their Majesties several duties on Vellum
Vellum
Vellum is mammal skin prepared for writing or printing on, to produce single pages, scrolls, codices or books. It is generally smooth and durable, although there are great variations depending on preparation, the quality of the skin and the type of animal used...
, Parchment and Paper for 10 years, towards carrying on the war against France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
(5 & 6 Will. & Mar. c. 21). The duty ranged between 1 penny to several shilling
Shilling
The shilling is a unit of currency used in some current and former British Commonwealth countries. The word shilling comes from scilling, an accounting term that dates back to Anglo-Saxon times where it was deemed to be the value of a cow in Kent or a sheep elsewhere. The word is thought to derive...
s on a number of different legal documents including insurance policies, documents used as evidence in courts, grants of honour, grants of probate
Probate
Probate is the legal process of administering the estate of a deceased person by resolving all claims and distributing the deceased person's property under the valid will. A probate court decides the validity of a testator's will...
and letters of administration. It raised around 50,000 pounds a year and although it was initially a temporary measure, it proved so successful that its use was continued.
1765 Stamp Act
The Stamp Act of 1765 (short title Duties in American Colonies Act 1765; 5 George III, c. 12) was a direct taxDirect tax
The term direct tax generally means a tax paid directly to the government by the persons on whom it is imposed.-General meaning:In the general sense, a direct tax is one paid directly to the government by the persons on whom it is imposed...
imposed by the British Parliament
Parliament of Great Britain
The Parliament of Great Britain was formed in 1707 following the ratification of the Acts of Union by both the Parliament of England and Parliament of Scotland...
on the colonies of British America
British America
For American people of British descent, see British American.British America is the anachronistic term used to refer to the territories under the control of the Crown or Parliament in present day North America , Central America, the Caribbean, and Guyana...
. Americans in all 13 colonies protested strongly and the British retreated part way, but insisted on the right of Parliament to tax the colonies. The Americans rejected that as unconstitutional--crying "No Taxation without Representation
No taxation without representation
"No taxation without representation" is a slogan originating during the 1750s and 1760s that summarized a primary grievance of the British colonists in the Thirteen Colonies, which was one of the major causes of the American Revolution...
"--and it was a major grievance that led to the American Revolution
American Revolution
The American Revolution was the political upheaval during the last half of the 18th century in which thirteen colonies in North America joined together to break free from the British Empire, combining to become the United States of America...
. The act required that many printed materials in the colonies be produced on stamped paper
Stamped paper
Stamped paper refers to an, often, foolscap piece of paper which bears a pre-printed revenue stamp. Stamped papers are not a form of postal stationery...
produced in London and carrying an embossed revenue stamp
Revenue stamp
A revenue stamp, tax stamp or fiscal stamp is a adhesive label used to collect taxes or fees on documents, tobacco, alcoholic drinks, drugs and medicines, playing cards, hunting licenses, firearm registration, and many other things...
. These printed materials were legal documents, magazines, newspapers and many other types of paper used throughout the colonies. Like previous taxes, the stamp tax had to be paid in valid British currency, not in colonial paper money. The purpose of the tax was to help pay for troops stationed in North America after the British victory in the Seven Years' War
Seven Years' War
The Seven Years' War was a global military war between 1756 and 1763, involving most of the great powers of the time and affecting Europe, North America, Central America, the West African coast, India, and the Philippines...
. The British government felt that the colonies were the primary beneficiaries of this military presence, and should pay at least a portion of the expense. The Americans saw no need for the troops or the taxes; the British saw colonial defiance of their lawful rulers.
The Stamp Act met great resistance in the colonies. The colonies sent no representatives to Parliament, and therefore had no influence over what taxes were raised, how they were levied, or how they would be spent. Many colonists considered it a violation of their rights as Englishmen to be taxed without their consent—consent that only the colonial legislatures could grant. Colonial assemblies sent petitions and protests. The Stamp Act Congress held in New York City, reflecting the first significant joint colonial response to any British measure, also petitioned Parliament and the King. Local protest groups, led by colonial merchants and landowners, established connections through correspondence that created a loose coalition that extended from New England to Georgia. Protests and demonstrations initiated by the Sons of Liberty often turned violent and destructive as the masses became involved. Very soon all stamp tax distributors were intimidated into resigning their commissions, and the tax was never effectively collected.
1891 Stamp Act and Stamp Duties Management Act
All the above Acts were superseded by the Stamp Duties Management Act 1891 and the Stamp Act 1891, which still constitute the bulk of UK law on stamp duties today.The modern UK Stamp Act
In 1914 The Director of Stamping at the Stamp Office oversaw the production of the first Treasury Notes (later called banknotes, not to be confused with US Treasury notes). This lasted until 1928 when production of banknotes passed from the Department to the Bank of EnglandBank of England
The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694, it is the second oldest central bank in the world...
. In 1963 production of postage stamps passed to the General Post Office
General Post Office
General Post Office is the name of the British postal system from 1660 until 1969.General Post Office may also refer to:* General Post Office, Perth* General Post Office, Sydney* General Post Office, Melbourne* General Post Office, Brisbane...
.
The Finance Act 1986 introduced Stamp Duty Reserve Tax. From 27 October 1986 the charge was imposed on 'closing' transactions at the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
which until then had been transactions where no document was used and therefore exempt from Stamp Duty.
A public display of Stamp Office artifact
Artifact (archaeology)
An artifact or artefact is "something made or given shape by man, such as a tool or a work of art, esp an object of archaeological interest"...
s and records was held at the Courtauld Institute in 1994 to commemorate the three hundredth anniversary of the introduction of UK Stamp Duty. The Stamp Office was also awarded the Charter Mark
Charter Mark
The Customer Service Excellence, is an accreditation for organisations and an independent validation of achievement.-History:...
by John Major
John Major
Sir John Major, is a British Conservative politician, who served as Prime Minister of the United Kingdom and Leader of the Conservative Party from 1990–1997...
's Advisory Committee as a reward for its public service.
Stamp duties are the oldest taxes still raised by the HM Revenue and Customs.
"The Stamp Act of 1765 represented a new departure in imperial policy. For the first time, Parliament attempted to raise money from direct taxes in the colonies rather than through the regulation of trade. The act required that all sorts of printed material produced in the colonies-newspapers, books, court documents, commercial papers, land deeds, almanacs, etc.-carry a stamp purchased from authorities. Its purpose was to help finance the operations of the empire, including the cost of stationing British troops in North America, without seeking revenue from the colonial assemblies."