Finance Act, 1965
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Extension of section 30 of Finance Act, 1941, etc. |
23.—(1) Where, after the passing of this Act, a person who has an interest in property limited to cease on a death as defined by section 27 of the Finance Act, 1941 , acquires the property or all or any other interests therein, the acquisition shall be deemed to be a determination of the interest so limited to cease as aforesaid, within the meaning of section 30 of that Act. | |
(2) Where an acquisition to which subsection (1) of this section relates has, by way of purchase within five years of the death whereon the interest was limited to cease, been made either by the deceased or out of or by means of any property which would have passed or have been deemed to pass on his death if he had died immediately before the said purchase, then, a sum of money equivalent to the consideration given for the purchase shall be deemed for all purposes of estate duty to be property taken under a disposition made by the deceased within five years of his death purporting to operate as a gift inter vivos to the person from whom the purchase was made. | ||
(3) Where— | ||
(a) at any time after the passing of this Act and within five years before a death, being a time when there was in any property an interest limited to cease on the death as defined in section 27 of the Finance Act, 1941 , a purchase of another interest in that property expectant on or subject to the interest so limited has been made either by the deceased or out of or by means of any property which would have passed for the purposes of estate duty on his death if he had died immediately before the purchase, | ||
(b) the other interest passes or is deemed to pass or would, but for the provisions of this subsection, so pass or be deemed to pass on the death for the purposes of estate duty, and | ||
(c) subsection (1) of this section does not apply to the purchase of the other interest, | ||
there shall be deemed to be included in the property passing on the death in lieu of and substitution for the said other interest a sum of money equivalent to the consideration given for the purchase and the said other interest shall be excluded from the property so passing. | ||
(4) Where the interest limited to cease on a death to which subsection (1) or paragraph (a) of subsection (3) of this section applies is such that on the cesser of that interest the property in which it subsisted is to be treated for the purposes of estate duty as passing to a particular or limited extent only then the consideration for the purchase to which subsection (2) of this section or the said paragraph (a), as the case may be, refers shall be treated for the purpose of this section as reduced to a corresponding extent. | ||
(5) A sum of money which under this section is deemed to pass on a death shall, for the purposes of subsection (10) of section 7 of the Finance Act, 1894 , be treated as distinct from any other property passing or deemed to pass on the death. | ||
(6) Any property or any interest therein which was the subject matter of an acquisition to which the foregoing subsections apply shall not, in relation to any other property passing or deemed to pass on the death, be regarded as consideration within the meaning of section 3 of the Finance Act, 1894 . |