Finance Act, 1965
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Provisions relating to certain policies of assurance. |
26.—In relation to a policy of assurance to which subsection (1) of section 11 of the Customs and Inland Revenue Act, 1889 , applies and which was indefeasibly vested in a donee before the commencement of the period (in this section referred to as the revelant period) of five years ending at the death of the assured, the following provisions shall have effect if the assured dies after the passing of this Act: | |
(a) a part of the money received under the policy shall be excluded from the property passing or deemed to pass on the death of the assured and that part shall consist of: | ||
(i) so much of that money as is equal to the price which, in the opinion of the Revenue Commissioners, the policy would have fetched if sold in the open market on the commencement of the relevant period, and | ||
(ii) if any of the premiums paid on the policy during the relevant period were premiums not paid by the assured, so much of the balance of that money as bears to the whole of that balance the same proportion as the total of those premiums bears to the total of all the premiums paid on the policy during the relevant period; | ||
(b) such part of the money received under the policy as remains after the exclusion under the foregoing paragraph shall be treated for all purposes of estate duty as made up of or including the gifts deemed under the next paragraph to have been made by the assured to the donee, | ||
(c) the assured shall be deemed to have made, on each date during the relevant period on which he paid a premium on the policy, a gift to the donee of so much of the part referred to in the foregoing paragraph of the money received under the policy as bears to the whole of that part the same proportion as the premium bears to the total of all the premiums paid by the assured on the policy during the relevant period. |