|
|
Gift deemed to be taken.
|
5.—(1) For the purposes of this Act, where, under or in consequence of any disposition, a person becomes beneficially entitled in possession, otherwise than on a death, to any benefit (whether or not the person becoming so entitled already has any interest in the property in which he takes such benefit), otherwise than for full consideration in money or money's worth paid by him, he shall be deemed to take a gift.
|
|
| |
(2) A gift shall be deemed—
|
|
| |
(a) to consist of the whole or the appropriate part, as the case may be, of the property in which the donee takes a benefit, or on which the benefit is charged or secured or on which the donee is entitled to have it charged or secured; and
|
|
| |
(b) if the benefit is an annuity or other periodic payment which is not charged on or secured by any property and which the donee is not entitled to have so charged or secured, to consist of such sum as would, if invested on the date of the gift in the security of the Government which was issued last before that date for subscription in the State and is redeemable not less than 10 years after the date of issue, yield, on the basis of the current yield on the security, an annual income equivalent to the annual value of the annuity or of the other periodic payment receivable by the donee.
|
|
| |
(3) For the purposes of section 6 (1) (c), the sum referred to in subsection (2) (b) shall be deemed not to be situate in the State at the date of the gift.
|
|
| |
(4) Where a person makes a disposition under which a relative of the person becomes beneficially entitled in possession to any benefit, the creation or disposition in favour of the person of an annuity or other interest limited to cease on the death, or at a time ascertainable only by reference to the death, of the person, shall not be treated for the purposes of this section as consideration for the grant of such benefit or of any part thereof.
|
|
| |
(5) For the purposes of this Act, “appropriate part”, in relation to property referred to in subsection (2), means that part of the entire property in which the benefit subsists, or on which the benefit is charged or secured, or on which the donee is entitled to have it so charged or secured, which bears the same proportion to the entire property as the gross annual value of the benefit bears to the gross annual value of the entire property, and the gift shall be deemed to consist of the appropriate part of each and every item of property comprised in the entire property.
|
|
| |
(6) (a) Where, before the 28th day of February, 1974, a contract or agreement was entered into, under or as a consequence of which a person acquired the right, otherwise than for full consideration in money or money's worth, to have a benefit transferred to him, or to another in his right or on his behalf, and an act or acts is or are done, on or after that date, in pursuance of, or in performance or satisfaction, whether in whole or in part, of such contract or agreement, then the gift or inheritance, as the case may be, taken by or in right or on behalf of that person, shall be deemed to have been taken, not when the right was acquired as aforesaid, but either—
|
|
| |
(i) when the benefit was transferred to him or to another in his right or on his behalf; or
|
|
| |
(ii) when he or another in his right or on his behalf became beneficially entitled in possession to the benefit,
|
|
| |
whichever is the later.
|
|
| |
(b) In this subsection, a reference to a contract or agreement does not include a reference to a contract or agreement—
|
|
| |
(i) which is a complete grant, transfer, assignment or conveyance; or
|
|
| |
(ii) which was enforceable by action prior to the 28th day of February, 1974.
|
