Finance Act, 1997
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Second Schedule (computation of tax) to Principal Act, declaratory provision. |
136.—(1) For the avoidance of doubt it is hereby declared that paragraph 3 (inserted by the Finance Act, 1984 ) of the Second Schedule to the Principal Act shall have effect and be deemed always to have had effect as if the following paragraph were substituted therefor: | |
“3. Subject to the provisions of paragraph 6, the tax chargeable on the taxable value of a taxable gift or a taxable inheritance taken by a donee or successor shall be of an amount equal to the amount by which the tax computed on aggregate A exceeds the tax computed on aggregate B, where— | ||
(a) aggregate A is the aggregate of the following: | ||
(i) the said taxable value, and | ||
(ii) the taxable value of each and every taxable gift and taxable inheritance taken previously by the said donee or successor on or after the 2nd day of June, 1982, | ||
(b) aggregate B is the aggregate of the taxable values of all taxable gifts and taxable inheritances so previously taken, and | ||
(c) the tax on an aggregate is computed at the rate or rates of tax applicable under the Table to that aggregate: | ||
Provided that— | ||
(i) in a case where no taxable gift or taxable inheritance was so previously taken, the amount of the tax computed on aggregate B shall be deemed to be nil, | ||
(ii) in every other case, the amount of the tax chargeable shall not exceed the amount which would be chargeable if the threshold amount which applies to aggregate A were deemed, irrespective of the definition of ‘threshold amount’, to be also the threshold amount which applies to aggregate B, and | ||
(iii) the amount of an aggregate that comprises only a single taxable value shall be equal to that value.”. | ||
(2) Subsection (1) shall not apply to a gift or inheritance in relation to which paragraph 3 of the Second Schedule to the Principal Act was the subject of a determination of the Appeal Commissioners, being a determination made before the 1st day of May, 1997, under section 52 of the Principal Act. |