Finance (No. 3) Act 2011

• Permanent Page URL

(2)

(3)

(4)

section 2(1)

“child of the civil partner” in relation to an individual, means a child of the individual’s civil partner who was born before the registration of their civil partnership or during their civil partnership;

“civil partner” means a civil partner within the meaning of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 ;

“civil partnership” means—

(a) a civil partnership registration referred to in section 3 (a) of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 , or

(b) a legal relationship referred to in section 3(b) of that Act;

“decree of dissolution” means a decree under section 110 of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 ;

“surviving civil partner”, in relation to 2 individuals who were civil partners of each other until the death of one of them, means the civil partner other than the civil partner who died;

section 2(1) in paragraph (m) of the definition of “disposition”

the payment of a share as a legal right under Part IX of the Succession Act 1965 , to a deceased person’s spouse, or the making of provision for a widow or child of a deceased person under section 56 or section 117 of the Succession Act 1965 , or an analogous share or provision paid or made on the death of a deceased person to or for the benefit of any person under the law of another territory,

the payment of a share as a legal right under Part IX of the Succession Act 1965 , to a deceased person’s spouse or civil partner, or the making of provision for a widow, surviving civil partner or child of a deceased person under section 56 or section 117 of the Succession Act 1965 , or an analogous share or provision paid or made on the death of a deceased person to or for the benefit of any person under the law of another territory,

section 5(4)

relative of the person becomes

relative of the person, the civil partner of the person, or a child of the civil partner of the person, becomes

section 14 in the definition of “principal objects”

“principal objects”, in relation to a discretionary trust, means such objects, if any, of the trust for the time being as are—

(a) the spouse of the disponer,

(b) the children of the disponer, or

(c) the children of a child of the disponer, where such child predeceased the disponer.

“principal objects”, in relation to a discretionary trust, means such objects, if any, of the trust for the time being as are—

(a) the spouse or civil partner of the disponer,

(b) the children of the disponer,

(c) the children of the civil partner of the disponer,

(d) the children of a child of the disponer, where such child predeceased the disponer,

(e) the children of a child of the civil partner of the disponer, where such child predeceased the disponer,

(f) the children of the civil partner of a child of the disponer, where such child predeceased the disponer, or

(g) the children of the civil partner of a child of the civil partner of the disponer, where such child predeceased the disponer.

section 27(1) in the definition of “group of shares”

“group of shares”, in relation to a private company, means the aggregate of the shares in the company of the donee or successor, the relatives of the donee or successor, nominees of the donee or successor, nominees of relatives of the donee or successor, and the trustees of a settlement whose objects include the donee or successor or relatives of the donee or successor;

“group of shares”, in relation to a private company, means the aggregate of the shares in the company of—

(a) the donee or successor,

(b) the relatives, civil partner or children of the civil partner, of the donee or successor,

(c) nominees of the donee or successor,

(d) nominees of—

(i) relatives of the donee or successor,

(ii) the civil partner of the donee or successor, or

(iii) children of the civil partner of the donee or successor,

and

(e) the trustees of a settlement whose objects include—

(i) the donee or successor,

(ii) relatives of the donee or successor,

(iii) the civil partner of the donee or successor, or

(iv) the children of the civil partner of the donee or successor;

section 27(2)(b)(i)

(i) such benefit as would be appropriate to the ownership of that interest if the second-mentioned company were under the control of the first-mentioned company in the same manner as (on the date on which the market value is to be ascertained) the second-mentioned company is under the control of the following, that is, the first-mentioned company, the donee or successor, the relatives of the donee or successor, nominees of the donee or successor, nominees of relatives of the donee or successor, and the trustees of a settlement whose objects include the donee or successor or relatives of the donee or successor, or

(i) such benefit as would be appropriate to the ownership of that interest if the second-mentioned company were under the control of the first-mentioned company in the same manner as (on the date on which the market value is to be ascertained) the second-mentioned company is under the control of any of the following:

(i) the first-mentioned company;

(ii) the donee or successor;

(iii) the relatives, civil partner or children of the civil partner, of the donee or successor;

(iv) nominees of the donee or successor;

(v) nominees of relatives, the civil partner or children of the civil partner, of the donee or successor;

(vi) the trustees of a settlement whose objects include—

(A) the donee or successor, or

(B) relatives, the civil partner or children of the civil partner, of the donee or successor,

or

section 27(3)

(3) In this section, a reference to a company controlled by the donee or successor is a reference to a company that is under the control of any one or more of the following, that is, the donee or successor, the relatives of the donee or successor, nominees of the donee or successor, nominees of relatives of the donee or successor, and the trustees of a settlement whose objects include the donee or successor or relatives of the donee or successor; and for the purposes of this section, a company which is so controlled by the donee or successor shall be regarded as being itself a relative of the donee or successor.

(3) In this section, a reference to a company controlled by the donee or successor is a reference to a company that is under the control of any one or more of the following:

(a) the donee or successor;

(b) the relatives, civil partner or children of the civil partner, of the donee or successor;

(c) nominees of the donee or successor;

(d) nominees of relatives, the civil partner or children of the civil partner, of the donee or successor;

(e) the trustees of a settlement whose objects include—

(i) the donee or successor, or

(ii) relatives, the civil partner or children of the civil partner, of the donee or successor,

and for the purposes of this section, a company which is so controlled by the donee or successor shall be regarded as being itself a relative of the donee or successor.

section 27(4)(a)(i)

(i) persons who are relatives of any other person together with that other person,

(i) persons who are—

(i) relatives of any other person,

(ii) the civil partner of any other person, or

(iii) children of the civil partner of any other person,

together with that other person,

section 70

spouse

spouse or civil partner

section 71

spouse

spouse or civil partner

section 72

spouse

spouse or civil partner

section 72

spouses

spouses or civil partners

section 73 in the definition of “insured”

spouse

spouse or civil partner

section 77(4)

spouse

spouse or civil partner

section 78(6)

spouse

spouse or civil partner

section 82(2)

spouse or child

spouse, civil partner, child or child of the civil partner

section 82(4)

a minor child

a minor child or a minor child of the civil partner

section 82(4)

that minor child

that minor child or minor child of the civil partner

section 85(1)

spouse

spouse or civil partner

section 85(2)(b)

child of the disponer

child of the disponer or of the civil partner of the disponer

Certain transfers by qualified cohabitants.

88A.—Notwithstanding any other provision of this Act, a gift or inheritance taken by virtue or in consequence of an order under Part 15 of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 by a qualified cohabitant, within the meaning of that Act, is exempt from tax and is not taken into account in computing tax.

section 89(4A)

spouse

spouse or civil partner

section 94

spouse

spouse or civil partner

section 97(1)(b)

spouse

spouse or civil partner

section 100(4)(b)

spouse

spouse or civil partner

section 109(7)

spouse

spouse or civil partner

Schedule 2, Part 1, paragraph 1, in the definition of “group threshold”

“group threshold”, in relation to a taxable gift or a taxable inheritance taken on a particular day, means—

(a) €244,000, where—

(i) the donee or successor is on that day the child, or minor child of a deceased child, of the disponer, or

(ii) the successor is on that day a parent of the disponer and—

(i) the interest taken is not a limited interest, and

(ii) the inheritance is taken on the death of the disponer;

(b) €24,400, where the donee or successor is on that day, a lineal ancestor, a lineal descendant (other than a child, or a minor child of a deceased child), a brother, a sister, or a child of a brother or of a sister of the disponer;

(c) €12,200, where the donee or successor (who is not a spouse of the disponer) does not, on that day, stand to the disponer in a relationship referred to in subparagraph (a) or (b);

“group threshold”, in relation to a taxable gift or a taxable inheritance taken on a particular day, means—

(a) €244,000, where—

(i) the donee or successor is on that day—

(i) the child, or the minor child of a deceased child, of the disponer,

(ii) the child of the civil partner of the disponer, or minor child of a deceased child of the civil partner of the disponer,

(iii) the minor child of the civil partner of a deceased child of the disponer, or

(iv) the minor child of the civil partner of a deceased child of the civil partner of the disponer,

or

(ii) the successor is on that day a parent of the disponer and—

(i) the interest taken is not a limited interest, and

(ii) the inheritance is taken on the death of the disponer;

(b) €24,400, where the donee or successor is on that day—

(i) a lineal ancestor of the disponer,

(ii) a lineal descendant (other than a person referred to in any of clauses (i) to (iv) of paragraph (a)(i) ) of the disponer,

(iii) a brother or a sister of the disponer,

(iv) a child of a brother or of a sister of the disponer, or

(v) a child of the civil partner of a brother or of a sister of the disponer;

(c) €12,200, where the donee or successor (who is not a spouse or civil partner of the disponer) does not, on that day, stand to the disponer in a relationship referred to in subparagraph (a) or (b);

Schedule 2, Part 1, paragraph 6

6. Where any donee or successor is, at the date of the gift or at the date of the inheritance, the surviving spouse of a deceased person who, at the time of that deceased spouse’s death, was of nearer relationship than such donee or successor to the disponer, then such donee or successor is, in the computation of the tax payable on such taxable gift or taxable inheritance, deemed to bear to the disponer the relationship of that deceased person.

6. Where any donee or successor is, at the date of the gift or at the date of the inheritance—

(a) the surviving spouse of a deceased person,or

(b) the surviving civil partner of a deceased person,

and, at the time of the death of the deceased person, that deceased person was of nearer relationship than such donee or successor to the disponer, then such donee or successor is, in the computation of the tax payable on such taxable gift or taxable inheritance, deemed to bear to the disponer the relationship of that deceased person.

Schedule 2, Part 1, paragraph 7(2)

(2) For the purpose of computing the tax payable on a gift or inheritance, the donee or successor is deemed to bear to the disponer the relationship of a child in any case where the donee or successor is a child of a brother, or a child of a sister, of the disponer and either—

(a) the donee or successor has worked substantially on a full-time basis for the disponer for the relevant period in carrying on, or in assisting in carrying on, the trade, business or profession of the disponer, and the gift or inheritance consists of property which was used in connection with that business, trade or profession; or

(b) the donee or successor has worked substantially on a full-time basis for a company for the relevant period in carrying on, or in assisting in carrying on, the trade, business or profession of the company, and the gift or inheritance consists of shares in that company.

(2) For the purpose of computing the tax payable on a gift or inheritance made by a disponer to a donee or successor who is—

(a) a child of the disponer’s brother or sister, or

(b) a child of the civil partner of the disponer’s brother or sister,

the same rules apply as where the gift or inheritance is made to the disponer’s child if—

(i) the donee or successor has worked substantially on a full-time basis for the disponer for the relevant period in carrying on, or in assisting in carrying on, the trade, business or profession of the disponer, and the gift or inheritance consists of property which was used in connection with that business, trade or profession, or

(ii) the donee or successor has worked substantially on a full-time basis for a company for the relevant period in carrying on, or in assisting in carrying on, the trade, business or profession of the company, and the gift or inheritance consists of shares in that company.