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Amendment of section 36 (dispositions involving powers of appointment) of Principal Act.
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112.— (1) Section 36 of the Principal Act is amended by inserting the following after subsection (1):
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“(1A) In subsections (1B) and (1C) ‘arrangement’ includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).
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(1B) Notwithstanding subsection (1), where the exercise of, failure to exercise, or release of, a general power of appointment form part of an arrangement the main purpose or one of the main purposes of which is the avoidance of tax, tax shall be chargeable as if the disposition were the disposition under which the power was created and the person who created the power were the disponer.
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(1C) Where the grant of a general power of appointment in or over property to any person forms part of an arrangement the main purpose or one of the main purposes of which is the avoidance of a charge to tax arising under sections 15(1) or 20(1), the grant of that general power of appointment shall not prejudice any such charge to tax.”.
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(2) This section applies to gifts and inheritances (including inheritances referred to in sections 15(1) and 20(1) of the Principal Act) taken on or after 8 February 2012.
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