Finance Act, 1940

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PART III.

Death Duties.

Amendment of section 2 (1) of the Finance Act, 1894.

23.—(1) In this section—

the word “disposition” includes any trust, covenant, agreement, or arrangement;

the expression “subject matter” includes any annual or periodical payment made or payable under or by virtue of the disposition in relation to which the said expression is used;

the expression “property derived from the deceased” means any property which—

(a) was the subject matter of a disposition made by the deceased, either by himself alone or in concert or by arrangement with any other person, otherwise than for full consideration in money or money's worth paid to him for his own use or benefit, or

(b) represented any of the subject matter of such a disposition, whether directly or indirectly and whether by virtue of one or more intermediate dispositions, and whether any such intermediate disposition was or was not for full or partial consideration.

(2) Paragraph (d) of sub-section (1) of section 2 of the Finance Act, 1894 , shall have effect in relation to an annuity or other interest which was purchased or provided wholly or in part by any person who was at any time entitled to, or amongst whose resources, there was at any time included, any property derived from the deceased either—

(a) as if the said annuity or other interest, as of its actual amount, had been provided by the deceased, or

(b) in a case in which it is proved, to the satisfaction of the Revenue Commissioners, that the application of all the property derived from the deceased would have been insufficient to provide the whole of the said annuity or other interest, as if—

(i) the said annuity or other interest had been provided by the deceased, and

(ii) the amount of the said annuity or other interest were the actual amount thereof reduced to an extent proportionate to the insufficiency proved as aforesaid.

(3) In the application of the foregoing sub-section of this section, there shall be excluded from the property derived from the deceased any part thereof as to which it is proved to the satisfaction of the Revenue Commissioners that the disposition of which it, or the property which it represented, was the subject matter was not made with reference to, or with a view to enabling or facilitating, the purchase or provision of the annuity or other interest or the recoupment in any manner of the cost thereof.

(4) For the purpose of section 4 of the Finance Act, 1894 , the deceased shall be deemed to have had an interest in any property included, by virtue of this section in the property passing on the death of the deceased.

(5) The provisions contained in this section shall have effect in respect of every case in which the death of the deceased occurred on or after the 8th day of May, 1940.