Finance Act, 1961
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Gifts inter vivos and property passing by reason of disposal or determination of life interest. |
24.—(1) In relation to property taken under a disposition purporting to operate as an immediate gift inter vivos made after the passing of this Act by a person within three years of his death and which is deemed to be included in the property passing on his death for the purposes of estate duty, subsections (5) and (6) of section 7 of the Finance Act, 1894 , and subsection (2) of section 60 of the Finance (1909-10) Act, 1910 , shall have effect subject to the substitution of “at the date of the gift” for “at the time of the death of the deceased” or “at the date of the death of the deceased” (as the case may be). | |
(2) Where, by virtue of subsection (1) of section 30 of the Finance Act, 1941 , property is deemed to pass either wholly or to a particular or limited extent on a death by reason of the fact that an interest limited to cease on the death has, after the passing of this Act, been disposed of or has determined, the property so deemed to pass shall be the property in which the interest so limited to cease subsisted at the date of the disposition or determination and, in relation to such property, subsections (5) and (6) of section 7 of the Finance Act, 1894 , and subsection (2) of section 60 of the Finance (1909-10) Act, 1910 , shall have effect subject to the substitution of “at the date of the disposition or determination” for “at the time of the death of the deceased” or “at the date of the death of the deceased” (as the case may be). | ||
(3) Where— | ||
(a) a person has, after the passing of this Act, made a disposition of property purporting to operate as an immediate gift inter vivos, | ||
(b) the disposition was made within three years of his death but was not a gift for public or charitable purposes made twelve months or more before his death, | ||
(c) the disposition was not made in consideration of marriage, | ||
(d) subsequent to the date of the disposition, such person has, by reason of a transaction or series of transactions effected for valuable consideration in money or money's worth, acquired an interest in or a power of appointment over such property or caused it to be the subject of a further disposition, and | ||
(e) in consequence of the transaction or transactions, the property passes or is deemed to pass on his death, | ||
then, a sum of money equivalent to the consideration or considerations given in the transaction or transactions by the deceased or provided out of or by means of any property of which he was competent to dispose shall be deemed for the purposes of estate duty to be property taken under a disposition made by the deceased within three years of his death purporting to operate as a gift inter vivos to the person or for the purposes in whose favour the disposition referred to in paragraph (a) of this subsection was made, and, as respects any such sum, it shall be deemed, for purposes of aggregation, to be property in which the deceased had an interest and section 3 of the Finance Act, 1894 , and subsection (10) of section 7 of that Act shall have no application to it. | ||
(4) Where, by virtue of this section, property is to be valued for estate duty purposes at a date other than the date of the death of the deceased, the proviso to subsection (2) of section 60 of the Finance (1909-10) Act, 1910 , shall not apply to the property. |