Finance Act, 1965

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Benefits accruing pursuant to superannuation schemes.

24.—(1) (a) The provisions of this subsection shall have effect in relation to a death benefit payable under a non-contributory superannuation scheme.

(b) A death benefit shall be deemed—

(i) for all purposes of estate duty to be an interest purchased or provided by the deceased and to pass by reason of a disposition made by him,

(ii) for all purposes of succession duty to be a succession derived from the deceased as predecessor and from no other person.

(c) Where a death benefit is payable to all or any one or more of a class of persons, each such person shall be deemed to have become entitled on the death to all payments made to him notwithstanding that a power of appointment, selection or nomination in respect of the payments was vested in any person.

(d) (i) Where the aggregate value of all death benefits payable on a death does not exceed £5,000, the benefits shall, to the extent to which they become payable to or for the benefit of the widow or the dependent children of the deceased, be exempt from estate duty.

(ii) Where the aggregate value of death benefits payable on a death to or for the benefit of the widow or dependent children of the deceased exceeds £5,000, the estate duty chargeable in respect of such benefits shall not exceed the sum by which such value exceeds £5,000, but no reduction under this paragraph of the duty chargeable on a death benefit shall effect any reduction of the estate duty on other property under subsection (1) of section 13 of the Finance Act, 1914 , or paragraph (b) of subsection (2) or subsection (3) of section 13 of the Finance Act, 1955 .

(e) In a case in which a death benefit consists of property other than money, any references in this section to a benefit being payable or to payments shall be construed accordingly.

(f) In this subsection—

“death benefit” means any benefit which accrues pursuant to a superannuation scheme on or in connection with a death, occurring after the passing of this Act, during service or after retirement;

“the deceased” means the person on or in connection with whose death a death benefit accrues;

“dependent child” means a child (including a child adopted under the provisions of the Adoption Acts, 1952 and 1964) who had not attained the age of sixteen years at the date of the death of the deceased or who was then receiving full time instruction at any university college, school or other educational establishment;

“non-contributory”, in relation to a superannuation scheme, means that no monetary contribution has been made to the scheme by the deceased;

“superannuation scheme” includes any arrangement connected with employment;

“employment” includes employment as a director of a body corporate.

(2) (a) The provisions of paragraph (d) of subsection (1) of this section shall apply to death benefits payable under a superannuation scheme other than a non-contributory superannuation scheme, to or for the benefit of the widow or dependent children of the deceased.

(b) In this subsection “death benefits”, “superannuation scheme”, “non-contributory”, “dependent children” and “the deceased” have the same meanings as in subsection (1) of this section.