Finance Act, 1965
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Amendment of section 59 of Finance (1909-10) Act, 1910, and certain other enactments. |
27.—(1) In subsection (1) of section 59 of the Finance (1909-10) Act, 1910 , “five years” is hereby substituted for “three years” in both places where the latter words occur. | |
(2) In subsection (2) of section 59 of the Finance (1909-10) Act, 1910 “five hundred pounds” is hereby substituted for “one hundred pounds”. | ||
(3) In— | ||
(i) paragraph (e) of subsection (1) of section 2 of the Finance Act, 1894 , | ||
(ii) paragraph (b) of subsection (3) of section 24 of the Finance Act, 1940 , | ||
(iii) subsection (4) of section 25 of that Act, | ||
(iv) subsection (2) of section 30 of the Finance Act, 1941 , | ||
(v) subsection (1) of section 24 of the Finance Act, 1961 , and | ||
(vi) paragraph (b) of subsection (3) of that section, “five years” is hereby substituted for “three years”. | ||
(4) In determining, for estate duty purposes, the value of any property which is deemed to pass on a death— | ||
(a) as property taken under a disposition purporting to operate as an immediate gift inter vivos within the meaning of paragraph (c) or paragraph (e) of subsection (1) of section 2 of the Finance Act, 1894 , or | ||
(b) under the provisions of subsection (1) of section 30 of the Finance Act, 1941 , | ||
being a death taking place in the third, fourth or last year of the five-year period, the principal value of the property shall be reduced— | ||
(i) by fifteen per cent. thereof, if the death takes place in the third year, | ||
(ii) by thirty per cent., if the death takes place in the fourth year, | ||
(iii) by sixty per cent., if the death takes place in the fifth year. | ||
In this subsection “the five-year period” means the period of five years beginning with the relevant disposition of property or the relevant disposition or determination of the limited interest, as the case may be. | ||
(5) Where, for estate duty purposes, the aggregate value or amount of gifts made to a donee within five years prior to the death of the donor exceeds £500, the estate duty chargeable in respect of the gifts shall not exceed the sum by which such value or amount exceeds £500, but no reduction under this subsection of the duty chargeable on a gift shall affect 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 . | ||
(6) This section shall have effect only in cases in which the deceased dies after the passing of this Act and the relevant disposition, surrender, assurance, divesting, determination or other transaction was made or effected after or within three years before such passing. |