Finance Act, 1941
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Effect of increase of rates on certain sales and mortgages. |
29.—(1) Where an interest in expectancy within the meaning of Part I of the Finance Act, 1894 , in any property (other than property deemed, by virtue of section 26 of the Finance Act, 1931 (No. 31 of 1931), as amended by sections 29 and 30 of the Finance Act, 1934 (No. 31 of 1934), to pass on a death occurring before the 8th day of May, 1941) has, whether before or after the passing of this Act, been bona fide sold or mortgaged for full consideration in money or money's worth and the rates of estate duty having effect in the case of a person dying when the said interest falls into possession are higher than the rates of estate duty having effect in the case of a person dying on the date of the said sale or mortgage, the following provisions shall have effect, that is to say:— | |
(a) no other estate duty shall be payable on the said property by the purchaser or mortgagee when the said interest falls into possession than would have been payable by him if the rates of estate duty having effect in the case of a person dying on the date of the said sale or mortgage were the rates of estate duty having effect in the case of a person dying when the said interest falls into possession; | ||
(b) in the case of any such mortgage as aforesaid, any higher estate duty payable by the mortgagor shall rank as a charge subsequent to the said mortgage. | ||
(2) This section shall have effect only in respect of interests in expectancy which fell or shall fall into possession after the 7th day of May, 1941. |