Finance Act 2022

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Amendment of Principal Act in relation to section 4B of Succession Act 1965

75. The Principal Act is amended—

(a) in section 2—

(i) in subsection (1)—

(I) in the definition of “child”, by the insertion of the following paragraph after paragraph (b):

“(c) an affected person;”,

and

(II) by the insertion of the following definitions:

“‘affected person’ shall be construed in accordance with section 4B(11) of the Succession Act 1965;

‘social father’, ‘social mother’ and ‘social parent’ have the same meaning, respectively, as they have in section 4B(12) of the Succession Act 1965 ;”,

(ii) by the insertion of the following subsection after subsection (1B):

“(1C) Any reference in this Act to ‘father’, ‘mother’ or ‘parent’, respectively, includes a reference to ‘social father’, ‘social mother’ or ‘social parent’, respectively.”,

(iii) in subsection (4), by the substitution of “Subject to subsection (10), for the purposes of this Act” for “For the purposes of this Act”, and

(iv) by the insertion of the following subsection after subsection (9):

“(10) For the purposes of this Act, the relationship—

(a) between an affected person and his or her father and mother, and

(b) between an affected person and his or her social father and social mother,

shall be deduced, and all other relationships determined accordingly, in accordance with section 4B(1) of the Succession Act 1965 .”,

and

(b) in Schedule 2, by the insertion in Part 1 of the following paragraph after paragraph 11:

“12. (a) In this paragraph—

‘beneficiary’ means a donee or successor;

‘taxable benefit’ means a taxable gift or taxable inheritance.

(b) For the purposes of this Act, where a taxable benefit is taken by a beneficiary from a disponer to whom he or she is related by virtue of section 4B(1) of the Succession Act 1965 as applied by section 2(10)—

(i) the beneficiary shall make an election as to whether or not the relationship that arises by virtue of the said section 4B(1) as so applied shall apply in relation to that taxable benefit, and

(ii) the election referred to in clause (i) shall apply in relation to any taxable benefit received by that beneficiary from the same disponer.”.