Finance Act, 1993

Application of Principal Act.

111.—In relation to a charge for tax arising by virtue of section 110

(a) the valuation date of the taxable inheritance shall be the date of the inheritance;

(b) a reference in section 16 of the Principal Act (as amended by the Finance Act, 1993) to a company controlled by the successor and the definition in that section of “group of shares” shall be construed as if (for the purpose of that reference) the list of persons contained in subsection (3) of that section and (for the purpose of that definition) the list of persons contained in that definition included the following persons, that is to say, the trustees of the relevant trust, the relatives of the deceased, the nominees of those trustees or of those relatives, and the trustees of a settlement whose objects include the relatives of the deceased;

(c) a person who is a personal representative of the deceased shall be a person primarily accountable for the payment of the tax;

(d) every person entitled for an interest in possession to a share in the estate of the deceased, and every person to whom or for whose benefit any of the property subject to the relevant trust is applied or appointed, shall also be accountable for the payment of the tax and the Principal Act shall have effect, in its application to that charge for tax, as if each of those persons were a person referred to in section 35 (2) of the Principal Act;

(e) where the total taxable value referred to in paragraph (a) of the proviso to section 113 exceeds the relevant threshold, section 36 (2) of the Principal Act (inserted by the Finance Act, 1989 ) shall have effect, in the application of the Principal Act to any such charge for tax as aforesaid, as if—

(i) the reference in that subsection to four months were construed as a reference to nine months, and

(ii) the reference in that subsection to a person primarily accountable for the payment of tax were construed as including a reference to a person primarily accountable by virtue of paragraph (c) of this section;

(f) sections 19, 21, 35 (1), 36 (4) and 40, subsections (1) to (3) of section 41, and section 43 of, and the Second Schedule to, the Principal Act shall not apply;

(g) section 18 of the Principal Act shall have effect, in the application of the Principal Act to any such charge for tax as aforesaid, as if—

(i) liabilities, costs or expenses incurred after the death of the deceased, other than reasonable funeral expenses, were not an allowable deduction,

(ii) any bona fide consideration paid prior to the death of the deceased by an object of the relevant trust, in return for a share in the estate of the deceased, were consideration paid by the relevant trust on the date on which it was paid by the object, and

(iii) where the property which is exempt from such tax is the dwelling-house, or a part thereof, the restriction on the deduction of any liability referred to in subsection (5) (e) of the said section 18 did not apply;

(h) section 60 of the Principal Act shall apply with the modification that, notwithstanding subsection (3) of that section, the Commissioners may refuse to issue the certificate referred to in subsection (1) of that section—

(i) in a case where the tax is being wholly or partly paid by the transfer of securities to the Minister for Finance under the provisions of section 45 of the Principal Act, until such security as they think fit has been given for the completion of the transfer of the securities to the Minister for Finance, or

(ii) in a case where payment of such tax has been postponed under the provisions of section 44 (1) of the Principal Act, or under section 118 , until such tax as has not been so postponed has been paid together with the interest, if any, thereon, or

(iii) in any other case, until the tax has been paid together with the interest, if any, thereon;

(i) section 2 (a) of section 57 of the Principal Act (inserted by the Finance Act, 1978 ) shall not apply and subsection (2) (c) of that section shall be construed as if the reference therein to the donee or successor were a reference to the deceased;

(j) subsection (6) of section 36 of the Principal Act (inserted by the Finance Act, 1989 ) shall have effect, in the application of the Principal Act to any such charge for tax as aforesaid, as if the reference in that subsection to a person primarily accountable for the payment of tax by virtue of section 35 (1) were a reference to a person primarily accountable by virtue of paragraph (c) of this section;

(k) section 55 of the Principal Act shall be construed as if the reference in subsection (4) of that section to the successor were a reference to the person who would be the successor for the purpose of that subsection if this Chapter had not been enacted; and

(l) section 63 of the Principal Act (as amended by the Finance Act, 1989 ) shall have effect, in the application of the Principal Act to any such charge for tax as aforesaid, as if—

(i) £1,000 were substituted for £5,000 in subsection (3) of that section,

(ii) £400 were substituted for £2,000 in subsection (1) (a) of that section,

(iii) £200 were substituted for £1,000 in subsections (2) and (7) of that section, and

(iv) £5 were substituted for £25 in subsection (1) (b) of that section.