Finance Act, 2001
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Amendment of provisions relating to the taxation of discretionary trusts. |
229.—(1) Section 143 of the Finance Act, 1994 , is amended— | |
(a) in subsection (1)— | ||
(i) by the insertion of the following definition after the definition of “relevant inheritance”: | ||
“‘settled relevant inheritance’ means a relevant inheritance taken on the death of a life tenant;”, | ||
(ii) by the substitution of the following definition for the definition of “the relevant period”: | ||
“‘relevant period’ means— | ||
(a) in relation to an earlier relevant inheritance, the period of 5 years commencing on the date of death of the disponer, | ||
(b) in relation to a settled relevant inheritance, the period of 5 years commencing on the date of death of the life tenant concerned, and | ||
(c) in relation to a later relevant inheritance, the period of 5 years commencing on the latest date on which a later relevant inheritance was deemed to be taken from the disponer;”, | ||
and | ||
(b) in subsection (2) by the substitution of the following for the proviso to subsection (2): | ||
“Provided that where in the case of each and every earlier relevant inheritance, each and every settled relevant inheritance or each and every later relevant inheritance, as the case may be, taken from one and the same disponer, one or more objects of the appropriate trust became beneficially entitled in possession before the expiration of the relevant period to an absolute interest in the entire of the property of which that inheritance consisted on and at all times after the date of that inheritance (other than property which ceased to be subject to the terms of the appropriate trust by virtue of a sale or exchange of an absolute interest in that property for full consideration in money or money's worth), then, in relation to all such earlier relevant inheritances, all such settled relevant inheritances or all such later relevant inheritances, as the case may be, this section shall cease to apply and tax shall be computed accordingly in accordance with the provisions of the said section 109 as if this section had not been enacted.”. | ||
(2) This section shall have effect as respects relevant inheritances taken on or after 26 January 2001. |