Amendments proposed to the Finance Bill - continued House of Commons

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Mr Paul Boateng

132

Schedule     15,     page     345,     line     2,     leave out 'this Schedule' and insert 'paragraphs 3(2) and 6(2) (the disposal condition)'.

   

Mr Oliver Letwin
Mr Howard Flight
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne

46

Schedule     15,     page     345,     line     5,     leave out 'whole'.

   

Mr Paul Boateng

133

Schedule     15,     page     345,     leave out lines 11 to 13.

   

Mr Paul Boateng

134

Schedule     15,     page     345,     line     15,     leave out 'or'.

   

Mr Paul Boateng

135

Schedule     15,     page     345,     line     16,     leave out from beginning to 'settled' and insert 'it was a disposal by way of gift (or, where the transfer is for the benefit of his former spouse, in accordance with a court order), by virtue of which the property became'.

   

Mr Oliver Letwin
Mr Howard Flight
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne

47

Schedule     15,     page     345,     line     18,     at end insert—

      '(e) it was a disposal more than seven years prior to the date when he first occupies the relevant land or is first in possession of or first has the use of the chattel, or

      (f) it was a disposal by way of gift, the value of which at the date of the gift did not exceed the upper limit shown in the second column of the Table in Schedule 1 to IHTA 1984.'.

   

Mr Paul Boateng

136

Schedule     15,     page     345,     line     18,     at end insert—

            '(e)   the disposal was a disposition falling within section 11 of IHTA 1984 (dispositions for maintenance of family), or

            (f)   the disposal is an outright gift to an individual and is for the purposes of IHTA 1984 a transfer of value that is wholly exempt by virtue of section 19 (annual exemption) or section 20 (small gifts).'

   

Mr Paul Boateng

137

Schedule     15,     page     345,     line     18,     at end insert—

    '(1A) For the purposes of paragraphs 3(3) and 6(3) (the contribution condition) the provision by a person ("the chargeable person") of consideration for another's acquisition of any property is an "excluded transaction" in relation to the chargeable person if—

            (a)   the other person was his spouse (or, where the transfer has been ordered by the court, his former spouse),

            (b)   on its acquisition the property became settled property in which his spouse or former spouse is beneficially entitled to an interest in possession,

            (c)   the provision of the consideration constituted an outright gift of money (in sterling or any other currency) by the chargeable person to the other person and was made at least seven years before the earliest date on which the chargeable person met the condition in paragraph 3(1)(a) or, as the case may be, 6(1)(a),

            (d)   the provision of the consideration is a disposition falling within section 11 of IHTA 1984 (dispositions for maintenance of family), or

            (e)   the provision of the consideration is an outright gift to an individual and is for the purposes of IHTA 1984 a transfer of value that is wholly exempt by virtue of section 19 (annual exemption) or section 20 (small gifts).'

   

Mr Paul Boateng

138

Schedule     15,     page     345,     leave out lines 20 and 21.

   

Mr Paul Boateng

139

Schedule     15,     page     345,     line     22,     after '(1)(d)' insert 'or (1A)(b)'.

   

Mr Paul Boateng

140

Schedule     15,     page     345,     line     26,     leave out from beginning to 'property' in line 28 and insert—

    '(A1) Paragraph 3 (land), paragraph 6 (chattels) and paragraph 8 (intangible property) do not apply to a person at a time when his estate for the purposes of IHTA 1984 includes—

            (a)   the relevant property, or

            (b)   other property—

            (i) which derives its value from the relevant property, and

            (ii) whose value, so far as attributable to the relevant property, is not substantially less than the value of the relevant property.

    (A2) Where the estate for the purposes of IHTA 1984 of a person to whom paragraph 3, 6 or 8 applies includes property—

            (a)   which derives its value from the relevant property, and

            (b)   whose value, so far as attributable to the relevant property, is substantially less than the value of the relevant property,

    the appropriate rental value in paragraph 4, the appropriate amount in paragraph 7 or the chargeable amount in paragraph 9 (as the case may be) is to be reduced by such proportion as is reasonable to take account of the inclusion of the property in his estate.

    (1) Paragraphs 3, 6 and 8 do not apply to a person at a time when the relevant'.

   

Mr Oliver Letwin
Mr Howard Flight
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne

48

Schedule     15,     page     345,     line     31,     at end insert 'or would have fallen to be so treated by the provisions of sections 102A or 102B of the 1986 Act if the disposal by way of gift had been made on or after 9th March 1999 or would have fallen to be so treated by the provisions of section 102 of the 1986 Act if the disposal by way of gift had been made on or after 19th June 2003.'.

   

Mr Paul Boateng

141

Schedule     15,     page     345,     line     41,     after 'for' insert 'section 102C(3) of and'

   

Mr Oliver Letwin
Mr Howard Flight
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne

49

Schedule     15,     page     345,     line     42,     at end insert 'or would fall to be so treated but for the provisions of section 102C(3) of the 1986 Act.

      (e) would fall to be so treated but for the proviso to subsection (3) or subsections (4) or (5) of section 102A of the 1986 Act or would fall to be so treated but for subsection (3) of section 102B of the 1986 Act or would have fallen to be so treated but for any of those subsections if the disposal by way of gift had been made on or after 9th March 1999.

      (f) would fall to be treated by virtue of the IHTA 1984 as property to which he, his spouse or former spouse is beneficially entitled or where the value of the property is attributable to other property which would fall to be treated by virtue of the IHTA 1984 as property to which he, his spouse or former spouse is beneficially entitled.'.

   

Mr Paul Boateng

142

Schedule     15,     page     345,     line     42,     at end insert—

    '(1A) Where at any time the value of a person's estate for the purposes of IHTA 1984 is reduced by an excluded liability affecting any property, that property is not to be treated for the purposes of sub-paragraph (A1) or (A2) as comprised in his estate except to the extent that the value of the property exceeds the amount of the excluded liability.

    (1B) For the purposes of sub-paragraph (1A) a liability is an excluded liability if—

            (a)   the creation of the liability, and

            (b)   any transaction by virtue of which the person's estate came to include the relevant property or property which derives its value from the relevant property or by virtue of which the value of property in his estate came to be derived from the relevant property,

    were associated operations, as defined by section 268 of IHTA 1984.

    (1C) In determining whether the relevant property falls within sub-paragraph (1)(b), (c) or (d) in a case where the contribution condition in paragraph 3(3) or 6(3) is met, paragraph 2(2)(b) of Schedule 20 (exclusion of gifts of money) is to be disregarded.

    (1D) In sub-paragraphs (A1) to (1C) "the relevant property" means—

            (a)   in relation to paragraphs 3 and 6—

            (i) where the disposal condition in paragraph 3(2) or 6(2) is met, the property disposed of,

            (ii) where the contribution condition in paragraph 3(3) or 6(3) is met, the property representing the consideration directly or indirectly provided,

            (b)   in relation to paragraph 8, the relevant property within the meaning of that paragraph.'

   

Mr Oliver Letwin
Mr Howard Flight [R]
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne

108

Schedule     15,     page     345,     line     42,     at end insert—

      '(g) is settled property which became settled property by virtue of a disposal by way of gift made by him and in which he, his spouse, or former spouse is for the time being beneficially entitled to an interest in possession (whether or not any such interest in possession subsisted when the property first became settled property)'.

   

Mr Paul Boateng

143

Schedule     15,     page     345,     line     43,     leave out sub-paragraph (2).

   

Mr Oliver Letwin
Mr Howard Flight
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne

50

Schedule     15,     page     345,     line     45,     after second 'property', insert 'directly or indirectly'.

   

Mr Oliver Letwin
Mr Howard Flight [R]
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne

109

Schedule     15,     page     345,     line     47,     leave out subparagraph (b) and insert—

      '(b) he, his spouse or former spouse is for the time being beneficially entitled to an interest in possession in the settled property (whether or not any such interest in possession subsisted when the property first became settled property).'.

   

Mr Oliver Letwin
Mr Howard Flight [R]
Mr Mark Prisk
Mr Andrew Tyrie
Mr George Osborne

112

Schedule     15,     page     346,     line     8,     after '(2)', insert 'Subject to sub-paragraph (3) below.'.

 
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