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S.C.A.  Standing Committee Proceedings: 15th June 2006            

325

 

Finance (N, continued

 
 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not called  331

 

Schedule  20,  page  125,  line  17  [Vol  II],  after second ‘interest’, insert ‘or

 

relationship breakdown settlement interest’.

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not called  332

 

Schedule  20,  page  125,  line  20  [Vol  II],  after ‘interest’, insert ‘or relationship

 

breakdown settlement interest’.

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not called  333

 

Schedule  20,  page  125,  line  27  [Vol  II],  leave out ‘neither’ and insert ‘not’.

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not called  334

 

Schedule  20,  page  125,  line  27  [Vol  II],  leave out ‘nor’ and insert ‘or’.

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not called  335

 

Schedule  20,  page  125,  line  28  [Vol  II],  after ‘interest’, insert ‘or a relationship

 

breakdown settlement interest.’.

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not called  260

 

Schedule  20,  page  125,  line  35  [Vol II],  leave out ‘22nd March 2006’ and insert

 

‘6th April 2007’.


 
 

S.C.A.  Standing Committee Proceedings: 15th June 2006            

326

 

Finance (N, continued

 
 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not called  315

 

Schedule  20,  page  125,  line  40  [Vol  II],  at end insert ‘; or

 

(d)    

an immediate self-settled interest.’.

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not called  336

 

Schedule  20,  page  125,  line  40  [Vol  II],  at end insert ‘, or

 

(d)    

a relationship breakdown settlement interest.” ’.

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not called  261

 

Schedule  20,  page  125,  line  45  [Vol II],  leave out ‘22nd March 2006’ and insert

 

‘6th April 2007’.

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not called  316

 

Schedule  20,  page  126,  line  4  [Vol  II],  at end insert ‘; or

 

(c)    

an immediate self-settled interest.’.

 

Dawn Primarolo

 

Agreed to  398

 

Schedule  20,  page  126,  line  19  [Vol II],  leave out ‘In’.

 

Dawn Primarolo

 

Agreed to  399

 

Schedule  20,  page  126,  line  19  [Vol II],  at end insert ‘is amended as follows.

 

      (2)  

In subsection (1)—

 

(a)    

for “This section applies” substitute “Subsection (2) below applies”,

 

and

 

(b)    

in paragraph (a), for “(apart from this section)” substitute “(apart from

 

subsection (2) below)”.’.


 
 

S.C.A.  Standing Committee Proceedings: 15th June 2006            

327

 

Finance (N, continued

 
 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not called  340

 

Schedule  20,  page  126  [Vol  II],  leave out lines 21 to 25 and insert—

 

‘(1A)    

Where the testator dies on or after 22nd March 2006, subsection (1) above shall

 

have effect as if—

 

(a)    

the reference to any interest in possession were a reference to any interest

 

in possession that is—

 

(i)    

an immediate post-death interest, or

 

(ii)    

a disabled person’s interest;

 

(b)    

an event which results in settled property to which subsection (1) above

 

(as modified by the preceding subsection) being held on trusts which

 

either:

 

(i)    

would constitute a trust for bereaved minors but for the

 

requirement that such a trust must be established under the will

 

of a deceased parent of a bereaved minor; or

 

(ii)    

would confer on any person an immediate post-death interest but

 

for the condition in section 49A(3) that the person in question

 

became beneficially entitled to the interest in possession on the

 

death of the testator and the condition in section 49A(7) in so far

 

as it relates to the condition in section 49A(3)

 

    

were (for the purposes of this section only) an event on which tax would

 

be chargeable under a provision of Chapter 3 Part 3 of this Act.’.

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not called  262

 

Schedule  20,  page  126,  line  21  [Vol II],  leave out ‘22nd March 2006’ and insert

 

‘6th April 2007’.

 

Dawn Primarolo

 

Agreed to  400

 

Schedule  20,  page  126,  line  25  [Vol II],  at end insert—

 

    ‘(4)  

In subsection (2), for “this section” (in both places) substitute “this

 

subsection”.

 

      (5)  

After subsection (2) insert—

 

“(3)    

Subsection (4) below applies where—

5

(a)    

a person dies on or after 22nd March 2006,

 

(b)    

property comprised in the person’s estate immediately before

 

his death is settled by his will, and

 

(c)    

within the period of two years after his death, but before an

 

immediate post-death interest or a disabled person’s interest

10

has subsisted in the property, there occurs an event that

 

involves causing property comprised in the testator’s estate to

 

be held on trusts that would, if they had in fact been

 

established by the testator’s will, have resulted in—


 
 

S.C.A.  Standing Committee Proceedings: 15th June 2006            

328

 

Finance (N, continued

 
 

(i)    

an immediate post-death interest subsisting in the

15

property, or

 

(ii)    

section 71A or 71D above applying to the property.

 

(4)    

Where this subsection applies by virtue of an event—

 

(a)    

this Act shall have effect as if the will had provided that on the

 

testator’s death the property should be held as it is held after

20

the event, but

 

(b)    

tax shall not be charged on that event under any provision of

 

Chapter 3 of Part 3 of this Act.”.’.

 

As Amendments to Dawn Primarolo’s proposed Amendment (No. 400):—

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not selected  (a)

 

Line  5,  leave out paragraph (a).

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not selected  (b)

 

Line  6,  leave out ‘the’ and insert ‘a’.

 

Dawn Primarolo

 

Agreed to  392

 

Schedule  20,  page  126,  line  30  [Vol II],  leave out ‘89(2A)’ and insert ‘89B’.

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not called  317

 

Schedule  20,  page  126,  line  33  [Vol  II],  at end insert—

 

‘ “immediate self-settled interest” means an immediate self-settled interest

 

for the purposes of Chapter 2 of Part 3 (see section 49D above)’.

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not called  337

 

Schedule  20,  page  126,  line  33  [Vol  II],  at end insert—

 

‘ “relationship breakdown settlement interest” means a relationship

 

breakdown settlement interest for the purposes of Chapter 2 of Part 3 (see

 

section 49D above);” ’.


 
 

S.C.A.  Standing Committee Proceedings: 15th June 2006            

329

 

Finance (N, continued

 
 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not selected  263

 

Schedule  20,  page  126,  line  42  [Vol II],  leave out ‘22nd March 2006’ and insert

 

‘6th April 2007’.

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not selected  264

 

Schedule  20,  page  127,  line  3  [Vol II],  leave out ‘22nd March 2006’ and insert

 

‘6th April 2007’.

 

Julia Goldsworthy

 

Mr Colin Breed

 

John Thurso

 

John Hemming

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not called  207

 

Schedule  20,  page  127,  line  13  [Vol II],  at end insert—

 

‘(iii)    

a disabled person’s interest, within the meaning given by

 

subsection (2A) of section 89 of that Act; or’.

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not called  318

 

Schedule  20,  page  127,  line  13  [Vol  II],  at end insert—

 

‘(iii)    

an immediate self-settled interest within the meaning given by

 

section 49D of that Act, or’.

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not called  338

 

Schedule  20,  page  127,  line  13  [Vol  II],  at end insert—

 

‘(iii)    

a relationship breakdown settlement interest within the meaning

 

given by section 49D of that Act, or’.


 
 

S.C.A.  Standing Committee Proceedings: 15th June 2006            

330

 

Finance (N, continued

 
 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not selected  265

 

Schedule  20,  page  127,  line  21  [Vol II],  leave out ‘22nd March 2006’ and insert

 

‘6th April 2007’.

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not selected  266

 

Schedule  20,  page  127,  line  32  [Vol II],  leave out ‘22nd March 2006’ and insert

 

‘6th April 2007’.

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not called  339

 

Schedule  20,  page  128,  line  9  [Vol  II],  after ‘interest’, insert ‘or,

 

(iii)    

a relationship breakdown settlement interest.’.

 

Dawn Primarolo

 

Agreed to  401

 

Schedule  20,  page  129,  line  20  [Vol II],  at end insert—

 

‘Part 6

 

Conditional exemption: relief from charges

 

    (1)  

Section 79 of IHTA 1984 (subsection (3) of which provides for charges to tax

 

where, in the case of settled property designated under section 31 on a claim

 

under section 79, an event occurs that would be chargeable under section 32 or

 

32A if the claim had been under section 30) is amended as follows.

 

      (2)  

After subsection (5) (amount on which tax charged under subsection (3))

 

insert—

 

“(5A)    

Where the event giving rise to a charge to tax under subsection (3)

 

above is a disposal on sale, and the sale—

 

(a)    

was not intended to confer any gratuitous benefit on any

 

person, and

 

(b)    

was either a transaction at arm’s length between persons not

 

connected with each other or a transaction such as might be

 

expected to be made at arm’s length between persons not

 

connected with each other,

 

    

the value of the property at the time of that event shall be taken for the

 

purposes of subsection (5) above to be equal to the proceeds of the

 

sale.”


 
 

S.C.A.  Standing Committee Proceedings: 15th June 2006            

331

 

Finance (N, continued

 
 

      (3)  

For subsection (7) (which provides that the “relevant period” mentioned in

 

subsection (6) begins with the latest of certain listed days and ends with the day

 

before the event giving rise to the charge under subsection (3)) substitute—

 

“(7)    

In subsection (6) above “the relevant period” means the period given

 

by subsection (7A) below or, if shorter, the period given by subsection

 

(7B) below.

 

(7A)    

The period given by this subsection is the period beginning with the

 

latest of—

 

(a)    

the day on which the settlement commenced,

 

(b)    

the date of the last ten-year anniversary of the settlement to

 

fall before the day on which the property became comprised

 

in the settlement,

 

(c)    

the date of the last ten-year anniversary of the settlement to

 

fall before the day on which the property was designated

 

under section 31 above on a claim under this section, and

 

(d)    

13th March 1975,

 

    

and ending with the day before the event giving rise to the charge.

 

(7B)    

The period given by this subsection is the period equal in length to the

 

number of relevant-property days in the period—

 

(a)    

beginning with the day that is the latest of those referred to in

 

paragraphs (a) to (d) of subsection (7A) above, and

 

(b)    

ending with the day before the event giving rise to the charge.

 

(7C)    

For the purposes of subsection (7B) above, a day is a “relevant-

 

property day” if at any time on that day the property was relevant

 

property.”

 

      (4)  

After subsection (9) insert—

 

“(9A)    

Subsection (9B) below applies where the same event gives rise—

 

(a)    

to a charge under subsection (3) above in relation to any

 

property, and

 

(b)    

to a charge under section 32 or 32A above in relation to that

 

property.

 

(9B)    

If the amount of each of the charges is the same, each charge shall have

 

effect as a charge for one half of the amount that would be charged

 

apart from this subsection; otherwise, whichever of the charges is

 

lower in amount shall have effect as if it were a charge the amount of

 

which is nil.”.’.

 

Schedule, as amended, Agreed to on division.

 

Clauses 158 and 159 Agreed to.

 



 
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