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Report Stage Proceedings: 4th July 2006                  

750

 

Finance (N[ [], continued

 
 

separation is entitled to be recognised as valid in

 

England and Wales, in Scotland or in Northern

 

Ireland, financial relief for the parties to the marriage

 

and any children of the family including, but not

 

limited to, property adjustment orders or variation of

 

settlement orders under section 17 of the Matrimonial

 

and Family Proceedings Act 1984 or orders under

 

section 8 of the Family Law (Scotland) Act 1985 and

 

any successive legislation; or

 

(iv)    

financial relief for the benefit of a child including, but

 

not limited to, a transfer or settlement of property

 

under paragraph 1 of Schedule 1 of the Children Act

 

1989 and any successive legislation.”.’.

 


 

Mr Chancellor of the Exchequer

 

Agreed to  80

 

Page  396,  line  14  [Schedule  20],  at end insert—

 

‘(ab)    

a disabled person’s interest within section 89B(1)(c) or (d) below, or’.

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not called  36

 

Page  396,  line  15  [Schedule  20],  at end insert ‘, or

 

(c)    

a relationship breakdown settlement interest.”’.

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not called  37

 

Page  396,  line  30  [Schedule  20],  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  38

 

Page  396,  line  39  [Schedule  20],  at end insert ‘, or

 

(d)    

a relationship breakdown settlement interest.”’.

 



 
 

Report Stage Proceedings: 4th July 2006                  

751

 

Finance (N[ [], continued

 
 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not called  39

 

Page  397,  line  24  [Schedule  20],  at end insert ‘, or

 

(c)    

a relationship breakdown settlement interest.”’.

 


 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not called  40

 

Page  398,  line  10  [Schedule  20],  at end insert ‘, or

 

(c)    

a relationship breakdown settlement interest.”’.

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not called  41

 

Page  398,  line  28  [Schedule  20],  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  3

 

Page  398,  line  39  [Schedule  20],  at end insert—

 

‘(2A)    

After sub-paragraph 1(f) insert—

 

“(g)    

a life protection policy as defined in subsection 4 below;

 

(h)    

property representing directly or indirectly any sum paid under a

 

life protection policy, within two years following the death of

 

any person giving rise to that sum.”.’.

 


 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not called  42

 

Page  399,  line  11  [Schedule  20],  at end insert ‘, and


 
 

Report Stage Proceedings: 4th July 2006                  

752

 

Finance (N[ [], continued

 
 

(iv)    

not a relationship breakdown settlement interest.’.

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not called  4

 

Page  399,  line  25  [Schedule  20],  at end insert—

 

‘(4)    

After section 58(3) insert—

 

“58(4)  

In subsections 1(g) and 1(h) above a “life protection policy” is a policy

 

of insurance where the sum payable on the death or disability of any

 

person is at all times no less than a number of equal to ten multiplied

 

by the highest total sum of premiums paid in any period of twelve

 

months.”.’.

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not called  43

 

Page  399,  line  37  [Schedule  20],  after first ‘interest’, insert ‘, or a relationship

 

breakdown settlement interest’.

 

Mr Chancellor of the Exchequer

 

Agreed to  81

 

Page  399,  line  44  [Schedule  20],  after ‘interest,’ insert ‘or a disabled person’s

 

interest within section 89B(1)(c) or (d) below’.

 


 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not called  33

 

Page  400,  line  6  [Schedule  20],  at end insert—

 

‘20A      

In IHTA 1984 after section 59 IHTA 1984 insert—

 

“59A  

Relationship breakdown settlement interest

 

(1)    

Where a person (“L”) is beneficially entitled to an interest in

 

possession in settled property, for the purposes of this Chapter that

 

interest is a “relationship breakdown settlement interest” only if the

 

following conditions are satisfied.

 

(2)    

Condition 1 is that the settlement was effected, or if there was a prior

 

settlement it was confirmed or varied, by a court order, in proceedings

 

of the type mentioned in section 10(1)(c).


 
 

Report Stage Proceedings: 4th July 2006                  

753

 

Finance (N[ [], continued

 
 

(3)    

Condition 2 is that L became beneficially entitled to the interest in

 

possession on or before the date on which the court order came into

 

effect.’.

 

Mr Chancellor of the Exchequer

 

Agreed to  82

 

Page  400,  line  42  [Schedule  20],  leave out from ‘applies’ to end of line 44 and

 

insert ‘—

 

(a)    

as though for “an interest in possession” in each place where that appears

 

in subsection (1) above there were substituted “a postponing interest”,

 

and

 

(b)    

as though, for the purposes of that subsection, each of the following were

 

a “postponing interest”—

 

(i)    

an immediate post-death interest;

 

(ii)    

a disabled person’s interest.”.’.

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not called  57

 

Page  400,  line  44  [Schedule  20],  at end insert ‘or a disabled person’s interest’.

 


 

Mr Chancellor of the Exchequer

 

Agreed to  83

 

Page  401,  line  20  [Schedule  20],  at end insert—

 

‘(ia)    

a disabled person’s interest within section 89B(1)(c) or (d)

 

below, or’.

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not called  44

 

Page  401,  line  21  [Schedule  20],  after ‘interest’, insert ‘, or

 

(iii)    

a relationship breakdown settlement interest.’.

 

Mr Chancellor of the Exchequer

 

Agreed to  84

 

Page  401,  line  27  [Schedule  20],  after first ‘interest’ insert ‘, disabled person’s

 

interest’.


 
 

Report Stage Proceedings: 4th July 2006                  

754

 

Finance (N[ [], continued

 
 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not called  45

 

Page  401,  line  27  [Schedule  20],  after second ‘interest’, insert ‘or a relationship

 

breakdown settlement interest’.

 

Mr Chancellor of the Exchequer

 

Agreed to  85

 

Page  401,  line  29  [Schedule  20],  after ‘or’ insert ‘disabled person’s interest or’.

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not called  46

 

Page  401,  line  30  [Schedule  20],  after ‘interest’, insert ‘or a relationship

 

breakdown settlement interest’.

 

Mr Chancellor of the Exchequer

 

Agreed to  86

 

Page  401,  line  37  [Schedule  20],  leave out ‘neither’ and insert ‘—

 

(i)    

not’.

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not called  47

 

Page  401,  line  37  [Schedule  20],  leave out ‘neither’ and insert ‘not’.

 

Mr Chancellor of the Exchequer

 

Agreed to  87

 

Page  401,  line  37  [Schedule  20],  leave out ‘nor’ and insert ‘,

 

(ii)    

not a disabled person’s interest within section 89B(1)(c) or (d)

 

below, and

 

(iii)    

not’.

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not called  48

 

Page  401,  line  37  [Schedule  20],  leave out ‘nor’ and insert ‘or’.


 
 

Report Stage Proceedings: 4th July 2006                  

755

 

Finance (N[ [], continued

 
 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not called  49

 

Page  401,  line  38  [Schedule  20],  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  50

 

Page  402,  line  2  [Schedule  20],  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  54

 

Page  403  [Schedule  20],  leave out line 1.

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not called  55

 

Page  403,  line  2  [Schedule  20],  leave out ‘the’ and insert ‘a’.

 

Mr Chancellor of the Exchequer

 

Agreed to  88

 

Page  403,  line  7  [Schedule  20],  leave out ‘property comprised in the testator’s

 

estate’ and insert ‘the property’.

 

Mr Chancellor of the Exchequer

 

Agreed to  89

 

Page  403,  line  18  [Schedule  20],  at end insert—

 

‘(5)    

Subsection (4) above also applies where—

 

(a)    

a person dies before 22nd March 2006,

 

(b)    

property comprised in the person’s estate immediately before

 

his death is settled by his will,

 

(c)    

an event occurs—


 
 

Report Stage Proceedings: 4th July 2006                  

756

 

Finance (N[ [], continued

 
 

(i)    

on or after 22nd March 2006, and

 

(ii)    

within the period of two years after the testator’s

 

death,

 

    

that involves causing the property to be held on trusts within

 

subsection (6) below,

 

(d)    

no immediate post-death interest, and no disabled person’s

 

interest, subsisted in the property at any time in the period

 

beginning with the testator’s death and ending immediately

 

before the event, and

 

(e)    

no other interest in possession subsisted in the property at any

 

time in the period beginning with the testator’s death and

 

ending immediately before 22nd March 2006.

 

(6)    

Trusts are within this subsection if they would, had they in fact been

 

established by the testator’s will and had the testator died at the time

 

of the event mentioned in subsection (5)(c) above, have resulted in—

 

(a)    

an immediate post-death interest subsisting in the property, or

 

(b)    

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

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Julia Goldsworthy

 

Not called  11

 

Page  403,  line  26  [Schedule  20],  at end insert—

 

‘“lacked capacity” means lacked capacity, within the meaning of the Mental

 

Capacity Act 2005, in relation to any financial matter;’.

 

Mrs Theresa Villiers

 

Mr Mark Francois

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Andrew Selous

 

Not called  51

 

Page  403,  line  26  [Schedule  20],  at end insert—

 

‘“relationship breakdown settlement interest” means a relationship

 

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

 

section 59A above);”’.

 

Mr Chancellor of the Exchequer

 

Agreed to  90

 

Page  403,  line  42  [Schedule  20],  after ‘if’ insert ‘—

 

(a)’.

 

Mr Chancellor of the Exchequer

 

Agreed to  91

 

Page  403,  line  43  [Schedule  20],  at end insert ‘, or


 
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