Finance Act 1984

Section 108.

SCHEDULE 21 CAPITAL TRANSFER TA)(: PRE-CONSOLIDATION AMENDMENTS

The Finance Act 1975

1 In section 22(4) of the [1975 c. 7.] Finance Act 1975 (in this Schedule referred to as " the 1975 Act ")—

(a) for the words from the beginning to " his death " there shall be substituted the words " In determining for the purposes of this Part of this Act the value of the estate, immediately before his death, of a person whose spouse (or former spouse) died before 13th November 1974 "; and

(b) for the words "that death" there shall be substituted the words " the later death ".

2 In section 25(10) of the 1975 Act, after the word " section" there shall be inserted the words " (except subsection (8)) ".

3 In section 26(2) of the 1975 Act—

(a) the words from the beginning to " respectively, and " shall cease to have effect; and

(b) at the end, there shall be added the words " or by virtue of paragraph 24(2) of Schedule 5 to this Act ".

4 In section 45(1) of the 1975 Act, after the words " as domiciled in the United Kingdom " there shall be inserted the words " (and not elsewhere) " ; and section 51(3) of that Act shall cease to have effect.

5 In section 51(1) of the 1975 Act—

(a) the definition of " enactment" shall cease to have effect; and

(b) after the definition of " Inland Revenue charge " there shall be inserted—

• “' land ' includes buildings and Other structures, land covered with water, and any estate, interest, easement, servitude or right in or over land; but does not include any estate, interest or right by way of mortgage or other security ;”.

6 In paragraph 6(6) of Schedule 4 to the 1975 Act, for the words following " including references " there shall be substituted the words "to—

(a) disposals on which tax is chargeable under paragraph 2 of Schedule 9 to this Act,

(b) chargeable events by reference to which tax is chargeable under section 78 of the [1976 c. 40.] Finance Act 1976,

(c) Occasions on which tax is chargeable under section 82 of the Finance Act 1976 or under Chapter II of Part IV of the [1982 c. 39.] Finance Act 1982,

or to the amounts on which tax is then chargeable."

7 In paragraph 14(2) of Schedule 4 to the 1975 Act, for the words "value Of an interest" there shall be substituted the words " net value of an interest ".

8 In paragraph 19(4) of Schedule 4 to the 1975 Act, the words " to any person " and the words " Of that person " shall cease to have effect.

9 Paragraph 44 of Schedule 4 to the 1975 Act shall cease to have effect.

10 In paragraph 1(8) of Schedule 5 to the 1975 Act, for the words "and section 25(3)(d) of this Act" there shall be substituted the words " , sections 22(2) and (3), 24(3) and 25(3)(d) of this Act and sections 93 and 94 ".

11 In paragraph 4(7) of Schedule 5 to the 1975 Act, after the words " surviving spouse " there shall be inserted the words " (or surviving former spouse) ".

12 In paragraph 17(3)(b) of Schedule 5 to the 1975 Act, for the words " this Schedule and of Chapter II of Part IV of the [1982 c. 39.] Finance Act 1982" there shall be substituted the words " this Part of this Act (except subsection (3) of section 23 and section 20(4) so far as relating to that subsection) ".

13 In paragraph 22(1) of Schedule 5 to the 1975 Act, for the words " this Schedule " there shall be substituted the words " this Part of this Act ".

14 (1) Paragraph 24 of Schedule 5 to the 1975 Act shall be amended as follows.

(2) In sub-paragraph (1), for paragraph (a) there shall be substituted the following paragraphs—

“(a) the reference in subsection (2) of that section to subsection (1) shall have effect as including a reference to sub-paragraph (2) below;

(aa) subsection (3) of that section shall apply in relation to tax chargeable by virtue of sub-paragraph (2) below as it applies in relation to tax chargeable under subsection (1) of that section ;”.

(3) In sub-paragraph (5), for the words "this Schedule and of Chapter II of Part IV of the Finance Act 1982" there shall be substituted the words " this Part of this Act (except subsection (3) of section 23 and section 20(4) so far as relating to that subsection) ".

15 In paragraph 4(2)(b) of Schedule 7 to the 1975 Act, for the words " which is, or forms part of, a colony, protectorate, protected state or United Kingdom trust territory " there shall be substituted the words " which, at the time when the fund was established, was, or formed part of, a colony (within the meaning of Schedule 1 to the [1978 c. 30.] Interpretation Act 1978), protectorate, protected state or United Kingdom trust territory ".

16 In paragraph 1(1) of Schedule 10 to the 1975 Act, for the words "a transferor's estate" there shall be substituted the words " a person's estate ".

17 In paragraph 5(1)(b) of Schedule 10 to the 1975 Act, for the word " by " there shall be substituted the word " for ".

The Development Land Tax Act 1976

18 (1) Section 34 of the [1976 c. 24.] Development Land Tax Act 1976 shall be amended as follows.

(2) In subsection (3), for paragraph (d) there shall be substituted the following paragraph—

“(d) ' a CTT transfer' means an event which is—

(i) a transfer of value, for the purposes of capital transfer tax, giving rise to liability for that tax,

(ii) an occasion on which capital transfer tax is chargeable under Chapter II of Part IV of the [1982 c. 39.] Finance Act 1982, or

(iii) a capital distribution (within the meaning of section 51(1) of the [1975 c. 7.] Finance Act 1975 as it has effect in relation to events before 9th March 1982),

and on the occurrence of which an interest in land is acquired by any person.”

(3) For subsection (5) there shall be substituted the following subsection—

“(5) In any case where the whole or any part of the land in which the interest referred to in paragraph (d) of subsection (3) above subsists—

(a) is designated under section 77 of the [1976 c. 40.] Finance Act 1976 (conditional exemption) in relation to a conditionally exempt transfer (as defined in section 76 of that Act) made on a death, or

(b) is designated as property to which section 34 of the Finance Act 1975 applies (conditional exemption on death before 7th April 1976),

it shall be assumed for the purpose only of determining whether the transfer of value in question falls within sub-paragraph (i) of subsection (3)(d) above that the transfer of value was not a conditionally exempt transfer or, as the case may be, that section 34 of the Finance Act 1975 never applied to the property.”

19 In paragraph 18(2) of Schedule 6 to the [1976 c. 24.] Development Land Tax Act 1976—

(a) for the words from " as property " to " death) " there shall be substituted the words " under section 34 of that Act or under section 77 of the Finance Act 1976 (conditional exemption) "; and

(b) in paragraph (a) after the words " Act 1975 " there shall be inserted the words " or under section 78 of the Finance Act 1976 ".

The Finance Act 1976

20 In section 76(3)(b) of the Finance Act 1976, the words from " or the value " to the end shall cease to have effect.

21 In section 105 of the Finance Act 1976, subsections (3) and (4) shall cease to have effect.

22 In section 123(2) of the Finance Act 1976, after the words " shall carry interest" there shall be inserted the words " (which shall not constitute income for any tax purposes) ".

The Finance Act 1980

23 In Schedule 15 to the [1980 c. 48.] Finance Act 1980—

(a) in paragraphs 2A, 5 and 6, for the word " previous " there shall be substituted the word " other "; and

(b) in paragraphs 5 and 6, after the words " by that reduction " there shall be inserted the words " (or by the most recent of those reductions) ".

The Finance Act 1982

24 In section 94(6) of the [1982 c. 39.] Finance Act 1982, the Words from " and, in " to the end shall cease to have effect.

25 In sections 120(1), 121(1) and (2) and 123 of the Finance Act 1982, after the words " for the purposes of this Chapter " there shall be inserted the words " , of sections 93 and 94 above and of sections 81, 82 and 82A of the [1976 c. 40.] Finance Act 1976 ".

26 In sections 122(1) and 124 of the Finance Act 1982, after the Words " for the purposes of this Chapter " there shall be inserted the words " and of sections 93 and 94 above ".