Finance Act 1985

Consequential amendments

5 In sections 33(1), 34(1) and 221(6)(a) of that Act, and in paragraph 5 of Schedule 2 to that Act, after " 32 " there shall be inserted " or 32A".

6 In sections 33(6) and 34(4) of that Act, at the end there shall be added " or, where the property has been disposed of as mentioned in section 32A(5) above, before any event which apart from section 32A(5) would have been such a chargeable event. "

7 For section 35(2)(a) and (b) of that Act there shall be substituted—

“(a) if there has been no conditionally exempt transfer of the property on death, tax shall be chargeable either—

(i) under section 32 or 32A above (as the case may be), or

(ii) under Schedule 5 to this Act, as the Board may elect;

(b) if there has been such a conditionally exempt transfer, tax shall be chargeable under section 32 or 32A above (as the case may be) and not under that Schedule.”

8 In section 78 of that Act—

(a) in subsection (1)(b) there shall be added at the end " or (where the property is an area of land within subsection (1)(d) of that section) the requisite undertakings described in that section are given with respect to the property by such person or persons as the Treasury think appropriate in the circumstances of the case.";

(b) in subsection (3) after " sections 32," there shall be inserted " 32A, " and after " section 32 " there shall be inserted " or 32A".

9 In section 79(3)(b) of that Act after "given" there shall be inserted " with respect to the property " and after "case" there shall be inserted " or (where the property is an area of land within subsection (1)(d) of that section) the requisite undertakings described in that section have been given with respect to the property by such person or persons as the Treasury think appropriate in the circumstances of the case".

10 After section 207(2) of that Act there shall be inserted—

“(2A) Where tax is chargeable under section 32A above on the occurrence of an event which is a chargeable event with respect to any property by virtue of subsection (3) or subsection (4)(a) of that section, the person liable for the tax is the person who, if the property were sold—

(a) in a case within subsection (3) of that section, at the time the tax becomes chargeable, and

(b) in a case within subsection (4)(a), immediately after the death,

would be entitled to receive (whether for his benefit or not) the proceeds of sale or any income arising from them.

(2B) Where tax is chargeable under section 32A above on the occurrence of an event which is a chargeable event with respect to any property by virtue of subsection (4)(b) of that section, the person liable for the tax is the person by whom or for whose benefit the property is disposed of.”

11 In sections 216(7), 226(4) and 233(1)(c) of that Act, after " 32." there shall be inserted " 32A,".

12 In paragraph 3 of Schedule 4 to that Act—

(a) in sub-paragraph (2)(b) after " 32(5)(b)" there shall be inserted " , 32A(6), (8)(b) or (9)(b) " ;

(b) in sub-paragraph (2)(c) after " 32" there shall be inserted " , 32A";

(c) in sub-paragraph (3) after " (4) " there shall be inserted " , or (as the case may be) undertakings such as are described in subsections (4) and (4A),", after "the undertaking" (in both places) there shall be inserted " or undertakings", and after " 32 " there shall be inserted " or 32A".

13 In paragraph 4(2) of Schedule 6 to that Act, for paragraphs (a) and (b) there shall be substituted—

“(a) if there has been no conditionally exempt transfer of the property on death, either—

(i) tax shall be chargeable under section 32 or 32A of this Act (as the case may be), or

(ii) estate duty shall be chargeable under those provisions, as the Board may elect, and

(b) if there has been such a conditionally exempt transfer, there shall be a charge under section 32 or 32A of this Act (as the case may be) and not under those provisions ;”

14 In Schedule 6 to the [1983 c. 55.] Value Added Tax Act 1983, in item 3 of Group 11, after " 32(4)". there shall be inserted " or 32A(5) or (7)".