Finance Act 1980

88 Maintenance funds: requirements and eligible property

(1) Section 84 of the [1976 c. 40.] Finance Act 1976 (maintenance funds for historic buildings) shall have effect with the amendments in subsections (2) to (6) below which—

(a) relax the requirements with which a settlement must comply in order to benefit from the provisions of that section;

(b) add land of outstanding scenic, historic or scientific interest and objects historically associated with certain buildings to the kinds of property that can be maintained by means of a settlement benefiting from those provisions; and

(c) alter the extent to which that section is subject to the exceptions specified in paragraph 15 of Schedule 6 to the [1975 c. 7.] Finance Act 1975.

(2) For subsection (3)(a) and (b) (requirements to be complied with by settlement) there shall be substituted—

“(a) that none of the property comprised in the settlement can at any time in the period of six years beginning with the date on which it became comprised in the settlement be applied otherwise than—

(i) for the maintenance, repair or preservation of, or making provision for public access to, property which is for the time being qualifying property as defined in subsection (5) below, for the maintenance, repair or preservation of property comprised in the settlement or for defraying the expenses of the trustees ; or

(ii) as respects income not so applied and not accumulated, for the benefit of a body mentioned in paragraph 12 of Schedule 6 to the said Act of 1975 (museums etc.) or of a qualifying charity as defined in subsection (7) below ; and

(b) that none of the property can, on ceasing at any time in that period to be comprised in the settlement, devolve otherwise than on any such body or charity as aforesaid; and

(c) that income arising from property comprised in the settlement cannot at any time after the end of that period be applied except as mentioned in paragraph (a) (i) or (ii) above.”

(3) After subsection (3) there shall be inserted—

“(3A) Paragraphs (a) and (b) of subsection (3) above do not apply to property which—

(a) was previously comprised in another settlement; and

(b) ceased to be comprised in that settlement and became comprised in the current settlement in circumstances such that by virtue of section 89(4)(d) of the Finance Act 1980 there was no charge to tax by reference to its value ;

and in relation to any such property paragraph (c) of that subsection shall apply with the omission of the words ' at any time after the end of that period '”

(4) In subsection (5) for the words from the beginning to the end of paragraph (a) there shall be substituted—

“(5) Property is qualifying property for the purposes of subsection (3) above if—

(a) it has been designated under section 34(1) of the Finance Act 1975 or section 77(1)(b), (c), (d) or (e) above; and”.

(5) In subsection (6) for the words “subsection (1)(c) or (d)” there shall be substituted the words “subsection (1)(b), (c), (d) or (e), ”.

(6) For subsection (8) there shall be substituted—

“(8) Sub-paragraphs (1), (2), (3)(a), (b) and (ba) and (4B) of paragraph 15 of Schedule 6 to the said Act of 1975 shall apply to this section as they apply to paragraphs 10 to 13 of that Schedule and for the purposes of the said sub-paragraph (4B) the trustees of a settlement in relation to which the Treasury have given a direction under this section shall be treated as a body within paragraph 13 of that Schedule.”.

(7) In section 38(2)(b) of the [1977 c. 36.] Finance Act 1977 (which refers to the provisions amended by subsections (2) and (4) above) for the words “a building or land ” and “the building or land in question” there shall be substituted respectively the words “qualifying property ” and “the qualifying property in question ”.