Textual Amendments
F1Words in Pt. 3 Ch. 3 heading added (22.3.2006) by Finance Act 2006 (c. 25), s. 156, Sch. 20 para. 20(5)
Modifications etc. (not altering text)
C1 See Finance Act 1990 s. 126—exemption for pools payments to trustees for football ground improvements in respect of events on or after 6April 1990.
C2Pt. 3 Ch. 3 modified (22.7.2004) by Finance Act 2004 (c. 12), s. 283, Sch. 36 para. 57(1) (with s. 283(5))
C3Pt. 3 Ch. 3 modified (22.7.2004) by Finance Act 2004 (c. 12), s. 283, Sch. 36 para. 56(2)(b) (with s. 283(5))
C4Part III Chapter III (ss.58-85) excluded by Finance Act 1991 (c.31, SIF 63:1), s. 121(4).
Pt. III Ch. III (ss. 58-85) restricted (3.5.1994) by 1994 c. 9, s. 248
(1)This subsection applies where, after the settlement commenced and after 8th March 1982, but before the anniversary concerned, the settlor made a chargeable transfer as a result of which the value of the property comprised in the settlement was increased.
(2)For the purposes of subsection (1) above, it is immaterial whether the amount of the property so comprised was increased as a result of the transfer, but a transfer as a result of which the value increased but the amount did not shall be disregarded if it is shown that the transfer—
(a)was not primarily intended to increase the value, and
(b)did not result in the value being greater immediately after the transfer by an amount exceeding five per cent. of the value immediately before the transfer.
(3)Where subsection (1) above applies in relation to a settlement which commenced after 26th March 1974, section 66(5)(a) above shall have effect as if it referred to the greater of—
(a)the aggregate of the values there specified, and
(b)the aggregate of the values transferred by any chargeable transfers made by the settlor in the period of [F2seven] years ending with the day on which the chargeable transfer falling within subsection (1) above was made—
(i)disregarding transfers made on that day or before 27th March 1974, and
(ii)excluding the values mentioned in subsection (5) below;
and where the settlor made two or more chargeable transfers falling within subsection (1) above, paragraph (b) above shall be taken to refer to the transfer in relation to which the aggregate there mentioned is the greatest.
(4)Where subsection (1) above applies in relation to a settlement which commenced before 27th March 1974, the aggregate mentioned in section 66(5) above shall be increased (or further increased) by the aggregate of the values transferred by any chargeable transfers made by the settlor in the period of [F3seven] years ending with the day on which the chargeable transfer falling within subsection (1) above was made—
(a)disregarding transfers made on that day or before 27th March 1974, and
(b)excluding the values mentioned in subsection (5) below; and where the settlor made two or more chargeable transfers falling within subsection (1) above, this subsection shall be taken to refer to the transfer in relation to which the aggregate to be added is the greatest.
(5)The values excluded by subsections (3)(b)(ii) and (4)(b) above are—
(a)any value attributable to property whose value is taken into account in determining the amount mentioned in section 66(4) above; and
(b)any value attributable to property in respect of which a charge to tax has been made under section 65 above and by reference to which an amount mentioned in section 66(5)(b) above is determined.
(6)Where the property comprised in a settlement immediately before the ten-year anniversary concerned, or any part of that property, had on any occasion within the preceding ten years ceased to be relevant property then, if on that occasion tax was charged in respect of the settlement under section 65 above, the aggregate mentioned in section 66(5) above shall be reduced by an amount equal to the lesser of—
(a)the amount on which tax was charged under section 65 (or so much of that amount as is attributable to the part in question), and
(b)the value on which tax is charged under section 64 above (or so much of that value as is attributable to the part in question);
and if there were two or more such occasions relating to the property or the same part of it, this subsection shall have effect in relation to each of them.
(7)References in subsection (6) above to the property comprised in a settlement immediately before an anniversary shall, if part only of the settled property was then relevant property, be construed as references to that part.