In section 65 (charge at other times), after subsection (7B) (as inserted by section 30) insert—

“(7C)

Tax shall not be charged under this section by reason only that property comprised in a settlement ceases to any extent to be property to which paragraph 2 or 3 of Schedule A1 applies and thereby becomes excluded property by virtue of section 48(3)(a) above.

(7D)

Tax shall not be charged under this section where property comprised in a settlement or any part of that property—

(a)

is, by virtue of paragraph 5(2)(a) of Schedule A1, not excluded property for the two year period referred to in that paragraph, but

(b)

becomes excluded property at the end of that period.”