Finance Act, 1935
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Death duty in case of certain property previously subject to an annuity, etc. |
32.—In the case of a person dying after the passing of this Act, property which was previously subject to an annuity or other periodical payment limited to cease on the death of such deceased person shall, notwithstanding that such annuity or other periodical payment had been surrendered, assured, divested, or otherwise disposed of (whether for value or otherwise) in the lifetime of such deceased person to or for the benefit of the person entitled to such property, be deemed for the purposes of Part I of the Finance Act, 1894 , to pass on the death of such deceased person to the extent of the benefit which would accrue from the cesser of such annuity or other periodical payment unless— | |
(a) such surrender, assurance, divesting, or disposition was bona fide made or effected at least three years before the death of such deceased person, and | ||
(b) such deceased person was not, at any time within three years before his death, in receipt of any substituted annuity or other periodical payment limited to cease on his death and secured (whether by contract or otherwise) to him in return for such surrender, assurance, divesting, or disposition. |