Finance Act, 1961

Exemption for gifts to the State.

23.—(1) For the purposes of estate duty and subject to the provisions of this section—

(a) property the subject matter of a gift to the State taking effect in possession in the donor's lifetime or on his death shall not be included in the property passing or deemed to pass on his death where the death occurs after the passing of this Act,

(b) property the subject matter of a gift to the State which is limited to take effect in possession on a death other than the death of the donor shall not be included in the property passing or deemed to pass on the death on which the gift takes effect in possession where that death occurs after the passing of this Act.

(2) An exemption granted by subsection (1) of this section shall apply so long (and only so long) as the property comprised in the gift continues under the terms of the gift to be held exclusively for the use and enjoyment or benefit of the public, but if it has remained operative for at least ten years, the said property shall not be aggregated for the purpose of determining the rate of estate duty payable on the death and shall, unless exempt under some other Act, be chargeable at the rate appropriate to the principal value of the property with which it would have been aggregated had it not been property to which subsection (1) of this section applies.

(3) Any duty which becomes payable in respect of property comprised in a gift to the State by reason of the termination of an exemption under subsection (1) of this section shall be a charge on the property and shall be accounted for and paid by the trustees in whom the property is vested at the date when the exemption ceases to have effect and by the person or persons thenceforward beneficially entitled to the property, and interest on the duty shall be payable from that date.

(4) In the foregoing subsections of this section “gift to the State” means a gift (other than a bequest of a residuary estate or a share thereof) which is for the public use or benefit and which the Minister for Finance certifies to be a gift to the State for the purposes of this section.