Finance Act, 1964

PART III

Death Duties

Amendment of section 12 of Finance Act, 1951, and section 34 of Finance Act, 1956.

22.—(1) Section 12 of the Finance Act, 1951 , is hereby amended by the addition at the end of subsection (2) of “or, in a case in which an interest in property limited to cease on a death (including an interest in property subject to a limitation (in whatsoever form) having the effect of providing in the alternative for the cesser of such interest on a death or on the occurrence of some event or expiration of some period before such death) has, after it has become an interest in possession, determined (whether by surrender, divesting, forfeiture or any other means except the expiration of a fixed term at the expiration whereof such interest was limited to cease), such as to operate by reference to persons in whose beneficial ownership the relevant securities are or were immediately before the date on which such interest determined.”

(2) Section 34 of the Finance Act, 1956 , is hereby amended by the addition at the end of subsection (3) of “or, in a case in which an interest in property limited to cease on a death (including an interest in property subject to a limitation (in whatsoever form) having the effect of providing in the alternative for the cesser of such interest on a death or on the occurrence of some event or expiration of some period before such death) has, after it has become an interest in possession, determined (whether by surrender, divesting, forfeiture or any other means except the expiration of a fixed term at the expiration whereof such interest was limited to cease), such as to operate by reference to persons beneficially owning the stocks or other securities immediately before the date on which such interest determined”.

(3) The foregoing provisions of this section shall not operate to prevent the grant of any exemption which would be lawful if those provisions were disregarded.