Finance Act, 1970

Relief from double charge of duty in certain cases.

37.—(1) Where in connection with a death occurring after the passing of this Act there arises by reason of subsection (4) of section 20 of the Finance Act, 1965 , a claim for estate duty in respect of the assets of a company controlled by the deceased within the meaning of the said section 20, and estate duty is payable in connection with the same death in respect of stock or shares (other than debentures) in the company, then for the purposes of section 7 (10) of the Finance Act, 1894 , the liability for estate duty in respect of the said stock or shares shall be deemed to be a liability in respect of the net assets of the company as if such assets had been held by it in trust for the members of the company taking the interests of such members as they subsisted immediately before the death of the deceased and the said section 7 (10) shall have effect accordingly.

(2) For the purposes of this section “member”, in relation to a company, means the beneficial owner of any stock or shares in the company and the reference to a company holding its assets in trust for its members shall have effect as if the assets were held in trust for the members in accordance with the rights attaching to the stock or shares in the company and as if the company had acted in the capacity of a trustee only with power to carry on the business of the company and to employ the assets of the company therein.