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Amendment of Chapter 3 (annual levy on discretionary trusts) of Part 3 of Principal Act.
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116.— (1) Chapter 3 of Part 3 of the Principal Act is amended—
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(a) in section 19 by substituting the following for the definition of “chargeable date”:
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“ ‘chargeable date’, in relation to any year, means—
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(a) in respect of the year 2006, 5 April and 31 December in that year, and
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(b) in respect of the year 2007 and subsequent years, 31 December in the year concerned;”,
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(b) by substituting the following for section 23:
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“Computation of tax.
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23.— (1) Subject to subsection (2), the tax chargeable on the taxable value of a taxable inheritance which is charged to tax by reason of section 20 is computed at the rate of one per cent of that taxable value.
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(2) The tax chargeable on the chargeable date that is 31 December 2006 shall be an amount equal to 73.97 per cent of the tax chargeable by virtue of subsection (1).”,
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and
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(c) in section 24 by inserting the following after subsection (1):
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“(1A) Where the market value of property is on a valuation date determined in accordance with subsection (1) and that valuation date is 5 April 2006, then that market value as so determined shall be treated as the market value of the property on the valuation date that is 31 December 2006.”.
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(2) This section shall apply as respects the year 2006 and subsequent years.
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