3 & 4 Geo. 6. c. 29,
3. 44(5), & 14 Geo. 6, c. 15, 8. 46(2)(7).
3 & 4 Geo. f. c. 29, £. 44(2)
* (1
14
value of the consideration shall be allowed as a deduction from the value of the property for the purpose of estate duty,
(2) Where the deceased made a disposition of property in favour of a relative of his, the creation or disposition in favour of the deceased of an annuity or other interest limited to cease on the death of the deceased or of any other person shall not be treated for the purposes of this section or of subsection (1) of section 10 as consideration for the dis- position made by the deceased, except as provided in section GB.
(3) Where there have been associated operations effected with reference to the receiving by the deceased of any payment in respect of such an annuity or other interest as is mentioned in subsection (2), or effected with a view to enabling him to receive or to facilitating the receipt by him of any such payment, this section and section 42 shall have effect in relation to each of those associated operations as they have effect in relation to the creation or disposition in favour of the deceased of such an annuity or other interest.
(4) In this section, section 6B and section 42- "annuity" includes any series of payments, whether inter- connected or not, whether of the same or of varying amounts, and whether payable at regular intervals or otherwise, and payments of dividends or interest on shares in or debentures of a company shall be treated for the purposes of the said provisions as a series of payments constituting an auntity limited to cease on a death if the payments are liable to cease on the death, or the amounts thereof are liable to be reduced on the death, by reason directly or indirectly of the extinguish- ment or any ulteration or rights attaching to, or of the issue of, any shares în or debentures of a company; ""relative" means—
(a) wife or husband:
(b) father and mother;
(c) child, uncle and aunt;
(d) any issue of a person falling within either (a), (b) or (c) above and the other party to a marriage with any such person or issue;
(e) concubine recognized as such by the law appro-
priate to the marriage: and
Exempticas.
7 & 8 Geo. 6, c. 23,
3, 400.
15
(f) references to "child" and "issue" include references
to any illegitimate child and to any adopted child. 6B. (1) Subject to the provisions of this section, the relief specified herein shall be granted where, on the death of a person who has made a disposition of property in favour of a relative of his or a company, any estate duty becomes, or would but for this section become payable by virture of subsection (2) of section 6A.
(2) The sum on which estate duty would be payable apart from this section on the death in respect of the proper- ty which was the subject matter of the disposition or in respect of the property liable to a debt or incumbrance created by the deceased which was the subject matter of the disposition, as the case may be, shall first be computed and, subject to the limitations provided for by subsection (4), there shall then be allowed as a deduction from that sum- (a) the amount, if any, by which the aggregate of the payments which have been made on account of The annuity or other interest for the period from the date when the annuity or other interest began to accrue in favour of the deceased until his death, exceeds the aggregate of the income derived from the deceased by virtue of the disposition for the period from the date of the disposition until his death; and
(6) simple interest on so much, if any, of the amount uforesaid, and for such period, as, in the opinion of the Commissioner, is in all the circumstances just, at the rate of four per cent per annum, (3) In subsection (2), the expression "the aggregate of the income derived from the deceased by virtue of the disposition" means-
(a) in relation to so much of the property which was the subject matter of the disposition as did not consist of a debt or incumbrance created by the deceased, such amount as, in the opinion of the Commissioner, is in all the circumstances equal to a reasonable return from the property; and
(b) in relation to so much of the property which was the subject matter of the disposition as did consist of a debt or incumbrance created by the deceased, the aggregate amount of the interest paid or pay- able by the deceased in respect of that debt or incumbrance.