12
particular extent in the property passing on the death, then, the property in which the interest subsisted shall be deemed by virtue of this paragraph to be included to that extent in the property passing on the death:
UT
Provided that where a disposition determination of an interest limited to cease on the death was bunu fide effected or suffered three years before the death, or, if it was effected or suffered for such purposes as are recognized by the Commissioner as public or charitable, one year before the death, the disposition or deter- mination shall be excepted by this proviso- (a) if bona fide possession and enjoyment of the property in which the interest subsisted was assumed immediately thereafter by the person becoming entitled by virtue of or upon the disposition or determination and thence for- ward retained to the entire exclusion of the person who immediately before the dis- position or determination had the interest and of any benefit to him by contract or otherwiset
OF
(b) in the case of a partial determination, if the conditions specified in sub-paragraph (a) were not satisfied by reason only of the retention or enjoyment by the deceased of possession of some part of the property, or of some benefit, by virtue of the provisions of the instrument under which he had the interest.":
(0) by the addition after subsection (1) of the following new
subsections-
**Interpre
lation of
B. SCDXA).
3 & 4 Geo.
6. c. 29,
5. 43(3),
(LA) In the application of paragraph (h) of subsection (1) to a case in which an incumbrance on the property in which the interest in question subsisted has been created by associated opera- tions which included a disposition of that interest. references to that property shall be construed as references to that property free from the incum- brance except in a case in which the incumbrance was created for consideration in money or money's worth which was applied for purposes calculated
3 & 4 Geo. 6, c. 29,
B. 436).
13
lo maintain or increase the value of that property, and. In that case, shall be construed as references to that property subject to the incumbrance to the extent to which the consideration was so applied. (IB) Paragraph (h) of subsection (1) shall have effect only in relation to a person dying after the commencement of the Estate Duty (Amend- ment) Ordinance, 1959, and paragraph (8) of that subsection shall not have effect in relation to such a person.";
(f) by the deletion in subsection (2) of the words "more than three years before his death where possession and" and the substitution therefor of the following-
9 & 10 Geo. 6,
C. 64, 5, 47.
more than three years before the death, or in the case of a disposition made for such purposes as are recognized by the Commissioner as public or charitable, one year before the death where possession and";
(4) by the deletion from the proviso to subsection (2) of (be words "to him by contract or otherwise, for a period of three years immediately preceding the death of the deceased." and the substitution therefor of the following-
*9 & 10 Geo.
C. 64, s. 47.
to him by contract or otherwise, for a period of three years immediately preceding the death or in the case of a disposition made for such pur- poses us are recognized by the Commissioner as public or charitable, one year immediately preced- ing the death.”.
4. The principal Ordinance is amended by the addition after Addition of section 6 of the following new sections-- **Dispositions
in favour
of relatives.
14 Geo. 6.
e. 15, s. 4601).
6A. (1) For the purposes of paragraph (c) of sub- section (1) of section 6 any disposition made by the deceased in favour of a relative of his shall be treated as a gift unless-
(a) the disposition was made on the part of the deceased for full consideration in money or money's worth paid to him for his own use or benefit; or
(b) the deceased was concerned in a fiduciary capacity imposed on him otherwise than by a disposition made by him and in such a capacity only: Provided that where the disposition was made on the part of the deceased for partiul consideration in money or money's worth paid to him for his own use or benefit, the
new sections 6A and 5B.