1959-HKRS29-8-26_Part01 — Page 11

Amendment

5.

of section 8.

(a)

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shall be deemed to be property in which the deceased had an interest, except in so far as it is derived from property originally comprised in the gift in which the deceased never had an interest,

(7) For the purposes of estate duty, any question whether, possession and enjoyment of any property com- prised in a gift inter vivos was at a particular time assumed or bad by any person to the exclusion of any other person shall, so far as the question depends on the identity of the property, be determined by reference to the property which would for the time being be treated, in relation to the death if it occurred at that time, as property comprised in the gift.

(8) For the purpose of this section the principal value of any property at a time before the death of the deceased shall be ascertained as it would be for the purposes of estate duty chargeable on his death if he had died inume- diately before that time.".

Section 8 of the principal Ordinance is amended-

by being renumbered subsection (1) of section 8:

(b) by the substitution of a comma for the full stop at the end

thereof and the addition thereto of the following—

·

“57 & 38 Vict. c. 30,

and the duty shall be paid at the proper graduated rate on the principal value thereof:

Provided that any property so passing, in which the deceased never had an interest, shall not be aggregated with any other property but shall be an estate by itself, and the duty shall be paid at the proper graduated rate on the principal value thereof.";

(e) by the addition after subsection (1) of the following new

subsections-

"2 & 3 Gco. 6. c. 41,

6. 30(2).

3 & 4 Geo, 6,

c. 29, s. 52.

3 & 4 Geo.

6, 2, 29,

5 45(3).

(2) For the purposes of this section the deceased shall be deemed to have had an interest in any property included, or deemed to be included, by virtue of

(a) paragraph () of subsection (1) of

section 6; or

(6) section 32,

in the property passing on his death.

(3) The proviso to subsection (1) shall not have effect in relation to property consisting of a debt, or right, or benefit, passing on the death of

1 & 3 Eliz. 2. 2. 44, & 33.

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the deceased, that is treated as property by virtue of paragraph (d) or (e) of subsection (2) of section 3.

(4) Where the property which passes on a death, but in which the deceased never had an interest, includes any policies of assurance on his life, or moneys received under such a policy, or interests in such a policy or moneys, then the rate of estate duty to be paid on any such policy. money or interest so included (hereinafter referred to as "a life insurance") shall be determined as follows-

(a) in respect of the value of any life insurance or interest in a life insurance to which immediately after the death any one person is absolutely and inde- feasibly entitled for his own benefit otherwise than by virtue of a purchase for consideration in money or money's worth, whether of that life insurance or interest or of the policy or otherwise, the rate shall be that appropriate to the value or aggregate value of that life insurance or interest and of any other life insurance or interest in a life insurance to which he is 90 entitled;

(b) subject to the foregoing paragraph the rate shall be that appropriate to the aggregate value of all the life insurance or. if there is only one, to the value of that life insurance :

Provided that for the purposes of this sub- section—

() where any life insurance or interest in a life insurance is immediately after the death subject to a mortgage or charge. the mortgage or charge shall be dis- regarded and the life insurance or interest shall be valued accordingly; and

(ii) in relation to life insurances and interests therein which then form part of the un- administered estate of a deceased person this subsection shall have effect as if that person had been then living and entitled to those life insurances and interests.