1959-HKRS29-8-26_Part01 — Page 7

6 & 7 Geo, 6.

c. 28, s. 26,

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an amount reduced to an extent proportionate to the insufficiency proved had been provided by the deceased:

Provided that for the purpose of determining whether there would have been any such in- sufficiency as aforesaid, and the extent thereof, there shall be excluded from the property derived from the deccused any part thereof as to which it is proved to the satisfaction of the Commissioner that the disposition of which it, or the property which it represented, was the subject matter was not made with reference to, or with a view to enabling or facilitating, the purchase or provision of the annuity or other interest, or the recoupment in any manner of the cost thereof.

In this paragraph the expressions— "property derived from the deceased" shall in- clude any property which was the subject matter of a disposition, made by the deceased, either by himself alone or in concert or by arrangement with any other person, notwith- standing that the disposition was made for full consideration in money or money's worth paid to the deceased for his own use or benefit, or which represented any of the sub- ject matter of such disposition, whether directly or indirectly, and whether by virtue of one or more intermediate dispositions, and whether any such intermediate disposition was or was not for full or partial considera- tion:

Provided that where the first-mentioned disposition was for full consideration in money or money's worth paid to the deceased for his own use or benelit and it is proved to the satisfaction of the Commissioner that the disposition was not part of associated opera- tion which included a disposition by the deceased, either by himself alone or in concert or by arrangement with any other person, otherwise than for full consideration in money or money's worth paid to the deceased for his own use or benefit; or a disposition by any other person operating to reduce the value of the properly of the deceased, then, in

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considering whether estate duty should be charged by virtue of this paragraph. paragraph (c) and subsection (IA) of section 10, the said first-mentioned disposition shall be left out of the account as if this sub- paragraph did not apply in relation to it; and

6 & 7 Geo. 6, "subject matter" includes, in relation to any c. 28. 1. 26.

disposition, any ammual or periodical pay- ment made or payable under or by virtue of the disposition;":

(g) by the deletion of the full stop at the end of paragraph (2) of subsection (1) and the substitution therefor of a semicolon and the word "and":

(h) by the addition after paragraph (g) of subsection (1) of the

following new paragraph-

*3 & 4 Geo. 6, c. 29,

5. 43(1) & (2) * 14 Oco. 6,

c. 13, s. 43.

(2)

an interest limited to cease on the death which has been disposed of or has deter- mined, whether wholly or partly, whether by surrender, assurance, divesting, for- feiture or in any other manner, except by the expiration of a fixed period at the expiration of which the interest was limited to cease, and whether for value or not, after becoming an interest in possession and the disposition or determination, or any of them if there are more than one, is not excepted by the proviso hereto, then-

() if, had there been no disposition or determination as aforesaid of that interest

and

no disposition of any interest expectant upon or subject to that interest. the property in which the interest sub- sisted would have passed on the death under section 5, that property shall be deemed by virtue of this paragraph to be included as to the whole thereof in the property passing on the death; or (ii) it had there been no disposition or determination as aforesaid of that interest and no disposition of any interest expectant upon or subject to that interest, the property in which the interest sub- sisted would have been deemed by virtue of paragraph (8) to be included to a