Exception to passing pro- perty on enlarge ment of
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beneficiary immediately upon the creation of the trust and thenceforward retained to the entire exclusion vt the deceased or of any benefit to him by contract or otherwise: Provided that where property taken under such a disposition as aforesaid is deemed to be pro- perty passing on the death of the deceased by reason only that the property was not, as from the date of the disposition, retained to the entire exclusion of the deceased or a person who had an estate or interest limited to cease on the death of the deceased, and ot any benefit to him by contract or otherwise, the property shall not be deemed to pass on the death of the deceased if subsequently, by means of the surrender of the benefit reserved or otherwise, it is enjoyed to the entire exclusion of the deceased or such other person as aforesaid and of any benefit to him by contract or otherwise, for a period of three years immediately preceding the death of the deceased,
(3) Where property is settled by a person on himself for life, and after his death on any other person with an ultimate reversion of an absolute interest or absolute power of disposition to the settlor, the property shali not be deemed for the purpose of this Ordinance to pass to the settlor on the death of any such other person after the commencement of this Ordinance, by 59 & 60 Viet. reason only that the settlor, being then in possession c. 28, s. 14.
of the property as tenant for life, becomes, in con- sequence of such death, entitled to dispose of the whole property.
interest of settlor.
Reverter of property to disponer.
59 & 60 Vict. c. 28, s. 15.
Exceptions for transac- tions for money con sideration, property situate out- side the Colony, shares on local registers and certain land in the New Terri torics.
57 & 58 Vict, e. 30, s. 3.
(4) (a) Where by a disposition of any property an interest is conferred on any person other than the disponer for the life of such person or determinable on his death, and such person enters into possession of the interest and thenceforward retains possession thereof to the entire exclusion of the disponer or of any benefit to him by contract or otherwise, and the only benefit which the disponer retains in the said property is subject to such life or determinable interest, and no other interest is created by the said disposition, then, on the death of such person the property shall not be deemed for the purposes of this Ordinance to pass by reason only of its reverter to the disponer in his lifetime.
(b) Where by a disposition of any property any such interest as above in this sub-section mentioned is conferred on two or more persons, either severally jointly, or in succession, this sub-section shall apply like manner as where the interest is conferred on one person.
Or
(c) Provided that paragraphs (a) and (b) shall not apply where such person or persons taking the said life or determinable interest had at any time prior to the disposition been himself or themselves com- petent to dispose of the said property.
6. Estate duty shall not be payable in respect of-
(1) property passing on the death of the deceased by reason only of a bona fide purchase from the person under whose disposition the property passes nor in respect of the determination of any annuity for lives where such purchase was made or such auity granted for full consideration in money or money's worth paid to the vendor or grantor for his own use or benefit. Where any such purchase was made, or annuity granted for partial consideration in money or money's worth paid to the vendor or grantor for his own use or benefit, the value of the consideration shall be allowed as a deduction from the value of the property for the purpose of estate duty;
(2) property situate outside the Colony;
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