1964_ESTATE_DUTY_ORDINANCE — Page 16

1983 Ed.]

Estate Duty

(CAP. 111

(2) In the application of subsection (1)(h) to a case in which an incumbrance on the property in which the interest in question subsisted has been created by associated operations which included a disposition of that interest, references to that property shall be construed as references to that property free from the incumbrance except in a case in which the incumbrance was created for considera- tion in money or money's worth which was applied for purposes calculated to 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. (Added, 1 of 1959, s. 3}

(3) Subsection (1)(h) shall have effect only in relation to a person dying after the commencement of the Estate Duty (Amend- ment) Ordinance 1959, and paragraph (b) of that subsection shall not have effect in relation to such a person. ( Added, I of 1959, s. 3)

(4) Property passing on the death of the deceased shall not be deemed to include property held by the deceased as trustee for another person, under a disposition not made by the deceased or under a disposition made by the deceased more than 3 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 enjoyment of the property was bona fide assumed by the beneficiary immediately upon the creation of the trust and thenceforward retained to the entire exclusion of 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 property 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 inerest limited to cease on the death of the deceased, and of 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 3 years immediately preceding 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 immediately preceding the death. (Amended, I of 1959, s. 3)

(5) 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 shall 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 reason only that the settlor, being then in possession of the property as tenant for life, becomes, in consequence of such death, entitled to dispose of the whole property.

1940 c. 29, s. 43(3).

1940 c. 29. s. 43(6).

(1 of 1959.)

1894 c. 30, s. 2(3); 1910 c. 8. s. 59.

1946 c. 64, s. 47.

1946 c. 64, s. 47.

1896 c. 28. s. 14.

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