44
CAP. 111]
Estate Duty
[1983 Ed.
1940 c. 29. s. 58(1)(a).
Charge on assets of controlled companies;
1940 c. 29, s. 46 and 1946 c. 64, s. 47.
proportion of assets accruing to deceased:
ascertainment of total assets of controlled companies.
"relevant time" means any time during the period ending with the death of the deceased and beginning, as respects section 44, 3 years before his death, and, as respects sections 35, 41 and 45 at the date of the disposition transfer or other transaction or event relevant for the purposes of those sections, or if that disposition transfer or other transaction or event was one of associated operations, at the date of the earliest of those operations.
(Added, 1 of 1959, s. 10)
35. (1) Where a person has made to a company to which this section applies a transfer of any property, other than an interest limited to cease on his death or property which he transferred in a fiduciary capacity, and any benefits accruing to the deceased from the company accrued to him in the 3 years ending with his death, the assets of the company shall be deemed for the purposes of estate duty to be included in the property passing on his death to an extent determined, in accordance with subsection (2), by reference to the proportion that the aggregate amount of the benefits accruing to the deceased from the company bore to the net profits of the company.
(2) The extent to which the assets of the company are to be deemed to be included as aforesaid shall be the proportion ascertained by comparing the aggregate amount of the benefits accruing to the deceased from the company in the last 3 accounting years with the aggregate amount of the net profits of the company for the said year:
Provided that-
(a) where, in any of the said accounting years, the company sustained a loss, the amount of that loss shall be deducted in ascertaining the said aggregate net profits of the company;
(b) where the company came into existence in the last but one, or in the last, of the said accounting years, the references in this subsection to the said accounting years shall be construed as references to the last 2 or the last, of those years, as the case may be.
(3) The assets of the company which are deemed to be included in the property passing on the death of the deceased by virtue of this section shall include any assets thereof which have been disposed of or distributed by the company at any time between the beginning of the first of the accounting years aforesaid and the death of the deceased, either-
(a) in or towards satisfaction of rights attaching to shares in or
debentures of the company; or
(b) otherwise howsoever except as follows, that is to say, by way of sale for full consideration in money or money's worth received by the company for its own use and benefit, or in or towards discharge of taxes or rates or other
Page 45
Page 46
44
CAP. 111]
Estate Duty
[1983 Ed.
1940 c. 29. s. 58(1)(a).
Charge on assets of controlled companies;
1940 c. 29, s. 46 and 1946 c. 64, s. 47.
proportion of assets accruing to deceased:
ascertainment of total assets of controlled companies.
"relevant time" means any time during the period ending with the death of the deceased and beginning, as respects section 44, 3 years before his death, and, as respects sections 35, 41 and 45 at the date of the disposition transfer or other transaction or event relevant for the purposes of those sections, or if that disposition transfer or other transaction or event was one of associated operations, at the date of the earliest of those operations.
( Added, 1 of 1959, s. 10)
35. (1) Where a person has made to a company to which this section applies a transfer of any property, other than an interest limited to cease on his death or property which he transferred in a fiduciary capacity, and any benefits accruing to the deceased from the company accrued to him in the 3 years ending with his death, the assets of the company shall be deemed for the purposes of estate duty to be included in the property passing on his death to an extent determined, in accordance with subsection (2), by reference to the proportion that the aggregate amount of the benefits accruing to the deceased from the company bore to the net profits of the company.
(2) The extent to which the assets of the company are to be deemed to be included as aforesaid shall be the proportion ascer- tained by comparing the aggregate amount of the benefits accruing to the deceased from the company in the last 3 accounting years with the aggregate amount of the net profits of the company for the said year:
Provided that-
(a) where, in any of the said accounting years, the company sustained a loss, the amount of that loss shall be deducted in ascertaining the said aggregate net profits of the company;
(b) where the company came into existence in the last but one, or in the last, of the said accounting years, the references in this subsection to the said accounting years shall be con- strued as references to the last 2 or the last, of those years, as the case may be.
(3) The assets of the company which are deemed to be included in the property passing on the death of the deceased by virtue of this section shall include any assets thereof which have been disposed of or distributed by the company at any time between the beginning of the first of the accounting years aforesaid and the death of the deceased, either-
(a) in or towards satisfaction of rights attaching to shares in or
debentures of the company; or
(b) otherwise howsoever except as follows, that is to say, by way of sale for full consideration in money or money's worth received by the company for its own use and benefit, or in or towards discharge of taxes or rates or other
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