1964_ESTATE_DUTY_ORDINANCE — Page 58

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1983 Ed.]

Estate Duty

[CAP. 111

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the deceased had a beneficial interest in possession in shares in or debentures of the company, or in both, of an aggregate nominal amount representing one-half or more of the aggregate nominal amount of the shares in and debentures of the company then outstanding, but for this purpose-

(i) at any time when both the deceased and another person had such an interest in the same share or debenture, the deceased's interest in it shall be treated as extending only to the same fraction of it as that interest would have been deemed for purposes of estate duty to extend to if the share or debenture had passed on his death at that time: and

(ii) the expression "debenture" shall not include an obligation of the company in respect of a debt incurred by it for money borrowed by way of temporary loan, if the loan was not one of a series of temporary loans by the same person and either was repaid within 2 years of being made or was made less than 2 years before the deceased's death. (8) Where any shares or debentures which fall to be valued in accordance with this section have also fallen to be so valued on a previous death within 5 years, then for the purposes of section 31 those shares and debentures shall, in relation to those deaths, be treated in the same way as an interest in land or in a business not carried on by a company, if on both deaths their value is wholly or partly attributable to the value of land of the company or any subsidiary of it or to the value of assets used by the company or any subsidiary of it in a business not consisting mainly in the holding of or dealing in investments other than land:

Provided that the amount on which the reduction under the said section 31 is to be calculated shall be limited, where necessary, to the duty on the part so attributable of the value, on which duty is payable, of the shares or debentures, and references to that part of the value shall, in the proviso to the said section 31, be substituted for the references to the whole value, whether in relation to the first or the second death.

(9) In determining for the purposes of subsection (8) what part of the value of any shares in or debentures of a company is attributable to the value of particular assets,-

(a) the value of the shares or debentures shall be apportioned in proportion to the net value of the company's assets after allowing for liabilities other than liabilities in respect of shares in or debentures of the company; and

(b) the value apportioned under this subsection to the value of any shares in or debentures of another company, being a subsidiary either of the first-mentioned company or of a company of which that company is a subsidiary, shall, where material, be similarly apportioned between the other company's assets.

quick succession relief:

1954 c. 44, s. 3044),

determination for purposes of s.s. 18). 1954 c. 44. s. 3165).