58
CAP. 111]
Estate Duty
[1983 Ed.
alteration of share capital by company. 1954 c. 44. s. 30(5).
interpretation. 1940 c. 29, s. 55(6) and 1954 c. 44.
s. 31(b)(c) & (d).
Limitation on dispositions through a controlled company in favour of relatives:
1950 c. 15, s. 46(1).
gifts to relatives by controlled companies.
gifts to relatives through controlled companies.
1940 c. 29. s. 44(1).
(10) Where a company alters its share capital by sub-dividing any shares into shares of smaller amount, or by consolidating and dividing any shares into shares of larger amount, subsection (8) shall apply to shares derived by those means from shares of the same class which have fallen to be valued in accordance with this section on a death occurring before the alteration of share capital, as if those shares and the equivalent amount of the shares from which they were so derived were the same shares; and if a company has issued to holders of any shares other shares as fully paid bonus shares, that subsection shall apply both to the shares in respect of which the issue was made and to the shares so issued as if they were derived from the former by sub-division.
(11) In this section--
(a) references to the assets of a company shall be construed as references to the assets that it had at the death of the deceased;
(b) references to a subsidiary company shall be construed in accordance with the interpretation attributed to that expression in section 34(5)(a); and
(c) the expression "relative" has the meaning attributed to it in section 7.
(Added, I of 1959, s. 10)
45. (1) If a company to which by virtue of section 34, this section applies, was concerned in a transaction in relation to which it is claimed that the provisions of paragraph (a) of or the proviso to section 7(1) have effect, those provisions shall have effect in relation thereto if and only if, and to the extent only to which, the Commissioner is satisfied that those provisions would have had effect in the following circumstances, namely, if the assets of the company had been held by it on trust for the members thereof and any other person to whom it is under any liability incurred otherwise than for the purposes of the business of the company wholly and exclusively, in accordance with the rights attaching to the shares in and debentures of the company and the terms on which any such liability was incurred, and if the company had acted in the capacity of a trustee only with power to carry on the business of the company and to employ the assets of the company therein.
(2) Any gifts made in favour of a relative of the deceased by a company of which the deceased at the time of the gift had control within the meaning of section 44(3) shall be treated for the purposes of section 6(1)(c) as a gift made by the deceased, and the property taken under the gift shall be treated as included by virtue of that paragraph in the property passing on the death of the deceased, if and to the extent to which the Commissioner is satisfied that it would fall to be so treated in the circumstances mentioned in subsection (1).
(3) If the deceased has made in favour of a company to which, by virtue of section 34, this section applies, a disposition which, if it had been made in favour of a relative of his, would have fallen
58
CAP. 111]
Estate Duty
[1983 Ed.
alteration of share capital by company. 1954 c. 44. s. 3015).
interpretation. 1940 c. 29, s. 55(6) and 1954 c. 44.
5. 31(b)(c) & (d).
Limitation on dispositions through a controlled company in favour of relatives:
1950 c. 15, s. 4611).
gifts to relatives by controlled companies.
gifts to relatives through controlled companies.
1940 c. 29. s. 44/41.
(10) Where a company alters its share capital by sub-dividing any shares into shares of smaller amount, or by consolidating and dividing any shares into shares of large amount, subsection (8) shall apply to shares derived by those means from shares of the same class which have fallen to be valued in accordance with this section on a death occurring before the alteration of share capital, as if those shares and the equivalent amount of the shares from which they were so derived were the same shares; and if a company has issued to holders of any shares other shares as fully paid bonus shares, that subsection shall apply both to the shares in respect of which the issue was made and to the shares so issued as if they were derived from the former by sub-division.
(11) In this section--
(a) references to the assets of a company shall be construed as references to the assets that it had at the death of the deceased;
(b) references to a subsidiary company shall be construed in accordance with the interpretation attributed to that ex- pression in section 34(5)(a); and
(c) the expression "relative" has the meaning attributed to it in
section 7.
( Added, I of 1959, s. 10)
45. (1) If a company to which by virtue of section 34, this section applies. was concerned in a transaction in relation to which it is claimed that the provisions of paragraph (a) of or the proviso to section 7(1) have effect, those provisions shall have effect in relation thereto if and only if, and to the extent only to which, the Commis- sioner is satisfied that those provisions would have had effect in the following circumstances, namely, if the assets of the company had been held by it on trust for the members thereof and any other person to whom it is under any liability incurred otherwise than for the purposes of the business of the company wholly and exclusively, in accordance with the rights attaching to the shares in and debentures of the company and the terms on which any such liability was incurred, and if the company had acted in the capacity of a trustee only with power to carry on the business of the company and to employ the assets of the company therein.
(2) Any gifts made in favour of a relative of the deceased by a company of which the deceased at the time of the gift had control within the meaning of section 44(3) shall be treated for the purposes of section 6(1)(c) as a gift made by the deceased, and the property taken under the gift shall be treated as included by virtue of that paragraph in the property passing on the death of the deceased, if and to the extent to which the Commissioner is satisfied that it would fall to be so treated in the circumstances mentioned in subsection (1).
(3) If the deceased has made in favour of a company to which, by virtue of section 34, this section applies, a disposition which, if it had been made in favour of a relative of his, would have fallen
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