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14 1982

FINANCE ACT, 1982

PART V

Capital Acquisitions Tax

Interpretation (Part V).

97. —In this Part “the Principal Act” means the Capital Acquisitions Tax Act, 1976 .

Exemption of certain benefits.

98. —Where a gift or an inheritance is taken, by direction of the disponer, free of tax on or after the date of the passing of this Act, the benefit taken shall be deemed to include the amount of tax chargeable on such gift or inheritance but not the amount of tax chargeable on such tax.

Amendment of section 5 (gift deemed to be taken) of Principal Act.

99. —Section 5 (6) of the Principal Act shall, as respects a gift or inheritance deemed to be taken on or after the 2nd day of June, 1982, have effect as if—

(a) in paragraph (a), “, before the 28th day of February, 1974,” were deleted, and

(b) in paragraph (b), “prior to the 28th day of February, 1974” were deleted.

Amendment of section 19 (value of agricultural property) of Principal Act.

100. —Section 19 of the Principal Act shall, as respects a gift or inheritance taken on after the 1st day of April, 1982, have effect as if “£200,000” were substituted for “£150,000” (inserted by the Finance Act, 1980 ) in each place where it occurs.

Amendment of section 36 (delivery of returns) of Principal Act.

101. —(1) Section 36 of the Principal Act is hereby amended by the substitution of the following subsection for subsection (3) (inserted by the Finance Act, 1978 )—

“(3) Subsection (2) applies to a gift where—

(a) the taxable value of such gift, so far as it is a taxable gift, exceeds an amount which is 80 per cent. of the lowest value upon which, at the date of such gift, tax becomes chargeable in respect of a gift taken by the donee of such gift from the disponer thereof,

(b) the taxable value of such gift, so far as it is a taxable gift, falls to be aggregated with gifts taken by the donee of such gift, either on or before the date of such gift, from any disponer and thereby increases the total taxable value of all taxable gifts so aggregated taken by such donee from any disponer from an amount which is less than or equal to the amount specified in paragraph (a) to an amount which exceeds the amount so specified,

(c) the taxable value of such gift, so far as it is a taxable gift, falls to be aggregated with gifts taken by the donee of such gift, either on or before the date of such gift, from any disponer and thereby increases the total taxable value of all taxable gifts so aggregated taken by such donee from any disponer from an amount which is greater than the amount specified in paragraph (a), or

(d) the donee is required by notice in writing by the Commissioners to deliver a return,

and for the purposes of this subsection, a reference to a gift or to a taxable gift includes a reference to a part of a gift or to a part of a taxable gift, as the case may be.”.

(2) This section shall have effect in relation to gifts taken on or after the 2nd day of June, 1982.

Amendment of Second Schedule to Principal Act.

102. —(1) The Second Schedule to the Principal Act is hereby amended—

(a) in Part I—

(i) by the substitution of the following paragraphs for paragraphs 3, 4 and 7:

“3. Subject to the provisions of paragraph 6, the tax chargeable on the taxable value of a taxable gift or a taxable inheritance, in the case where the donee or successor has taken no other taxable gift or taxable inheritance on or after the 2nd day of June, 1982, to which the same appropriate Table applied, shall be computed at the rate or rates of tax applicable to that taxable value under that appropriate Table.

4. Subject to the provisions of paragraph 6, the tax chargeable on the taxable value of a taxable gift or a taxable inheritance, in the case where the donee or successor has previously taken one or more taxable gifts or taxable inheritances on or after the 2nd day of June, 1982, to which the same appropriate Table applied, shall be computed at the rate or rates of tax applicable under that appropriate Table to such part of the aggregate of—

(a) that taxable value; and

(b) the taxable values of all such previous taxable gifts and taxable inheritances,

as is the highest part of that aggregate and is equal to that taxable value.

7. For the purposes of this Schedule, all gifts and inheritances taken by a donee or successor from one disponer, or several disponers, on the same day shall count as one where the same appropriate Table applies to all such gifts and inheritances, and to ascertain the amount of tax payable on one gift or inheritance of several so taken on the same day, the amount of tax computed under this Schedule as being payable on all such gifts or inheritances taken on that day, and counted as one, shall be apportioned rateably, according to the taxable values of the several taxable gifts and taxable inheritances so taken on the same day.”, and

(ii) by the insertion after paragraph 10 (inserted by the Finance Act, 1981 ) of the following paragraph:

“11. For the purposes of this Schedule, a reference to a gift or an inheritance, or to a taxable gift or a taxable inheritance, includes a reference to a part of a gift or an inheritance, or to a part of a taxable gift or a taxable inheritance, as the case may be.”,

and

(b) in paragraph 1 of Part I and in Part II, by the insertion of “or disponers” after “disponer”, in each place where it occurs.

(2) This section shall have effect in relation to gifts and inheritances taken on or after the 2nd day of June, 1982.