PART III.

Death Duties.

10. —(1) The agreement set forth in the First Schedule to this Act and concluded on the 28th day of October, 1954, between the Government and the Government of Canada (in this section referred to as the Agreement) is hereby confirmed and shall have the force of law.

(2) Subsection (4) of section 7 of the Finance Act, 1894 (which provides for relief in respect of duty payable in a foreign country) shall not have effect in relation to succession duty chargeable under the laws of Canada to which the provisions of the Agreement apply.

11. —Where—

(a) the trustees of a settlement may become accountable for estate duty payable by virtue of section 30 of the Finance Act, 1941 (No. 14 of 1941), in respect of any property, and

(b) it is intended that the property or any part thereof shall cease to be comprised in the settlement,

then, if the trustees obtain from the Revenue Commissioners a certificate of the amount which in the opinion of the Revenue Commissioners may properly be treated as the prospective amount of the duty, and give the Revenue Commissioners all the information and evidence required by the Revenue Commissioners in connection with the application for the certificate, no person shall be accountable as trustee of the settlement, for the duty to which the certificate relates, to an amount in excess of the amount certified.

12. —(1) Notwithstanding anything contained in section 4 of the Finance Act, 1894, where the property which passes on a death, but in which the deceased never had an interest, includes any policies of assurance on his life, or moneys received under such a policy, or interests in such a policy or moneys, all the policies, moneys and interests so included (except any in respect of which estate duty neither is payable on the death nor would be if the duty were payable on estates of however small a principal value) shall, for determining the rate of estate duty to be paid thereon, be aggregated so as to form one estate, and the duty shall be levied at the proper graduated rate on the principal value thereof.

(2) Subsection (1) of this section shall have effect in relation to any death occurring on or after the date of the passing of this Act.

13. —(1) In this section—

“the property of the deceased” means property in respect of which estate duty is payable in connection with the death of the deceased and which is—

(a) property to which the deceased was absolutely entitled, or of which he was competent to dispose, at the time of his death, or

(b) property which passes on his death within the meaning of the enactments relating to estate duty under a disposition made by him, or made, directly or indirectly, on his behalf or at his expense or out of funds provided by him, or made by him in the exercise of a general power of appointment, or

(c) property which by virtue of section 23 of the Finance Act, 1940 (No. 14 of 1940), or section 20 of the Finance Act, 1949 (No. 13 of 1949), is deemed to be included in the property passing on the death of the deceased;

“the other property” means the property in respect of which estate duty is payable in connection with the death of the deceased, but which is not the property of the deceased.

(2) (a) Where the net value of the property of the deceased does not exceed ten thousand pounds; that property shall not be aggregated with the other property, but shall form an estate by itself.

(b) Where the net value of the property of the deceased exceeds ten thousand pounds, the amount of estate duty payable in respect of it shall not exceed the amount of estate duty that would be payable if the net value of it were ten thousand pounds, together with the amount by which the net value of the said property exceeds ten thousand pounds.

(3) Where the net value of the property of the deceased exceeds ten thousand pounds, any reduction under subsection (1) of section 13 of the Finance Act, 1914, of the estate duty payable in respect of the other property shall, in a case in which the estate duty payable in respect of the property of the deceased is reduced in accordance with paragraph (b) of subsection (2) of this section, be calculated as if the estate duty payable in respect of the property of the deceased were not reduced in accordance with that paragraph.

(4) This section shall have effect in relation to any death occurring on or after the date of the passing of this Act.