I move:—
That the exemption conferred by sub-section (3) of Section 5 of the Finance Act, 1894, in the case of settled property where the interest of any person under the settlement fails or determines by reason of his death before it becomes an interest in possession and subsequent limitations under the settlement continue to subsist, shall cease in cases where the property would, if that sub-section had not been enacted, have been deemed to pass on the death otherwise than by reason of the failure or determination of the interest.
As I explained, this Resolution is introduced to pave the way for a clause in the Finance Bill designed to defeat a device suggested by a writer in a legal journal for avoiding payment of estate duty in connection with settled property. Two or three cases of the kind have come under the notice of the Revenue Commissioners, and the Commissioners were advised that the property could not in the particular cases he deemed to pass for the purpose of estate duty. We wish to repair that defect.