Financial Resolutions. - Resolution No. 19—Estate Duty.

I move:—

(1) That, where a person (in this paragraph referred to as the deceased) who dies after the 7th day of May, 1941, has made (whether before or after the passing of this Resolution) a disposition of property in favour of a relative, the creation or disposition in favour of the deceased of an annuity or other interest limited to cease on the death of the deceased or of any other person shall not be treated for the purposes of either Section 3 of the Finance Act, 1894, or of sub-section (1) of Section 7 of that Act as consideration for the said disposition so made by the deceased.

(2) That, where a person (in this paragraph referred to as the deceased) who dies after the 7th day of May, 1941, has made (whether before or after the passing of this Resolution) a disposition of property in favour of a company to which this Resolution applies, the creation or disposition in favour of the deceased of an annuity or other interest limited to cease on the death of the deceased or of any other person shall not be treated for the purposes of either Section 3 of the Finance Act, 1894, or of sub-section (1) of Section 7 of that Act as consideration for the said disposition so made by the deceased, unless it is shown to the satisfaction of the Revenue Commissioners that no relative of the deceased was, when the said disposition was so made or at any subsequent time during the life of the deceased, a member of either the said company or another company to which this Resolution applies which is itself a member of the said company.

(3) That where, in a case to which one of the foregoing paragraphs of this Resolution applies, there have been associated operations effected either with reference to the receiving by the person referred to in that paragraph as the deceased of any payment in respect of such annuity or other interest as is mentioned in the said paragraph or effected with a view to enabling the said person to receive or to facilitating the receipt by him of any such payment, the said paragraph shall have the same effect in relation to each of those associated operations as it is expressed to have in relation to the creation or disposition in favour of the said person of the said annuity or other interest.

(4) That for the purposes of this Resolution the following persons and no other person shall be relatives of another person, that is to say:—

(a) the wife or husband of that other person, and

(b) the father, mother, children (whether legitimate or illegitimate), uncles, and aunts of the said other person, and

(c) the issue (including illegitimate children) of any person who is, by virtue of either of the foregoing sub-paragraphs of this paragraph, a relative of the said other person, and

(d) the wife or husband of a person who is, by virtue of either the foregoing sub-paragraph (b) or the foregoing sub-paragraph (c), a relative of the said other person.

(5) That in this Resolution—

the word "disposition" includes any trust, covenant, agreement, or arrangement, whether made by a single operation or by associated operations,

the word "annuity" includes any series of payments, whether interconnected or not so connected and whether of the same or of varying amounts and whether payable at regular intervals or not so payable, references to an annuity or other interest limited to cease on a death shall be construed as also referring to an annuity or other interest subject to a limitation (in whatsoever form) having the effect of providing in the alternative for the cesser of such annuity or interest on a death or on the occurrence of some event or expiration of some period before such death,

the expression "company to which this Resolution applies" means a body corporate (wherever incorporated) which, by its articles or otherwise, restricts the right to transfer its stock or shares, and limits the number of its members (exclusive of persons in its employment) to fifty, and prohibits any invitation to the public to subscribe for any of its stocks, shares, debentures, or debenture stock,

the expression "associated operations" means operations (whether effected by the same person or by different persons and whether connected otherwise than as hereinafter mentioned or not so connected and whether contemporaneous or not contemporaneous) which are—

(a) operations affecting the same property, or

(b) operations one of which affects some property and the other or others of which affect property representing (directly or indirectly) that property or income arising from that property or accumulations of such income, or

(c) two operations of which one is effected with reference to the other or with a view to enabling such other to be effected or to facilitating the effecting of such other and any third operation having a like relation to either of the said two operations, and any fourth operation having a like relation to any of those three operations, and so on,

the word "payment" includes a transfer of property and also a set-off or release of an obligation,

references to the amount of a payment shall be construed as including references to the value of property transferred and to the value of an obligation set-off or released.

(6) That, where two or more persons hold stock or shares in a company jointly, they shall, for the purposes of the definition of the expression "company to which this Resolution applies" contained in the next preceding paragraph of this Resolution, be deemed to be a single member of this company.

Question put and agreed to.