I move amendment No. 223:
In page 135, subsection (1) (b), line 4, to delete “£105,000” and substitute “£150,000”.
SECTION 133
I welcome the Minister's change. It is not often that an amendment is tabled in our joint names. I am glad the Minister mended his hand at this stage. I withdraw the amendments in my name.
Amendment agreed to.
I move amendment No. 224:
In page 135, subsection (1) (c), line 17, to delete “£105,000” and substitute “£150,000”.
Amendment agreed to.
Amendment No. 225 not moved.
I move amendment No. 226:
In page 135, subsection (1) (c), line 22, to delete “shall not exceed £105,000” and substitute “shall not exceed £150,000 in the case of a gift and £105,000 in the case of an inheritance”.
Amendment agreed to.
Amendment No. 227 not moved.
Section 133, as amended, agreed to.
Section 134 agreed to.
NEW SECTION.
I move amendment No. 228:
In page 136, before section 135, to insert the following new section:
"135.—(1) In this section—
‘earlier relevant inheritance' means a relevant inheritance deemed to be taken on the date of death of the disponer;
‘later relevant inheritance' means a relevant inheritance which, after the date of death of the disponer, is deemed to be taken by a discretionary trust by virtue of there ceasing to be a principal object of that trust who is under the age of 21 years;
‘relevant inheritance' means an inheritance which, by virtue of section 106 (1) of the Finance Act, 1984, is, on or after the 11th day of April, 1994, deemed to be taken by a discretionary trust;
‘the relevant period' means—
(a) in relation to an earlier relevant inheritance, the period of five years commencing on the date of death of the disponer, and
(b) in relation to a later relevant inheritance, the period of five years commencing on the latest date on which a later relevant inheritance was deemed to be taken from the disponer;
‘the appropriate trust', in relation to a relevant inheritance, means the trust by which that inheritance was deemed to be taken.
(2) Section 109 of the Finance Act, 1984, is hereby amended by the substitution of ‘six per cent.' for ‘three per cent.':
Provided that where, in the case of each and every earlier relevant inheritance or each and every later relevant inheritance, as the case may be, taken from one and the same disponer, one or more objects of the appropriate trust became beneficially entitled in possession before the expiration of the relevant period to an absolute interest in the entire of the property of which that inheritance consisted on and at all times after the date of that inheritance (other than property which ceased to be subject to the terms of the appropriate trust by virtue of a sale or exchange of an absolute interest in that property for full consideration in money or money's worth), then, in relation to all such earlier relevant inheritances or all such later relevant inheritances, as the case may be, this section shall cease to apply and tax shall be computed accordingly in accordance with the provisions of the said section 109 as if this section had not been enacted.
(3) Where two or more persons are together beneficially entitled in possession to an absolute interest in property, those persons shall not, by reason only that together they are beneficially so entitled in possession, be regarded for the purposes of subsection (2) as beneficially so entitled in possession.
(4) Notwithstanding the provisions of section 46 of the Principal Act, interest shall not be payable on any repayment of tax which arises by virtue of the provisions of this section.".
Acceptance of this amendment involves the deletion of section 135.
Amendment agreed to.
Section 135 deleted.
Section 136 agreed to.