HC Deb 27 October 1966 vol 734 cc1448-9

1.—(1) The provisions of this Part of this Schedule shall have effect for the purpose of assessing levy in respect of a chargeable act or event (in this Schedule referred to as 'the chargeable act or event') where—

  1. (a) a person (in this Schedule referred to as 'the deceased') who was a predecessor of the chargeable owner died before, but not more than six years before, the relevant date;
  2. (b) an interest in land (in this Schedule referred to as 'the dutiable interest') passed on the death of the deceased and estate duty was leviable in respect of that interest;
  3. (c) that interest either was the chargeable interest or was an interest in part of the land in which the chargeable interest subsists and would have been the chargeable interest if it had extended to the whole of that land; and
  4. (d) there has not before the relevant date been any previous chargeable act or event in connection with which an allowance under this Schedule fell or falls to be made in respect of that interest.

(2) For the purposes of this Schedule an interest in land shall be taken to have passed on a person's death if at his death it passed, or is deemed to have passed, for the purposes of the enactments relating to estate duty.

(3) In this paragraph 'predecessor', in relation to the chargeable owner, means a predecessor in title, not being a person from whom the chargeable owner or any other predecessor in title of his derived title under a disposition for valuable consideration.

2. Subject to paragraph 4 and to Part III of this Schedule, the appropriate allowance shall be made for the purpose of assessing levy where, in the circumstances specified in the preceding paragraph, the gross principal value of the dutiable interest exceeds the modified value of that interest in accordance with the provisions of Part II of this Schedule.

3. Where in accordance with the last preceding paragraph the appropriate allowance falls to be made, then for the purpose of assessing levy in respect of the chargeable act or event—

  1. (a) if it falls within Case A or Case C, the market value of the relevant interest (ascertained apart from this Schedule) shall be reduced by the allowance;
  2. (b) if it consists of a disposition falling with Case B, Case E or Case F, the amount of the consideration for the disposition (ascertained apart from this Schedule) shall be reduced by the allowance;
  3. (c) if it consists of the accrual of a right to compensation falling within Case D or Case F, the amount of the compensation (ascertained apart from this Schedule) shall be reduced by the allowance.

4. Notwithstanding anything in paragraph 2 of this Schedule, that paragraph shall not have effect for the purpose of assessing levy in Case C in respect of a project of material development where the chargeable interest is an assessable interest by virtue of which a person is the developing owner in relation to that project in accordance with paragraph (b) or paragraph (c) of section 32(7) of this Act.

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