§ Mr. Patrick Jenkin
I beg to move Amendment No. 318, in page 134, line 20, leave out 'indefensibly' and insert 'indefeasibly'.
We have become used to debating doctrinaire Socialist legislation, but I am bound to say that I was somewhat surprised to find in the Seventeenth Schedule, in paragraph 2(1), the following words:… the deceased's having become absolutely and indefensibly entitled to the property or having attained full age.I took the view that we could not possibly allow this to stand, so I tabled an Amendment, with my hon. Friend the Member for Worthing (Mr. Higgins) to change "indefensibly" to "inde- 1012 feasibly". I must make it clear that the gremlins seem to be mutually, or possibly, liberal. My Amendment appeared on the Notice Paper with the new word spelled "indefeasibily". I can only say that the printer has got his own back.
§ Mr. Taverne
On a matter of major importance like this, I have no wish to be unduly intransigent. I am happy to see the offending "n" replaced by a third ''i"
§ Amendment agreed to.
§ Mr. Taverne
I beg to move Amendment No. 182, in page 134, line 41, at end insert:3A. Where, in the case of any property which at the death of any person is or has been comprised in a settlement, the deceased was entitled to an interest in that property which determined before his death, he shall 1013 not be treated for the purposes of the substituted section 2(1)(b) as not having been entirely excluded from possession and enjoyment of the property and from any benefit to him by contract or otherwise at any time after the date of the determination by reason only of his having been entitled at that time to another interest in that property if estate duty would have been, or would but for section 28(2) of the Finance Act, 1949 have been, or would if he had received any benefit by virtue of that other interest have been, chargeable on the property by virtue of the substituted section 2(1)(b) by reason of that other interest on his death at that time.This Amendment simplifies one area of the charge of estate duty on settled property by adding a new relieving paragraph to the Schedule. It deals with the case where a person's interest in settled property has come to an end and he has another interest in the same property—say, under a new settlement—in which case it provides that if the second interest is within the estate duty charge it is not to be treated as preserving a charge in relation to the first. Thus, once a person has lived for seven years after the first interest came to an end, there will be no charge on the grounds of non-exclusion on his death.
The Amendment also meets a point which was raised by the Opposition in Committee when we debated what was then Amendment No. 552. Where a British settlement is transferred abroad, because the beneficiaries have emigrated, the effect of the new charge on settled property, it seemed, might be to place a liability on the settled fund on the death of a beneficiary more than seven years after the transfer of the settlement because the interest under the new foreign settlement would count as non-exclusion. That point has been met by the Amendment.
§ Mr. Patrick Jenkin
It is always gratifying when one finds that an injustice to which one has drawn the attention of the Government is put right in an Amendment on Report. It is doubly gratifying when one discovers that a further injustice has been disclosed and that that, too, has been put right. The Amendment is, therefore, doubly welcome.
§ Amendment agreed to.
Amendments made: No. 183, in page 136, line 24, at end insert:
8A. Estate duty shall not be chargeable on any property on any death by virtue of any of the sub-paragraphs of the substituted section 2(1)(b)—
8B.—(1) Where, in the case of any property which is or has been comprised in settled property subject to such a trust as is mentioned in sub-paragraph (iii) of the substituted section 2(1)(b), estate duty would, apart from the provisions of this paragraph, be chargeable on that property on a death by virtue of that sub-paragraph, that duty shall not be so chargeable if—
(2) Where any such person as is referred to in sub-paragraph (1)(b) of this paragraph was such a company as is mentioned in section 58(1) of the Finance Act, 1940, each of the persons who at the date of the making of the settlement would in the circumstances mentioned in section 56(1) of that Act have been included among the persons on trust for whom the assets of the company were held shall be deemed to have been such a person as is referred to in the said subparagraph (1)(b).
(3) In this paragraph—
§ No. 184 in line 39, after '3', insert '3A'.
§ No. 185 in line 39, leave out 'and 8' and insert '8 and 8A(c)'.
No. 192 in page 137, line 2, leave out 'from that property under' and insert:
'under, or on that property ceasing to be subject to.'
No. 186 in line 36, at end insert:
1A. In section 2 of the Finance Act 1894, for subsection (3) there shall be substituted the following:
(3) Where in the case of any property the deceased was entitled to an estate or interest therein in a fiduciary or representative capacity or by way of security, that property shall not be treated as passing on his death by reason of that entitlement'.
No. 187 in page 138, line 5, leave out
'settlement is held by trustees as'
'a settlement is subject to such a trust as is'.
No. 188 in page 141, line 8, at end insert:
19A. In section 19 of the Finance Act, 1956, in subsection (3), for the words from ' an amount' onwards there shall be substituted the words—
'(a) if the death occurred after 3rd June, 1969—
(b) if the death occurred before 4th June, 1969 but after 15th April, 1969—