HC Deb 15 July 1976 vol 915 cc1095-6

Amendment made: No. 122, in page 49, line 9, leave out from beginning to 'Schedule' in line l0.—[Mr. Denzil Davies.]

Amendment proposed: No. 123, in page 49, line 15, at end insert—

'(2A) In sub-paragraph (2) of paragraph 1, after the words "transfer of value" in paragraph (a) there shall be inserted the words "and either that transfer or the current transfer was or would have been a transfer made on death" and at the end of paragraph (d) there shall be added the words "and (e) the agricultural property became, through the earlier transfer, the property of the person or of the spouse of the person who is the transferor in relation to the current transfer. (2A) Where, by virtue of sub-paragraph (2) above, the conditions stated in paragraph 3 below are deemed to be satisfied but, under the earlier transfer mentioned in that sub-paragraph, the amount of the value transferred which was attributable to the agricultural property was part only of the value of that property, a like part of its agricultural value shall be substituted for the agricultural value of the property in ascertaining the part eligible for relief under paragraph 2 below"'.—[Mr. Denzil Davies.]

Mr. David Howell

Will the Minister expand on this quite lengthy amendment?

Mr. Denzil Davies

Amendment No. 123 is the main amendment in this group starting with Amendment No. 119, which was consequential. These amendments introduce into the conditions for the capital transfer tax agricultural relief a provision comparable to that being proposed for business relief by Amendment No. 117.

Under the Finance Act 1975, agricultural relief can be claimed on the transfer of agricultural land and buildings by a full-time working farmer who, inter alia, has occupied the property transferred for at least two years before the transfer. These conditions may be set aside if within two years of the transfer in question there had been an earlier transfer of the same property which had been, or would have been, eligible for agricultural relief. This provision is a corollary of the business relief set out in an earlier amendment.

Amendment agreed to.

Amendment made: No. 125, in page 49, line 35, at end insert: '(6) The preceding provisions of this section shall have effect as follows:—

  1. (a) subsections (1), (2) and (3) to (5), in relation to chargeable transfers made after 6th April 1976; and
  2. (b) subsection (2A) in relation to chargeable transfers made after the passing of this Act'.—[Mr. Denzil Davies.]

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