HC Deb 17 July 1986 vol 101 cc1308-9

Amendments made: No. 136A, in page 219, line 22, leave out 'under the principal section'.

No. 202, in page 219, line 45, at end insert—

'Agricultural property and business property 8. — (1) Where there is a disposal by way of gift of property which, in relation to the donor, is at that time—

  1. (a) relevant business property within the meaning of Chapter I of Part V of the 1984 Act, or
  2. (b) agricultural property, within the meaning of Chapter II of that Part, to which section 116 of that Act applies, or
  3. (c) shares or securities to which section 122(1) of that Act applies (agricultural property of companies),
and that property is property subject to a reservation, then, subject to the following provisions of this paragraph, any question whether, on the material transfer of value, relief is available by virtue of Chapter I or Chapter II of Part V of the 1984 Act and, if so, what is the appropriate percentage for the relief shall be determined as if, so far as it is attributable to the property comprised in the gift, that transfer were a transfer of value by the donee. (2) For the purpose only of determining whether, on the transfer of value which, by virtue of sub-paragraph (1) above, the donee is assumed to make, the requirement of section 106 or, as the case may be, section 117 of the 1984 Act (minimum period of ownership or occupation) is fulfilled, —
  1. (a) ownership by the donor prior to the disposal by way of gift shall be treated as ownership by the donee; and
    2. 1309
  2. (b) occupation by the donor prior to the disposal and any occupation by him after that disposal shall be treated as occupation by the donee.
 (3) Where the property disposed of by the gift consists of shares or securities falling within paragraph (c) of sub-paragraph (1) above, that sub-paragraph shall not apply unless—
  1. (a) section 116 of the 1984 Act applied in relation to the value transferred by the disposal, and
  2. (b) throughout the period beginning with the disposal and ending on the material date, the shares or securities are owned by the donee,
 and for the purpose only of determining whether, on the transfer of value which, by virtue of sub-paragraph (1) above, the donee is assumed to make, the requirements of subsection (1) of section 123 of the 1984 Act are fulfilled, it shall be assumed that the requirement in paragraph (b) of that subsection (as to the ownership of the shares or securities) is fulfilled. (4) In this paragraph, "the material transfer of value" means, as the case may require,—
  1. (a) the transfer of value under section 4 of the 1984 Act on the death of the donor; or
  2. (b) the transfer of value under subsection (4) of the principal section on the property concerned ceasing to be subject to a reservation.
 (5) If the donee dies before the material transfer of value, then, as respects any time after his death, any reference in the preceding provisions of this paragraph to the donee shall be construed as a reference to his personal representatives or, as the case may require, the person (if any) by whom the property, shares or securities concerned were taken under a testamentary disposition made by the donee or under his intestacy (or partial intestacy).'. —[Mr. MacGregor.]

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