Finance Act 1975

17 In paragraph 11 of Schedule 12 to the Finance Act 1971 for the words from the beginning to "by any percentage" in sub-paragraph (b) there shall be substituted the following:—

“Where a life interest (within the meaning of section 25 of the [1965 c. 25.] Finance Act 1965) in settled property is terminated by the death of a person on whose death capital transfer tax is chargeable under section 22 of the Finance Act 1975 and, under subsection (5) of that section, a value falls to be included in respect of the settled property, then.—

(a) if that value is the principal value of the property, paragraphs 6 and 9 above shall apply as if that person had been entitled to the life interest at his death ; and

(b) if that value is a value reduced by any percentage under paragraph 3 of Part II of Schedule 17 to the [1969 c. 32.] Finance Act 1969 or paragraph 3 of Part II of Schedule 1 to the [1969 c. 18 (N.I.).] Finance Act (Northern Ireland) 1969”.