Section 43.
1(1)In subsection (1), immediately before paragraph (a), there shall be inserted the words " and the disposition or determination (or any of them if there are more than one) is not excepted by subsection (2) of this section, then ".
(2)In paragraph (a) and in paragraph (b) of subsection (1) for the words " apart from the disposition or determination " there shall be substituted the words " had there been no disposition or determination as aforesaid of that interest and no disposition of any interest expectant upon or subject to that interest ".
2(1)In subsection (2) for the words " the relevant disposition or determination " there shall be substituted the words " a disposition or determination of an interest limited to cease on the death ".
(2)In subsection (2) for the words " the preceding subsection shall not have effect " there shall be substituted the words " the disposition or determination shall be excepted by this subsection ".
(3)In paragraph (a) of subsection, (2) before the word " had " there shall be inserted the words " immediately before the disposition or determination ".
(1)Subject to the provisions of this section, where an interest limited to cease on a death has been disposed of or has determined, whether by surrender, assurance, divesting, forfeiture or in any other manner (except by the expiration of a fixed period at the expiration of which the interest was limited to cease), whether wholly or partly, and whether for value or not, after becoming an interest in possession, and the disposition or determination (or any of them if there are more than one) is not excepted by subsection (2) of this section, then—
(a)if, had there been no disposition or determination as aforesaid of that interest and no disposition of any interest expectant upon or subject to that interest, the property in which the interest subsisted would have passed on the death under section one of the Finance Act, 1894, that property shall be deemed by virtue of this section to be included as to the whole thereof in the property passing on the death; or
(b)if, had there been no disposition or determination as aforesaid of that interest and no disposition of any interest expectant upon or subject to that interest, the property in which the interest subsisted would have been deemed by virtue of paragraph (b) of subsection (1) of section two of the said Act to be included to a particular extent in the property passing on the death, the property in which the interest subsisted shall be deemed by virtue of this section to be included to that extent in the property passing on the death.
(2)Where a disposition or determination of an interest limited to cease on the death was bona fide effected or suffered five years before the death (or, if it was effected or suffered for public or charitable purposes, one year before the death), the disposition or determination shall be excepted by this subsection—
(a)if bona fide possession and enjoyment of the property in which the interest subsisted was assumed immediately thereafter by the person becoming entitled by virtue of or upon the disposition or determination and thenceforward retained to the entire exclusion of the person who immediately before the disposition or determination had the interest and of any benefit to him by contract or otherwise; or
(b)in the case of a partial determination, if the conditions specified in the preceding paragraph were not satisfied by reason only of the retention or enjoyment by the deceased of possession of some part of the property, or of some benefit, by virtue of the provisions of the instrument under which he had the interest;
Provided that nothing in this subsection shall be construed as affecting any charge of estate duty arising otherwise than by virtue of the provisions of the preceding subsection.