PART III

Death Duties

18. —(1) In this section—

“death benefit” means any benefit which accrues pursuant to a superannuation scheme on or in connection with a death, occurring after the passing of this Act, during service or after retirement;

“superannuation scheme” includes any arrangement connected with employment;

“employment” includes employment as a director of a body corporate.

(2) For the purposes of section 2 (1) (d) of the Finance Act, 1894, a beneficial interest shall be deemed to have accrued on the death in respect of which a death benefit has been paid notwithstanding that at the date of the death no person had a right enforceable at law to the benefit and the provisions of that Act and of section 24 of the Finance Act, 1965 , shall apply to the benefit as if that right had then existed.

(3) A death benefit to which subsection (2) of this section applies shall for all purposes of estate duty, legacy duty and succession duty be deemed—

(a) in case it has been paid to the legal personal representative of the deceased, to be part of the deceased's personal estate passing under his will or intestacy,

(b) in any other case, to be a succession derived under a disposition made by the deceased.

(4) In a case in which a death benefit consists of property other than money, the reference in subsection (2) of this section to a death benefit having been paid shall be construed accordingly.

(5) Section 5 of the Finance Act, 1945 , is hereby repealed in relation to persons dying after the passing of this Act.

19. —(1) Section 29 of the Finance Act, 1965 , is hereby amended as follows:

(a) the following subsections shall be substituted for subsections (2), (3) and (4);

“(2) Where the widow is the only dependant entitled to a benefit on the death of the deceased, any estate duty payable in respect of such benefit shall be abated by the sum of £350 together with a sum of £250 in respect of each child.

(3) Where there are two or more dependants one of whom is the widow and either a child is the only dependant entitled to a benefit on the death of the deceased or more than one dependant are entitled to benefits thereon—

(a) any estate duty payable in respect of a child's benefit shall be abated by the sum of £250:

(b) if the widow is entitled to a benefit, any estate duty payable in respect thereof shall be abated by the sum of £350 together with a sum of £250 for each child not entitled to a benefit.

(4) Where the deceased was, at death, a widower or widow, any estate duty payable in respect of a benefit shall be abated by the sum of £250.”;

(b) “£25,000” shall be substituted for “£15,000” in subsection (6);

(c) in a case in which but for the fact that the estate exceeds £25,000 there would be an abatement of estate duty, the section shall apply with the limitation that the total abatement which would be appropriate apart from paragraph (b) of subsection (5) if the estate did not exceed £25,000 shall be diminished by the amount by which the estate exceeds £25,000 and the said paragraph (b) shall have effect accordingly.

(2) As well as applying in relation to deaths occurring after the passing of this Act, this section shall also apply in relation to deaths occurring before such passing and after the passing of the Finance Act, 1965 , and appropriate repayments shall be made accordingly