The Gazette 1964/67

ancestor or lineal descendant and the supplementary io/-% rate of succession duty payable in certain cases. Part IV. Stamp Duties. The Bill contains proposals for relief from capital and transfer stamp duty in the case of reconstructions or amalgamations of companies. Broadly speaking the conditions are (i) a company (referred to as the transferee company) is registered after the passing of the Finance Act, 1965, or the nominal capital of such a company has been increased. (2) The company is registered or established or has increased its capital with a view to the acquisition of the under taking or of not less than 90% of the issued share capital of a particular existing company. (3) The consideration for the acquisition (except such part as consists in the transfer to or discharge by the trans feree company of liabilities) of the existing company consists as to not less than 90% thereof in the issue of shares in the transferee company to the existing company (where an undertaking is to be acquired) or in the issue of shares in the transferee company in exchange (where shares are to be acquired). Two kinds of relief are proposed: (a) The nominal share capital of the transferee company for the purpose of computing stamp duty chargeable thereon is to be treated as being reduced in the manner stated in section 30 (i) of the Bill. (b) Ad valorem stamp duty will not be chargeable on any instrument effecting the transfer of the undertaking or shares or on the assignment of any debts of the existing company to the transferee company. The following conditions should be noted : 1. The instrument must be adjudged duly stamped. 2. In the case of an instrument of transfer to a company within the meaning of the Companies Act, 1963, the relief from the ad valorem transfer duty will not be given unless the instrument is executed within twelve months from the date of registration of the transferee company or from the date of the resolution for the increase of the nominal share capital thereof or alternatively unless the instrument was made for the purpose of effecting a conveyance or transfer in pursuance of an agreement filed or particulars of which have been filed with the Registrar of Companies within the said period of twelve months. 3. Relief from duty on the release or assignment of debts of the existing company will apply only to debts (other than debts due to banks or trade creditors) which are incurred two or more years

1894, by abolishing the exemption from estate duty in respect of foreign immovable property, other than land situate outside the State. Section 23 is aimed at ensuring that a claim for estate duty will arise on the death of a life tenant who after the passing of the Act terminates a settle ment by acquiring directly or indirectly within five years of his death the interest of the person or persons to whom the property would otherwise have passed under the terms of the settlement on the life tenant's death. Section 24 provides that death benefits under non-contributory superannuation schemes will be liable to estate duty unless the aggregate value of the benefits does not exceed £5,000 and they are payable to the widow or dependent children of the deceased. It will apply to superannuation schemes whenever created in connection with a death occurring after the passing of the Act. There is marginal relief for estate duty where the death benefit exceeds £5,000. Section 25 aims at ensuring that the proviso to section 4 of the Finance Act, 1894 (non-aggregability of property passing on the death in which he never had an interest) shall cease to have effect as regards property passing or deemed to pass on a death occurring after the passing of the Act unless it is proved to the satisfaction of the Revenue Com missioners that it did not pass directly or indirectly under a disposition made by the deceased (which term includes the payment of money). Section 26 gives partial relief from estate duty in respect of certain policies of assurance which became indefeasibly vested in a donee more than five years before the death of the assured. By section 27 the existing period of three years prior to death as affecting gifts inter vivas is extended to five years where the deceased dies after the passing of the Act with relief on a sliding scale where the death occurs in the third, fourth or fifth years of the period. It will not apply where the gift was made or a release effected three years or more before the passing of the Act. Section 28 provides that the exemption from estate duty in relation to gifts in consideration of marriage is to be confined to gifts made to the parties to the marriage and to the issue of the marriage. Section 29 provides that in estates not exceeding £15,000 value estate duty on benefits passing to the widow or dependent children of the deceased is to be abated. The abatement is limited to £150 os. od. in the case of the widow and £100 in the case of each dependent child. Section 30 abolishes the i% rates of legacy duty and succession duty payable by a spouse lineal