Clause 40.—(Estate Duty: Interests Limited To Cease on Death.)

Mr. MacDermot

I beg to move Amendment No. 112, in page 46, line 42, to leave out from “and” to end of line 5 on page 47 and to insert

“for the purposes of this subsection the following interests shall be deemed to include an interest limited to cease on a death——

(i) an interest enjoyed under two or more titles one of which confers an interest limited to cease on a death,

(ii) an interest so related to a death that it cannot terminate before the death, and

(iii) an interest so related to a death that, except in contingencies not related to the death, it cannot terminate before the death” .

This is a purely drafting Amendment to meet the point raised by the right hon. Member for Stafford and Stone (Mr. Hugh Fraser) in Committee. It makes no alteration in the sense of the subsection but improves its layout and to some extent its clarity. As I explained at the time, this is a highly technical subsection which must of necessity be cast in very technical language.

Mrs. Thatcher

I recognise that this is purely a drafting Amendment but the hon. and learned Gentleman will recollect that a number of points were raised on this Clause in Committee and that Sir Dingle Footthe learned Solicitor-General agreed to look into them. Since that time I have sent Niall MacDermotthe Financial Secretary details of a case which I think is caught by this Clause but which is not on all fours with either the Ralli or the Holmden cases, which proves that the Clause goes wider than either of them. I hope that the Financial Secretary will consider that case and the point I have put previously about protection for bona fide purchasers of interests affected by the Clause and let me know his conclusion in due course.

Mr. MacDermot

indicated assent.

Amendment agreed to.