Section 118 — Finance Act 2014: Gifts to the nation: estate duty

Gifts to the nation: estate duty 118 1 In Schedule 14 to FA 2012 (gifts to the nation), before paragraph 33 insert— 32A 1 This paragraph applies where a person (“ the donor ”) makes a qualifying gift of an object in circumstances where, had the donor instead sold the object to an individual at market value, a charge to estate duty would have arisen under section 40 of FA 1930 on the proceeds of sale.

2 At the time when the gift is made, estate duty becomes chargeable under that section as if the gift were such a sale (subject to any limitation imposed by paragraph 33(2)).

3 In the application of this paragraph to Northern Ireland, the references to section 40 of FA 1930 are to be read as references to section 2 of the Finance Act (Northern Ireland) 1931.

2 Subsection (3) applies where a person (“ the donor ”) has, before the day on which this Act is passed, made a qualifying gift of an object in circumstances where, had the donor instead sold the object to an individual at market value, a charge to estate duty would have arisen under section 40 of FA 1930 on the proceeds of sale.

3 No liability to estate duty under section 40 of FA 1930 arises in respect of the object on or after the day on which this Act is passed.

4 In subsection (2) “ qualifying gift ” has the same meaning as in Schedule 14 to FA 2012.

5 In the application of subsections (2) and (3) to Northern Ireland, the references to section 40 of FA 1930 are to be read as references to section 2 of the Finance Act (Northern Ireland) 1931.