Law:

Section:

Estate duty--Property passing on death - Trust - Discre tionary trust of income distributable between two beneficiaries Whole of income to be distributed-Whether fund or any part thereof "passed" on death of one beneficiary-Liability to estate duty -"Passing" : scope of statutory definition-Finance Act, 1894 (57 & 58 Viet. c. 30), Ss. 1, 2(1) & 7(7). The Finance Act, 1894, relevant sections of which here inafter follow provided: " S. 1 : In the case of every person dying after the commencement of this Part of this Act, there shall, save as hereinafter expressly provided, be levied and paid, upon the principal value ascertained as hereinafter pro vided of all property, real or personal, settled or not settled, which passes on the death of such person a duty, called 'Estate Duty', at the graduated rates hereinafter mentioned, and the existing duties mentioned in the First Schedule to this Act shall not be levied in respect of property chargeable with such estate duty. S. 2 : (1) Property passing on the death of the deceased shall be deemed to include the property following, that is to say :-(a) Property of which the deceased was at the time of his death competent to dispose ; (b) Property in which the deceased or any other person had an interest ceasing on the death of the deceased, to the extent to which a benefit accrues or arises by the cesser or such interest; but exclusive of property the interest in which of the deceased or other person was only an interest as holder of an office, or recipient of the benefits of a charity, or as a corporation sole ; (c) Property which would be required on the death of the deceased to be included in an account under section 38 of the Customs and Inland Revenue Act, 1881, as amended by section 11 of the Customs and Inland Revenue Act, 1889, if those sections were herein enacted and extended to real property as well as personal property, and the words 'voluntary' and 'voluntarily' and a reference to a 'volunteer' were omitted therefrom ; and (d) Any annuity or other interest purchased or provided by the deceased, either by himself alone or in concert or by…