Paragraph 34

In section 237 (imposition of charge) after subsection (3) there shall be inserted the following subsection—

“(3A)

In the case of a potentially exempt transfer which proves to be a chargeable transfer—

(a)

property concerned, or an interest in property concerned, which has been disposed of to a purchaser before the transferor’s death is not subject to the Inland Revenue charge, but

(b)

property concerned which has been otherwise disposed of before the death and property which at the death represents any property or interest falling within paragraph (a) above shall be subject to the charge;

and in this subsection “property concerned” means property to the value of which the value transferred by the transfer is wholly or partly attributable.”