# Finance Act 1986, Paragraph 43


(1) This paragraph applies if, in the case of a settlement,—
(a) tax is charged under section 65 of the 1984 Act on an occasion falling on or after 18th March 1986; and
(b) the rate at which tax is so charged falls to be determined under section 69 of that Act (rate between ten-year anniversaries) by reference to the rate (in this paragraph referred to as “the last ten-year rate”) at which tax was last charged under section 64 of that Act (or would have been charged apart from section 66(2) there of); and
(c) the most recent ten-year anniversary fell before 18th March 1986.
(2) For the purpose of determining the rate at which tax is charged on the occasion referred to in sub-paragraph (1)(a) above, it shall be assumed that the last ten-year rate was what that rate would have been if, immediately before the ten-year anniversary referred to in sub-paragraph (1)(c) above, the amendments of sections 66 and 67 of the 1984 Act contained in Part I of this Schedule had been in force.
(3) Where this paragraph applies, paragraph 3 of Schedule 2 to the 1984 Act shall have effect as if—
(a) references to a reduction included reference to a reduction by the substitution of a new Table in Schedule 1 to the 1984 Act; and
(b) in relation to a reduction resulting from the subsitution of such a new Table, the reference to the second of the Tbles in Schedule 1 to the 1984 Act were a reference to a Table in which the rates of tax were one-half of those specified in the new Table.
(4) In this paragraph “ten-year anniversary” has the same meannig as in Chapter III of Part III of the 1984 Act.

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Source: https://www.legislation.gov.uk/ukpga/1986/41/schedule/19/paragraph/43 (the official version)
Page: https://openlegislation.uk/finance-act-1986/schedule-19/paragraph-43
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.