Section 29A Abatement of exemption where claim settled out of beneficiary’s own resources.F1

This section applies where—

The provisions of this Act shall have effect in relation to the transfer as if—

were attributable to such a gift to the exempt beneficiary as is mentioned in subsection (3) below (instead of being attributable to a gift with respect to which the transfer is exempt).

The gift referred to in subsection (2) above is a specific gift with respect to which the transfer is chargeable, being a gift which satisfies the conditions set out in paragraphs (a) and (b) of section 38(1) below.

In determining the value of the exempt beneficiary’s estate for the purposes of subsection (2) above—

Subsection (1)(b) above does not apply in relation to any claim against the deceased’s estate in respect of so much of any liability as is, in accordance with this Act, to be taken into account in determining the value of the estate.

In this section—

• “exempt gift”, in relation to a transfer of value falling within subsection (1)(a) above, means—

  1. (a)

     a gift with respect to which the transfer is (apart from this section) exempt by virtue of the provisions of any sections 18 and 23 F2to 28A above, or

  2. (b)

     where (apart from this section) the transfer is so exempt with respect to a gift up to a limit, so much of the gift as is within that limit;

• “the exempt beneficiary”, in relation to an exempt gift, means any of the following, namely—

  1. (a)

     where the gift is exempt by virtue of section 18 above, the deceased’s spouse F3or civil partner,

  2. (b)

     where the gift is exempt by virtue of section 23 above, any person or body—

     1. (i)

        whose property the property falling within subsection (1) of that section becomes, F4...

     2. (ii)

        F5...

  3. (c)

     where the gift is exempt by virtue of section 24, F6or 25 above, any body whose property the property falling within subsection (1) of that section becomes,

  4. (d)

     where the gift is exempt by virtue of section 24A above, any body to whom the land falling within subsection (1) of that section is given, and

  5. (e)

     where the gift is exempt by virtue of section 27 F7, 28 or 28A above, the trustees of any settlement in which the property falling within subsection (1) of that section becomes comprised;

• “gift” and “specific gift” have the same meaning as in Chapter III of this Part; and

• “the relevant value”, in relation to a transfer of value falling within subsection (1)(a) above, means so much of the value transferred by the transfer as is attributable to the gift referred to in that provision.