16. Annuity or other interest purchased or provided out of property derived from the deceased.
(1)Section 15 shall have effect in relation to any annuity or other interest that was purchased or provided wholly or in part by any person who was at any time entitled to or amongst whose resources there was at any time included, any property derived from the deceased, or, if it is proved to the satisfaction of the Controller that the application of all the property derived from the deceased would have been insufficient to provide the whole of that annuity or other interest, as if a similar annuity or interest of an amount reduced to an extent proportionate to the insufficiency proved had been provided by the deceased.Provided that for the purpose of determining whether there would have been any such insufficiency as aforesaid, and the extent thereof, there shall be excluded from the property derived from the deceased any part thereof as to which it is proved to the satisfaction of the Controller that the disposition of which it, or the property which it represented, was the subject-matter, was not made with reference to, or with a view to enabling or facilitating, the purchase or provision of the annuity or other interest, or the recoupment in any manner of the cost thereof.(2)In this section the following expressions have the meanings hereby assigned to them respectively, namely.-(a)"Property derived from the deceased" means any property which was the subject-matter of a disposition made by the deceased, either by himself alone or in concert or by arrangement with any other person, otherwise than for full consideration in money or money's worth paid to him for his own use or benefit, or which represented any of the subject-matter of such a disposition, whether directly or indirectly, and whether by virtue of one or more intermediate dispositions and whether any such intermediate disposition was or was not for full or partial consideration:Provided that where the first-mentioned disposition was for full consideration in money or money's worth paid to the deceased for his own use or benefit and it is proved to the satisfaction of the Controller that the disposition was not part of associated operations which included -(a)a disposition by the deceased, either by himself alone or in correct or by arrangement with any other person, otherwise than for full consideration in money or money's worth paid to the deceased for his own use or benefit, or(b)a disposition by any other person operation to reduce the value of the property of the deceased;then, in considering whether estate duty should be charged the said first mentioned disposition shall be left out of account as if this provision did not apply in relation to it ;(b)"disposition" includes any trust, convent, agreement or arrangement ; and(c)"subject-matter" includes, in relation to any disposition, any annual or periodical payment made or payable under or by virtue of the disposition.(3)For the purpose of section 34 the deceased shall be deemed to have had an interest in any property included by virtue of this section to the property passing on the death of the deceased.Special Provisions relating to transfers to companies
