11. Limited interests disposed of within a certain period before death.
(1)subject to the provisions of this Section, whether an interest Limited to cease on a death has been disposed of or has determined, whether by surrender, assurance, divesting, forfeiture or in any other manner (except by the expiration of a fixed period at the expiration of which the interest was limited to cease), whether wholly or partly, and whether for value or not, after becoming an interest in possession, and the disposition or determination (or any of them if there are more than one) is not excepted by sub-section (2), then .-(a)if, had there been no disposition or determination, as aforesaid of that interest and no disposition of any interest expectant upon or subject to that interest, the property in which the interest subsisted would have passed on the death under section 5, that property shall be deemed by virtue of this section to be included as to the whole thereof in the property passing on the death; or(b)if, had there been no disposition or determination as aforesaid of that interest and no disposition of any interest expectant upon or subject to that interest, the property in which the interest subsisted would have been deemed by virtue of section 7 to be including to a particular extent in the property passing on the death, the property in which the interest subsisted shall be deemed by virtue of this section to be included to that extent in the property passing of the death.(2)Where a disposition or determination of an interest limited that cease on the death was bona fide effected or suffered not less than two years before the death (or, if it was effected or suffered for public charitable purposes, not less than six months before the death), the disposition or determination shall be excepted by this sub-section .-(a)if bona fide possession and enjoyment of the property in which the interest subsisted was assumed immediately thereafter by the person becoming entitled by virtue of or upon the disposition or determination and thenceforward retained to the entire exclusion of the person who immediately before the disposition or determination but the interest and of any benefit to him by contract or otherwise ; or(b)in the case of a partial determination, if the conditions specified in the preceding paragraph were not satisfied by reason only of the retention or enjoyment by the deceased of possession of some part of the property, or of some benefit, by virtue of the provision of the instrument under which he had the interest ;Provided that where bona fide possession and enjoyment of the property referred to in clause (a) was not assumed immediately after the disposition or determination of the interest limited to cease on death, the disposition or determination shall be excepted by this sub-section, if, by means of the surrender of the reserved benefit or otherwise, the property is subsequently enjoyed for at least two years before the death, to the entire exclusion of the person who immediately before the disposition of determination had the interest and of any benefit to him by contract of otherwise:Provided further that nothing in this sub-section shall be construed as affecting any charge of estate duty arising otherwise than by virtue of the provisions of the preceding sub-section.(3)In the application of sub-section (1) to a case in which an income branch on the property in which the interest in question subsisted has been created by associated operations (as hereinafter defined in section, 25 which included a disposition of that interest, reference to that property shall be construed as reference to that property free from the incumbrance, except in a case in which the incumbrance was created for consideration in money or money's worth which was applied for purposes calculated to maintain or increase the value of the property, and, in that case, shall be construed as reference to that property subject to the incumbrance to the extent to which the consideration was so applied(4)Where an interest limited to cease on a death has been disposed of or has determined, bona fide, possession and enjoyment of the property shall not be deemed for the purposes of sub-section (2) to be assumed immediately thereafter and thenceforward Retained to the entire exclusion of a person who had the interest and of any benefit to him by virtue of any operations associated with the disposition or determination, nor while he has such a benefit shall the property be deemed to be enjoyed to the entire exclusion as aforesaid for the purposes of the first proviso to sub-section (2).(5)In the preceding sub-section.-(a)the reference to any operation associated with the disposition shall be taken as referring to any associated operations as defined in section 27, of which the disposition is one; and(b)the reference to any operation associated with the determination shall be taken as referring to any associated operations as so defined of which any disposition resulting in, or effect in contemplation of or with reference to, the determination is one.
