ADVOKS GLOBAL · KENYA
Estate Duty Act
8. Property which has changed in character
Edition: 1991-12-27 · In force
8. Property which has changed in character
(1)Where any property would be liable for estate duty under paragraph (f) of section 7 (1) of this Act, but since the date of the disposition to which that paragraph refers that property has been converted into or replaced, by any trans-action for full value, by other property of any kind not being property otherwise liable to estate duty on the same death, the property representing at the date of the death of the deceased the property so converted or replaced shall be liable for estate duty in lieu of the property comprised in the disposition:Provided that where the property consisted of or is con-verted into money not forming an identifiable part of a trust fund this subsection shall not apply to any subsequent con-version of that money.(2)Where any property would be liable for estate duty under paragraph (f) of section 7 (1) of this Act, or under subsection (1) of this section, but since the date of the dis-position, conversion or replacement, as the case may be, that property has been converted into or replaced, by any trans-action other than one for full value, by other property of any kind, or has been disposed of, then on the death of the deceased estate duty shall be levied and paid on the full value, at the date of the transaction, of the property so converted or replaced or disposed of, as the case may be, and Part V of this Act shall apply to the valuation of such property as if references therein to valuation at the date of the death of the deceased were references to valuation at the date of such transaction.(3)Where any property is liable for estate duty and—(a)the amount of such duty payable is ascertainable by reference to income or benefits received from, or contributions made to, the property at any time or during any period before the death of the deceased; and(b)income or benefits were received out of, or contributions were made to, any property other than the property liable for estate duty; and(c)such other property has, directly or indirectly, since such time or during such period been converted into or replaced by the property which is liable for estate duty, then, for the purpose of ascertaining the amount of estate duty payable, the property out of which the income or benefits were paid or to which the contributions were made, as the case may be, shall be deemed to be the same as the property liable for the duty.