Statute Details
- Title: Estate Duty (Remission for Deaths in Quick Succession) Order 2005
- Act Code: EDA1929-S896-2005
- Legislation Type: Subsidiary legislation (SL)
- Authorising Act: Estate Duty Act (Cap. 96)
- Enacting Authority: Minister for Finance (pursuant to section 49 of the Estate Duty Act)
- Commencement / Key Date: Applies to deaths on or after 1 January 2006
- SL Number: S 896/2005
- Date Made: 30 December 2005
- Status: Current version as at 27 March 2026
- Key Provisions: Sections 1–3 and the Schedule (rates of remission)
What Is This Legislation About?
The Estate Duty (Remission for Deaths in Quick Succession) Order 2005 (“the Order”) addresses a specific problem in estate duty administration: where two people die close together, and property passes from the earlier deceased to the later deceased, estate duty may effectively be charged twice on the same economic value within a short period.
In plain terms, the Order creates a mechanism to remit (i.e., reduce) estate duty payable on the estate of the later deceased, to the extent that estate duty has already been paid on the same property (or a qualifying converted form of it) when it passed on the earlier death. The remission is designed to prevent unfair double taxation in “quick succession” scenarios.
The Order is made under the Estate Duty Act, which provides the general framework for charging estate duty and for granting deductions and remissions. This subsidiary legislation focuses on one narrow category of relief: deaths occurring within 24 months of each other, where the later estate duty assessment includes estate duty on the “transferred property” that had already been subjected to estate duty on the earlier death.
What Are the Key Provisions?
1. Citation and definitions (Sections 1 and 2)
Section 1 provides the short title: the Order may be cited as the Estate Duty (Remission for Deaths in Quick Succession) Order 2005.
Section 2 defines “assessed value” in relation to property as the value of the property assessed by the Commissioner under the Estate Duty Act for determining estate duty payable in respect of that property. This definition matters because the remission formula is value-based; the Commissioner’s assessed values determine the remission amount.
2. Core remission rule for “deaths in quick succession” (Section 3)
Section 3 is the heart of the Order. It applies where:
- Two persons die on or after 1 January 2006; and
- The later death occurs not more than 24 months after the earlier death; and
- On the earlier death, any property or interest passes to the later deceased; and
- That property (or a qualifying converted form) passes on the later death (the “transferred property”); and
- Estate duty is assessed to be payable on the transferred property (or part thereof) both on the earlier death and the later death; and
- The estate duty on the transferred property on the earlier death has not been fully deducted under section 28(1) of the Act or fully remitted under section 49 of the Act.
These conditions collectively ensure that the remission is targeted: it is not a general waiver, but a relief only where the later estate duty assessment overlaps with earlier estate duty on the same economic value, and where other statutory relief mechanisms have not already fully addressed the duplication.
3. The remission formula and how it is calculated
Where the conditions are satisfied, the Order provides that there shall be allowed, from the estate duty payable on the later deceased’s estate, a remission of an amount determined by a formula. While the extract does not reproduce the full mathematical expression in text form, it clearly defines the variables used:
- A: the assessed value of the relevant part of the transferred property on which estate duty was paid on the earlier death, or the assessed value of the same part on which estate duty is payable on the later death—whichever is lower.
- B: the assessed value of the estate of the later deceased.
- C: the amount of estate duty payable on the estate of the later deceased.
- P: the percentage of remission at the applicable rate set out in the Schedule.
Practically, this structure means the remission is proportionate: it is linked to (i) the portion of the later estate that corresponds to the earlier-taxed transferred property (using the lower of the two assessed values), and (ii) the overall estate duty liability of the later estate (using C and B), with (iii) an additional scaling factor P reflecting how close in time the deaths occurred.
4. Interaction with deductions and partial relief (Section 3(2))
Section 3(2) provides an important anti-overlap rule. The remission amount allowed under this Order must be reduced by the amount of any deduction of estate duty allowed for the same property or part thereof on the same death under section 28(1) of the Act.
This ensures that the taxpayer does not receive double benefit for the same estate duty burden. In other words, if section 28(1) already gives a deduction for the overlapping property, the remission under this Order is adjusted downward accordingly.
5. Exclusions: what is not treated as “transferred property” (Section 3(3))
Section 3(3) clarifies that the reference to “transferred property” does not include certain categories, even if they might otherwise appear to be connected to the earlier-to-later transfer:
- Inter vivos gifts under section 7(1)(c) of the Act made by either the earlier or later deceased; and
- Interests in expectancy in the later deceased’s estate that fall into possession more than 24 months after the earlier death, where an option under section 25(1) of the Act was made to pay estate duty when the interest falls into possession.
These exclusions are significant for estate planning and for interpreting whether particular assets qualify for remission. They also reflect the legislative intent to confine relief to the specific kind of estate-duty overlap that arises from death-to-death transfers within the statutory window.
6. The Schedule: remission rates (THE SCHEDULE)
The Order includes a Schedule setting out the rates of remission for deaths in quick succession. The Schedule is referenced through the variable P in the formula. Although the extract provided does not list the actual rates, the practitioner should treat the Schedule as essential: the remission percentage will depend on the timing between the two deaths (and possibly other schedule-defined parameters).
How Is This Legislation Structured?
The Order is structured in a straightforward way typical of subsidiary relief instruments:
- Section 1 (Citation) identifies the short title.
- Section 2 (Definition) defines “assessed value,” which is central to the remission calculation.
- Section 3 (Remission for deaths in quick succession) sets out the eligibility conditions, the remission mechanism, the formula variables, the anti-overlap reduction, and the exclusions.
- The Schedule provides the percentage rates used in the formula (the value of P).
There are no additional parts or complex procedural chapters in the extract; the operative content is concentrated in section 3 and the Schedule.
Who Does This Legislation Apply To?
The Order applies to situations involving two persons who die on or after 1 January 2006, where the later death occurs within 24 months of the earlier death. The relief is claimed in relation to estate duty payable on the later deceased’s estate.
In terms of persons affected, the Order is relevant to the estates of the earlier and later deceased, and to the persons responsible for filing and administering estate duty matters (for example, executors, administrators, or other estate representatives). Eligibility turns on the nature of the property transfer and whether estate duty was assessed on the transferred property on both deaths, and whether other deductions/remissions have already fully addressed the duplication.
Why Is This Legislation Important?
This Order is important because it provides a targeted relief that can materially reduce estate duty in a narrow but not uncommon scenario: rapid succession deaths where assets pass from one estate to another. Without such relief, the same economic value could be subject to estate duty twice in a short timeframe, which may be commercially and administratively inequitable.
For practitioners, the key value of the Order lies in its precise eligibility conditions and its calculation framework. The remission is not discretionary; it is triggered by objective facts (dates of death, timing window, property passing, and the Commissioner’s assessed values). This makes it suitable for structured advice and for inclusion in estate duty computations.
In practice, the Order also requires careful coordination with the Estate Duty Act’s existing mechanisms—particularly section 28(1) (deductions) and section 49 (remissions). Section 3(1) conditions the availability of remission on the earlier estate duty not being fully deducted or fully remitted, while section 3(2) prevents double counting by reducing the remission by any deduction already granted. These interactions are crucial to avoid over-claiming and to ensure the correct net relief is applied.
Related Legislation
- Estate Duty Act (Cap. 96) — in particular:
- Section 7(1)(c) (gifts inter vivos exclusion)
- Section 25(1) (option relating to interests in expectancy)
- Section 28(1) (deduction mechanism referenced for overlap)
- Section 49 (general remission power authorising the Order)
- Estate Duty Act Timeline (for locating the correct version as at the relevant date)
Source Documents
This article provides an overview of the Estate Duty (Remission for Deaths in Quick Succession) Order 2005 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.