(1) Schedule 5 to this Act shall have effect with respect to certain cases where, by virtue of sections 31 to 34 of the Finance Act 1975, the value of any property was left out of account in determining the value transferred on a death before 7th April 1976.

(2) Where there has been a transfer of value in relation to which the value of any property has been left out of account under the provision of sections 31 to 34 of the Finance Act 1975 and, before any tax has become chargeable in respect of that property, then, on the occurrence of a chargeable event in respect of that property—

[(a) if there has been no conditionally exempt transfer of the property on death, tax shall be chargeable either—

(i) under section 32 or 32A above (as the case may be), or

(ii) under Schedule 5 to this Act,

as the Board may elect;

(b) if there has been such a conditionally exempt transfer, tax shall be chargeable under section 32 or 32A above (as the case may be) and not under that Schedule]¹.

(3) In [section 33(7) and (8) above, reference]¹ to a conditionally exempt transfer of any property [include references]² to a transfer of value in relation to which the value of any property has been left out of account under the provisions of sections 31 to 34 of the Finance Act 1975 and, in relation to such property, references to a chargeable event or to the tax chargeable in accordance with section 33 above by reference to a chargeable event include references to an event on the occurrence of which tax becomes chargeable under Schedule 5 to this Act, or to the tax so chargeable.