(1) Where any person takes a benefit for public or charitable purposes that person is deemed -

(a) for the purposes of sections 5(1) and 10(1), to have taken that benefit beneficially, and

(b) for the purposes of Schedule 2, to have taken a gift or an inheritance accordingly to which the group threshold referred to in subparagraph (c) of the definition of 'group threshold' in paragraph 1 of Part 1 of Schedule 2 applies.

(2) A gift or an inheritance which is taken for public or charitable purposes is exempt from tax and is not taken into account in computing tax, to the extent that the Commissioners are satisfied that it has been, or will be, applied to purposes which, in accordance with the law of the State, are public or charitable.