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Full text of "The Finance Act, 1894 (57 [and] 58 Vict C. 30) so far as it relates to the new estate duty and other death duties in England; with an introduction and notes"

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THE FIMNCE ACT, 1894 

so FAR AS IT -RELATES TO 

THE NEW ESTATE DUTY 

AND OTHER DEATH DUTIES 
IN ENGLAND. 



Digitized by the Internet Archive 

in 2007 with funding from 

IVIicrosoft Corporation 



http://www.archive.org/details/financeact18945700cartuoft 



aw 

^'' ' THE 



FINANCE ACT, 1894 

(57 & 68 Viet. e. 30) 

so FAR AS IT RELATES TO 

THE NEW ESTATE DUTY 

AND OTHER DEATH DUTIES 
IN ENGLAND. 

"WITH 

AN INTRODUCTION AND NOTES. «. 

BY 

JAMES AUSTEN-CARTMELL, M.A., 

OF Lincoln's inn, baemster-at-law, 
Author of" An Abstract of Beiporttd Cases relating to Trade-Marks, dec" 



LONDON: 

AVIX^DY AND SONS, 
LINCOLN'S INN AECHWAY, W.C., 

1894 



LONDON : 
rniNTED BY C. F. EOWORTH, GREAT NEW STREET, FETTER LANE— E.G. 



PREFACE. 



The object of this volume is, if possible, to 
afford immediate assistance to Practitioners in 
interpreting what is admittedly one of the most 
complicated measures that has ever been passed 
with reference to Death Duties. The short time 
that has elapsed since the Act was passed must 
be the Author's apology for any errors that 
have crept into the text. 

The Author had special advantages during 
the passage of the Act through Parliament of 
becoming acquainted with its provisions, having 
been engaged by the Incorporated Law Society 
to report to them upon its general aspects, and to 
examine and criticise it in detail. 

Through the kindness of Sir K. E. Webster, 
G.C.M.Gr., Q.C., the Author was enabled to be 



VI PREFACE. 

constantly present in the House throughout the 
whole of the discussions in Committeej and 
during the Report stage of the Measure. 

The Forms, &c., to be used under the Act 
have not, up to the present time, been published 
by the Inland Revenue Authorities. 

6, New Square, Lincoln's Inn, 
August, 1894. 



( vii ) 



CONTENTS. 



INTEODUCTION. 

PAGE 

The Estate duty - - - - - - xiii 

Of what an estate consists _ _ _ _ xiii 

Definition of property passing on death - - - xiii 
Exemptions from Estate duty - - - xiv — xvi 

How the value of property is to be ascertained - - xvi 

Allowances to be made ----- xvii 

Value of agricultural property - - - - xvii 

Valuations by the Commissioners - - - xviii 

The principle of aggregation - - - - - xviii 

Exemptions from aggregation - - - - xviii 

Settled property - - - - - - xix 

Foreign property - - - - - - xx 

Colonial property - - - - - - xxi 

Eeversionary interests sold or mortgaged before 1st 

August, 1894 _____ xxi 

Estate duty can be commuted on reversionary interests - xxi 

Collection and recovery of Estate duty - _ - xxi 

Persons accountable for Estate duty - - - xxii 

Estate duty a charge on what property - - - xxii 

Payment of duty on real property may be by instalments xxiii 

Certificates of discharge - - - - - xxiii 

Small estates - - - - - - xxiv 

The rate of Estate duty - - - - - xxiv 

The duties superseded ----- xxiv 

To what extent - - - - - - xxv 

Appeals ------- xxv 

Succession duty on successions of which the successor is 
competent to dispose to be calculated on the principal 
value ----- XXV— xxvi 



Vlli CONTENTS. 

THE FINANCE ACT, 1894 
(57 & 58 Vict. c. 30). 

SECT. P-^GB 

Preamble - - -- - - -1 

1. Grant of Estate duty - . - - - - _ 2 

2. What property is deemed to pass - - - 5 

3. Exception for transactions for money consideration - 16 

4. Aggregation of property to form one estate for purpose 

of duty - - - - - - - 11 

5. Settled property - - - - - 20 

6. Collection and recovery of Estate duty - - - 28 

7. Value of property - - - - - 34 

8. Supplemental provisions as to collection, recovery, and 

repayment of and exemption from Estate duty - - 45 

9. Charge of Estate duty on property and facilities for 

raising it - - - - - - 56 

10. ApjDcal from Commissioners - - - - 59 

11. Release of persons paying Estate duty - - - 62 

12. Commutation of duty on interest in expectancy - - 65 

13. Powers to accept composition for Death duties - - 6Q 

14. Apportionment of duty - - - _ _ 67 

15. Exemptions from Estate duty - - - - 69 

16. Provision for estates not exceeding 1,000?. - - - 71 

17. Scale of rates of Estate duty - - - - 74 

18. Value of real successions for Succession duty - - 75 

19. Adaptation of law as to Probate duty grant - - 77 

20. Exception as to property in British Possessions - - 77 

21. Savings - - - - - - 79 

22. Definitions - - - - - __82 

23. Application of part of Act to Scotland - - - 87 

24. Commencement of part of Act - - _ _ 91 
42. Short Title - - - - - .91 

SCUEDULES - - - - _ » 91 



APPENDIX. 

Extract from Sir "William Harcourt's Budget Speech 

on 16th April, 1894 - - - - - 95 



INDEX - - - - - . .107 



( i^ )' 



LIST OF CASES CITED. 



PAGE 

Att.-Gen. v. Chapman 12 

V. Gell 7 

V. Gosling 12,13 

■?;. Hey wood * , 12 

V. Hubbuck , 15 

V. Lord Sefton 40 

V. Sibthorp 36 

Austin V. Mead 9 

Barnes v. London Assurance Co , 61 

Blake v. AttersoU . , , 17 

Blount V. Burrow 9 

Bradley v. Bayliss 61 

Bridge v. Brown 35 

Byng, Re 83 

Cigala, Re 15 

Clement v. Cheeseman 9 

Coulson, Re 45 

Crossman v. The Queen ,......, , 13 

Dashwood v. Magniac 42 

Drury v. Smith 9 

Duffield V. Elwes 9 

Duffin V. Duffin 9 

Edwards v. Jones 9 

Ewin, Re 15 

Earquharson v. Cave , 9 

Eloyer v. Bankes 17 

Forbes v. Stevens , 15 

Ford & HiU, Re 34 

Gardner v. Parker , » 9 

Gilchrist, Ex parte , 61 

Hawkins v. Blewitt , 9 

James v. James 17 

Johnson v. Baker 35 



X LIST OF CASES CITED. 

PAGE 

Jones V. Selby 9 

Kirby v. Biffen 61 

Marlborough, Duke oi, He 23 

MiUer v. MiUer 9 

Moore v. Cochrane 10 

Moore v. Damton , 9 

Mundy, He 83 

Mustapha v. "Wedlake 9 

Ring V. Jarman 7 

Snellgrove v. Baily 9 

Staniland v. Willott 9 

Tate V. HHbert 9 

Tetley V. Tetley 17 

Thompson v. The Advocate-Gen 15 

Trimmer v. Danby 9 

Veal V. Veal 9 

"Walter v. Hodge 9 

Ward V. Tiimer 9 

Witt V. Amis 9 



( xi ) 



STATUTES. 



PAGE 

34 & 35 Hen. 8, c. 20 28 

36 Geo. 3, c. 52, s. 22 44 

s. 33 67 

45 Geo. 3, c. 28, s. 4 71 

55 Geo. 3, c. 184, 8. 37 , 51 

8.38 92 

Sch. pt. 3 45 

66 Geo. 3, c. 56, s. 117 92, 93 

5 & 6 Vict. c. 35, s. 60 41 

16 & 17 Vict. c. 51 40 

s. 14 76 

s. 21 28, 76, 76 

s. 22 41 

s. 23 41 

s. 24 70 

8.25 28 

S.26 28 

s. 28 28,41 

88.31,32 28 

8.34 41,76,84 

8. 37 41 

8. 39 67 

8. 41 65 

8. 44 45, 50 

8. 60 60 

20&21 Vict. c. 77, s. 46... 73 

26 & 27 Vict. c. 67 46 

28 & 29 Vict. c. 104 45 

28 & 29 Vict. c. 111,8. 6 46 

31 & 32 Vict. c. 90 46 

31 & 32 Vict. c. 124, s. 9 52 

33 & 34 Vict. c. 35 32 

33 & 34 Vict. c. 93 11 

38 & 39 Vict. c. 60, 8. 15 (4) 45 



XU STATUTES. 

PAGE 

43 Vict. c. 14, s. 10 92, 93 

s. 11 67 

44 & 45 Vict. c. 12 4, 29 

8.21 74 

s. 28 34, 35, 37 

s. 29 92, 94 

s. 30 54, 55 

s. 33 72 

s. 34 92, 94 

s. 35 73 

a. 36 73 

s. 38 5, 8, 11, 91 

s. 40 51 

s. 41 15 

s. 43 67 

45 & 46 Vict. c. 38, s. 2 (1) 83 

ss. 7 (2), 11, 16, 18 59 

ss. 31— 33 59 

s. 35 59 

s. 37 59 

s. 58 28 

45 & 46 Vict. c. 39, s. 3 56 

50 & 51 Vict. c. 40, s. 3 (2) 46 

51 Vict. c. 8, s. 21 5, 23, 92 

8. 22 (2) 76 

52 & 53 Vict. c. 7, 8. 5 5, 82, 92 

s. 6 5, 23, 76, 82, 92 

s. 11 5, 8, 11 

8. 12 46 

8. 13 47 

8. 14 48 

52 & 53 Vict. c. 36, s. 3 59 



INTRODUCTION, 



The Estate Duty imposed by this Act is in substitution 
for, and in extension of, the Probate Duty, and Account 
Duty (under the Customs and Inland Revenue Act, 
1881) as at present existing, and is charged at a 
graduated rate upon all estates exceeding 100/. 

The estate in respect of which Estate Duty is levi- The estate, 
able, consists not merely of the free personal estate 
left, or which for the purpose of Account Duty was 
deemed to be left, by the deceased, but includes the 
deceased's real estate, and also property, or interests in 
property, which by force of the provisions of the Act 
are to be considered as passing on his death. The rate 
of the duty charged is made to depend upon the 
principal value of the aggregated estate. 

Property passing on the death of the deceased (see Property 
sect. 2, p. 5, infra) consists, speaking generally, death.^°^ 
of;— 

(1.) The deceased's free real and personal estate, 

including property which, by the exercise of 

a power, the deceased was in his lifetime able 

to make his own. 
(2.) Property settled upon either the deceased or some 

other person during the deceased's life. 



XIV INTRODUCTION. 

(3.) Property wliieli would, if personal property, have 
been subject to Account Duty under the Cus- 
toms and Inland Eevenue Act, 1881, sect. 38, 
and the Customs and Inland Eevenue Act, 
1889, sect. 11 ; and, for the purpose of this 
Act, the words " voluntary," and " volun- 
tarily," and a reference to a " volunteer," 
are to be considered as omitted from those 
sections. Under this heading will fall pro- 
perty which is not included under the last 
heading, e. g.^ property settled by the deceased 
within a year of his death, by way of gift, upon 
a son. 
(4.) Annuities and other interests purchased or pro- 
vided by the deceased in his lifetime, and 
arising or surviving on his death. 
Property in which the deceased was interested merely 
as the holder of an office, or the recipient of the benefits 
of a charity, or as a corporation sole (see notes to 
sect. 2 (1) (b), p. 6, infra), and property held by the 
deceased as trustee for another person (except in certain 
cases when the settlement was effected by the deceased 
himself) is not to be considered as passing on his death. 
Exemptions The following property, though falling within the 

from Estate 

Duty. category of property passing on the death of the 

deceased, is exempted from Estate Duty : — 

(1.) Personal property settled by a will or disposition 
made by a person dying on or before the 
1st August, 1894, in respect of which Probate 
or Account Duty has been paid or is payable, 
unless in either case the deceased was, at the 
time of his death, or had been at any time since 



INTRODUCTION. XV: 

the will or disposition took effect, competent to 
dispose of tlie property. (See sect. 21 (1), 
p. 79, infra, and sect. 22 (2) (a), p. 85, 
infra.) 

(2.) Settled property of every description in respect 
of which Estate Duty has been paid since the 
date of the settlement, unless the deceased 
was, at the time of his death, or had been at 
any time during the continuance of the settle- 
ment, competent to dispose of the property. 
(See sect. 5 (2), p. 22, infra.) 

(3.) Property passing under or by virtue of transac- 
tions for full money consideration. (See sect. 3, 
p. 16, i^ifra.) 

(4.) The property of common seamen, marines, or 
soldiers who are slain or die in the service of 
Her Majesty. (Sect. 8 (1), p. 45, infra.) 

(5.) Sums of less than 100/. which may, under the 
Friendly Societies Act, 1875, the Savings 
Bank Act, 1887, and the Acts 26 & 27 Yict. 
c. 57, 28 & 29 Yict. c. Ill, and 31 & 32 Yict. 
c. 90, be paid to the representatives of the 
deceased without requiring representation. 
(See sect. 8 (1), p. 45, infra.) 

(6.) Eeversionary interests, the Estate Duty upon 
which has been commuted under sect. 12. 
(See p. 65, infra). 

(7.) Survivorship annuities of less than 25/. (See 
sect. 15 (1), p. 69, infra.) 

(8.) Pictures, prints, books, manuscripts, works of 
art, and scientific collections given or be- 



XVI INTEODUCTION. 

queathed for national scientific purposes, or 
to any university, or to any county council, 
or any municipal corporation, the duty in 
respect of which has been remitted by the 
Treasury. (See sect. 15 (2), p. 69, infra.) 

(9.) Pensions and annuities payable by the Indian 
Grovernment to the widows or children of 
deceased Indian officers. (See sect. 15 (3), 
p. 69, infra.) 

(10.) Advowsons or church patronages which would 
have been free from succession duty under the 
Succession Duty Act, 1853, sect. 24. (See 
sect. 15 (4), p. 70, infra,) 

(11.) Eeversionary interests bond fide sold or mort- 
gaged before the 1st of August, 1894. 

(12.) Property settled by a husband on a wife, or 
vice versa, before 1st August, 1894, and re- 
verting to the settlor. (See sect. 21 (5), p. 81, 
infra.) 

^^^^^- The value of property liable to duty is to be ascer- 

tained as provided by sect. 7, p. 34, infra. In esti- 
mating such value it must be borne in mind that the 
duty is payable upon the principal value of the pro- 
perty passing. No difficulty arises in the case of the 
deceased's free realty or personalty, as obviously in that 
case it is the corpus or principal of the property that 
passes on his death. There is, however, a little diffi- 
culty in the case of property settled upon the deceased, 
or some other person during the deceased's life, which, 
by virtue of this Act, is deemed to pass on his death. 
In such a case the rules for estimating the principal 



INTRODUCTION. Xvil 

value of the property passing are as follows : — If the 
deceased's or other person's interest in the property 
extended to the whole income of the property, the 
principal value of the property passing is the principal 
value of the property. If, on the other hand, the 
deceased's or other person's interest extended to less 
than the whole income of the property, the principal 
value of the property passing is the principal value of 
an addition to the property equal to the income to which 
the interest extended. (Sect. 7 (7).) 

Allowance may be made for funeral expenses and for 
certain debts and incumbrances. In the case of debts 
and incumbrances, the provisions of former Acts are 
considerably modified. (See notes to sect. 7 (1), p. 34, 
infra.) An allowance is also made in certain cases for 
debts due from the deceased to persons resident abroad. 
(See sect. 7 (2), p. 37, infra.) 

The guiding rule by which the actual value of the 
property is to be estimated is that such value shall be 
the price which, in the opinion of the Commissioners, 
the property would fetch if sold in the open market at 
the death of the deceased. (Sect. 7 (5).) 

In the case of agricultural property (see the definition 
contained in sect. 22 (1) (g), p. 83, infra), where no 
part of the principal value is due to the expectation of 
an increased income from the property, the principal 
value is not to exceed twenty-five times the annual 
value as assessed under Schedule A. of the Income Tax 
Acts, after making such deductions as have not been 
allowed in that assessment, and are allowed under the 
Succession Duty Act, 1853. (See sect. 7 (5), p. 40, infra.) 

F. b 



XVUl INTRODUCTION. 

A deduction may also be made in this case for ex- 
penses of management not exceeding five per cent, on 
the annual value. If the property, though strictly 
speaking agricultural, has a prospective value {e.g., for 
building purposes), the value is not to be estimated 
upon the basis of the annual value, but will in that case 
be ascertained in the same manner as other property not 
being agricultural property. 

The Commissioners have power to require a valuation 
to be made, but the reasonable costs of such a valuation 
have to be defrayed by them. (Sect. 7 (9).) 

If any person is dissatisfied with the valuation put 
upon the property by the Commissioners, he may appeal 
to the High Court, or, if the value of the property in 
dispute is less than 10,000/., to the County Court. 
(See sect. 10, p. 59, infra.) 
Aggregation. j^ j^^g abeady been stated that all property passing 
on the death of the deceased is to be aggregated, and 
that the duty is to be at a graduated rate upon the prin- 
cipal value of the aggregated estate. (See sects. 4 and 
17, pp. 17 and 74, infra.) In certain cases, however, 
property passing on the death of the deceased is not 
aggregated with other property, but devolves as an 
estate by itself ; e.g., 

(a) Property in which the deceased never had an 

interest. (Sect. 4.) 

(b) Property which, under a disposition not made by 

the deceased, passes immediately on his death 
away from his immediate family. {Ibid.) 

(c) The whole of the deceased's real and personal 

estate if, excluding property settled otherwise 



iNTRODUCTioisr. xix 

than by the deceased's will, it does not exceed 
1,000/. 

(d) Property not chargeable with Estate Duty (see 
p. xiv, supra) is not brought into account for 
the purpose of aggregation ; but qucere as to 
reversions the duty on which has been com- 
muted under sect. 12. (See p. 66, infra.) 

Under sect. 5 (2), one payment of Estate Duty in Settled 

T)ro"DGirtv 

respect of settled property clears it of duty down to the 
death of a person who, though entitled to the property 
under the trusts or limitations of the settlement, is com- 
petent to dispose of the property. (See notes to sect. 5 
(2), p. 22, infra.) In order to counterbalance the 
advantage thus given to settled property, an additional 
duty of one per cent, has to be paid upon the property 
on the first death on which Estate Duty is payable. 
This additional duty is called Settlement Estate Duty. 
It is not, however, payable if the property passes to 
some person competent to dispose of the property, or if 
the only life interest arising on the death of the deceased 
is that of his or her wife or husband (see notes to 
sect. 5 (1) (a), p. 20, infra) ; or if the property was 
settled by a disposition taking effect on or before the 
1st August, 1894 (sect. 21 (4) ). 

Estate Duty will be paid on the death of the settlor, 
even though he has divested himself of all interest in 
the property, unless the settlement was made more than 
twelve months before his death (sect. 2 (1) (c) and (3) ), 
and the possession and enjoyment of the property honci 
fide assumed by the beneficiary immediately upon the 
creation of the trust and thenceforward retained to the 

h2 



XX INTRODUCTION. 

entire exclusion of tlie settlor, or of any benefit to Hm 
by contract or otherwise. (See the notes on the section 
last quoted, p. 15, infra.) The exclusion of the settlor 
must be so complete, that if he retains merely a fidu- 
ciary power of sale (see sect. 22 (2) (a), p. 85, infra) 
duty will, apparently, be payable on his death. The 
result is, that in future settlors will be well advised 
not to constitute themselves trustees under settlements 
made by themselves. 

In the case of property settled by a husband on a 
wife or a wife on a husband, by a disposition taking 
effect on or before 1st August, 1894, Estate Duty is 
not payable upon the property reverting to the settlor 
if he or she happens to be the survivor, but the pay- 
ment of the duty is in that case postponed tiU after 
the settlor's death. (Sect. 21 (5).) 
Foreign Property passing on the death of the deceased situate 

property. r ^ r & 

out of the United Kingdom, is for the first time made 
liable to a duty, which is analogous to Probate Duty. 
By sect. 2 (2) (see p. 14, infra), Estate Duty is leviable 
in respect of such last-mentioned property, provided 
that it is liable to Legacy or Succession Duty, or would 
be so liable but for the relationship to the deceased of the 
person to whom it passes. Only personal or moveable 
property situate abroad is liable to Legacy or Succession 
Duty, and then not unless the testator, or intestate, or 
predecessor, as the case might be, was domiciled in the 
United Kingdom, or the property is comprised in an 
English settlement and vested in trustees subject to the 
jurisdiction of the Courts of the United Kingdom. 
The share of a deceased partner who died domiciled in 



INTRODUCTION. XXI 

the United Kingdom, in real estate belonging to tlie 
partnership, is considered in equity to be personalty, 
and is, accordingly, liable to duty. 

The Commissioners are by sect. 20 (see p. 77, infra) Colonial 

property. 

authorized, in the case of a colony to which that section 
is applied by an Order of the Queen in Council, to 
allow the amount of the death duties payable in that 
colony in respect of any property situate therein to be 
deducted from the Estate Duty. The section can, how- 
ever, only be applied to colonies in which no Death 
Duty is leviable in respect of property situate in the 
United Kingdom, or which have a law to the Kke effect 
as sect. 20 of this Act. 

Property situate in colonies to which sect. 20 has 
not been applied, is in the same position as property 
situate in a foreign country properly so called. 

In the case of reversions which have been bona fide Eeversions. 
sold or mortgaged before the 1st August, 1894, no 
other duty is to be payable by the purchaser or the 
mortgagee, when the reversion falls in, than would have 
been payable if the Act had not passed. (Sect. 21 (3).) 

In the case of reversions generally, sect. 12 (see p. ^b^ 
infra) enables the Commissioners to commute the Estate 
Duty which will or may become payable in respect 
thereof. 

By sect. 8 (1), the existing law and practice relating Collection and 

recovery of 

to the death duties {i.e.^ the Probate, Account, Legacy, Estate Duty. 
and Succession Duties) are, so far as applicable, con- 
tinued for the purposes of the collection, recovery, and 
repayment of Estate Duty. The exact result of this 
provision cannot be precisely stated, but the reader is 



Xxii INTEODUCTION. 

referred to the notes on sect. 6 (2) and (3), and sect. 
8 (1). The persons who are made accountable for 
Estate Duty are as follows: — The executor is made 
accountable for the duty in respect of all personal 
property wheresoever situate, of which the deceased was 
competent to dispose at his death. This property con- 
sists of the deceased's free personalty, whether situate 
in the United Kingdom or abroad, and also personalty 
over which he had an unexercised power of appointment. 
The liability of the executor is, however, confined to the 
extent of the assets which come, or might but for his 
default have come, into his hands as executor. (Sects. 6 
(2), and 8 (3).) 

No charge is created for the duty on property passing 
to the executor, nor is any person besides the executor 
made accountable for the duty. It will, therefore, be 
safe for persons to deal with executors in the same 
manner as heretofore. 

Various persons are made accountable for the duty on 
property for the duty on which the executor is not account- 
able, viz., beneficiaries, trustees, guardians, committees, 
voluntary alienees, and purchasers for value with notice. 
(Sect. 8 (4) .) In the case, however, of each of these persons 
(except beneficiaries), the liability for duty is limited to the 
property actually received or disposed of by him, and 
the provisions of the Act of 1889, as to the time within 
which the liability is in certain cases made to cease, are 
incorporated into the Act. Purchasers for value with- 
out notice (sect. 8 (16) ), and bailiffs and agents (sect. 8 
(4) ), are exempted from liability. The duty is also 
made a charge on the property (sect. 9 (1) ), but this 



INTRODUCTION. XXUl 

charge does not affect the property in the hands of a 
bond fide purchaser for value without notice {ibid.) ; nor 
does it attach to any property situate in a colony but 
liable to Estate Duty so long as it remains so situate 
(sect. 20 (2) ). Power is given to the executor, in certain 
cases, to pay the duty on other property besides that 
for the duty on which he is made accountable. 
(Sect. 6 (2).) 

Means are provided by which persons paying the 
duty can raise or recover the same from the persons 
ultimately liable. (See sect. 9 (4) (5) (6) and (7) and 
sect. 14.) The Commissioners themselves will recover 
the duty under the provisions of 28 & 29 Yict. c. 104. 
(See note on sect. 8 (1), "Eecovery," p. 45, infra.) 

In the case of real property, duty may be paid by 
eight equal yearly instalments or sixteen half-yearly 
instalments, with interest at three per cent, per annum 
from the expiration of twelve months from the death, 
that being the date on which the first instalment is 
due. 

If in the case of any property the Commissioners are 
satisfied that the duty cannot be raised at once without 
excessive sacrifice, they may allow payment to be post- 
poned on certain terms. (Sect. 8 (9).) 

Under sect. 11 certificates of discharge may be given certificate of 
by the Commissioners. Such certificates do not, how- ^' ^^^^' 
ever, discharge any person except purchasers for value 
without notice, if obtained by means of fraud or failure 
to disclose material facts. Certificates of discharge can 
only be granted as of course if the full Estate Duty has 
been paid. At the expiration of two years from the 



Xxiv INTEODUCTION. 

death the Commissioners are empowered, under certain 
circumstances, to grant such certificates in respect of 
specific items of property. (See sect. 11 (2).) 

Small estates. Bj sect. 16 (1) (see p. 71, infra), the scope of sects. 33, 
35 and 36 of the Customs and Inland Eevenue Act, 1881, 
is extended. If the gross value of the real and personal 
estate of the deceased, exclusive of property settled 
otherwise than by his will, exceeds 300/., but does not 
exceed 500/., a fixed duty of 50s. is payable. If such 
gross value does not exceed 300/., a fixed duty of 30s. is 
payable. In neither case is representation required to 
the personal estate ; and if the estate is less than 100/. 
no Estate Duty is payable at all. If the net value of 
the property, real and personal, exclusive of property 
settled otherwise than by the deceased's will, does not 
exceed 1,000/., then if the fixed duty or Estate Duty 
has been paid, Settlement Estate Duty and Legacy and 
Succession Duty are not payable under the will or in- 
testacy of the deceased. (Sect. 16 (3).) 

The rate of The rates of Estate Duty are given in sect. 17, and 

duty. 

rise from 1/. to 8/. per cent., according to the value of 
the estate. 
The duties If property is chargeable with Estate Duty, the fol- 

Buperseded. ... 

lowing duties are not payable : — 
(1.) Probate Duty. 
(2.) Account Duty under the Customs and Inland 

Eevenue Act, 1881. 
(3.) The additional Succession Duties imposed by 

the Customs and Inland Eevenue Act, 1881, 

sect. 21. 
(4.) The temporary Estate Duties imposed by the 



INTRODUCTION. XXV 

Customs and Inland Eevenue Act, 1889, sects. 
5 and 6. 

(5) The one per cent. Legacy or Succession Duty. 

This last duty is not payable in respect of settled 
property which has been already charged with Estate 
Duty since the date of the settlement. In such a case, 
however, it would appear that the Duties numbered (3) 
and (4) would be payable. (See notes to section 1, 
"Existing Duties," p. 4, infra, and sect. 5 (2), p. 22, 
infra.) 

All the above-mentioned duties remain payable in 
respect of personal property settled by a will or dispo- 
sition made by a person dying on or before 1st August, 
1894, in respect of which Probate or Account Duty has 
been paid or is payable. (Sect. 21 (1).) 

Sect. 10 (see p. 59, infra), contains full provisions for Appeals, 
appeals from decisions of the Commissioners on almost 
every point. As already stated, if the property in 
respect of which the dispute arises does not exceed 
10,000/., the appeal may be made to the County Court. 
(Sect. 10 (5).) 

Valuers are to be appointed by county councils and 
county boroughs, to whom the Court may refer for 
arbitration any question of disputed value. Appeals 
cannot be brought unless the duty claimed has been 
paid, or if, with the leave of the Court, security has 
been given for the same. (Sect. 10 (1) and (4).) 

Sect. 18 (see p. 75, infra), introduces a considerable Succession 

Duty. 

change into the law relating to Succession Duty upon 
successions to real estate. Under the Succession Duty 
Act, 1853, sect. 21, Succession Duty is payable upon 

F. c 



XXVI INTRODUCTION. 

the interest of the successor, which is taken to be of the 
value of an annuity equal to the annual value of the 
property (after making certain deductions), and pay- 
able from the time of his coming into possession during 
the residue of his life, or for any less period during 
which he shall be entitled thereto. 

By sect. 18 of this Act (see p. 75, infra), Succession 
Duty is, if the successor is competent to dispose of the 
property, to be assessed on the principal value of the 
property (after deducting the Estate Duty payable in 
respect thereof), and is to be payable by the same 
instalments as are authorized by sect. 6 (8) of the Act 
for the payment of Estate Duty upon real property. 
Succession Duty is not, however, to be paid unless the 
successor comes into possession of his succession. The 
principal value of the property is to be ascertained in 
the same manner as it would be ascertained for the 
purpose of Estate Duty. 



FINANCE ACT, 1894, 

[DEATH DUTIES (ENGLAND).] 



57 & 58 Vict. cap. 30. 

An Act to grant certain Duties of Customs and 
Inland Revenue^ to alter other Duties^ and to 
amend the Law relating to Customs and Inland 
Revenue, and to make other provision for the^ 
financial arrangements of the year, 

[31st July, 1894.] 

Most Gracious Sovereign, 

We, Your Majesty's most dutiful and loyal subjects, Preamble, 
the Commons of the United Kingdom of Great Britain 
and Ireland in Parliament assembled, towards raising 
the necessary supplies to defray Your Majesty's public 
expenses, and making an addition to the public revenue, 
have freely and voluntarily resolved to give and grant 
unto Your Majesty the several duties hereinafter men- 
tioned; and do therefore most humbly beseech Your 
Majesty that it may be enacted, and be it enacted by 
the Queen's most Excellent Majesty, by and with the 
advice and consent of the Lords Spiritual and Temporal, 

F. B 



2 DEATH DUTIES (eNGLANd). 

§ 1. and Commons, in this present Parliament assembled, 
~" and by the authority of the same, as follows : 

PAET I. 
Estate Duty. 

Grant of Estate Duty. 
Grant of 1. In the case of every person dying after the com- 

mencement of this Part of this Act, there shall, save as 
hereinafter expressly provided, be levied and paid, upon 
the principal value ascertained as hereinafter provided, 
of all property, real or personal, settled or not settled, 
which passes on the death of such person a duty, called 
" Estate duty," at the graduated rates hereinafter men- 
tioned, and the existing duties mentioned in the First 
Schedule to this Act shall not be levied in respect of 
property chargeable with such estate duty. 

Estate Duty. Estate duty is a duty charged on the death of 
a person at a graduated rate upon the principal value of his 
estate. The estate of a deceased person is, speaking broadly, 
the aggregate of all property, real and personal, whether settled 
or unsettled, in which the deceased had any interest. But other 
property, e.g. property in which the deceased himself had no 
interest, but an interest in which passes upon his death to some 
other person, is also liable to the duty as an estate by itself. 
(See sect. 4, p. 17, infra.) 

In some respects the now duty is the analogue of probate 
duty, e.g. it is charged on all free property, real and personal, 
belonging to the deceased. In other respects it resembles suc- 
cession duty, e.g. it is charged on property in which the deceased 
had only a Hmited interest. 

Person dying after the commencement of this part of the 

Act. I'C' after the 1st August, 1894. Such a person is 
throughout the Act described as " a deceased person," or " the 
deceased." (Sect. 22 (1) (a), p. 82, infra.) 

The commencement of this part of the Act. I.e. the expi- 
ration of the 1st August, 1894. (Sect. 24, p. 91, infra.) 

Save as hereinafter provided. The following classes of 
property are exempted from estate duty : — 

(i) Personal property settled by a will or disposition made by 
a person dying on or before the 1st August, 1894, in 
respect of which probate or account duty has been paid 
or is i^ayable, unless in either case "the deceased" was 



57 & 58 Vict. c. 30. 

at the time of his deatli, or had at any time since the 8 1. 

will or disposition took effect been, " competent to dis- !. 

pose of the property." (Sect. 21 (1), p. 79, infra.) The 
expression "competent to dispose of" is defined in 
sect. 22 (2) (a), p. 85, infra. (See also sect. 2(1) (a), 
p. 5, infra.) 

(ii) Property passing on death by reason only of a hond fide 
purchase from the person nnder whose disposition the 
property passes, including property passing upon the 
determination of an annuity or lease for lives, where the 
same was granted for full consideration in money or 
money's worth. (Sect. 3, p. 16, infra.) 

(iii) Settled property of every description in respect of which 
estate duty has been paid since the date of the settle- 
ment, and of which the deceased was not at the time of his 
death, or had been at any time during the continuance 
of the settlement, " competent to dispose." (Sect. 5 (2) 
p. 22, infra.) 

(iv) The property of common seamen, marines, or soldiers 
who are slain or die in the service of Her Majesty, 
and sums under 100/., which under the existing law 
may be paid to the representatives of the deceased 
without requiring representation. (Sect. 8 (1), p. 45, 
infra.) 

(v) Eeversionary interests expectant upon the death of the 
deceased, the duty on which has been commuted under 
sect. 12 (p. 65, infra), or which, before the 1st August, 
1894, have been sold or mortgaged for full conside- 
ration in money or money's worth. (Sect. 21 (3), p. 80, 
infra.) 

(vi) A survivorship annuity or an annuity to arise on the 
death of the deceased not exceeding 25/. (Sect. 15 (1), 
p. 69, infra.) 

(vii) Pictures, prints, books, manuscripts, works of art, and 
scientific collections given or bequeathed for national 
scientific purposes, or to any university, county council, 
or municipal corporation, the estate duty on which has 
been remitted by the Treasur5^ (Sect. 15 (2), p. 69, 
infra.) 

(viii) Pensions and annuities j)ayable by the Government of 
British India to the widows or children of deceased officers 
of such government. (Sect. 15 (3), p. 69, infra.) 

(ix) Advowsons or church patronages which would have been 
free from succession duty under the Succession Duty 
Act, 1853, s. 24. (Sect. 15 (4), p. 70, infra.) 

(x) Property settled on or before 1st August, 1894, by one 
spouse upon the other, if the settlor succeeds to the life 
interest in his or her own property. (Sect. 21 (5), p. 81, 
infra.) 

(xi) Property in which a person was interested as holder of an 
office or recipient of the benefits of a charity, or as a 
corporation sole. (Sect. 2 (1) (b), p. 6, infra.) 

b2 



DEATH DUTIES (eNGLAND). 

1. Levied and paid. (See sects. 6 to 9, pp. 28 to 59, infra.) 

The principal value ascertained as hereinafter provided. 

What is charged with duty under this Act is the corpus of the 
*' property passing on the death of the deceased." Such pro- 
perty is defined in sect. 2. In each case it must be determined 
what exactly is the " i^roperty passing," and if the deceased was 
not competent to dispose of the property, the corpus will have to 
be ascertained as provided by sect. 7 (7), (p. 43, infra). Sect. 7 
provides machinery for determining the pecuniary value of the 
corpus to be charged. The rate of estate duty payable in respect 
of any property will be graduated according to the value of the 
estate of which it forms part. (Sect. 17, p. 74, infra.) 

Property, real or personal. No distinction is made between 
real and personal property, so long as it can be reached by the 
English Courts. Thus, all property of every kind or description, 
situate within the United Kingdom, is, except as above mentioned 
(p. 2, supra), liable to the duty; and property situate without 
the United Kingdom is also liable, if it is subject to succession 
or legacy duty. (As to this, see sect. 2 (2), p. 14, infra ; sect. 20, 
p. 77, infra.) " Property " (by sect. 22 (1) (f), p. 83, infra), in- 
cludes ' ' real and personal property, and the proceeds of sale 
thereof, and any money or investments for the time being 
representing the proceeds of sale." 

Settled or not settled. So long as property passes on the 
death of a person, it is immaterial in what instrument it is com- 
prised. 

" Settled property" means "property comprised in a settle- 
ment," and " a settlement" means any instrument, whether re- 
lating to real property or personal property, which is a settlement 
within the meaning of sect. 2 of the Settled Land Act, 1882, or 
if it related to real property would be a settlement within the 
meaning of tbat section, and includes a settlement effected by a 
parol trust. (Sect. 22 (1) (h) and (i), p. 83, iiifra.) 

Which passes on the death of such person. Only property 
passing on the death of a person dying after the 1st August, 
1894, is liable to estate duty. The nature of property passing 
on a person's death is defined in sect. 2 (p. 5, infra). " On the 
death," in addition to its literal signification, means " at a 
period ascertainable only by reference to the death," and property 
is said to pass if it passes either immediately or after an interval, 
either certainly or contingently, and either originally or by way 
of substitutive limitation. (Sect. 22 (1) (1), p. 84, infra ; and note 
to sect. 2 (1) (b), "Property in which the deceased, &c." (p. 6, 
infra) ). 

Graduated rates hereinafter mentioned. (See sect. 17, 

p. 74, infra.) 

The existing duties. I.e. : 

(i) Probate duty. (The Customs and Inland Eevenue Act, 

1881). 



57 & 68 Vict. c. 80. 5 

(ii) The Account duty. (The Customs and Inland Revenue 8 1, 

Act, 1881, sect. 38 ; amended by The Customs and 

Inland Revenue Act, 1889, sect. 11, sub-sect. (1) ). 

(iii) The additional succession duties imposed by The Customs 
and Inland Revenue Act, 1888, sect. 21 (?.e., ^ per cent, 
for lineals, and IJ per cent, for other persons). 

(iv) The temporary estate duties imposed by The Customs and 
Inland Revenue Act, 1889, sects. 5 and 6 {i.e., the addi- 
tional 1 per cent, upon personal estates and successions 
exceeding 10,000/.). 

(v) The 1 per cent, legacy and succession duties payable by 
lineal ancestors or descendants of the deceased under his 
will or intestacy, or, on his death, under his disposition 
or any devolution from him under which estate duty 
has been paid, or under any other disposition under 
which estate duty has been paid. 

These duties remain payable upon property passing on the 
death of a person dying on or before the 1st August, 1894 (sect. 
21 (2), p. 80, infra). The temporary estate duties, imposed by 
The Customs, &c., Act, 1889, sects. 5 and 6, and the additional 
succession duties imposed by the Customs, &c.. Act, 1888, 
sect. 21, remain, it would appear, payable in respect of : (a) pro- 
perty settled by a will or disposition made by a person dying on 
or before the 1st August, 1894, in respect of which probate or 
account duty has been paid or is payable ; (b) settled property 
upon which estate duty has already been paid upon some death 
occurring since the date of the settlement. As to cases falling 
under (b), see, however, sect. 5 (2), note "Nor shall any of the 
duties mentioned in the fifth paragraph, &c." (p. 23, infra). 

2. — (1.) Property passing on tlie death of the de- what property 
ceased shall be deemed to inckide the property follow- pass.^°^^ 
ing, that is to say : — 

(a) Property of which the deceased was at the time of 
his death competent to dispose. 

Shall be deemed to include. The definition is not in terms 
inclusive, but it is framed so as practically to include every 
form of property or interest in property passing on death. 

Property. (See sect. 22 (1) (f), p. 83, infra). 

Competent to dispose. (See sect. 22 (2), (a) and (c). ) 
Property of which a person is competent to dispose consists of — • 
(i) His free realty and personalty, (ii) Real property of which 
he is tenant in tail in possession or remainder, (iii) Property 
over which he has a general power of appointment, whether exer- 
ciseable by deed or will, or both, provided such power is not of a 
fiduciary character, i.e., vested in him as trustee (under a dis- 



DEATH DUTIES (eNGLANd). 

§ 2. position not made by himself) or mortgagee, or as tenant for life 

under the Settled Land Acts, (ivj Money which he has a general 

power to charge on j^roperty. (v) Property which would fall 
under the above categories if he were sui juris. 

With regard to (ii), a person is to be deemed competent to 
dispose of property if ho is tenant in tail in remainder. Under 
sect. 5 (3) (p. 26, infra), it is enacted that if the interest of any 
person under a settlement fails, by reason of his death, before it 
becomes an interest in possession, and subsequent limitations 
under the settlement continue to subsist, the property shall not 
be deemed to pass on his death. See note on sect. 5 (3) for the 
effect of that provision in the case of an estate tail in remainder 
limited to B. under a settlement (with remainders over), which 
fails by reason of B.'s death sine prole before his estate tail 
falls into possession. 

With regard to (iii), the imposition of a death duty upon 
property over which the deceased had a general power of 
appointment that he did not exercise, is new. Under the existing 
law neither probate, legacy, or succession duty is payable in 
respect of property over which the deceased had a general power 
of appointment unless he exercised the power. With regard to 
fiduciary powers see note to sect. 22 (2) (a), (p. 85, infra). 

Under (v) estates of infants, lunatics, &c., are put on the same 
footing as those of persons sui juris, 

(b) Property in which the deceased or any other per- 
son had an interest ceasing on the death of the 
deceased to the extent to which a benefit accrues or 
arises by the cesser of such interest but exclusive 
of property the interest in which of the deceased or 
other person was only an interest as holder of an 
office or recipient of the benefits of a charity or as 
a corporation sole. 

Property in which the deceased, &c. This sub-section 
deals with property in which the person from whom the property 
passed on the death of the deceased, had only a limited interest. 
This propert}^ falls under two heads : — (1) Property in which the 
deceased had an interest ceasing on his death. (2) Property in 
which some person, other than the deceased, had an interest 
ceasing on the death of the deceased. 

Under (1) fall life estates and interests under settlements, life 
annuities and rent-charges charged on or issuing out of any 
property, the "life," in these cases, being that of "the de- 
ceased." The test is that, upon the falling-in of the life in 
question, a benefit must accrue or arise to some person. No 
duty is therefore chargeable in respect of an annuity payable 
during the life of the deceased and ceasing on Lis deatli, if it is 
merely secured by a covenant, and is not charged on or does 



. 67 & 58 Vict. c. 30. 

not issue out of property. (See 27 Hansard, 4tli Ser. , pp. 56 & 57.) 
' ' The benefit accruing or arising' ' on the death of the deceased may, ■ 
by virtue of sect. 22 (1) (1), p. 84, i^/rw, accrue or arise either imme- 
diately (e. (/., where property is settled on the deceased for life, 
with remainder to his children), or after any interval [e. g., where 
there is a trust for accumulation of income during a limited 
period before the next interest arises ; Att.-Oen. v. OeU, 3 Hurlst. 
& Colt. 615 ; Ring v. Jarman, L. E. 14 Eq. 357 ; or where an inte- 
rest is to arise upon the happening of some event, as, for instance, 
the marriage of a prior life tenant), or certainly or contingently 
{e. g., where property is limited after the death of the deceased 
to some person upon his attaining twenty-one years), or origi- 
nallii or hy luay of substitutive limitatio-n [e. g., where property is 
limited after the deceased's death to A. in fee, but should A. die 
sine vrole, to B. in fee, and A. dies before the deceased sine prole). 
The instances above given deal with cases in which the interest 
arising on the death of the deceased is an interest in the tvhole 
property. They are, however, mutatis mutandis, equally applic- 
able to cases in which the interest arising on the deceased's 
death is the value of an annuity or rent-charge charged upon or 
issuing out of some property, and payable to the deceased during 
his life. 

Under (2) fall cases in which estates and interests are limited 
to third persons during the life of the deceased, or annuities and 
rent-charges charged upon or issuing out of property, are made 
payable to third persons during the life of the deceased. In 
these cases, equally with cases falling under (1), the benefit 
accruing or arising may be either immediate or after an in- 
terval, certain or contingent, original or by way of substitutive 
limitation. 

The expression " on the death " includes " at a period ascer- 
tainable only by reference to the death" (sect. 22 (1) (1), p. 84, 
infra). The following is a typical example of cases falling under 
this heading : — 

A. (a father) settles 10,000?. on B. (his eldest son) during A.'s 
life, with remainder, on A.'s death, to C. (A.'s second son). 
Estate duty is paid on A.'s death. 

Leases for lives, of which the deceased was the last life, fall 
under this heading; but as to these see sect. 3 (p. 16, infra). 

To the extent to which a benefit, &c.— This is explained 

by sect. 7 (7) (p. 43, infra)^ by which it is provided as fol- 
lows : — If the interest, ceasing on the death of the deceased, 
extended to the whole income of the property [e.g., property 
worth 10,000?. limited to the deceased for life, with remainder 
to B., or the same property limited to A. during the life of the 
deceased, with remainder to B.), the value of the benefit accru- 
ing or arising on the death of the deceased will be the principal 
value of the property (*. e., in the case given above, 10,000?.). 
If, however, the interest, ceasing on the deceased's death, ex- 
tended to less than the whole income of the property (e. g.y 
property worth 10,000?., charged with an annuity of 200?. per 
annum in favour of the deceased during his life, or of A. during 
the life of the deceased), the value of the benefit accruing or 



^ DEATH DUTIES (eNGLANd). 

§ 2. arising will be the principal value of an addition to tlie pro- 

' perty equal to the income to which the interest extended (i. e., 

in the case just given the capitalized value of 200/. per annum, 
or, at 3 per cent., 6,666?. 13s. 4c?.). 

But exclusive of property the interest, &c. The effect 

of these words is to exclude from the class of property passing 
on death (which is the only property liable to estate duty) 
the stipend or emoluments attached to any office of profit, 
whether ecclesiastical {e.g., that of a dean or prebend), or lay 
{e.g., that of a judge, or master, or fellow, of a college at a 
university), pensions and annuities granted by a charity, and 
the emoluments enjoyed by a corporation sole [e. g., a bishop or 
a parson). 

44 & 45 Vict. (c) Property whicli would be required on the death of 

62 & 53 Vict. the deceased to be included in an account under 

section thirty-eight of the Customs and Inland 
Revenue Act, 1881, as amended by section eleven 
of the Customs and Inland Eevenue Act, 1889, if 
those sections were herein enacted and extended to 
real property as well as personal property, and the 
words " voluntary " and " voluntarily " and a re- 
ference to a " volunteer " were omitted therefrom : 
and 

Property which would, &C. The Customs and Inland 
Revenue Act, 1881, sect. 38, as amended by the Customs and 
Inland Revenue Act, 1889, sect. 11, and varied by this Act, runs 
as follows : — 

(i) " Any property taken as a donatio mortis causa, made by 
any person dying after 1st August, 1894, or taken under 
a disposition made by any person so dying purporting to 
act as an immediate gift irder vivos, whether by way of 
transfer, delivery, declaration of trust, or otherwise, 
which shall not have been made bond fide twelve months 
before the death of the deceased, and property taken 
under any gift, whenever made, of which property hond 
fide possession and enjoyment shall not have been 
assumed by the donee immediately upon the gift, and 
thenceforward retained to the entire exclusion of 
the donor, or of any benefit to him by contract or 
otherwise : 
(ii) "Any property which a person so dying, having been 
absolutely entitled thereto, has caused or may cause to 
be transferred to or vested in himself and any other 
person, or has purchased or invested by himself alone, 
or in concert or by arrangement with any other person, 
so that the beneficial interest therein passes or accrues 
by survivorship on his death to such person : 



. 57 & 58 Vict. c. 30. ^ l9 

(iii) "Any property, and tlie proceeds of sale of any property, . 8 2. 

passing under any past or future settlement made by- — — ■— 

any person so dying, by deed or any other instrument 
not taking effect as a will, and any trust, whether ex- 
pressed in writing or otherwise, and if contained in a 
deed or other instrument effecting the settlement, 
whether such deed or other instrument was made for 
valuable consideration or not as between the settlor and 
any other person, whereby an interest in such property 
for life, or any other period determinable by reference 
to death, is reserved either expressly or by implication 
to the settlor, or whereby the settlor may have reserved 
to himself the right by the exercise of any power to 
restore to himself or to reclaim the absolute interest in 
such property." 

Donatio mortis causa. A donatio mortis causa is a gift of 
personal property made in contemplation [Duffidd v. Elwes, 

1 Bligh, N. S. 497 ; Edivards v. Jones, 1 My. & Cr. 226 ; Walter 
V. Hodge, 2 Swanst. 92) of death, and intended (either ex- 
pressly, Staniland v. Willott, 3 Mac. & G. 664, or impliedly, 
Gardner v. Parker, 3 Madd. 184), to take complete effect only if 
the donor dies [Edwards v. Jones, supra ; Tate v. Hilhert, 2 Ves. 
jun. Ill) from the illness affecting him at the time of the gift. 
The subject of the gift must be delivered either actually [Ward 
V. Turner, 2 Yes. sen. 431; White & Tudor, 1 L. C, 6th ed., 
1058), or (if the nature of the thing given does not admit of 
corporeal delivery) constructively [Jones v. Selby, Prec. Chanc. 
300; Moore v. Darnton, 4 De G. & Sm. 517; MustaphaY. Wed- 
lake, 8 Times L. E. 160) to the donee, or to some person for 
him (see White & Turlor, 1 L. C, 6th ed., p. 1074) for the use of 
the donee [TateY. Hilhert, 2 Ves. jun. 120), or upon trust for 
another [Drury v. Smith, 1 P. Wms. 403; Farquharson y . Cave, 

2 Coll. 356), or for a particular purpose [Blount v. Burroiv, 4 
Bro. C. C. 71). The donor must part with the dominion as well 
as the possession of the thing [Haiuldns v. Blewitt, 2 Esp. 663) ; 
and a mere delivery to a person as agent for the donor will not 
suffice [Farquharson v. Gave, 2 Coll. 356, 367; Trimmer v. 
Danhy, 25 L. J. Ch. 424). 

Personal property which can be made the subject of a donatio 
mortis causa, includes chattels passing by delivery, and also bank 
notes [Miller v. Miller, 3 P. Wms. 356), bankers' deposit notes 
[Duffin V. Huffin, 44 Ch. D. 76), bonds [Snellgrove v. Baily, 3 
Atk. 213), bills of exchange, notes and cheques of a third person 
[Veal V. Veal, 27 Beav. 303; Austin v. Mead, 15 Ch. D. 651; 
Glement Y. Gheeseman, 27 Ch. D. 631), but not of the donor 
[GlementY. Gheeseman, supra), mortgage debts [DuffieldY, Elwes, 
1 Bligh, N. S. 497), policies of insurance [Witt v. Amis, 1 Best 
& Sm. 109), and promissory notes ( Veal v. Veal; Austin v. Mead, 
supra). 

Under a disposition made by any person so dying, 
purporting to act as an immediate gift inter vivos 
whether by way of transfer, delivery, declaration of 



10 DEATH DUTIES (eNGLANd). 

§ 2. trust or otherwise, which shall not have been made 
■ bona fide twelve months before the death of the de- 
ceased. The effect of these words is to bring within this 
sub-clause gifts of every nature, howsoever effected, if made 
within twelve months before the death, e.g., a transfer of 1,000Z. 
Consols to a charity ; a conveyance of an estate for ' ' natural 
love and affection" ; a gift of a valuable picture ; a declaration 
of trust whereby the donor declares that he holds property 
belonging to himself in trust for some other person ; an assign- 
ment of a policy of insurance upon the life of the owner to a son 
or daughter. " Gifts inter vivos " can be effected: (1) In the case 
of personal property passing by delivery, without any written 
instrument, so long as the gift is assented to by the donee, and 
there is an actual or constructive delivery of the subject of the 
gift. [Moore v. (Jochrane, 25 Q,. B. D. 57.) (2) In the case of all 
property, whether real or personal, by a deed of gift, declaration 
of trust, or some written instrument taking effect as such, and, 
if personal propert}', either with or without delivery. Gifts made 
in this manner aire valid as between donor and donee, but may, 
if of personal property, be in certain cases, if the instrument of 
gift is not registered under the Bills of Sale Acts, avoided by 
the trustee in bankruptcy or execution creditor of the donor. 
The word "voluntary" occurred in the Customs and Inland 
Eevenue Act, 1881, sect. 38, before the word " disposition," and 
an ante -nuptial settlement made by a father upon a son or 
daughter, not being a voluntary settlement, did not therefore 
fall within that section. It will, however, it is thought, be 
held that the effect of the omission of the word " voluntary " in 
this context is to bring within the scope of this sub -clause a 
settlement of the character above alluded to, if made within 
twelve months of the death of the settlor. 

A voluntary release of a life interest by a life tenant under a 
settlement to the remainderman, or of a general power of 
appointment or revocation by the donee thereof, would, if made 
within a year of the life tenant's or donee's death, fall, it is 
thought, within this sub-clause. (As to this, see notes " In- 
terest for life," and "The right ... to restore to himself or 
reclaim the absolute interest in such property, pp. 12 & 13, infra.) 

Property taken under any gift whenever made, of which 
property bona fide possession and enjoyment, &c. The 

transactions aimed at are gifts made at any time (not necessarily 
twelve months before the death of the donor) where the donor 
retains an interest in or a power over the subject of the gift. 
Any retention by the donor for however short a time of an 
interest in or a power over the property would apparently bring 
the transaction within this sub-clause. 
Examples : — 

(i) A. hands over 2,000/. to his brother in consideration of 
his brother allowing him an annuity of 50/. for the 
rest of his life, 
(ii) A. hands over his estate of Whiteacre to B. on the 



57 & 58 Vict. c. 80. 11 

condition that B. shall pay A.'s debts within one year, § g, 

or in default of B. so doing, that the property shall be 

reconveyed to A. 

Any property which a person . . . has caused ... to be 
transferred to or vested in himself and any other person. 

These words deal with cases in which an absolute owner, 
whether of real or personal property, transfers the same into the 
joint names of himself and some other person or persons, so that 
they become joint tenants of the beneficial interest in the pro- 
perty. 

In the case of a purchase or investment by a husband in the 
joint names of himself and his wife, or by a father in the joint 
names of himself and his child, the law presumes an intention 
on the part of the husband or father to make a provision for the 
wife or child. In the case of joint mortgages, the mortgagees are 
in equity deemed to be tenants in common (in whatever propor- 
tions the money was advanced), and the survivor (in whom the 
security is vested at law by survivorship) is a trustee for the legal 
personal representatives of the deceased mortgagee. So also in 
the case of partnership property, there is at law a joint tenancy, 
and in equity a tenancy in common. The omission of the word 
" voluntarily," which occurred before the words " caused " and 
" cause," do not, it is thought, make much practical difference. 
If the joint purchase or investment was made for full con- 
sideration in money or money's worth, moving from the person 
to whom the benefit will accrue, to the person effecting the pur- 
chase or investment, estate duty will not be payable. (Sect. 
3 (1), p. 16, infra.) If it was made for partial consideration, 
the value of the consideration will be allowed as a deduction 
from the value of the property (sect. 3 (2), p. 16, infra). 

Or has purchased or invested by himself alone. By these 

words the Act is, it is thought, made applicable to a policy 
effected by a husband on his own life to be payable to the wife 
if she survives, " nomination" policies, policies effected under 
the Married Women's Property Act, 1870, and survivorship 
policies. In any case these transactions fall, it would seem, 
under sub-clause (d). (See p. 13, infra.) 

The combined effect of sub-clause (d) and sect. 3 (p. 16, 
infra), is to supersede the following provision contained m the 
Customs and Inland Revenue Act, 1889, sect. 11 (1). "The 
charge (r.e., for account duty) under the said section [i.e., sect. 
38 of the Customs and Inland Revenue Act, 1881) shall extend 
to money received under a policy of assurance effected, by any 
person djdng on or after 1st June, 1889, on his life, where the 
policy is wholly kept up by him for the benefit of a donee, 
whether nominee or assignee, or a part of such money in propor- 
tion to the premiums paid by him, where the policy is partially 
kept up by him for such benefit." 

Example. — Twenty shares in a limited company are purchased 
in the joint names of the deceased and A., each having found 
one-half of the purchase-money. The property passing on the 



12 • DEATH DUTIES (eNGLAND). 

§ 2. deceased's death is the moiety accruing to A. by survivorship. 

■ As to the application of sect. 3, see Jast note. 

Any property and the proceeds of sale, &c. This sub- 
clause brings within the operation of the Act all property real 
and personal, and the proceeds of sale thereof, settled by any 
instrument other than a will, or by a parol trust whereby a life 
interest or power of revocation is given to the settlor. 

Passing under. " Property, the right to direct the applica- 
tion of which is created by deed A, but the si)ecific direction of 
which is effected by deed B, passes under (not hij) deed A." (Per 
Wills, J., The Attorney-General Y. Chapman, (1891) 2 Q. B. 526, 
532; cp. The Attorney -Ge7u:ral Y. Gosling, (1892) 1 Q. B. 545.) 

It is conceived that the property, in order to be property 
passing on the death of the settlor, must actually pass under the 
settlement, and that this sub-clause would not apply if the 
settlor has, by the exercise of some power in his lifetime, taken 
the property out of the settlement or executed a release (more 
than a year before his death if the release is voluntary) of his 
life interest in the property. 

Settlement. The omission of the word "voluntary," which 
occurs in the Act of 1881 before the word " settlement," makes 
this sub- clause applicable to marriage settlements, if the settlor 
has reserved a life interest in or a power of revocation over the 
property. 

If the settlement was for consideration in money or money's 
worth the provisions of sect. 3 (p. 16, infra) apply. 

Was made for valuable consideration or not as between 
the settlor and any other person. Having regard to the 
omission of the word "voluntary" throughout the sub-clause, 
and the provisions of sect. 3 (p. 16, infra), it is doubtful 
whether these words are strictly necessary for the purpose of 
this Act. 

Interest for life. It is not apparently necessary that the settlor 
should reserve to himself an interest in the whole of the settled 
property, if the whole of the property passes on his death. See 
The Attorney -General v. Heyivood, 19 Q. B. D. 326, in which case 
there was discretionary trust of the income of the property 
during the settlor's life in favour of himself and his wife and 
children. 

A release by the settlor of his life interest to or in favour 
of the persons entitled in remainder or reversion would, it is 
thought, operate so as to take the property out of the scope of this 
section. (See note " Passing under," supra.) It might, however, 
be said that a release is only an assignment of a prior interest to 
the persons interested in remainder, and that such an assignment 
should not have any greater effect than an assignment to persons 
other than persons interested in remainder, which would certainly 
not operate so as to defeat the operation of the section. 

If the release is voluntary, it must, even if good otherwise, 
have been made more than a year before the death of the re- 



. 57 & 58 Vict. c. 30. 13 

leasor. (See p. 10, supra.) If the release was for value "in § 2, 

money or money's worth, it would fall within sect. 3 (p. 16, 

infra.) 

Is reserved. These words do not mean more than that a life 
interest is kept or provided for or secured to the person making 
the settlement. (Per Wills, J., in The Attorney -General v. 
Gosling, (1892) 1 Q. B. 545, 549 ; cp., Grossman v. The Queen, 18 
Q. B. D. 256.) 

The right ... to restore to himself or to reclaim the 
absolute interest in such property. In this case no interest 
need be reserved to the settlor. It is sufficient that a power of 
revocation or a general power of appointment should be reserved 
to the settlor. It is a matter of some doubt whether the release of 
a power of revocation or of a general power of appointment (even 
if made more than a year before the death of the settlor) would 
take the property out of the operation of this sub-clause. Upon 
the whole, it is submitted, that such a release would have that 
effect. If A. has settled 1,000/. consols upon trust for B. for 
life, with remainder to C. absolutely, reserving to himself a 
power of revocation which he releases in his lifetime, no pro- 
perty could be said to "pass under " the settlement on his (A.'s) 
death. If the power has not been released, B. and C. take that 
absolutely which was before defeasible, and the property might 
fairly be said to "pass under" the settlement. A policy of 
assurance on the settlor's life, settled by an instrument con- 
taining a general power of revocation would, it is thought, be 
liable to estate duty, even if the power was released. 

As to the time, before the settlor's death, within which a 
voluntary release of a power of revocation and a general power 
of appointment must be effected, see p. 10, supra. As to the 
effect of sect. 3 (p. 16, infra), see note on "Interest for life," 
(p. 12, supra). 

(d) Any annuity or other interest purchased or pro- 
vided by the deceased either by himself alone or in 
concert or by arrangement with any other person, 
to the extent of the beneficial interest accruing or 
arising by survivorship or otherwise on the death 
of the deceased. 

Any annuity. The following are examples of annuities fall- 
ing under this sub - clause :—(i) An annuity payable to the de- 
ceased during his Hfe, and after his death to A. for his life, or a 
certain number of years, (ii) An annuity payable to the de- 
ceased and A., either jointly or in various proportions, during 
their joint lives, and after the death of the deceased to A., if he 
survives, for his life, or a certain number of years, (iii) An 
annuity payable to the deceased and A., either jointly or in 
various proportions, during their joint lives, and after the death 
of one to the survivor for his life, or a certain number of years. 



14 DEATH DUTIES (eNGLAND). 

§ 2. (iv) An annuity in favour of A. for his life, or a certain number 

of years commencing after the deceased's death. The annuity 

need not be purchased entirely by the deceased, but he must 
have some share in the transaction. 

The qiumtum upon which estate duty becomes payable on the 
death of the deceased is the extent of the beneficial interest 
accruing or arising on the death of the deceased — i. e., in 
examples (i) and (iv) the capital value, according to A.'s age or 
the number of years for which the annuity is payable, of the 
whole annuity; and in cases (ii) and (iii) the capital value, 
according to A.'s age or the number of years for which the 
annuity is payable, of so much of the annuity as becomes pay- 
able to him by reason of the deceased's death. If A. has con- 
tributed to the purchase of the annuity, the amount contributed 
by him would, it is presumed, be allowed as a deduction from 
the quantum charged with estate duty. (Sect. 3 (2), p. 16, 
h)fra.) In examples (ii) and (iii) the amount contributed by 
A. would have to be part of the consideration paid for the 
deceased's share of the annuity. An annuity, not exceeding 
257., purchased or provided by the deceased either by himself 
alone, or in concert or arrangement with any other person, for 
the life of himself and some other person, and the survivor of 
them, or to arise on his own death in favour of some other 
person, and a pension or annuity, payable by the Indian Govern- 
ment to the widow or child of a deceased Indian officer, are, by 
sect. 15 (1) & (3), (p. 69, infra), exempted from the payment of 
estate duty. 

Annuities charged on or issuing out of property might fall 
under this sub -clause; but they are, it is conceived, more pro- 
perly dealt with as falliDg under sub-clause (a), (p. 5, supra). 

Or other interest. These words are inserted to bring within 
the definition of property passing on death cases which might 
be argued do not fall under sub-clause (c); e.g., a policy of 
insurance effected by the deceased, or an arrangement entered 
into by him, whereby a sum of money becomes payable on his 
death to his wife or children. 

The quantum in these cases chargeable with estate duty is 
arrived at in the same manner, and after making the same 
deductions, as in the case of annuities. 

(2.) Property passing on tlie death of the deceased 
when situate ont of the United Kingdom shall be 
included only if under the law in force before the 
passing of this Act, legacy or succession duty is payable 
in respect thereof, or would be so payable but for the 
relationship of the person to whom it passes. 

Legacy or succession duty. Property situate out of the United 
Kingdom liable to legacy or succession duty consists of : (i) per- 
sonal or moveable property situate out of the United Kingdom 
which passes upon the death of a testator, or intestate, or pre- 
decessor domiciled in the United Kingdom, the local situation of 



57 & 58 Vict. c. 30. 15 

the property being immaterial {Re Eiuin, 1 Cr. & Jerv. 151; § 2. 

Thomson v. The Advocate- General, 13 Sim. 153, 12 CI. & Fin. 1); 

(ii) personal or moveable property which is comprised in an 
English settlement, and vested in trustees subject to the juris- 
diction of the Courts of the United Kingdom {Be Cigala, 7 Ch. 
D. 351) ; (iii) the share of a deceased partner who died domiciled 
in the United Kingdom, in real estate belonging to the partner- 
ship {Forbes v. Stevens, 10 Eq. 178 ; The Attorney -General v. 
Huhbuck, 13 Q. B. D. 275). 

Eeal property situate out of the United Kingdom passing on 
the death of a person domiciled in the United Kingdom, legacies 
and annuities charged thereon, and the proceeds of sale thereof 
if directed to-be sold, are not liable to either legacy or succession 
duty. 

Or would be so liable but for the relationship of the 

person to whom it passes. I.e., if the property passes to the 
husband or wife of the deceased. Lineals were not before this 
Act exempted from legacy duty in respect of foreign personalty 
liable to duty, sect. 4 1 of the Customs and Inland Eevenue Act, 
1881, only applying to cases in which probate or account duty 
had been paid. 

(3.) Property passing on the death of the deceased 
shall not be deemed to include property held by the 
deceased as trustee for another person under a disposi- 
tion not made by the deceased, or under a disposition 
made by the deceased more than twelve months be- 
fore his death where possession and enjoyment of the 
property was bond fide assumed by the beneficiary 
immediately upon the creation of the trust, and thence- 
forward retained to the entire exclusion of the deceased, 
or of any benefit to him by contract or otherwise. 

Under a disposition made by the deceased more than, &c. 

Under sub-sect. (1) (c), (p. 8, supra), property settled by the 
deceased on another person within twelve months of his death 
is deemed to pass on his death. By the same sub-section, pro- 
perty settled by the deceased on another person more than 
twelve months before his death is also deemed to pass on his 
death, unless the possession and enjoyment of the property was 
bond fide assumed by the beneficiary immediately upon the 
creation of the trust, and thenceforward retained, to the entire 
exclusion of the deceased, or of any benefit to him by contract 
or otherwise. Under sect. 22 (2) (a), (p. 85, r/?/ra),' a person 
having a power of disposition exerciseable in a fiduciary capacity, 
under a disposition made by himself is, it would seem, to be 
deemed to be competent to dispose of the jDroperty. The result 
9-ppears to be that settlors would do well not to be trustees of 
the settlements effected by them. 



16^ 



DEATH DUTIES (eNGLAND). 



§3. 



Exception for 
transactions 
for money- 
consideration. 



3. — (1.) Estate duty sliall not be payable in respect 
of property passing on the death of the deceased by 
reason only of a bond fide purchase from the person 
under whose disposition the property passes, nor in 
respect of the falling into possession of the reversion 
on any lease for lives, nor in respect of the determination 
of any annuity for lives, where such purchase was made, 
or such lease or annuity granted, for full consideration 
in money or money's worth paid to the vendor or grantor 
for his own use or benefit, or in the case of a lease for 
the use or benefit of any person for whom the grantor 
was a trustee. 

(2.) Where any such purchase was made, or lease or 
annuity granted, for partial consideration in money or 
money's worth paid to the vendor or grantor for his 
own use or benefit, or in the case of a lease for the use 
or benefit of any person for whom the grantor was a 
trustee, the value of the consideration shall be allowed 
as a deduction from the value of the property for the 
purpose of estate duty. 



By reason only of a bona fide purchase from the person 
under whose disposition the property passes. 

ExampJes. — (i) A. being absolutely entitled to property, con- 
veys it for full value to B., reserving to himself a life interest. 
It is conceived that estate duty is not payable on A.'s death. 
(ii) A. effects a policy of assurance on his life in the name of B. 
to secure a sum advanced by B. (together with interest, pre- 
miums, i&c). On A.'s death, the moneys payable to B. under 
the policy in respect of the amount due to him from A. are not 
chargeable with estate duty, (iii) A. assigns a policy of assur- 
ance belonging to him (whether on his own life or that of some 
other person) to B. for value. Estate duty is not payable by B. 
on the falling in of the life assured, (iv) A. being entitled to 
Whiteacre in fee simple, grants to B. for full value an annuity 
charged thereon, to commence at A.'s death. Estate duty is not 
payable on A.'s death. 

Nor in respect of the falling into possession of the rever- 
sion on any lease for lives. Leases granted for a series of 
lives would, but for this section, be liable to estate duty upon 
the falling in of the last life, even though the grantor and the 
persons claiming through him had received full value for the 



57 & 58 Vict. c. 30. 17 

lease, either by way of fine or in rent, or partly in one way and § 3. 

partly in the other. Leases for lives are, as a rule, granted for 

lives of persons entirely unconnected with the property, e.g., the 
Queen or other members of the Eoyal Family. 

Nor in respect of the determination of any annuity for 

lives. A person having a limited interest in settled property 
frequently raises money by granting an annuity out of his 
interest to the person advancing the money. Estate duty is not, 
in such a case, payable on the death of the grantor, when, of 
course, the annuity ceases. If the advance is covered by an 
assignment of a policy of assurance on the life of the grantor of 
the annuity, the first part of this sub- section would apply. 

For full consideration. I.e., for what was full considera- 
tion at the time of the sale or grant. Thus it is thought that 
the surrender value of a policy of assurance would, if paid on 
an assignment of the policy during the life of the assured, be 
•' full consideration." 

Money or money's worth. The effect of these words is to 
exclude from the operation of the section transactions which 
were effected in consideration of marriage, or as part of a family 
arrangement (cf. The Succession Duty Act, 1853, s. 17; FloyevY, 
Bankes, 9 Jur. N. S. 1256 ; 3 De G. J. & S. 306 ; James v. James, 
2 Brod. & Bing. 702 ; Blake v. Attersoll, 2 Barn. & Cr. 875 ; 
Tetley v. Tetley, 4 Bing. 214). 

For his own use or benefit. These words appear to be 
inserted to meet the case of collusive transactions. It is, how- 
ever, thought that if the consideration was paid to a third person 
on the request of the vendor or grantor, the consideration would, 
so far as the person making the payment was concerned, be 
deemed to be paid to the vendor or grantor for his own use or 
benefit. 

Deductions. Deductions from the value of property are 
dealt with in sect. 7 (1) (p. 34, infra). 



4. For determining the rate of estate duty to be paid Aggregation 
on any property passing on tlie death of the deceased, form°(Sie ^ 
all property so passing in respect of which estate duty pu^ose°of 
is leviable shall be aggregated so as to form one estate, ^^*y- 
and the duty shall be levied at the proper graduated 
rate on the principal value thereof : 

Provided that any property so passing, in which the 
deceased never had an interest or which under a disposi- 
tion not made by the deceased passes immediately on 
the death of the deceased to some person other than the 

F. C 



IS DEATH DUTIES (eNGLAND). 

§ ^* wife, or husband, or a lineal ancestor or lineal descen- 
dant of the deceased, shall not be aggregated with any 
other property, but shall be an estate by itself, and the 
estate duty shall be levied at the proper graduated rate 
on the principal value thereof, but if any benefit under 
a disposition not made by the deceased is reserved or 
given to the wife, or husband, or a lineal ancestor, or 
lineal descendant of the deceased, such benefit shall be 
aggregated with property of the deceased for the pur- 
pose of determinicg the rate of estate duty. 

For determining the rate, &c. As to appeals from the 
determination of the Commissioners under this section, see 
sect. 10 (p. 59, infra). 

All property so passing shall be aggregated. The follow- 
ing property passing on the death of the deceased is not aggre- 
gated : (1) Property not itself chargeable with or liable to estate 
duty, e. g., the property, a list of which is given on p. 2, supra 
[notes to sect. 1). (But qvcere as to reversionary interests the 
estate duty on which has been. commuted under sect. 12, p. 65, 
infra.) (2) Property which is itself chargeable with or liable to 
estate duty, but which, under the proviso to this section, or under 
sect. 16 (3) (p. 71, infra), devolves as an estate by itself. 

What is aggregated for the purj)Ose of ascertaining the estate, 
is the princiiml value (ascertained as provided by sect. 7, p. 34, 
infra) of the various items of property passing. 

At the proper graduated rate. (Sect. 17, p. 74, infra.) 

Principal value. (Sect. 7, p. 34, infra.) 

Provided that any property so passing . . . shall be an 

estate by itself. The following property passing on the death 
of the deceased is not aggregated with any other property, but 
is in each case chargeable with duty as an estate by itself : 

(i) Property in which the deceased never had an interest. 

Eorample : — Property settled upon A. during the life of the 
deceased, and after the death of the deceased upon B. 

(ii) Property which, under a disposition not made by the 
deceased, passes immediately on his death to some person other 
than the wife or husband, or a lineal ancestor or lineal descendant 
of the deceased. 

Kxumjph : — Property settled by A. on the deceased for life, 
with remainder, if the deceased dies without male issue (which 
event happens), to a nephew of the deceased. 

If, however, the property passed immediately on the deceased's 
death to his or her wile or husband, or lineal ancestor or descen- 
dant, the property would in that case be aggregated with the 
deceased's other property, even though it passed under a dis- 



/ 57 & 58 Vict. c. 30. 4'0 

position not made by the deceased; e.g.^ one made by tbe §4. 
deceased's father. (See next note.) 

This section, combined with the next section, produces some 
curious results, as the following example shows : — 

Example. — Property is settled by A.'s father upon A. for life, 
with remainder to A.'s nephew for life, with remainder to A.'s 
daughters. On A.'s death there is under this section no aggre- 
gation, and the estate duty payable on A.'s death covers, by 
virtue of the next section, the duty otherwise payable on the 
death of A.'s nephew. If, however, the property were settled, 
after A.'s death, on his daughters for life, with remainder to 
his nephew, there would equally be only one estate duty 
payable (viz. on A.'s death), but there would in this case be 
aggregation. 

But if any benefit, &c. 

' .Example. — Property is settled by A. on the deceased for life, 
with remainder to trustees to secure a rent-charge to the de- 
ceased's widow during her life, with remainder to the deceased's 
nephew. In this case the value of the annuity (ascertained as 
provided by sect. 7 (7), p. 43, infra) is aggregated with the de- 
ceased's other property, and the estate duty is payable thereon 
at the proper graduated rate, according to the value of the de- 
ceased's aggregated estate. The rest, however, of the settled 
property, after deducting the value of the annuity, devolves as 
an estate by itself, and estate duty is payable accordingly. 

The foregoing example is, it is thought, tolerably clear. 
There is, however, considerable doubt as to the precise effect of 
the words " but if any benefit," &c. in the following cases : — 
(i) Property is settled by A. on B. during the life of the 
deceased, with remainder on the death of the deceased 
to the deceased's son. 
(ii) Property is settled by A., as to one-half thereof on the 
deceased for life, and as to the other half on B. during 
the life of the deceased, with remainder as to the whole 
on the death of the deceased to the deceased's son. 

In each case the whole jDroperty passes, on the deceased's 
death, to his son. Should the settled property be aggregated to 
■ any, and, if so, to what extent with other property passing on 
the deceased's death ? 

It is submitted (though with diffidence) (1) that the words 
*' but if any benefit," &c., are to be taken as limiting the second 
alternative at the commencement of the proviso onlt/ and not 
the first alternative, and that consequently, if the deceased 
never had an interest in the property, there would be no aggre- 
gation even if it passed, on his death, to his son ; (2) that there 
would only be aggregation to the extent of any benefit accruing 
from the deceased to his son, &c. : e. g., in the second of the two 
cases last given, the luhole property would not be aggregated, 
but ojily the principal value of one-half of the income. (Sect. 7 
(7), p. 43, i7ifra.) 

o2 



perty. 



20 DEATH DUTIES (eNGLAND). 

8 Q* 5,^(1.) Where property in respect of which estate 

Settled pre- dutj is leviable is settled by the will of the deceased, or 
having been settled by some other disposition passes 
under that disposition on the death of the deceased to 
some person not competent to dispose of the property — 

(a) A further estate duty called Settlement estate 
duty on the principal value of the settled property 
shall be levied at the rate hereinafter specified, 
except where the only life interest in the property 
after the death of the deceased is that of a wife or 
husband of the deceased ; but 

(b) During the continuance of the settlement the 
Settlement estate duty shall not be payable more 
than once. 

This sub-section deals with the incidence of the Settlement 
estate duty. 

This is a duty at the rate of one per cent. (sect. 17, p. 74, 
infra), which is (in certain cases) charged on settled property, 
by way of countervailing the exemj)tion granted to settled pro- 
perty from estate duty under the following sub- section. 

In respect of which estate duty is leviable. Settled pro- 
perty, if not otherwise chargeable with estate duty, does not fall 
within this section, e.g., a settled advowson (sect. 15 (4), p. 70, 
infra), or settled personalty, in respect of which probate or 
account dut}^ has been j)aid (sect. 21 (1), p. 79, infra). 

Settled. It is conceived that property is only " settled," by 
the will of the deceased, if it passes to some person not " com- 
p3tent to dispose of the property." 

By the will of the deceased, or having been settled by 

some other disposition. Settlement estate duty is not charge- 
able in respect of property settled by an instrument taking 
effect before the 1st August, 1894 (see sect. 21 (4), p. 81, 
infra; sect. 24, p. 91, infra). 

Passes to some person not competent to dispose of the 
property. See sect. 22 (2) (a) (p. 85, infra), for the definition 
of a person competent to dispose of property. If the property 
passes to a person competent to dispose of the property (e. g. , a 
tenant in tail, or a person having a general power of appoint- 
ment), Settlement estate duty will not be chargeable, inasmuch 
as, on the death of that person, the exemption given by the 
following sub -section will not aj)ply ; and estate duty will be 
paid in the ordinary way under sect. 2 (1) (a). As to the 



. ^7 & dS Vict. c. 30. 21 

position of a tenant in tail in remainder, see note on sub -sect. (3), 5 5» 
infra. ! 



Settlement estate duty. The following are the points to be 
remembered with regard to the incidence of Settlement estate 
duty. 

(i) The property must be settled by the will of a person dying 
after 1st August, 1894 (sect. 21 (4), p. 81, infra; sect. 24, 
p. 91, infra) ; or (ii) the property, if settled by some other dis- 
position (which must also take eifect after 1st August, 1894 
(sect. 21 (4), p. 81, infra), must pass to some person not competent 
to dispose of the property (see sect. 22 (2) (a) ) ; (iii) the duty is not 
charged if the only life interest in the property, after the de- 
ceased's death, is that of the wife or husband of the deceased ; 
(iv) the duty is chargeable only once during the continuance of 
the settlement ; (v) the duty is not charged in respect of pro- 
perty settled by the will of the deceased, if the net value of all 
property in respect of which estate duty is leviable on his death 
(exclusive of property settled otherwise than by his will) does 
not exceed 1,000/. 
Examples : 

(i) Property (whether real or personal) is settled by the will 
of a person dying after 1st August, 1894, or by an in- 
strument which has taken effect after 1st August, 1894, 
upon A. for life, and after A.'s death, upon B. absolutely. 
Upon the death of the deceased, Settlement estate duty 
(as well as estate duty) is chargeable on the property. 
If A. dies in the lifetime of the deceased, so that the 
property passes immediately to B, for an absolute in- 
terest, the Settlement estate duty would not, it is 
thought, be payable on the death of the deceased. 

If A. happens to be the wife or husband of the de- 
ceased. Settlement estate duty is not payable. 

If the property was settled by some instrument other 
than a will, such instrument may have been made either 
by the deceased, or some other person, 
(ii) Eeal property is settled (after 1st August, 1894), by A. 
upon himself for life, with remainder to B. for life, 
wdth remainder to C. in tail. 
B. predeceases A. 

Settlement estate duty is not payable on A.'s death, 
(iii) Personal property is settled (after 1st August, 1894) 
upon A. for life, and, after A.'s death, on B. for life, 
and, after B.'s death, as B. shall generally by will 
appoint. 

Settlement estate duty is not payable on A.'s death, 
(iv) Eeal property is devised by A. (dying after 1st August, 
1894) to his eldest son in tail, with remainders over. 
Settlement estate duty is not payable on A.'s death, 
(v) Personal property is bequeathed by A. (dying after 1st 
August, 1894) in trust for B. for life, and, after B.'s 
death, for B.'s appointees. 
Settlement estate duty is not payable on A.'s death. 



22 DEATH DUTIES (eNGLANd). 

a ^* (vi) Property is settled (after 1 st August, 1894) upon A. (hus- 

~^' band) for life, with remainder to B. (wife) for life, with 

remainder to the children. 

Settlement estate duty is not payable on A.'s death, 
(vii) Property is settled upon A. for life, with remainder to 
B. for life, with remainder to C. for life, with remainder 
to D. absolutely. 

Settlement estate duty is payable on A.'s death, but 
not on B.'s death. 

Principal value. Settlement estate duty is, like estate duty 
(sect. 1, p. 2, supra), levied on the principal value (sect. 7, 
p. 84, infra) of the property. 

At the rate hereinafter specified. I.e. one per cent. 

(sect. 17, p. 74, infra). 

Except where the only life interest. Vide supra. Qimre, 
whether the Settlement estate duty is payable if there are tiuo 
or more life interests, one being that of the deceased's wife. 

During the continuance of the settlement. Vide supra, 

Example (vii). These words are necessary in order to prevent 
the Settlement estate duty being paid more than once in respect 
of the same settled property ; otherwise, if there were two or 
more successive life interests arising after the death of the de- 
ceased under the settlement. Settlement estate duty would be 
payable as often as the property passed to a life tenant. 

(2.) If estate duty has already been paid in respect 
of any settled property since the date of the settlement, 
the estate duty shall not, nor shall any of the duties 
mentioned in the fifth paragraph of the First Schedule 
to this Act, be payable in respect thereof, until the 
death of a person who was at the time of his death or 
had been at any time during the continuance of the 
settlement competent to dispose of such property. 

Under this sub-section, if estate duty has once been paid on 
settled property, no further payment of estate duty is required 
until the death of some person who, under the limitations of the 
settlement, is competent to dispose of the property {e.g. a tenant 
in tail or a person with a general power of appointment, whether 
by deed or will, or both. See sect. 22 (2) (a), p. 85, infra). 
Upon the death of such a person, estate duty is charged on the 
property under sect. 2 (1) (a). 

Settled property. By sect. 22 (1 ) (h), settled property is defined 
to mean " proj)crty comprised in a soltlcment." It is conceived, 
therefore, that the exemption given by this sub-section would 



57 & 58 Vict. c. 30. 23 

apply if, Tinder the limitations or trusts of a settlement, property § 6. 

passes on the death of the deceased to some person absolutely. 

(23 Hansard, 4th Ser., p. 522.) 

Example. — Property is settled upon A. for life, with remainder 
to B. for life, with remainder to C. absolutel5^ Estate duty is 
paid on A. 's death. On B.'s death no estate duty, it is thought, 
becomes payable, although 0. takes absolutely. 

The estate duty shall not. It must be borne in mind that 
under sect. 21 (1), personalty settled by a will taking effect on or 
before 1st August, 1894, or by an instrument falling under the 
Customs and Inland Eevenue Act, 1881, sect. 38 (2) (c), where 
the settlor has died on or before 1st August, 1894, is not liable to 
estate duty at all. All other settled property, whenever settled, 
is liable to, at any rate, orie payment of estate duty, though pro- 
perty settled before 1st August, 1894, is not liable to Settlement 
estate duty. 

Nor shall any of the duties mentioned in the fifth para- 
graph, &C. The duties referred to are the one per cent, legacy 
and succession duties payable by lineals. By sect. 1 (p. 2, 
supra) they are by implication chargeable if the property is not 
charged with estate duty. Under this section, if settled pro- 
perty is once cleared of estate duty, it is also cleared of the one 
per cent, legacy or succession duty until estate duty becomes 
again payable. Temporary estate duty under the Act of 1S89, 
s. G, and the additional succession duties under the Act of 1888, 
s. 21, remain, it is thought, payable in such a case {qiKxre, how- 
ever, as to the ^ per cent, additional succession duty : see note 
to sect. 1, *' The existing duties," p. 4, supra). 

Until the death of a person who was at the time of his 
death . . . competent to dispose. 

Example. — Property is settled on A. for life, with remainder 
to B. in tail. Estate duty is payable on A.'s death. B. dies 
without disentailing. Estate duty is paid on his death. 

Had been at any time during the continuance, &c. 

Examples : — 

(i) Property is settled on A. for life, with remainder to B. 
for life, with a general power of appointment. 
B. releases this general power. Estate duty is paid on A.'s 
death and also on B.'s death. 

(ii) Property is settled on A. for life, with remainder to B. 

in tail. B. disentails and resettles on himself for life, 

with remainders over. Estate duty is payable on A.'s 

and also on B.'s death. 

A difficulty will, it is thought, arise in determining, in the 

case of composite settlements and re-settlements, what exactly 

is the settlement, during the continuance of which the deceased 

was competent to dispose of the property. For instance, property 

is, in 1860, settled (subject to charges) to such uses as A. and 

B. shall jointly appoint, and subject thereto to the use of A. for 



24 DEATH DUTIES (eNGLANd). 

§ 5. life, with remainder to the use of B. for life, with remainder 

to B.'s sons in tail. In 1890 the property is, by means of the 
joint power of appointment, resettled (subject to charges) to such 
uses as A., B., and C. (B.'s son) shall jointly appoint, and sub- 
ject thereto to the use of A. , B., and C, successively for life, 
with remainder to C.'s sons in tail. Tbe settlements of 1860 and 
1890 constitute one composite settlement, the date of which is 
1890. Could C. be said to have been competent to dispose of 
the property during the continuance of the settlement ? 

It is suggested (though not with confidence) that in the case 
of composite settlements, and resettlements effected at any rate 
before 1st August, 1894, the settlement actually in operation on 
the 1st of August, 1894, must be taken as the settlement re- 
ferred to in this sub- section, so that, in the example last given, 
C. would not have been competent to dispose of the property 
during the continuance of the settlement. And this it is thought 
would be the case even if the resettlement had been effected by 
means of C. disentailing instead of by the exercise of the joint 
power of appointment. In cases of composite settlements, and 
resettlements, effected bymeans of the exercise of a joint power of 
appointment after the 1st August, 1894, it is thought that estate 
duty would again become payable on the death of the person 
who would have been competent to dispose of the property if 
the settlement in operation at the date when the first or ' ' clear- 
ing" payment of estate duty was made, had been left to work 
itself out. It is fairly clear that this would be the case if the 
resettlement had been effected by means of a disentail. The 
payment of duty on the death of the person competent to dispose, 
above referred to, will in its turn clear the property till the 
death of a person who, under the resettlement, is or might have 
been competent to dispose of the property. 

The section is silent with regard to jointures and portions. It 
is, however, conceived that no duty would be payable on the 
death of a person not competent to dispose of the settled pro- 
perty in respect of the jointures or portions raised on his death 
under limitations, trusts, or powers contained in the settlement, 
or on the cesser of any annuity or rent- charge limited to a 
person for life and charged on the settled property, if estate 
duty has already, on the occasion of a prior death, been paid 
in respect of the settled property during the continuance of 
the settlement. Secus, however, in the case of a jointure or 
portion raised on the death of a person under a general power 
vested in him to charge the property. (See sect. 22 (2) (c), 
p. 86, infra.) 
Examples : 

(i) Property is settled on A. for life, with remainder to B. 
for life, with remainder to secure a jointure rent-charge 
to C. (B.'s wife), with remainder to raise 10,000?., por- 
tions for B.'s younger children, with remainders over. 

On A.'s death, estate duty and Settlement estate duty 
are paid. It is conceived that on B.'s death, the settled 
property being cleared of duty, C. will be entitled to 
her jointure, and B.'s younger children to their por- 
tions, clear of duty. 



57 & 58 Vict. c. 30. 25 

(ii) Property is settled on A. for life, with remainder to B. § 6. 

in tail, with remainder to secure a jointure to B.'s 

wife. 

A. dies. B. then dies without disentailing. Estate 
duty is paid on B.'s death (he being competent to dis- 
pose of the property) and C. has to contribute her share 
of that duty rateably in proportion to the value of her 
jointure (sect. 14 (1), p. 67, infra). 

(iii) Property is settled on A. for life, but a power is reserved 
to him to charge 10,000/. by will on the estates for 
such persons and purposes as he thinks fit. A. by his 
will charges the estates with 5,000/. in favour of B. 

B. has to pay estate duty on the 5,000/. whether 
estate duty has or has not been paid on a prior death 
on the settled property. 

(iv) Under a will or settlement taking effect before the 
1st August, 1894, personal property in respect of which 
probate or account duty, as the case may be, has been 
paid, is settled on A. for life, and after A.'s death upon 
trust to raise 5,000/. for B., and subject thereto the 
property is to be held in trust for G. for life, and after 
C.'s death for C.'s children. 

Estate duty is not, it is submitted, paid on A.'s death 

on the 5,000/. which is then raised, that sum forming 

part of the property in respect of which probate or 

account duty has been paid. 

There is some doubt how rent- charges, charged by the settlor 

in his lifetime upon the settled estates, will be dealt with. 

Example. — A. being seised in fee of Blackacre, executes a 
settlement by which he charges it with an annuity in favour of 
B. : subject thereto he settles the estate on himself for life, with 
remainder to C. in fee. It would appear that on A.'s death 
(which takes place in B.'s lifetime) no deduction could be made 
for B.'s annuity. (See sect. 7(1) (a).) C. would therefore, ac- 
cording to this, have to pay on the whole estate. On B.'s death 
he would have to pay estate duty again (sect. 2 (1) (b) ), the case 
not falling within sect. 7 (10), (p. 45, infra). 

This seems hard on C. It is suggested that the capital value 
of B.'s annuity might be treated as an interest in expectancy 
(see sect. 22 (1) (j), p. 83, infra) to which A. was entitled for 
life contingently upon his surviving B. As he dies before B., 
his interest fails, and under the next section the property (i. r., 
the capital value of the annuity) is not deemed to pass on his 
death. The result would then, so far as C. is concerned, be the 
same as if a deduction was made on A.'s death of the capital 
value of the annuity. 

Estates in dower, and by the courtesy, and any like estate, 
are treated as if settled by the will of the deceased. 

Example : — 

(i) A. becomes, on her husband's death, entitled, as doweress, 
to one-third of Whiteacre for life. She pays estate duty 
(but not Settlement estate duty, sub-sect. 1 (a) ) in respect 
of the principal value of one-third. On A.'s death her 



26 DEATH DUTIES (eNGLAND). 

8 ^» husband's heir has not to pay estate duty in respect of 

- ~~" the one-third, and, if a lineal, succession duty. 

(ii) A. becomes, on his wife's death, entitled, as tenant by the 
courtesy, to Whiteacre for life. He pays estate duty 
(but not Settlement estate duty, vide p. 21, supra), and 
on his death his wife's heir escapes duty, and, if a lineal, 
succession duty. 

(3.) In the case of settled property, where the 
interest of any person under the settlement fails or 
determines by reason of his death before it becomes an 
interest in possession, and subsequent limitations under 
the settlement continue to subsist, the property shall not 
be deemed to pass on his death. 

In order that there may be an exemption from estate duty 
under this sub -section, the following conditions must be ful- 
filled: — (a) The interest of the deceased under the settlement 
must be an interest in expectancy or remainder, and must fail 
or determine by reason of his death, (b) Subsequent limitations 
under the settlement must continue to subsist. 
Examples : 

(i) Property is settled on A. for Hfe, with remainder to B. 
for life, with remainder to C. 

B. predeceases A. Estate duty is not payable on B.'s 
death, 
(ii) Property is settled on A. for life, with remainder to B. 
in tail male, with remainder to 0. in tail male. 

B. predeceases A. sine prole. Here B.'s interest 
under the settlement (namely, his estate tail in remain- 
der) fails, and a subsequent limitation (namely C.'s 
estate tail in remainder) continues to subsist. It is 
conceived that estate duty is not payable on B.'s death, 
though B. was, strictly speaking, "competent to dis- 
pose of the property" (see sect. 2 (1) (a), p. 5, supra, 
and sect. 22 (2) (a), p. 85, infra). 
(iii) Property is settled on A. for life, with remainder to B. in 
tail male, with remainders over. 

B. dies before A., leaving a son. In this case B.'s 
estate tail does not fail on his death, and estate duty 
would, it is thought, be payable, 
(iv) Property is settled upon A. for life, with remainder to B. 
in tail or for life, with no remainders over. 

B. dies before A, sine prole, and the property passes 
to the heirs of the settlor. Estate duty is payable on 
B.'s death, as no Hmitations under the settlement con- 
tinue to subsist. 
Estate duty will, of course, be payable on the death of a 
tenant in fee in remainder under a settlement as well as subse- 
quently upon the death of the tenant for life. If the estate in 
fee is subsequent to an estate tail, recourse can with advantage 
be had to the provisions of sect. 7 (6), (p. 42, infra). 



57 & 58 Vict. c. 30. 27 

(4.) Any person paying the Settlement estate duty § ^' 
payable under this section upon property comprised in a 
settlement, may deduct the amount of the ad valorem 
stamp duty (if any) charged on the settlement in respect 
of that property. 

Any person paying. The persons who are made accountable 
for the duty on settled property consist of beneficiaries in posses- 
sion, trustees, guardians, committees, and voluntary alienees 
(sect. 8 (4) p. 49, infra). Executors are authorized to pay the 
duty if requested by the person accountable. As to raising the 
money for duty, &c., see sect. 8 (5), (6), (7). 

May deduct the amount of the ad valorem stamp duty. 

I.e. OS. per cent, (see the Stamp Act, 1891, Sched.). 

The ad valorem stamp duty can only be deducted from the 
Settlement estate duty. If, therefore, no Settlement estate duty 
is payable {e.g. by reason of the settlement having been made 
before 1st August, 1894, or by reason of the only life interest 
under it being that of the husband or wife of the deceased), no 
deduction can be made. 

If any. These words are inserted, as there is no ad valorem 
duty chargeable on a settlement of real estate. 

In respect of that property. Upon a settlement of mixed 
realty and personalty, stamp duty is only payable in respect of 
the personalty. As between the persons interested in the 
respective classes of property, the deduction should be made 
from the Settlement estate duty upon the settled personalty. 

(5.) Where any lands or chattels are so settled, 
whether by Act of Parliament or Eoyal Grrant, that no 
one of the persons successively in possession thereof is 
capable of alienating the same, whether his interest is in 
law a tenancy for life or a tenancy in tail, the provi- 
sions of this Act with respect to settled property shall 
not apply, and the property passing on the death of any 
person in possession of the lands and chattels shall be 
the interest of his successor in the lands and chattels, 
and such interest shall be valued, for the purpose of 
estate duty, in like manner as for the purpose of suc- 
cession duty. 

Where any lands or chattels, &c. This sub-section deals 
with the case of estates inalienably settled or entailed by an Act 
of Parliament or Eoyal Charter, each of which instruments is a 



28 DEATH DUTIES (eNGLAND). 

§ 6, settlement within the meaning of the Settled Land Act, 1882, 

sect. 2 (1) (see sect. 22 (1) (i), p. 83, infra). 

Property inalienably settled or entailed in this manner can 
(unless the property was purchased with money provided by 
Parliament in consideration of public services) be sold under 
the Settled Land Act, 1882 (see sect. 58 (1) (i) of that Act). 
Thus the estates settled on the Dukedom of Wellington and 
the Earldom of Nelson cannot be sold under the Settled Land 
Acts, but secus in the case of the lands settled on the Dukedom 
of Marlborough [Re The Duhe of Marlborough, 8 Times L. E,. 
582), the Earldoms of Shrewsbury and Abergavenny, and all 
lands which, prior to the Settled Land Act, 1882, had become 
inalienably entailed under the Act 34 & 35 Henry 8, c. 20. It 
is conceived, however, that notwithstanding sect. 58 of the 
Settled Land Act, 1882, the sub- section under consideration 
extends to all the cases noticed above. If the settled property 
is sold in either of the cases mentioned above, the tenant in tail 
cannot disentail, and get possession of the proceeds of sale. The 
same reasoning applies to the case of chattels inalienably settled. 
The power of sale given to tenants for life by the Settled Land 
Act, 1882, is a fiduciary power, and does not render a tenant for 
life, or, it is submitted, a tenant in tail, of an inalienably entailed 
estate competent to dispose of the property (see sect. 22 (2) (a), 
p. 85, infra). 

The provisions of this Act with respect to settled pro- 
perty shall not apply. In the cases above referred to, the 
settlement under the Act of Parliament or Eoyal Charter cannot 
be put an end to, and, except for this sub-section, one payment 
of estate duty would exonerate the property from the payment 
of any further duty for all time. 

The property passing . . . shall be the interest of his 
successor . . . and shall be valued ... in like manner as 
for the purpose of succession duty. See the Succession Duty 
Act, 1853, sects. 21—26, 28, 31, 32. 

Collection and Recovery of Duty and Value of Property. 
Collection and 6. — (1.) Estate duty shall be a stamp duty, collected 

recovery of . . 

Estate duty. aud recovered as hereinafter mentioned. 

(2.) The executor of the deceased, shall pay the 
estate duty in respect of all personal property (where- 
soever situate) of which the deceased was competent to 
dispose at his death, on delivering the Inland Eevenue 
affidavit, and may pay in like manner the estate duty 
in respect of any other property passing on such death, 
which by virtue of any testamentary disposition of the 



. 57 & 58 Vict. c. 30. 29 

deceased is under the control of the executor, or in the § 6. 
case of property not under his control, if the persons 
accountahle for the duty in respect thereof request him 
to make such payment. 

Estate duty. This expression, as used throughout the Act, 
includes, where the context requires it, the Settlement estate 
duty, as well as the estate duty proper (see 26 Hansard, 4th Ser., 
p. 1645). 

Stamp duty. By sect. 8 (16) (p. 54, infra), the duty is to 
be collected by means of stamps, or such other means as the 
Commissioners prescribe. Under the Customs and Inland 
Eevenue Act, 1881, the Inland Eevenue affidavit has to bear a 
stamp showing the amount of the probate duty, and the account 
delivered in respect of property liable to account duty, a stamp 
showing the amount of such duty. 

Collected and recovered as hereinafter mentioned. See 

the other provisions of this section, and also sects. 8 and 9 
(pp. 45 to 59, infra). 

The executor. "The executor" in this Act means the 
executor or administrator of a person dying after the 1st August, 
1894, and, as regards any obligation under this and the follow- 
ing sections, includes any person who takes possession of, or 
intermeddles with, the personal property of a deceased person 
(sect. 22 (1) (d), p. 82, i„fm). 

Shall pay the estate duty in respect of all personal 
property (wheresoever situate) of which the deceased was 
competent to dispose at his death on delivering the Inland 
Revenue affidavit. The liability imposed on the executor is to 
pay the estate duty on all the free personalty of the deceased, 
whether in the United Kingdom or not, including personalty 
over which the deceased had a general power of appointment 
which he did not exercise. (See sect. 22 (2) (a), p. 85, infra.) 
This liability, is, however, limited to the amount of the assets 
which he has received as executor, or might, but for his own 
neglect or default, have received. (Sect. 8 (3), p. 48, infra.) 

The executor must to the best of his knowledge specify in 
appropriate accounts annexed to the Inland Eevenue affidavit 
(see sect. 8 (3), p. 48, infra) all the property passing on the 
deceased's death liable to duty, and the rate of the estate duty 
will, in the first instance, be calculated upon the value of the 
estate as appearing in these accounts. (Sect. 8 (7), p. 52, 
infra.) "The existing law and practice" relating to the col- 
lection and recovery of probate duty being made applicable to the 
collection and recovery of estate duty (sect. 8 (1), p. 45, infra), 
it is presumed, that the Commissioners will, upon being satisfied 
with the prima facie cori-ectness of the Inland Eevenue affidavit 
and the annexed accounts, allow the affidavit to be stamped, so 
as to enable j)robate to be granted under the Customs and Inland 



30 DEATH DUTIES (eNC^LANd). 

§ 6. Bo venue Act, 1881, s. 30. If it should turn out that too little 

duty has been paid, the matter would be dealt with by means of 

a supplemental or corrective affidavit. 

The " Inland Revenue affidavit " will continue to be the same 
as that hitherto in use (see sect. 22 (1) (n), p. 84, infra), subject 
to such modifications as may be necessary to carry out the pro- 
visions of the Act. (See the following sub-sections, and sect. 8 
(14), p. 54, infra.) 

If the executor does not know the amount or value of any 
property which has passed on the death, he is, by the following 
sub-section allowed, upon certain terms, to make a statement to 
that effect in his affidavit. It is presumed that the duty will 
then, for the purposes of stamping the Inland Revenue affidavit, 
be calculated upon the value of the property appearing in the 
accounts annexed thereto, and that upon payment of the duty 
at the rate so ascertained upon the property appearing in the 
accounts, for the duty upon which the executor is liable, the 
affidavit will be stamped and probate granted. (See 25 Hansard, 
4th Ser., p. 881, and sect. 8 (17), p. 54, infra). 

By sect. 8 (9) (p. 52, infra), the Commissioners are autho- 
rised in certain cases, to allow the payment of the duty to be 
postponed. In such cases probate will, it is thought, be granted. 
(See 26 Hansard, 4th Ser., p. 1616, and sect. 8 (17), p. 54, infra.) 

The duty on property passing to the executor, as such, will be 
paid as probate duty was formerly paid, (viz.) out of the general 
personal estate. The duty on personal property which does not 
pass to the executor, as such, but for the duty on which the 
executor is liable {e.g. foreign free personalty and personalty over 
which the deceased had an unexercised general power of appoint- 
ment) will be recoverable from the trustees or owners of the pro- 
perty (sect. 9 (4), p. 58, infra, 25 Hansard, 4th Ser., p. 1529), 
or may be raised by the executor by sale or mortgage of the 
j)roperty itself (sect. 9 (5), p. 58, infra). 

May pay. There is no obligation on the executor to pay the 
duty on any other property except the deceased's free personalty 
(as defined above) ; but he may pay the duty, (a) upon any other 
property which by virtue of any testamentary disposition of the 
deceased is under his control [e.g. real estate devised to him in 
trust or charged with debts) ; (b) upon any other property not 
under his control {e.g. settled property, or real estate not devised 
to him or charged with debts) ; but in this case only at the 
request of the persons accountable for the duty. 

If the executor pays the duty out of general assets in his 
hands, he may recover the amount paid from the trustees or 
owners of the property (sect. 9 (4), p. 58, infra) ; or he may 
raise the amount of the duty, either before or after he actually 
pays it, by sale or mortgage of the property (sect. 9 (5), p. 58, 
infra). 

Under the control of the executor. See last note. 

Persons accountable for the duty. Several persons may be 
accountable for the duty on the same property'', e.g. a beneficiary 
under a settlement, and also the trustees of the settlement. 



57 & 58 Vict. c. 30. 31 

It is not clear whether in such a case it is necessary that all § 6. 

the persons accountable should request the executor to pay the " 

duty. 

(3.) Where the executor does not know the amount 
or value of any property which has passed on the death, 
he may state in the Inland Eevenue affidavit that such 
property exists but he does not know the amount or 
value thereof, and that he undertakes, as soon as the 
amount and value are ascertained, to bring in an 
account thereof, and to pay both the duty for which he 
is or may be liable, and any further duty payable by 
reason thereof for which he is or may be liable in 
respect of the other property mentioned in the affidavit. 

(4.) Estate duty, so far as not paid by the executor, 
shall be collected upon an account setting forth the par- 
ticulars of the property, and delivered to the Commis- 
sioners within six months after the death by the person 
accountable for the duty, or within such further time 
as the Commissioners may allow. 

(5.) Every estate shall include all income accrued 
upon the property included therein down to and out- 
standing at the date of the death of the deceased. 

Property. I.e. any property passing at the death, whether 
the executor is liable for the duty on it or not. 

Undertakes ... to bring in an account. This provi- 
sion is supplemental to sect. 8 (3), (p. 48, infra), under which 
the executor is bound to annex to the Inland Eevenue affidavit 
accounts of all the property passing at the death and liable to 
estate duty. It is by means of these accounts that the rate of 
the estate duty is in the first instance determined (sect. 8 (7), 
p. 52, infra). 

Both the duty for which he is or may be liable and, &c. 

I.e. if the property in question is property for the duty on which 
the executor is accountable. 

Any further duty. Upon the value of the property in ques- 
tion being aggregated with that of the other property mentioned 
in the affidavit, it may turn out that duty on such other pro- 
perty has been paid at too low a rate. The executor in such a 
case undertakes to pay the balance of the duty payable on the 
property, for the duty on which he is accountable. 



<i2 DEATH DUTIES (eNGLAND). 

§ 6* Accoimt. This account is to be in such form, and shall 

contain such particulars, as the Commissioners may prescribe 
(sect. 8 (14), p. 54, infra). If required by the Commissioners, 
it is to be in duplicate, and it must be verified on oath, and by 
the production of books and documents, in the manner pre- 
scribed by the Commissioners (sect. 8 (14), p. 54, infra). There 
will, it would appear, be two accoimts delivered of property, 
the duty on which is not paid by the executor, — one annexed to 
the executor's Inland Eevenue affidavit (sect. 8 (3), p. 48, 
infra), and the other delivered by the person accountable for 
the duty. 

Within six months. The duty becomes due on the delivery 
of the account, or the expiration of six months from the death, 
whichever first happens (sub-sect. (7), infra). In the case of 
real property the duty may be i)aid by instalments as provided 
by sub-sect. (8), infra. 

Person accountable for the duty. See sect. 8 (4), (p. 49, 

infra). 

Shall include all income, &c. All income, whether arising 
from settled or unsettled property, outstanding at the death of 
the deceased, is made liable to estate duty, as it was, before the 
Act, liable to Probate duty. Such income will be apportioned 
under the Apportionment Act, 1870 (33 & 34 Yict. c. 35), and 
will, it is presumed, form part of the general personal estate 
of the deceased. 

(6.) Interest at the rate of three per cent, per annum 
on the estate duty shall be paid from the date of the 
death up to the date of the delivery of the Inland 
Bevenue affidavit or account, or the expiration of six 
months after the death, whichever first happens, and 
shall form part of the estate duty. 

(7.) The duty which is to be collected upon an Inland 
Eevenue affidavit or account shall be due on the delivery 
thereof, or on the expiration of six months from the 
death, whichever first happens. 

The estate duty is calculated as at the death of the deceased ; 
interest upon the duty is then calculated for the period inter- 
vening between the death and the delivery of the Inland Eevenue 
affidavit or account, or the expiration of six months from the 
death, whichever first happens. The sum so arrived at is treated 
as the estate duty, and carries interest, as provided by sect. 8 (10) 
(p. 53, infra), from the time at which the duty becomes due 
[i.e., the delivery of the affidavit or account, or the expiration 
of six months from the death, whichever first happens ; see the 
next sub-section). 



■ 57 & 58 Vict. c. 30. 33 

Interest. By sect. 16 (5), (p. 72, infra), if the fixed duty of § 6. 

305., or oOs. (being the duty payable where the gross value of 
the real and personal estate of the deceased liable to estate duty, 
exclusive of property settled otherwise than by his will, does not 
exceed 300?. or oOOl., as the case may be) is paid within twelve 
months after the death, interest is not payable on the duty. 

(8.) Provided that the duty due upon an account of 
real property may, at the option of the person delivering 
the account, be paid by eight equal yearly instalments, 
or sixteen half-yearly instalments, with interest at the 
rate of three per cent, per annum from the date at 
which the first instalment is due, less income tax, and 
the first instalment shall be due at the expiration of 
twelve months from the death, and the interest on the 
unpaid portion of the duty shall be added to each , 
instalment and paid accordingly ; but the duty for the 
time being unpaid, with such interest to the date of 
payment, may be paid at any time, and in case the pro- 
perty is sold, shall be paid on completion of the sale, 
and if not so paid shall be duty in arrear. 

TJpon an account of real property. It is presumed that in 
cases of payment by instalments under this section, the pro- 
visions of sub-sect. (6), supra, apply, and that interest on the 
duty at three per cent, for the period intervening between the 
death and the delivery of the account, or the expiration of six 
months from the death (whichever first happens), is added to, and 
forms part of, the estate duty. 

At the option, &C. The duty may, in the case of real pro- 
perty, be paid in the same way as on personalty (sub-sect. (4), 
supra), or by instalments. 

At which the first instalment is due. /. e., twelve months 
after the death. 

Less income tax. I-e., the income tax on the interest. 
And the interest on the unpaid portion, &c. These words 

might be taken to imply that if any instalment and interest was 
in arrear, interest would be payable on such instalment and 
interest. Tt is, however, thought that it is not intended to charge 
interest on unpaid interest, but only on the duty for the time 
being unpaid. 

The instalments may be put an end to (a) voluntarily, by 
payment of duty and interest up to date ; (b) compulsorily, by 
the sale of the property, when the duty and interest up to date 
must be paid on the completion of the sale. 



34 DEATH DUTIES (eNGLANd). 

§ 6. Shall be paid on completion. Thougli a land fide purchaser 

' without notice is exempted from personal liability for duty 

(sect. 8 (18), p. 55, infra), and the property in his hands is 
exonerated from any charge for duty (sect. 9 (1), p. 56, infra), 
a purchaser should, if he has notice that the duty was payable 
in instalments, insist upon seeing that the provisions of this sub- 
section are carried out. (See, however, sect. 8 (2), p. 47, infra.) 
It is a question of some doubt whether a purchaser should, in 
the case of the abstract of title showing a recent death, inquire 
whether the duty on that death was payable by instalments. 
(As to this, cp*. Re Ford and Hill, 10 Ch. D. 365 ; and see notes 
on sect. 8 (18), p. 55, infra, and sect. 9 (1), p. 56, infra.) 

Shall be duty in arrear. I.e., the unpaid duty and interest 
up to the date of completion of the sale. This amount will 
carry interest under sect. 8 (10), (p. 53, infra). 

Value of 7 — n\ jj^ determining the value of an estate for the 

property. ^ ^ ® 

purpose of estate duty allowance shall be made for 
reasonable funeral expenses and for debts and incum- 
brances ; but an allowance shall not be made — 

(a) for debts incurred by the deceased, or incum- 

brances created by a disposition made by the 
deceased, unless such debts or incumbrances were 
incurred or created bond fide for full considera- 
tion in money or money's worth wholly for the 
deceased's own use and benefit and take effect 
out of his interest, nor 

(b) for any debt in respect whereof there is a right 

to reimbursement from any other estate or 
person, unless such reimbursement cannot be 
obtained, nor 

(c) more than once for the same debt or incumbrance 

charged upon different portions of the estate ; 
and any debt or incumbrance for which an allowance is 
made shall be deducted from the value of the land or 
other subjects of property liable thereto. 

In determining the value of an estate for the purpose of 
estate duty allowance shall be made. By The Customs and 
Inland Revenue Act, 1881, sect. 28, a power to deduct debts 
and funeral expenses was given only where the deceased was 

Subject to the provisions of 



67 & 58 Vict. c. 30. 35 

sub-sect. (2) infra, with regard to the allowance of debts due to § *7. 

creditors resident out of the United Kingdom, the section under — ' 

consideration is general, and appears to apply to all estates liable 
to duty whether passing on the death of a person domiciled in 
the United Kingdom or not. Thus, in the case of a domiciled 
foreigner an allowance can, it is thought, be made for debts due 
to creditors resident in the United Kingdom, and for debts or 
incumbrances charged on his property within the United King- 
dom, and, it would seem, for debts due to creditors resident 
abroad but contracted to be paid in the United Kingdom. 
Allowance cannot be made for incumbrances charged on pro- 
perty belonging to a domiciled foreigner situate abroad, such 
property not being liable to estate duty (see sect. 2 (2), p. 14, 
supra, and sub-sect. (2), infra). Incumbrances upon property 
situate abroad but liable to estate duty can, it is thought, be 
deducted from the value of that property. 

Reasonable faneral expenses. I.e., the usual necessary ex- 
penses of burying the deceased in a manner suitable to his position 
in life and his means generally. (See Williams on Executors, 
9th ed., i3p. 839 et seq.) Such expenses do not include expenses 
incurred in embalming the body, bringing it home from abroad, 
erecting a tomb or monument, or putting the family or servants 
into mourning. (See Williams on Executors, cited supra; 
Johnso7i V. Baker, 2 Oar. & Pa. 207 ; Bridge v. Broiun, 2 Yo. & Coll. 
C. C. 181.) 

Debts. As to debts due to creditors resident abroad, see sub- 
sect. (2), infra; and as to debts due from a person domiciled 
abroad to creditors resident in England, see the first note to this 
section. Debts will be deducted from the property of the 
deceased liable thereto in the due course of administration. 

Incumbrances. All incumbrances (including, of course, 
ancestral incumbrances) can, subject to the provisions of sub- 
clause (a), be deducted from the property liable thereto. As to 
incumbrances charged on property abroad liable to duty, vide 
supra. Incumbrances include mortgages and terminable charges 
(sect. 22 (1), (k), p. 84, infra) ; in the case of the latter, a 
rateable part of the duty may in many instances be thrown on 
to the charge (see note on sect. 5 (2), p. 25, supra, and sect. 41 
(1), p. 67, infra). 

An allowance shall not be made. Under the Customs and 
Inland Eevenue Act, 1881, sect. 28, no deduction could be made 
for ' ' voluntary debts expressed to be payable on the death of 
the deceased, or payable under any instrument which shall not 
have been hojid fide delivered to the donee thereof three months 
before the death of the deceased." Debts contracted in con- 
sideration of marriage could therefore be deducted. Under this 
Act, however, no deduction can be made in respect of debts or 
incumbrances incurred or created in consideration of marriage. 

Examples : — 

(i) A. , upon his daughter's marriage, covenants to pay 2,000?. 

d2 



36 ' DEATH DUTIES (ENGLAND ). 

§ 7. to the trustees of her settlement -within, six months of 

his death. The 2,000?. cannot on A.'s death be deducted 

from A.'s general estate, 
(ii) A., upon his daughter's marriage, charges Whiteacre 
with the payment on his death of 2,000Z. to the trustees 
of his daughter's settlement. The 2,000L cannot on 
A.'s death be deducted from the value of Whiteacre. 
By sub-sect. (10) (p. 45, infra), the same property cannot be 
aggregated or estate duty paid in respect thereof more than once 
on the same death. 

In each, therefore, of the two cases above given the duty on 
the 2,000/. will be paid as part of the duty — in the one case on 
A.'s general estate, and in the other case on Whiteacre. No 
further duty will be paid on the 2,000?. by reason of its passing 
to the trustees of the daughter's settlement, but the trustees will 
have to refund a rateable part of the dutj^ to the person paying 
the duty on the whole property (sect. 14 (1), p. 67, infra ; and 
see note on sect. 5 (2), p. 25, supra). 

For full consideration in money or money's worth. These 
words will not, it is thought, be unduly strained. " Full con- 
sideration" means full consideration at the time the debt was 
incurred or incumbrance created. Thus in many cases a sum 
presently paid to a borrower would be full consideration for a 
considerably greater sum, payable on the death of the borrower. 
The case of a charge given upon property for partial considera- 
tion would, in certain cases, fall within sect. 3 (2) (p. 16, supra). 
But it is submitted that, in any case, a pro tanto allowance 
would be made in respect of debts and incumbrances incurred 
and created for partial consideration. As to " money or money's 
worth," see note on sect. 3 (1), (p. 17, supra). 

Wholly for the deceased's own use or benefit. These 
words were, no doubt, inserted to meet the case of the deceased 
having made himself liable iov, or charged his property to 
secure, the debt of another person. In such a case, the debt or 
incuml)rance may have been incurred or created for full con- 
sideration ; but as the deceased's estate has not had the benefit 
of the consideration, no deduction will be allowed in respect of 
the debt or incumbrance. The words will, however, cause diffi- 
culty in cases falling under the next sub -clause. 

And take effect out of Ms interest. By sect. 22 (2) (b) (p. 86, 

infra) a disposition taking effect out of the interest of the de- 
ceased shall be deemed to have been made by him, whether the 
concurrence of any other person was or was not required. An 
instance of such a disposition would be a mortgage created by a 
tenant in tail in remainder, who disentails with the concurrence 
of the tenant for life, to secure money raised by the former. 
(Cf., Attorney -General v. Sibthorp, 3 Hurlst. & Norm. 424.) 

As the incumbrance must " take effect." no allowance can, it 
is thought, be made for a contingent incumbrance. The mean- 
ing of the words " out of his interest" is not clear. Could, for 
instance, a mortgage created by a tenant for life on the inherit- 



57 & 58 Vict. c. 30. 37 

ance of the property under a power in tlie settlement to secure § "^^ _ 

money raised for his benefit, or a mortgage created by two ^~~ ~ — 

limited owners for the benefit of one of them, by the exercise of 
a joint general power of appointment, be said "to take effect 
out of the interest" of the person for whose benefit the mortgage 
was made ? 

Nor for any debt in respect whereof there is a right to 
reimbursement from any other estate or person. These 
words are taken, with slight alterations, from sect. 28 of the 
Customs and Inland Revenue Act, 1881, and the debts re- 
ferred to are debts for which the deceased's estate is not 
primarily liable {e.g. a partnership debt), or for which the de- 
ceased was surety only. The word "estate" is used in this 
passage in its ordinary sense, and not in the technical sense in 
which it is used in other parts of the Act. It is doubtful whether, 
having regard to the words "for the deceased's own use or 
benefit " in sub-clause (a), debts which would otherwise fall 
within this sub-clause will be allowed to be deducted ; e.g. a 
debt incurred by the deceased as surety for another person, 
where, so far as the deceased was concerned, the transaction was 
without consideration, or a partnership debt where the considera- 
tion passed to the partnership. The word "incumbrance" is 
not used in this sub-clause, but it is thought that a charge given 
by the deceased on his property as surety (without incurring 
any further personal liability) would be on the same footing as 
a suretyship debt. 

More than once for the same, &c. 

Exam'pJe. — Whiteacre is mortgaged for 2,000?. and the deeds 
of Blackacre are deposited by way of collateral security. The 
2,000?. can be deducted from the value of Whiteacre, but (unless 
Whiteacre is worth less than 2,000/.) not from Blackacre. 

Any debt or incumbrance . . . shall be deducted. 

See notes on "Debts" and "Incumbrances" at the beginning of 
the section. 

A return of duty will be made by the Commissioners if any 
debts or incumbrances have not been allowed which ought to 
have been allowed (sect. 8 (12), p. 53, infra) ; and if a certificate 
has been granted under sect. 9 (2) (p. 56, infra) the return will 
be made to the person producing the certificate (sect. 9 (3), p. 57, 
infra). Any decision of the Commissioners as to repayment of 
duty is subject to appeal to the High Court. (Sect. 10 (1), 
p. 59, infra.) 

(2.) An allowance shall not be made in tlie first 
instance for debts due from the deceased to persons resi- 
dent out of the United Kingdom, (unless contracted to 
be paid in the United Kingdom, or charged on property 
situate within the United Kingdom), except out of the 
value of any personal property of the deceased situate 



58 DEATH DUTIES (eNGLANd). 

§ *7. out of the United Kingdom in respect of which estate 
duty is paid ; and there shall be no repayment of estate 
duty in respect of any such debts, except to the extent 
to which it is shown to the satisfaction of the Commis- 
sioners, that the personal property of the deceased 
situate in the foreign country or British Possession in 
which the person to whom such debts are due resides, is 
insufficient for their payment. 

Debts due from the deceased to persons resident out of 
the United Kingdom. The rules as to these debts are as 
follows : — 

(i) If contracted to be paid in the United Kingdom, or 
charged upon property situate within the United King- 
dom, such debts will be deducted in the one case from 
the value of the assets within the United Kingdom 
liable thereto in a due course of administration, and in 
the other case from the value of the property specific- 
ally charged. This rule appears to apply whether the 
deceased was domiciled in the United Kingdom or not. 

(ii) If not contracted to be paid in the United Kingdom or 
charged upon property situate within the United King- 
dom, the debts in question will, in the first instance, be 
deducted from the value of the deceased's free personal 
property situate abroad, but in this case the deceased 
must have been domiciled in the United Kingdom. 
(See sect. 2 (2), p. 14, supra.) It would appear that 
the deduction need not necessarily be made as against 
personnl property situate in the country in which the 
foreign creditor resides. Thus, if the deceased, pos- 
sessing 10,000?. free personalty in Eussia, owes 5,000L 
in France, the executor is allowed to deduct the French 
debt of 5,000?. from the Russian personalty, and is 
required only to pay duty on the balance. 

(iii) If the deceased was domiciled in the United Kingdom, 
and the foreign personalty (if any) does not equal or 
exceed the foreign debts, or if the deceased was domi- 
ciled abroad, no allowance is made in the first instance 
as against the property in the United Kingdom, in 
respect of the debts in question. If, however, the 
Commissioners are satisfied that the deceased's person- 
alty in the country, where the creditor resides, is to any 
extent insufficient for payment of his debt, a return of 
duty will to that extent be made in respect of the debt. 
(See sects. 8 (12), 9 (8), pp. 53 & 57, infra ; and as to 
appeal, see sect. 10 (1), p. 59, infra.) 

Any personal property of the deceased situate out of the 
United Kingdom, &c. See sect. 2 (2), p. 14, supra. 



57 & 58 Vict. c. 30. 39 

(3.) Where the Commissioners are satisfied that any § 7. 
additional expense in administering or in realising pro- 
perty has been incurred by reason of the property being 
situate out of the United Kingdom, they may make an 
allowance from the value of the property on account of 
such expense not exceeding in any case five per cent, on 
the value of the property. 

(4.) Where any property passing on the death of the 
deceased is situate in a foreign country, and the Com- 
missioners are satisfied that by reason of such death any 
duty is payable in that foreign country in respect of 
that property, they shall make an allowance of the 
amount of that duty from the value of the property. 

Foreign country or British Possession. Throughout these 
notes a person domiciled in a foreign country or British Pos- 
session is spoken of as domiciled abroad or as a domiciled 
foreigner, and a creditor resident in a foreign country or British 
Possession is spoken of as a foreign creditor or as resident 
abroad. 

Situate out of the United Kingdom. I.e., whether in a 

foreign country or a British Possession. The property in ques- 
tion is personalty abroad belonging to the deceased, or in which 
he had an interest, he being domiciled in the United Kingdom. 
In most cases such property is realised on the deceased's death, 
at very considerable expense. 

Foreign country. The phrase appears to be used throughout 
the Act in contradistinction to "British Possession." Under 
sect. 20 (p. 77, infra), the amount of death duty payable in a 
British Possession, to which that section is applied by an Order 
of the Queen in Council, in respect of property situate in such 
British Possession, and liable to estate duty under this Act, may 
be deducted from the estate duty. That section can, however, 
only be applied to a British Possession (a) if by the law of such 
possession no duty is leviable in respect of property situate in 
the United Kingdom when passing on death ; or (b) if the law 
of such possession, as respects any death duty, is to the like 
effect as the provisions of sect. 20. (See sect. 20 (3), p. 78, -infra.) 
It would appear that the benefit of sect. 7 (4) should extend to 
the case of a British Possession to which sect. 20 does not apply. 

(5.) The principal value of any property shall be 
estimated to be the price which, in the opinion of the 
Commissioners, such property would fetch if sold in the 
open market at the time of the death of the deceased ; 



40 DEATH DUTIES (eNGLAND). 

§ ^' Provided that, in the case of any agricultural pro- 

perty, where no part of the principal value is due to the 
expectation of an increased income from such property, 
the principal value shall not exceed twenty-five times 
the annual value as assessed under Schedule (A) of the 
Income Tax Acts, after making such deductions as have 
not been allowed in that assessment and are allowed 
under the Succession Duty Act, 1853, and making a 
deduction for expenses of management not exceeding 
five per cent, of the annual value so assessed. 

The principal value. I.e., after making the deductions 
allowed under the preceding sub-sections. 

Any property. The general working rule is that the market 
value of the property at the time of the death is to be taken. 
The Commissioners are (except in the case of agricultural property 
not having a prospective value) to ascertain such value in such 
manner and by such means as they think fit, and are given certain 
powers as to insi:)ection of the property. (Sub-sect. (8), 
rufra.) The reasonable costs of any valuation required by the 
Commissioners are to be borne by them. As the existing law 
and practice with regard to anj^ of the death duties are, for the 
purposes of the collection and recovery of estate duty, embodied 
in this Act, it is thought that, at any rate for the purposes of 
•probate, the Commissioners will in the first instance accept the 
value put on the property by the executor or other persons 
accountable for the duty. (25 Hansard, 4th Ser., p. 881.) 

As to appeals from valuations of the Commissioners, see 
sect. 10, (p. 59, infra). If duty has been overpaid owing to 
over- valuation by the Commissioners, interest at three per cent, 
is paid on the excess of duty. (Sect. 8 (12), p. 53, infra.) 

Agricultural property is defined by sect. 22 (1) (g) (p. 83, 
infra), to mean agricultural land, pasture, and woodland, and 
is also deemed to include such cottages, farm buildings, farm 
houses, and mansion houses (together with the lands occupied 
therewith) as are of a character appropriate to the property. 

Where no part of the principal value, &c. Property which 
literally falls within the definition given in sect. 22 (1) (g) may 
have what is known as a prospective value. In such a case this 
proviso does not apply, and the value of the property must be 
ascertained in the usual way. Anomalies like those which 
formerly occurred under the Succession Duty Act, 1853 (see 
The Attorney -General v. Lord Sefton, 2 Hurlst. & Colt. 362) will 
not, therefore, occur under this Act. 

Shall not exceed twenty-five times. This is the maximum. 



57 & 58 Vict. c. 30. 41 

Of course the Commissioners may put the property at a less § 7. 
number of years purchase. '- •" — ' , - 

The annual value as assessed under Schedule (A) of the 
Income Tax Acts. Under the Income Tax Act, 1842, s. 60, 
the rule for assessing the annual value of property, chargeable 
under Schedule (A), is as follows : — 

"The annual value of lands, tenements, hereditaments, or 
heritages, charged under Schedule (A), shall be understood to be 
the rent by the year at which the same are let at rack-rent, if the 
amount of such rent shall have been fixed by agreement, com- 
mencing within the period of seven years preceding the fifth day 
of April next before the time of making the assessment ; but if 
the same are not so let at rack-rent, then at the rack-rent at 
which the same are worth to be let by the year." 

The valuation of property for the purpose of Schedule (A) is 
obtained as a rule from the gross amount of assessment to the 
local rates. The particular deductions and allowances made in 
respect of agricultural property under Schedule (A), consist of 
house and land tax, drainage, fencing, and embankment rates, 
and the outlay, on the average of the preceding twenty-one years, 
upon erecting and maintaining sea walls (16 & 17 Vict. c. 34, 
s. 37), and also all rates or taxes which fall by law on the tenant, 
but are paid by the owner {e.g., poor, highway, school board, 
water, district, sanitary, borough, and general rates). 

Deductions as have not been . . . and are allowed under 
the Succession Duty Act, 1853. I.e., for necessary outgoings 
(sect. 22) — e.g., chief rents; fire insurance ; repairs executed or 
paid for by the owner (for buildings, &c. on farms generally 
5 to 1^ per cent., for ordinary house proj)erty generally 10 per 
cent., for cottage property 12 to 15 per cent.); tithes, and tithe 
rent -charge; — (sect. 28) fines, fees, and other payments incident 
to tenure, and also consideration paid for compulsory enfran- 
chisement. An allowance for unpaid instalments of succession 
duty would, it is thought, be made under sub- sect. (1). 

Incumbrances for the purpose of this Act are dealt with in sub- 
sect. (1), supra ; it is thought, therefore, that sect. 34 of the Suc- 
cession Duty Act, 1853, does not, speaking generally, apply. 
But qiicere whether an allowance might not be made for moneys 
laid out by a successor in substantial repairs or permanent im- 
provement of the property previously to coming into possession. 

It is not clear how "woodland" (which is included in the 
definition of "agricultural property" in sect. 22 (1) (g), p. 83, 
infra) will be dealt with, or how far the value of growing timber 
will be taken into account in ascertaining the value of the pro- 
perty. Under sect. 23 of the Succession Duty Act, 1853, timber 
(not being coppice or underwood) is not taxable until it is 
actually severed from the land. When cut down and sold (if 
the net moneys in any one year exceed 10/.) succession duty is 
charged upon the successor's interest in the net moneys, after 
deducting all necessary outgoings— r.e., the expenses of selling, 
felling, and drawing out the timber, of restoring the fences, 



42 DEATH DUTIES (eNGLANd). 

§ 7. ditclies, roads, and gates, injured by the felling and drawing 

*'-'■■■' — out of such timber, in so far as these expenses are borne by the 

vendor; also the expenses of the year in which the sale takes 
place in connection with the growth of the timber actually sold. 
The provisions of that section not being in any way incorpo- 
rated into this Act, it is thought that if timber on property 
passing on death is subsequently cut down and sold the proceeds 
of sale will not be charged with any estate duty in addition to 
that paid on the death. In the case of " timber estates" (such 
as the estate referred to in Dashivood y. Magniac, (1891) 3 Ch. 
306), an annual income is derived from the timber, and it is sub- 
mitted that in such a case the allowances mentioned in sect. 23 
of the Succession Duty Act should be made. 

Expenses of management. This is new. Under the Suc- 
cession Duty Act no deduction can be made for expenses of 
management. 

Not exceeding five per cent. This is the maximum. The 
Commissioners will, no doubt, determine the percentage to be 
allowed, having regard to the average amount of the expenses 
of management. For the purpose of estimating the duty in the 
first instance, the Commissioners will, it is thought, accept a 
valuation which is prima facie in accordance with this proviso. 
(See notes on sect. 6 (2), p. 28, supra, and note on this sub- 
section " Any proi)erty " supra.) 

(6.) Where an estate includes an interest in expect- 
ancy, estate duty in respect of that interest shall be paid, 
at the option of the person accountable for the duty, 
either with the duty in respect of the rest of the estate 
or when the interest falls into possession, and if the duty 
is not paid with the estate duty in respect of the rest of 
the estate, then — 

(a) for the purpose of determining the rate of estate 
duty in respect of the rest of the estate the value 
of the interest shall be its value at the date of 
the death of the deceased ; and 

(b) the rate of estate duty in respect of the interest 
when it falls into possession shall be calculated 
according to its value when it falls into posses- 
sion, together with the value of the rest of the 
estate as previously ascertained. 

An interest in expectancy. This expression includes (sect. 22 
(1) (j), p. 83, infra) an estate in remainder or reversion, and every 
other future interest, whether vested or contingent ; but docs not 



57 & 58 Vict. c. 30. 43 

include reversions expectant upon tlio determination of leases § 7. 

(*. e. , leases for years). If an interest in expectancy passes on ~ * 

the death of any person, such j)erson must have been competent 
to dispose of the interest. No question can arise therefore under 
sect. 5 (3), (p. 26, supra). Under this section the duty on an 
interest in expectancy can be paid either on the death of the 
deceased upon the value of the interest at that time, or when 
the interest falls into possession. Sub-clauses (a) and (b) pro- 
vide how the rate of duty payable on the estate, other than the 
interest in expectancy, and on the interest when it falls into 
possession, is to be ascertained. 

Example. — Whiteacre is settled on A. for life, with remainder 
to B. in fee. B. predeceases A., devising all his property to C. 
Whiteacre is worth 10,000?. as an estate in fee ; as an estate in 
remainder expectant on the determination of A's life interest, 
it is worth 8,000?. The rest of B.'s property is worth 16,000?. 
0. elects to pay the duty on Whiteacre on A.'s death. In order 
to ascertain the rate of duty payable on the 16,000?., the present 
value of Whiteacre— 8,000?.— must be added to the 16,000?. 
The rate of duty payable on an estate worth the sum of these 
two amounts (namely, 24,000?.) is 4 percent. Duty at this rate 
is paid then on the 16,000?. On A.'s death, the duty on White- 
acre, which became payable on B.'s death, but has been post- 
poned, must be paid. The value of Whiteacre, which is now in 
possession, is 10,000? : this sum, and 16,000?., which was the 
value of the rest of the estate, added together make 26,000?., 
the rate of duty for which is 4^ per cent. Duty at this rate 
must therefore be paid by C. upon AVhiteacre. 

This example can be elaborated to any extent. 

If the interest in expectancy is a reversion or remainder 
expectant upon some death, duty will (if otherwise paj'able) 
have of course to be paid on that death in addition to the duty, 
the payment of which has been postponed. 

Example. — Whiteacre is settled by A. on himself for life, with 
remainder to B. in fee. B. predeceases A., and leaves White- 
acre to C. C. elects to pay the duty on A.'s death when the 
estate falls into possession, i.e., when A. dies. On A.'s death 
C. will have to pay the duty payable on A.'s death, as well as 
the postponed duty which became payable on B.'s death. 

See, too, note on sect. 5 (2), (p. 25, supra). 

(7.) The value of the benefit accruing or arising 
from the cesser of an interest ceasing on the death of 
the deceased shall — 

(a) if the interest extended to the whole income of 

the property, he the principal value of that pro- 
perty ; and 

(b) if the interest extended to less than the whole 
income of the property, be the principal value of 



44 DEATH DUTIES (eNGLAND). 

_ § 'V an addition to the property equal to the income 

to which the interest extended. 

The value of the benefit accruing or arising from the 
cesser of an interest. This sub-section deals with cases 
falling under sect. 2 (1) (b), (p. 6, supra), namely, life estates 
and interests, and annuities charged on and issuing out of pro- 
perty. (See the examples given in the notes to sect. 2(1) (b), 
*' To the extent to which," -p. 7, supra.) 

(8.) Subject to the provisions of this Act, the value 
of any property for the purpose of estate duty shall be 
ascertained by the Commissioners in such manner and 
by such means as they think fit, and, if they authorize 
, a person to inspect any property and report to them the 

value thereof for the purposes of this Act, the person 
having the custody or possession of that property shall 
permit the person so authorized to inspect it at such 
reasonable times as the Commissioners consider neces- 
sary. 

(9.) Where the Commissioners require a valuation to 
be made by a person named by them, the reasonable 
costs of such valuation shall be defrayed by the Com- 
missioners. 

Subject to the provisions of tkis Act. I.e., subject to the 
general working rule laid down in sub- section (o), supra, and 
the provisions as to deductions, &c. contained in the preceding 
sub-sections. 

To inspect any property. This is new. 

Valuation, At the present time no valuation is made by the 
Commissioners for the purpose of Probate duty or Succession 
dutj'. They have the power to require a valuation to be made 
in the case of legacies in specie. (See 36 Geo. 3, c. 52, s. 22.) 
By sect. 8, (8) (p. 52, infra), they are, if required, to certify the 
amount of valuation accepted by them for any class or descrip- 
tion of i^roperty forming part of the estate. 

The reasonable costs of such valuation. The Commis- 
sioners will, it is thought, pay the costs of a valuation required 
by them, so far as such costs are not unduly increased by the 
conduct of the person accountable for the duty. 

In the case of a valuation of legacies in specie, the costs are 
borne by the legatee. 



57 & 58 Vict. c. 30. 45 

(10.) Property passing on any death shall not be § 7. 
aggregated more than once, nor shall estate duty in 
respect thereof be more than once levied on the same 
death. 

Shall not be aggregated more than once ... on the same 
death. See the example given in the notes to sub-sect (1), 
supra. 

8. — (1.) The existing law and practice relating to Supplemental 
any of the duties now leviable on or with reference to to^coUectLn^ 
death shall, subject to the provisions of this Act, and repaymektof 
so far as the same are applicable, apply for the purposes ^^^ exemption 
of the collection, recovery, and repayment of estate duty, duty. 
and for the exemption of the property of common sea- 
men marines or soldiers who are slain or die in the 
service of Her Majesty, and for the purpose of pay- 
ment of sums under one hundred pounds without 
requiring representation, as if such law and practice 
were in terms made applicable to this Part of this Act. 

The existing law and practice, &c. See the notes to 

sects. 6 (2), 7 (5), (pp. 29 & 40, supra). 

Recovery. The recovery of the duty will be enforced by a 
■writ of summons for an account and payment under 28 & 29 
Yict. c. 104 ; and if the person summoned fails to appear and 
show cause why he has made default, a writ of attachment will 
be issued. (See Be Coidson, Times, 21st July, 1894.) An action 
to enforce the charge can also, it would seem, be brought in the 
case of property upon which the duty is charged by sect. 9 (1), 
(p. 56, infra). In either case the Court can appoint a receiver 
and order a sale of the property. (Sub-sect. 13, p. 53, infra.) 

Under the Succession Duty Act, 1853, s. 44, persons account- 
able for duty are made debtors to her Majesty. 

For the exemption of the property of common seamen, 

&C. The effects of any common seaman, marine, or soldier 
dying in the service of the Queen are exempted from Probate 
duty. (55 Geo. 3, c. 184, Sch., Part 3.) All property belonging 
to such persons is exempted from estate duty. 

For the purpose of payment of sums under 100/. without 
requiring representation. The followin-^ appear to be the 
cases hero referred to : — 

(1) Sums in friendly societies not exceeding lOOl. (The Friendly 
Societies Act, 1875, s. 15 (4) ) may be paid to nominees 



46 



DEATH DUTIES (eNGLANd). 



§8. 



of a deceased member without administration being re- 
quired. 

(2) Under 26 & 27 Yict. c. 57 (The Eegimental Debts Act), 

representation is not required where the surplus of the 
personal effects of any officer or soldier dying on service 
after payment of the preferential charges mentioned in 
the Act does not exceed 100?. 

(3) Under 28 & 29 Vict. c. Ill, s. 6 (The Navy and Marines 

(Property of Deceased) Act) representation may be dis- 
pensed with where the amount of pay or pension standing 
to the credit at the time of death of any officer, seaman, or 
marine, or any civil officer in the books of the Admiralty, 
does not exceed 100?. 

(4) Under 31 & 32 Yict. c. 90, representation may be dis- 

pensed with where the arrears of civil pay or pension due 
at the time of death to any civil servant does not exceed 
100/. (sect. 1); where civil and military allowances charge- 
able to army votes and army prize-money do not exceed 
100/. (sect. 2.) 

(5) Under the Savings Bank Act, 1887, s. 3 (2), deposits in 

savings banks not exceeding 100/. may be distributed 

without probate or other proof of representation being 

required. 

Estate duty is apparently not payable (though it is not so stated 

in terms) in any of the cases just given. Under the former law, 

probate duty, for which estate duty is now substituted, would 

not have been payable where no representation was required. 

The expression "representation" means probate of a will or 
letters of administration. (Sect. 22 (1), (c), p. 82, infra.) 



Purchasers 
and mort- 
gagees ex- 
empted from 
liability to 
succession, 
duty after a 
specified 
period. 



(2.) Sections twelve to fourteen of the Customs and 
Inland Eevenue Act, 1889, and section forty-seven of 
the Local Eegistration of Title (Ireland) Act, 1891, 
shall apply as if estate duty were therein mentioned as 
well as succession duty, and as if an account were not 
settled wdthin the meaning of any of the above sections 
until the time for the payment of the duty on such 
account has arrived. 

Sections 12 to 14 of the Customs and Inland Revenue Act, 
1889. These sections run as follows : — 

" 12 — (1.) Notwithstanding the forty-second section of the 
Succession Duty Act, 1853, or any other provision contained in 
that Act, real property, or any estate or interest therein, shall 
not, as against a purchaser for valuable consideration, or a 
mortgagee, remain charged with or liable to payment of any 
sum for succession duty or duty hereinbefore imposed by this 
part of this Act, after the expiration of six years from the date 
of notice to the Commissioners of Inland Eevenue of the fact 



57 & 58 Vict. c. 30. 47 

that the successor, or any person in his right or on his behalf, § 8. 

has become entitled in possession to his succession or to the re- ■ 

ceipt of the income and profits thereof, or from the date of the 
first payment by such successor or person of any instalment or 
part of the duty, in case the successor shall not have availed 
himself of the option given to him by section twenty-two of the 
Customs and Inland Eevenue Act, 1888, or after two years from 
the time for the payment by such successor of the last instal- 
ment or part of the dut}^, if he has availed himself of such 
option ; or, in the absence of any such notice or payment, after 
the expiration of twelve years from the happening of the event 
(whether before or after the passing of this Act) which gave rise 
to an immediate claim to such duty, or if such period of twelve 
years expires within six years from the date of the passing of 
this Act, then after the expiration of six years from the last- 
mentioned date." 

" (2.) The duty (if any) unpaid at the expiration of such period 
of six years, or of twelve years or six years as the case may be, 
shall be payable and paid by the successor or the persons men- 
tioned as accountable in section forty-four of the said Act, other 
than the purchaser or mortgagee, and shall become charged 
substitutively upon any other estate or interest comprised in the 
succession of the successor remaining vested in him, or in any 
person in his right or on his behalf, other than the purchaser or 
mortgagee, and in case of a mortgage upon the equity of 
redemption." 

"(3.) This section is not to lessen or affect any liability of 
any successor or accountable person, other than the purchaser 
or mortgagee, to payment of duty, whether out of money 
received on any sale or mortgage, or otherwise ; but a purchaser 
or mortgagee shall not, for the purpose of obtaining the exemp- 
tion conferred by this section, be bound to see that the duty is 
discharged out of the money or other consideration paid or 
given as the consideration for the sale or mortgage." 

"13 — (1.) Any person may cause an attested copy (which Power to 
shall be exempt from stamp duty) of any document which deposit copies 
. ti-tIp i. £ ^ ■ J t liOf documents 

creates a liability for pajonent ot any succession duty, or duty ^^^ liability 

hereinbefore imposed by this part of this Act, other than a to duty to 
testamentary document admitted to probate, to be deposited cease after 
with the Commissioners of Inland Eevenue at their principal specified 
office in London, Edinburgh, or Dublin, as the case may require, penod. 
and such copy shall be received at that office." 

"(2.) The officer of the Commissioners receiving the copy 
shall, on request of the person making the deposit, and either by 
indorsement on the original document or otherwise, give a 
receipt in writing under his hand for the copy." 

" (3.) After a receipt has been given by an officer for a copy 
of a document under this section, no person shall be liable for 
payment of any duty under such document after the expiration 
of six years from the date of notice to the Commissioners of the 
fact which gives rise to an immediate claim to such duty." 

" (4.) The costs of depositing a copy of a document and ob- 
taining a receipt under this section shall be deemed costs duly 
incurred by a trustee, executor, or administrator, or any other 



48 



DEATH DUTIES (eNGLANd). 



§8. 

Liability to 
duty under 
documents 
admitted to 
probate to 
cease after a 
specified 
period. 



person in the execution of His duties as trustee, executor, or 
administrator, or otherwise, under the document." 

" 14. No person shall, under a testamentary document ad- 
mitted to probate, or under letters of administration, or under a 
confirmation, be liable for payment of any legacy duty or suc- 
cession duty, or duty hereinbefore imposed by this part of this 
Act, after the expiration of six years from the date of the 
settlement of the account in respect of which the duty is payable, 
where such account was in all respects a full and true account 
and contained all the facts material to be known by the Com- 
missioners of Inland Eevenue for the ascertainment of the rate 
and amount of duty; and no trustee, executor, or administrator 
shall, after the expiration of such six years, be liable to such 
duty if it is proved to the satisfaction of the Commissioners that 
the account rendered was correct to the best of his knowledge, 
information, and belief." 

As if estate duty were therein mentioned. It would 

appear that the term " succession," in the sections from the Act 
of 1889 above given, would, in the case of estate duty, mean 
" property passing on the death of the deceased," and "suc- 
cessor" "any person to whom such property passed for a 
beneficial interest in possession." 

And as if an account were not settled, &c. See sect. 14 of 

the Act of 1889 above given. That section, as it stands, is only 
appropriate to cases in which duty is payable in a lump sum. 
Inasmuch, however, as under sect. 6 (8), (p. 33, supra), estate 
duty may, in the case of real estate, be paid in instalments, a 
modification in sect. 14 of the Act of 1889 has to be made in order 
to make it applicable when the duty is paid in instalments. The 
effect of the sub- section under consideration is to release trustees, 
executors, &c., to whom the provisions of sect. 14 of the Act of 
1889 apply, after the expiration of six years from the payment 
of the duty when it is payable in a lump sum, and after the 
expiration of six years from the last payment when it is payable 
in instalments. 

These provisions are supplemental to the provisions as to 
purchasers for value without notice, contained in sub-sect. 18, 
infra, and sect. 9 (1), (p. 56, infra). See the notes on those 
provisions. 



(3.) The executor of the deceased shall, to the best of 
his knowledge and belief, specify in appropriate ac- 
counts annexed to the Inland Eevenue afifidavit all the 
property in respect of which estate duty is payable 
upon the death of the deceased, and shall be accountable 
for the estate duty in respect of all personal property 
wheresoever situate of which the deceased was competent 



57 & 58 Vict. c. 30. 49 

to dispose at his death, but shall not he liable for any § 8. 
duty in excess of the assets which he has received as 
executor, or might but for his own neglect or default 
have received. 

See the notes to sect. 6 (2), (p. 28, supra). 

(4.) Where property passes on the death of the de- 
ceased, and his executor is not accountable for the 
estate duty in respect of such property, every person to 
whom any property so passes for any beneficial interest 
in possession, and also, to the extent of the property 
actually received or disposed of by him, every trustee, 
guardian, committee, or other person in whom any 
interest in the property so passing or the management 
thereof is at any time vested, and every person in whom 
the same is vested in possession by alienation or other 
derivative title shall be accountable for the estate duty 
on the property, and shall, within the time required by 
this Act or such later time as the Commissioners allow, 
deliver to the Commissioners and verify, an account, to 
the best of his knowledge and belief, of the property : 
Provided that nothing in this section contained shall 
render a person accountable for duty who acts merely as 
agent or bailiff for another person in the management 
of property. 

Where property passes on the death of the deceased, and 

his executor is not accountable. The property dealt with in 
this sub-section includes all property, settled or unsettled, 
passing on the deceased's death, except the deceased's free 
personalty (whether situate within or without the United King- 
dom) and personalty over which he had an unexercised power 
of aiDpointment. Thus, persons taking from the executor pro- 
perty of the description last referred to are safe. The persons 
made accountable for duty under this sub-section are — 

(1) Beneficiaries in possession {e.g., a tenant for life in pos- 

session). 

(2) Trustees, guardians, and committees. 

F. E 



50 DEATH DUTIES (eNGLAND). 

§ 8. (3) Any other person in whom the property or the manage- 

ment thereof is at any time vested. 
(4) Volunteers taking by alienation or other derivative title, 
and purchasers for value with notice. In this case the 
alienation or purchase may have been made, or the 
derivative title accrued, either before or after the death 
on which the liability to duty arose ; there is in this 
respect a difference from the Succession Duty Act, 
1853, s. 44, under which purchasers who purchased 
the successor's interest after it has fallen into possession 
are not accountable for succession duty. 

In case (1) the liability is apparently unlimited, and is not, it 
would seem, restricted to the amount of assets received ; but in 
cases (2) (3) and (4) it is limited to the amount of the property 
actually received or disposed of by the person accountable. (See 
sub-sect. (2), suj)ra, p. 46, as to the time within which estate 
duty may be recovered in cases falling under that sub-section.) 

The following persons are not accountable for estate duty — 
(1) agents or bailiffs; (2) purchasers for value without notice. 
(Sub-sect. (18), infra). 

Shall be accountable. Persons accountable will be debtors 
to her Majesty. (Sub-sect. (1), p. 45, supra, Succession Duty 
Act, 1853, s. 44.) See sub-sect. (2), supra, as to the cesser of 
liability in certain cases. 

Within the time required. I.e., six months after the 
death. (Sect. 6(4), p. 31, supra.) The property will as a rule 
be specified in the executor's accounts (see sub-sect. (3) p. 48, 
supra) , and the executor may (upon request if the property is not 
under his control) pay the duty. (Sect. 6 (2), p. 28, supra.) It 
is, however, thought that the account under this section must in 
any case be delivered. 

Verify. I.e., on oath and by the production of books and 
documents in the manner prescribed by the Commissioners. 
(Sub-sect. (14) infra.) 

(5.) Every person accountable for estate duty, and 
every person whom the Commissioners believe to have 
taken possession of or administered any part of the 
estate in respect of which duty is leviable on the death 
of the deceased, or of the income of any part of such 
estate, shall, to the best of his knowledge and belief, if 
required by the Commissioners, deliver to them, and 
verify, a statement of such particulars together with 
such evidence as they require relating to any property 
which they have reason to believe to form part of an 



67 & 58 Vict. c. 30. 

estate in respect of which estate duty is leviable on the § 8' 
death of the deceased. 

(6.) A person who wilfully fails to comply with any 
of the foregoing provisions of this section shall he liable 
to pay one hundred pounds, or a sum equal to double 
the amount of the estate duty, if any, remaining unpaid 
for which he is accountable, according as the Commis- 
sioners elect : Provided that the Commissioners, or, in 
any proceeding for the recovery of such penalty, the 
Court, shall have power to reduce any such penalty. 

This sub-section is subsidiary to the last. 

Every person accountable. I.e., accountable for the estate 
duty on aiiy property forming part of the estate in question, not 
merely for the duty on the property with regard to which infor- 
mation is sought. 

Every person whom the Commissioners, &c. E.g., solici- 
tors, bankers, mortgagees in possession, agents. These persons 
are not necessarily accountable for the duty. An executor de 
son tort is accountable for the duty on the personalty of which 
the deceased was competent to dispose. (Sect. 22 (1) (d), p. 82, 
infra.) 

To the best of his knowledge and belief. There appears to 
be no necessity for the persons above referred to go out of their 
way to obtain the information sought. 

Verify. See sub-sect. (14), infra. 

A statement. See sub-sect. (14), infra. 

Any property. If a person is accountable for the duty on, 
or has taken possession of, &c., any part of an estate, he may be 
called on to give information as to any other part of the estate. 

Wilfully. No penalty is imposed in respect of any default 
unless such default was wilful. (See sub-sect. (14), infra.) 

Foregoing provisions. I.e.— 

(1) Delivery of accounts by the executor. (Sub-sect. (3).) 

(2) Delivery of accounts by persons accountable for the duty 

in cases where tho executor is not so accountable. 
(Sub-sect. (4).) 

(3) Furnishing statement of particulars of property. (Sub- 

sect. (5).) 
By the Customs and Inland Revenue Act, 1881, s. 40, any 
person who ought to obtain probate or letters of administration, 
or deliver a further affidavit, but neglects to do so within the 
period prescribed by law (see 55 Geo. 3, c. 184, s. 37), is made 
liable to a penalty of double the amount of duty chargeable. 
The provisions of the section referred to remain, it is thought, 



52- DEATH DUTIES (eNGLAND). 

§ 8. in force (see sub-sect. (1), supra), and are not superseded by the- 

provisions of the sub-section under consideration. 

The penalty imposed by this sub-section is payable in the 
case of default under sub-sect. (14). 

The acceptance by the Commissioners of duty and interest . 
operates as a waiver of penalties. (31 & 32 Vict. c. 124, s. 9.) 

Penalties under this Act will be recovered in the same way as 
duty. (See note to sect. 8 (1), " Eecovery," p. 45, supra.) 

(7.) Estate duty shall, in the first instance, be calcu- 
lated at the appropriate rate according to the value of the ■ 
estate as set forth in the Inland Eevenue affidavit or 
account delivered, but if afterwards, it appears that for 
any reason too little duty has been paid, the additional 
duty shall, unless a certificate of discharge has been 
delivered under this Act, be payable, and be treated as 
duty in arrear. 

(8.) The Commissioners on application from a person 
accountable for the duty on any property forming part 
of an estate shall, where they consider that it can con* 
veniently be done, certify the amount of the valuation' 
accepted by them for any class or description of pro- 
perty forming part of such estate. 

(9.) Where the Commissioners are satisfied that the 
estate duty leviable in respect of any property cannot 
without excessive sacrifice be raised at once, they may 
allow payment to be postponed for such period, to such 
extent, and on payment of such interest not exceeding 
four per cent, or any higher interest yielded by the pro- 
perty, and on such terms, as the Commissioners think 
fit. 

Estate duty. See notes to sect. 6 (2), (p. 29, supra). 
Unless a certificate of discharge. I.e., under sects. 11 or 12 

(pp. 62, 6o, infra). 

Duty in arrear. This will carry interest at 4 per cent» 
(Sub-sect. (10), infra.) 

Any class. An estate may consist of different classes of pro- 
perty, e.(j., building property and agricultural property. It 
will in many cases be convenient to know the exact value put 
by the Commissioners on any particular item of property, _ for 
the purpose of apportioning the duty as between the various 
items of property. 



57 & 58 Vict. c. 30. 53 

Postponed, See notes on sect. 6 (2), (p. 29, supra). The sub- § 8. 

section applies equally to all property, whether settled or un- ~ 

settled, in respect of which estate duty is leviable. It is thought 
that it will be mainly resorted to in the case of settled property. 

Without excessive sacrifice. These words give the rule to 
be applied in each case. 

Not exceeding four per cent. /. e., if the return yielded by 
the property does not exceed four per cent, on its capital value. 

Any higher interest. If the return from the property 
amounts to more than four per cent, on the capital value, the 
Commissioners are, under this section, entitled to claim interest 
at the rate actually yielded. # 

(10.) Interest on arrears of estate duty shall be paid 
as if they were arrears of legacy duty. 

/. e.. Four per cent. (31 & 32 Yict. c. 124, s. 9.) 
As to interest on the fixed duty payable on estates of under 
600/., see sect. 16 (5), (p. 72, infra). 



(11.) If after the expiration of twenty years from a 
death upon which estate duty became leviable any such 
duty remains unpaid, the Commissioners may, if they 
think fit, on the application of any person accountable 
or liable for such duty or interested in the property, 
remit the payment of such duty or any part thereof or 
any interest thereon. 

The provisions of this sub-section will be salutary in cases 
which do not fall within sub-sect. (2), supra. 



(12.) Where it is proved to the satisfaction of the 
Commissioners that too much estate duty has been paid, 
the excess shall be repaid by them, and in cases where 
the over-payment was due to over-valuation by the 
Commissioners, with interest at three per cent, per 
annum. 

(13.) Where any proceeding for the recovery of 
estate duty in respect of any property is instituted, 
the High Court shall have jurisdiction to appoint a 



54 DEATH DUTIES ( ENGLAND). 

§ Q' receiver of the property and the rents and profits 
thereof, and to order a sale of the property. 

To the satisfaction of the Commissioners. An appeal lies 
from a decision of the Commissioners under this sub-section 
(sect. 10, p. 59, infra). Interest is payable as of course by the 
Commissioners only in cases where the over-payment was due 
to an over- valuation by them. The Court can, however, direct 
the Commissioners to pay interest, under sect. 10 (3), (p. 61, 
infra). 

Where any proceeding, /.e., either by the Commissioners 
(sect. 8 (1), note on "Recovery, " p. 45, supra), or under 
sects. 9 (4), (p. 58, infra), or 14 (1), (p. 67, infra). In the 
two latter cases, however, persons seeking to recover the duty 
would proceed, it is thought, as a rule, under sect. 9 (5), (p. 58, 
infra). 

(14.) All affidavits, accounts, certificates, statements, 
and forms used for the purpose of this Part of this Act 
shall be in such form, and contain such particulars, as 
may be prescribed, and if so required by the Commis- 
sioners shall be in duplicate, and accounts and state- 
ments shall be delivered and verified on oath and by 
production of books and documents in the manner pre- 
scribed, and any person who wilfully fails to comply 
with the provisions of this enactment shall be liable to 
the penalty above in this section mentioned. 

(15.) No charge shall be made for any certificate 
given by the Commissioners under this Act. 

(16.) The estate duty may be collected by means of 
stamps or such other means as the Commissioners pre- 
scribe. 

(17.) The form of certificate required to be given by 
the proper officer of the Court under section thirty of 
the Customs and Inland Eevenue Act, 1881, may be 
varied by a rule of Court in such manner as may 
appear necessary for carrying into effect this Act. 

Affidavits. E.g., under sect. 6 (2), (p. 28, supra). 
Accounts. Sub-sects. (3) & (4), supra. 
.. Certificates. See sects, n, 12 & 13, (pp. 62—67, infra). 



: 67 & 58 Vict. c. 30. 5§ 

Statements. Sub-sect. (5), supra, sect. 9 (2), (p. 56, %nfra\ 8 8. 
sect. 11 (2), (p. 63, infra), = 

Wilfully. See sub-sect. (6), supra. 

Penalty. See sub-sect. (6), supra. 

Certificate. Certificates are given under sect. 9 (2), (certifi- 
cate of duty paid, p. 56, infra), and sect. 11 (1) & (2), and 
sects. 12 & 13 (certificates of discharge, pp. 65 — 67, infra). 

Stamps. See sect. 6 (1), (p. 28, supra). 

The form of certificate. Section 30 of the Customs and Inland 
Eevenue Act, 1881, enacts that no probate or letters of adminis- 
tration shall be granted by the Probate, &c.. Division, unless 
the same bear a certificate in writing under the hand of the 
proper officer of the Court, showing that the affidavit for the 
Commissioners of Inland Eevenue has been delivered, and that 
such affidavit, if liable to stamp duty, was duly stamped, and 
stating the amount of the gross value of the estate and effects 
as shown by the account. 

May be varied by a rule of Court. See notes on sect. 6, 
sub-sect. (2), (p. 29, supra). Probate will, it is thought, be 
granted if the certificate states that other property will sub- 
sequently have to be brought into account (sect. 6 (3), p. 31, 
supra), or that the Commissioners have allowed payment of duty 
to be postponed. (Sub-sect. (9), supra.) 

(18.) Nothing in this section shall render liable to or 
accountable for duty a bond fide purchaser for valuable 
consideration without notice. 

Bona fide purchaser for valuable consideration without 
notice. This sub-section exempts a purchaser for value from 
personal liability to pay the duty, or to render accounts in 
respect thereof if he has no notice of the death or that duty is 
unpaid. (See infra.) By the following section duty is, in the 
case of property not passing to the executor, made a charge on 
the property, but (sect. 9 (1)) this charge does not attach to the 
property in the hands of a bond fide purchaser for value without 
notice. 

In the case of property passing to the executor, as such, the 
executor alone is liable for the duty (sub-sects. (3) and (4), 
supra), and there is no charge for unpaid duty imposed on such 
property (sect. 9 (1), p. 56, infra). It is thought, therefore, 
that any person can safely deal with an executor as such. It is 
to be observed that no person, except the executor, is made 
personally liable for estate duty on personal property abroad of 
which the deceased was competent to dispose, or of personal 
property over which he had an unexercised power of appoint- 
ment. As to how far duty is a charge on such last mentioned 
property, see sect. 9 (1), (p. 56, infra), and notes. 

It is not quite clear whether " without notice " means without 



56 



DEATH DUTIES (eNGLAND). 



§8. 



notice of the death or without notice of any unpaid duty. It is 
thought that if any purchaser has notice of a death on which 
the property passed, he should (except in the case of purchases 
from the executor, as such) enquire whether duty has been paid. 
(See notes on sect. 6 (8), p. 33, svpra.) See, however, sub- 
sect. (2), supra. 

As to what is notice, see the Conyeyanoing and Law of Pro- 
perty Act, 1882, sect. 3. 



Charge of 
estate duty on 
property, and 
facilities for 
raising it. 



9. — (I.) A rateable part of the estate duty on an 
estate in proportion to the value of any property which 
does not pass to the executor as such, shall be a first 
charge on the property in respect of which duty is levi- 
able ; provided that the property shall not be so charge- 
able as against a bond fide purchaser thereof for valu- 
able consideration without notice. 

Property which does not pass to the executor as such. 

The duty is only made a charge on property not passing to the 
executor as such. There is therefore no charge created under 
this section on any property forming part of the free personal 
estate of the deceased within the United Kingdom. A charge 
is, however, created on the deceased's foreign personal estate, 
which is liable to estate duty under sect. 2 (2), (p. 14, supra). 
No charge is created on property liable to estate duty situate in 
a British Possession so long as it is so situate. (Sect. 20 (2), 
p. 78, infra.) 

First charge. It was stated, when the Bill was before Parlia- 
ment (26 Hansard, 4th Ser., pp. 1628, 1629), that the charge 
created by this section would be subject to any incumbrances 
existing at the date of the deceased's death. This, no doubt, is 
the case in respect of property subject to a legal mortgage, inas- 
much as the equity of redemption is the only property that passes 
on the death. In the case of equitable incumbrances there is, it 
is conceived, some doubt. If the only property passing on the 
death was the residue of the property after deducting incum- 
brances, sect. 7(1) should have been differently worded. That 
section as it stands appears to contemplate that the ivhole pro- 
perty passes, but that before duty is assessed incumbrances 
have to be deducted. 

Bona fide purchaser, &c. See notes to sect. 8 (18). A hond 
fide purchaser for value without notice is protected in the case 
of a certificate of discharge having been obtained by fraud. 
(Sect. 11 (3), p. 64, infra). 

(2.) On an application submitting in the prescribed 
form the description of the lands or other subjects of 
property (whether hereditaments, stocks, funds, shares, 



57 & 58 Vict. c. 30. 5? 

or securities), and of the debts and incumbrances allowed § 9' 
by the Commissioners in assessing the value of the pro- 
perty for the purposes of estate duty, the Commissioners 
shall grant a certificate of the estate duty paid in respect 
of the property, and specify the debts and incumbrances 
so allowed, as well as the lands or other subjects of 
property. 

Application. I.e., by a person authorised or required to pay 
the estate duty, who has paid such duty. 

Lands or other subjects of property. As this section only 
deals with property not passing to the executor as such, no cer- 
tificate will be necessary in the case of stocks, &c. forming part 
of the deceased's free personal estate in the United Kingdom. 

Debts and incumbrances. I.e., the debts and incumbrances 
allowed as against the property comprised in the certificate. 

(3.) Subject to any repajmient of estate duty arising 
from want of title to the land or other subjects of pro- 
perty, or from the existence of any debt or incumbrance 
thereon for which under this Act an allowance ought to 
have been but has not been made, or from any other 
cause, the certificate of the Commissioners shall be con- 
clusive evidence that the amount of duty named therein 
is a first charge on the lands or other subjects of pro- 
perty after the debts and incumbrances allowed as 
aforesaid : Provided that any such repayment of duty 
by the Commissioners shall be made to the person 
producing to them the said certificate. 

From any other cause. E.g., over-valuation. 

First charge . . . after the debts and incumbrances. 

See the note on "First charge" under sub-sect. (1), supra. 
The certificate will be evidence of the charge in the hands of 
any person who has paid the duty in accordance with the Act, 
"until the amount paid is recovered under (for example) sub- 
sect. (4), infra, or raised under sub-sect. (5), infra, or of the 
charge to which a limited owner who has paid the duty is 
entitled under sub-sect. (6), infra. 

Repayment of duty. See sect. 8 (12), (p. 53, supra). 

Person producing . . . the said certificate. The certificate 



58 DEATH DUTIES (eNGLAND). 

§ 9. will be a transferable document. For example, if an executor 

^ ^ '■ has, at tbe request of a devisee of real property, paid the duty, 

and has been repaid by such devisee, the latter will be entitled 
to the certificate. If too much duty has been paid, the certificate 
will be evidence that the devisee is entitled to the return. 

(4.) If the rateable part of the estate duty in respect 
of any property is paid by the executor, it shall, where 
occasion requires, be repaid to him by the trustees or 
owners of the property, but if the duty is in respect of 
real property, it may, unless otherwise agreed upon, be 
repaid by the same instalments and with the same inte- 
rest as are in this Act mentioned. 

Is paid by the executor. See notes to sect. 6 (2), "may 
pay," (p. 30, supra). 

Be repaid to him. These words make the executor a creditor 
of the *' trustee or owner" for the amount of duty paid by the 
executor. 

Trustees or owners. These words are probably sufficiently 
wide for practical purposes. The phrase appears to have been 
used instead of the phrase "persons accountable," because in 
certain cases {e.g., foreign free personalty and personalty over 
which the deceased had an unexercised power of appointment) 
the executor himself is accountable for the duty, though the 
property does not come into his hands. In these cases the 
persons to repay the executor the amount of the duty would be 
the " trustees or owners." A difficulty might possibly arise in 
the case of real estate limited to a legal tenant for life with legal 
remainders over. 

Unless otherwise agreed upon. The executor should, before 
paying duty on real property, be careful to have it agreed how 
the duty is to be repaid ; otherwise he might find he had paid a 
large sum, the repayment of which was to be extended over 
several years. 

Instalments. See sect. 6 (8), (p. 33, supra). 

(5.) A person authorized or required to pay the estate 
duty in respect of any property shall, for the purpose of 
paying the duty, or raising the amount of the duty 
when already paid, have power, whether the property is 
or is not vested in him, to raise the amount of such duty 
and any interest and expenses properly paid or incurred 
by him in respect thereof, by the sale or mortgage of 



57 & 58 Vict. c. 30. 59 

or a terminable charge on that property, or any part § 9- 
thereof. 

(6.) A person having a limited interest in any 
property, who pays the estate duty in respect of that 
property, shall be entitled to the like charge, as if the 
estate duty in respect of that property had been raised 
by means of a mortgage to him. 

(7.) Any money arising from the sale of property 
comprised in a settlement, or held upon trust to lay out 
upon the trusts of a settlement, and capital money 
arising under the Settled Land Act, 1882, may be ex- 
pended in paying any estate duty in respect of property 
comprised in the settlement and held upon the same 
trusts. 

Authorised or required. I.e. , the person accountable for the 
duty, and in the cases mentioned in sect. 6 (2), [notes on " may 
pay," p. 30, supra), the executor. It is not clear whether this 
sub-section confers any greater power upon an executor than he 
now possesses to sell or mortgage property passing to him as 
such (e. g. , leaseholds) before he has obtained jDrobate. It is 
thought not. (See 26 Hansard, 4th Ser., p. 1636.) The 
whole of this section deals, it is conceived, with property that 
does not pass to the executor as such. As to the powers of an 
executor before probate has been granted him, see Williams on 
Executors, 9th edition, pp. 249 et seq. 

Whether the property is or is not vested in Mm. E.g., an 
equitable tenant for life or an executor who has paid the duty on 
real estate. 

Having a limited interest. Such a person (if entitled to the 
property in possession) is accountable for the duty. (Sect. 8 (4), 
p. 49, supra.) 

Like charge. The certificate under sub-sect. (2), supra, will 
be evidence in this case. 

Capital money arising under the Settled Land Act. See 
the Settled Land Act, 1882, ss. 7 (2), 11, 14, 16, 18, 31 (1) (ii), 
32, 33, 35, 37 ; the Settled Land Act, 1889, s. 3. 

Such money includes fines on leases, shares in mining rents 
and in proceeds of sale of timber, proceeds of sale of heirlooms, 
&c. 



10. — (1.) Any person aggrieved by the decision of Appeal from 
the. Commissioners with, respect to the repayment of any sioners." 



'^^ DEATH DUTIES (eNGLANd). 

§ ^Q* excess of duty paid, or by the amount of duty claimed 
by the Commissioners, whether on the ground of the 
value of any property or the rate charged or otherwise, 
may, on payment of, or giving security as hereinafter 
mentioned for, the duty claimed by the Commissioners 
or such portion of it as is then payable by him, appeal 
to the High Court within the time and in the manner 
and on the conditions directed by rules of Court, and 
the amount of duty shall be determined by the High 
Court, and if the duty as determined is less than that 
paid to the Commissioners the excess shall be repaid. 

(2.) No appeal shall be allowed from any order, 
direction, determination, or decision of the High Court 
in any appeal under this section except with the leave 
of the High Court or Court of Appeal. 

By the decision. An appeal can only be made under the 
Succession Duty Act, 1853 (sect. 50), where the liability to some 
duty is admitted, and the only question is as to the amount. It 
is thought (though the point is not free from doubt) that it is the 
same under this Act. If no liability is admitted, the matter 
would be brought before the Court by a writ of summons for 
delivery of an account, and payment of what shall be found due. 
[Re Greemuood, L. E. 4 Ex. 327.) 

Value of any property. Sect. 7 (5) and (8), (pp. 39, 44, supra). 

Or the rate charged. Sect. 4, (p. 17, supra). 

Or otherwise. J^\g. , by refusal to deduct debts or incum- 
brances which should have been deducted. 

On payment of or giving security as hereinafter men- 
tioned. See sub-sect. (4), infra. 

High Court. The appeal would be made, it would appear, to 
the Divisional Court. See E. S. C. 1883 ; Ord. LIX. r. 1 (d). 
As to appeals to the County Court when the value of the property 
is less than 10,000?., see sub-sect. (5), infra. 

Within the time, &C. Eules of Court dealing with these 
matters will be made in due course. 

Amount of duty shall be determined. The Court will have 

jurisdiction to go into all questions, e.g., value, allowance of 
debts, &c. Questions of value may be referred to the arbitration 
of properly appointed valuers, under sub-sect. (6), infra. 

Except with the leave of the High Court or Court of 

Appeal. See the Judicature Act, 1873, s. 45, for cases in which 
leave to appeal from the High Court has to be obtained. As to 



57 & 58 Vict. c. 30. 6i) 

when leave will be granted, see Kirhy v. Biffen, 8 Q. B. D. § 10. 

210; Exparte Gilchrist, 17 Q. B. D. 528; andcp. Bradley v. Baylis, — 

8 Q. B. D. 195, and Barnes v. London, &c. Assurance Company, 
(1892) 1 Q. B. 864. It is thought that appeals cannot be brought 
from the County Court (see sub-sect. (5), infra) to the Divisional 
Court, without leave being given either by the County Court or 
the Divisional Court (sub-sect. (5), infra). 

(3.) The costs of the appeal shall be in the discretion 
of the Court, and the Court, where it appears to the 
Court just, may order the Commissioners to pay on any 
excess of duty repaid by them interest at the rate of 
three per cent, per annum for such period as a23pears to 
the Court just. 

(4.) Provided that the High Court, if satisfied that 
it would impose hardship to require the appellant as a 
condition of an appeal, to pay the whole or, as the case 
may be, any part of the duty claimed by the Commis- 
sioners or of such portion of it as is then payable by 
him, may allow an appeal to be brought on payment of 
no duty, or of such part only of the duty as to the 
Court seems reasonable, and on security to the satisfac- 
tion of the Court being given for the duty, or so much 
of the duty as is not so paid, but in such case the Court 
may order interest at the rate of three per cent, per 
annum to be paid on the unpaid duty so far as it 
becomes payable under the decision of the Court. 

The costs. This will prevent any question arising as to the 
jurisdiction to give costs against the Crown. 

Interest. Interest can only be claimed as of right against 
the Commissioners when the over-payment of duty was due to an 
over-valuation by them (sect. 8 (12), p. 53, supra). 

In ordinary cases, payment of the duty claimed will be re- 
quired as a condition precedent to hearing an appeal. The Court 
has jurisdiction, in cases of hardship, to allow, instead of requir- 
ing payment, security to be given for the whole or any part of 
the duty. The Court cannot, however, dispense with both pay- 
ment and security. - - ^ 

May. The Court has a discretion in the matter. 

(5.) Where the value as alleged by the Commissioners 
of the property in respect of which the dispute arises 
does not exceed ten thousand pounds, the appeal under 



62 DEATH DUTIES (eNGLANd). 

§ IQ' this section may be to the county court for the county 
or place in which the appellant resides or the property is. 
situate, and this section shall for the purpose of the appeal 
apply as if such county court were the High Court. 

May. It would appear tliat it is not obligatory upon the 
appellant to bring tbe appeal in the County Court. 

Shall for the purpose of the appeal. As to appeals from 
the County Court, see notes to sub-sect. (2), supra. 

(6.) The county council of every county or county 
borough in Great Britain, shall within twelve months 
after the commencement of this Act, and may thereafter 
from time to time, appoint a sufficient number of quali- 
fied persons to act as valuers for the purposes of this 
Act in their respective counties, and shall fix a scale of 
charges for the remuneration of such persons, and the 
Court may refer any question of disputed value under 
this section to the arbitration of any person so appointed 
for the county in which the appellant resides or the 
property is situate, and the costs of any such arbitra- 
tion shall be part of the costs of the appeal. 

Valuers ... in their respective counties. The sub- 
jects of property to be valued under this sub-section will, no 
doubt, principally consist of land and houses. But it is thought 
that valuers will be appointed for other subjects of property, 
e.g. pictures, books, plate, works of art, «&;c. 

For the county in which the appellant resides. E.g. if 

the property to be valued consists of pictures, &c. 

Or the property is situate. E.g. if the property is land or 
houses. 



Discharge from and Apportionment of Duty, 
Eeleaseof n — n) The Commissioners on beins^ satisfied that 

persons paying ^ ' ... 

estate duty. the full estate duty has been or will be paid in respect 
of an estate or any part thereof shall, if required by the 
person accounting for the duty, give a certificate to that 
efPect, which shall discharge from any further claim for 
estate duty the property shown by the certificate to form 
the estate or part thereof as the case may be. 



57 & 58 Vict. c. 30. m 

On being satisfied. If the Commissioners are not satisfied § 11. 
that the full estate duty has been paid, they may refuse to 
give a certificate, and no appeal will apparently lie from their 
refusal. 

Estate duty. Throughout the Act this phrase includes (when 
the context admits) Settlement estate duty {notes to sect. 6 (1), 
p. 29, supra). 

An estate or any part thereof. Certificates will, it appears, 
be given in respect of separate items of property. 

If required. If the Commissioners are satisfied that the full 
duty has been paid, it is obligatory upon them to grant a certi- 
ficate of discharge. 

By the person accounting for the same. I.e., the person 
de facto paying the duty, if he is under this Act authorised or 
required so to do {e.g. an executor who pays the duty on real 
property at the request of the devisee ; sect. 6 (2), p. 29, supra). 

Certificate. No charge is made by the Commissioners for 
the certificate (sect. 8 (15), p. 54, infra). 

Which shall discharge. If the certificate was obtained by 
fraud or failure to disclose material facts, the discharge does not 
take effect except in favour of a bond fide purchaser for value 
without notice (sub-sect. 3, infra). 

(2.) Where a person accountable for the estate duty 
in respect of any property passing on a death applies 
after the lapse of two years from such death to the 
Commissioners, and delivers to them and verifies a full 
statement to the best of his knowledge and belief of all 
property passing on such death and the several persons 
entitled thereto, the Commissioners may determine the 
rate of the estate duty in respect of the property for 
which the applicant is accountable, and on payment of 
the duty at that rate, that property and the applicant 
so far as regards that property shall be discharged from 
any further claim for estate duty, and the Commissioners 
shaU give a certificate of such discharge. 

The provisions of this sub-section will be useful in the case of 
a large and complicated estate. It may be difficult or impossible 
to ascertain the exact value of such an estate within two years 
from the death. If it is desired in such a case to deal with any 
specific part of the estate duty free, an application can be made 
to the Commissioners under this sub-section. 



64 DIV^TH DUTIES (eNGLAND). 

§ 11. Two years. No application can be made under this sub- 
section under two years from the death. 

May determine. It is not obligatory on the Commissioners 
to determine the rate of duty under this sub-section. It is 
doubtful whether an appeal lies from a determination of the 
Commissioners under this sub-section, such a determination 
being something in the nature of a compromise or commutation. 
It is, however, conceived that if questions as to (for instance), 
value or allowance of debts or incumbrances arise, an appeal 
would lie on those points. (Sect. 10 (1), p. 59, supra.) 

Shall be discharged. See the next sub- section. 

Certificate of discharge. See sect. 8 (15), (p. 54, supra). 

(3.) A certificate of the Commissioners under this 
section shall not discharge any person or property from 
estate duty in case of fraud or failure to disclose mate- 
rial facts, and shall not affect the rate of duty payable 
in respect of any property afterwards shown to have 
passed on the death, and the duty in respect of such 
property shall be at such rate as would be payable if 
the value thereof were added to the value of the pro- 
perty in respect of which duty has been already 
accounted for ; 

(4.) Provided nevertheless that a certificate purport- 
ing to be a discharge of the whole estate duty payable 
in respect of any property included in the certificate 
shall exonerate a bond fide purchaser for valuable conr 
sideration without notice from the duty notwithstanding 
such fraud or failure. 

Shall not discharge any person or property ... in case 

of fraud or failure, &C. By this proviso a purchaser for value 
without notice is protected ; but with that exception it would 
appear that persons accountable for duty (sect. 8 (3) and (4), 
pp. 48, 49, supra), and the property in their hands are, in the 
case of fraud or failure to disclose material facts on the part of 
any person, precisely in the same position as if no certificate 
had been granted. 

Example. — A., being a trustee of property liable to duty, 
obtains a certificate of discharge by fraud. He retires from 
the trust and B. is appointed in his place. B. is accountable 
for the unpaid duty to the extent of the property actually 
received or disposed of by him (sect. 8 (4), p. 49, supra), and 
the property is liable to the charge under sect. 9 (p. 56, 
supra). 



57 & 58 Vict. c. 30. 65 

And shall not affect. This is not confined to certificates § 11.' 
obtained by fraud or failure to disclose material facts, but ' 

applies equally to bond fide certificates of discharge, under sub- 
sects. (1) and (2). 

Example. — A certificate of discharge is obtained in respect of 
an estate worth 20,000?. (duty being at the rate of four per 
cent.) (Sect. 17, p. 74, mfra.) There is no question of fraud 
or failure to disclose material facts. Property worth 10,000?. 
is afterwards found to have passed on the death. In order to 
ascertain the rate of duty payable on the 10,000?., the 20,000?. 
and 10,000?. must be added together. The rate payable on the 
10,000?. will be four and a half per cent.— the total estate 
amounting to 30,000?. (See sect. 17, p. 74, infra.) 

Exonerate. /. e., both the purchaser from any personal 
liability, and the property in his hands from any charge. (See 
26 Hansard, 4th Ser., p. 1649.) 

Without notice. I.e., of the fraud, or failui'e to disclose the 
material facts. See notes on sect. 8 (18), (p. 6o, supra). 

12. The Commissioners in their discretion, upon Commutation 
application by a person entitled to an interest in ex- ^te^eg^ in 
pectancy, may commute the estate duty which would expectancy. 
or might, but for the commutation, become payable in 
respect of such interest for a certain sum to be presently 
paid, and for determining that sum shall cause a present 
value to be set upon such duty, regard being had to the 
contingencies affecting the liability to and rate and 
amount of such duty, and interest being reckoned at 
three per cent. ; and on the receipt of such sum they 
shall give a certificate of discharge accordingly. 

The provisions of this section will be valuable in the case of 
persons desiring to deal with reversions expectant upon a life, 
on the dropping in of which estate duty may become payable. 
Cp. the Succession Duty Act, 1853, s. 41. 

In their discretion. The Commissioners have a discretion 
in the matter, and this should be borne in mind by persons 
entering into negotiations for the purchase of reversions. 

Interest in expectancy. See sect. 22 (l) (j) p. 83, infra. It 
is thought that, as a rule, the Commissioners will be disinclined 
to exercise their discretion, except in the case of a sale of the 
interest. 

Which would or might. Commutation can be made whether 
the interest in expectancy is vested or contingent. 

Cause a present value to be set. It is conceived that no 
appeal lies from a determination of the Commissioners under 

F. F 



66 



DEATH DUTIES (eNGLAND). 



§ 12. this sub-section. (Op., however, sect. 11 (2), note " May deter- 
mine," p. 64, supra.) 

Contingencies affecting ... the rate. In many cases 
regard will have to be had to the position in life and means of 
the person upon whose death the interest in expectancy wiU 
fall in. 

And interest being reckoned at three per cent. These 

words give the basis upon which calculations will be made in 
the case of commutations under this section. The calculations 
will be analogous to calculations as to the present value of a 
sum payable a given number of years hereafter. 

Certificate of discharge. See sect. 8 (15), p. 54, supra. 
It is thought that in the case of fraud or failure to disclose 
material facts the provisions of sect. 11 (3) (p. 64, supra) will 
apply to a certificate granted under this section. If the 
interest in expectancy is a reversion or remainder expectant 
on the happening of some death, no further duty will, after a 
certificate has been granted under this section, be payable on 
the happening of such death in respect of the interest in ques- 
tion. It is thought, however, that in such a case the value of 
the interest would be taken into account for the purpose of 
determining the rate of daty on the rest of the estate passing on 
the death; sed quaere. See sects. 1 and 4 (pp. 2, 17, supra). 



Powers to 
accept com- 
position for 
death duties. 



13. — (1.) Where, by reason of the number of deaths 
on which property has passed or of the complicated 
nature of the interests of different persons in property 
which has passed on death, or from any other cause, it 
is difficult to ascertain exactly the amount of death 
duties or any of them payable in respect of any pro- 
perty or any interest therein, or so to ascertain the 
same without undue expense in proportion to the value 
of the property or interest, the Commissioners on the 
application of any person accountable for any duty 
thereon, and upon his giving to them all the informa- 
tion in his power respecting the amount of the property 
and the several interests therein, and other circumstances 
of the case, may by way of composition for all or any 
of the death duties payable in respect of the property, 
or interest, and the various interests therein, or any of 
them, assess such sum on the value of the property, or 
interest, as having regard to the circumstances appears 



57 & 58 Vict. c. 30. e7 

proper, and may accept payment of the sum so assessed, § 13. 
in full discharge of all claims for death duties in respect 
of such property or interest, and shall give a certificate 
of discharge accordingly ; 

(2.) Provided that the certificate shall not discharge 
any person from any duty in case of fraud or failure 
to disclose material facts. 

(3.) In this section the expression " death duties " 
means the estate duty under this Act, the duties men- 
tioned in the First Schedule to this Act and the legacy 
and succession duties, and the duty payable on any 
representation or inventory under any Act in force 
before the Customs and Inland Eevenue Act, 1881. 

This section is supplemental to sect. 11 (2), (p. 63, supra). 

Death duties. The meaning of this expression is defined in 
the last paragraph of the section, which shows that the section 
applies in cases where the death took place on or before 1st 
August, 1894, as well as in cases where the death took place after 
that date. 

The power given by this section to the Commissioners to 
compound death duties is larger than the power they already 
possess. As to the power of the Commissioners to commute 
legacy duty, see 36 Geo. 3, c. 52, s. 33 ; The Customs and Inland 
Eevenue Acts, 1880, s. 11, and 1881, s. 43 ; and as to their power 
to commute succession duty, see the Succession Duty Act, 1853, 
s. 39, and The Customs and Inland Eevenue Act, 1880, s. 11. 
There was, prior to this Act, no power to commute probate 
duty. 

Or any of them. The provisions of the former Acts, quoted 
in the last 7iote, are apparently superseded. It may of course 
(owing to difficulties as to aggregation, &c.), be difficult to ascer- 
tain the proper rate of estate duty, while it is feasible to ascertain 
the rate of succession duty. 

Or interest. J^-g-, a life interest. 

Certificate of discharge. See sect. 8 (15), p. 54, supra. 

Shall not discharge. No provision is made for exonerating 
a purchaser for value without notice. (See sect. 11 (3), p. 64, 
supra.) This appears to be a casus omissus. 

14. — (1.) In the case of property which does not pass Apportion- 
to the executor as such, an amount equal to the proper ^^^ ° ^ 
rateable part of the estate duty may bo recovered by 
the person, who being authorized or required to pay 

f2 



68 DEATH DUTIES (eNGLAND). 

§ 14« the estate duty in respect of any property has paid such 
duty, from the person entitled to any sum charged on 
such property, (whether as capital or as an annuity or 
otherwise,) under a disposition not containing any 
express provision to the contrary. 

(2.) Any dispute as to the proportion of estate duty 
to be borne by any property or person, may be deter- 
mined upon application by any person interested in 
manner directed by Eules of Court, either by the High 
Court, or, where the amount in dispute is less than fifty 
pounds, by a County Court for the county or place in 
which the person recovering the same resides, or the 
property in respect of which the duty is paid is situate. 

(3.) Any person from whom a rateable part of estate 
duty can be recovered under this section shall be bound 
by the accounts and valuations as settled between the 
person entitled to recover the same and the Commis- 
sioners. 

Which does not pass to the executor as such. I.e., all the 
property passing on the death of the deceased except his free 
personalty within the United Kingdom. 

May be recovered. This makes the rateable amount of duty 
a debt due from the person entitled to the sum charged to the 
person paying the duty. 

Authorised. E.g., the executor, sect. 6 (2), (p. 29, supra). 
Or required to pay. E.g., the trustees, and, in certain cases, 
the person entitled to the enjoyment of the property as a whole. 
(See sect. 8 (4), p. 49, supra.) 
Examples : — 

(i) A. , by will, leaves Whiteacre to trustees upon trust for 

B. for life, but charged with an annuity in favour of C. 

The trustees must pay the estate duty on the whole 

of Whiteacre, and they will then be entitled to recover 

the rateable part of the duty from C. in proportion to 

the amount of his annuity. 

(ii) A. leaves his freehold cotton mill and works to B., 

charged with 10,000/. in favour of 0. B. cannot 

deduct the 10,000/. from the value of the mill, &c. 

(See sect. 7 (1), (a), p. 34, supra.) He must pay the 

duty on the gross value, and recover a rateable part 

thereof from C. 

(iii) Property is settled by a stranger on A. for life, with 

remainder to secure an annuity to B. with remainder to 



57 & 58 Vict. c. 30. 

0. absolutely. On A.'s death C. may deduct the § 14, 

capital value of the annuity from the value of the 

property (sect. 7 (1), (a) p. 34, supra), and B. will 
have to pay the duty on such capital value. 

Not containing any express provision to the contrary. 

Testators and settlors will be able to throw the estate duty on 
charges in favour of a wife and younger children on to the 
corpus of the estate. 

Any dispute as to the proportion. The liability to some 
duty must, it is thought, be admitted. 

Upon application. This is an original application, and not 
by way of appeal from the Commissioners, who have apparently 
no jurisdiction to decide such a dispute as is referred to in this 
sub-section. 



15. — (1.) Estate duty shall not be payable in respect Exemptions 
of a single annuity not exceeding twenty-five pounds dut^.^^ 
purchased or provided by the deceased, either by him- 
self alone, or in concert or arrangement with any other 
person, for the life of himself and of some other person 
and the survivor of them, or to arise on his own death 
in favour of some other person ; and if in any case 
there is more than one such annuity, the annuity first 
granted shall be alone entitled to the exemption under 
this section. 

(2.) It shall be lawful for the Treasury to remit the 
estate duty, or any other duty leviable on or with refer- 
ence to death, in respect of any such pictures, prints, 
books, manuscripts, works of art or scientific collections, 
as appear to the Treasury to be of national, scientific, or 
historic interest, and to be given or bequeathed for 
national purposes, or to any university, or to any county 
council or municipal corporation, and no property the 
duty in respect of which is so remitted shall be aggre- 
gated with any other property for the purpose of fixing 
the rate of estate duty. 

(3.) Estate duty shall not be payable in respect of 
any pension or annuity payable by the government of 
British India to the widow or child of any deceased 



70 DEATH DUTIES (eNGLAND). 

§ 15. officer of sucli government, notwithstanding that the 
deceased contributed during his lifetime to any fund out 
of which such pension or annuity is paid. 

(4.) Estate duty shall not be payable in respect of 
any advowson or church patronage which would have 
been free from succession duty under section twenty- 
four of the Succession Duty Act, 1853. 

Property passing on the death of the deceased and exempted 
from estate duty is not aggregated with other property for the 
purpose of determining the rate of the duty. (Sect. 4, p. 17, 
supra.) For a list of exemptions from estate duty, see the 
notes on sect. 1, " Save as hereinafter expressly provided," 
(p. 2, supra). 

Single annuity. . . . Such an annuity would prima fade 
fall under sect. 2 (1), (d), (p. 13, supra). 

If . . . there is more than one. Apparently if a man pur- 
chased a dozen survivorship annuities, the one first granted 
would escape estate duty on his death. 

For national scientific purposes. If the gift is for these 
purposes, it is apparently immaterial who are the donees. It is 
conceived that the word " scientific" is used in its widest signi- 
fication, and that a gift for the general advancement of art, 
literature, or science would be a gift for a national scientific pur- 
pose. For examj)lo, a gift of books to the trustees of the British 
Museum, or of pictures to the trustees of the South Kensington 
Museum, would, it is thought, fall within this provision. 

Or to any university. I.e. given or bequeathed to any uni- 
versity. It is doubtful whether " university " includes a college 
at a university. 

No property . . . shall be aggregated. See sect. 4, 

(p. 17, supra). 

Pension or annuity. Such a pension or annuity would 
otherwise fall within sect. 2(1), (c) or (d), (pp. 8, 13, supra). 

Advowson. Sect. 24 of the Succession Duty Act, 1853, runs 
as follows : — "A successor shall not be chargeable with duty in 
respect of any advowson or church patronage comprised in his 
succession, unless the same or some right of presentation, or 
some other interest in or out of such advowson or church 
patronage, shall be disposed of by or in concert with him for 
money or money's worth, in which case he shall be chargeable 
with duty upon the amount or value of the money or money's 
worth for which the same or any such presentation or interest 
shall be disposed of at the time of such disposal." 

It is submitted that, even if the advowson, or any interest 
therein, is sold by the successor, so that succession duty becomes 
payable as mentioned in the section just quoted, estate duty will 



57 & 58 Vict. c. 30. 71 

not be payable on the proceeds of sale as being property pass- § 16. 

ing on the death of the predecessor. A gift by will of the 

next presentation to a living confers a chattel interest, which 
is chargeable with duty as a legacy out of real estate within 
the meaning of 45 Geo. 3, c. 28, s. 4. Such a gift would have, 
it is thought, to be brought into account for the purpose of 
assessing estate duty. 



Small Estates. 

16. — (1.) The provisions of sections thirty- three, Provision for 
thirty-five, and thirty-six of the Customs and Inland exceeding 
Eevenue Act, 1881, (relating to the obtaining of repre- lf&45 yict. 
sentation to the deceased where the gross value of his ^- im- 
personal estate does not exceed three hundred pounds,) 
shall apply with the necessary modifications to the case 
where the gross value of the property real and personal 
in respect of which estate duty is payable on the death 
of the deceased, exclusive of property settled otherwise 
than by the will of the deceased, does not exceed five 
hundred pounds, and where the gross value does not 
exceed three hundred pounds the fixed duty shall be 
thirty shilHngs, and where the gross value exceeds 
three hundred pounds and does not exceed five hundred 
pounds the fixed duty shall be fifty shillings. 

(2.) All such property may be comprised in the 
notice under the said section thirty-three. 

(3.) Where the net value of the property, real and 
personal, in respect of which estate duty is payable on 
the death of the deceased, exclusive of property settled 
otherwise than by the will of the deceased, does not 
exceed one thousand pounds, such property, for the 
purpose of estate duty, shall not be aggregated with 
any other property, but shall form an estate by itself ; 
and where the fixed duty or estate duty has been paid 
upon the principal value of that estate, the Settlement 
estate duty and the legacy and succession duties shall 
not be payable under the will or intestacy of the 
deceased in respect of that estate. 



72 



DEATH DUTIES (eNGLAND). 



§16, 



Provisions as 
to obtaining 
probate, &c., 
where gi-oss 
value of estate 
does not ex- 
ceed 300^. 



(4.) Where representation granted under this section, 
if granted in England extends to property in Ireland, 
and if granted in Ireland extends to property in 
England, the principal registrar of the Prohate Divi- 
sion of the High Court in England or Ireland, as the 
case may be, shall affix the seal of the Court thereto on 
the same being sent to him for that purpose, with the 
fee of two shillings and sixpence. 

(5.) Where the fixed duty of thirty or fifty shillings 
is paid within twelve months after the death of the 
deceased, interest on such duty shall not be payable. 

Sects. 33, 35, and 36 of the Customs and Inland Eevenue Act, 
1881, run as follows : — 

" 33. — (1.) Where the whole personal estate and effects of any 
person dying on or after the first day of June, one thousand 
eight hundred and eighty-one (inclusive of property by law 
made such personal estate and effects for the purpose of the 
charge of duty, and any personal estate and effects situate out 
of the United Kingdom), without any deduction for debts or 
funeral expenses, shall not exceed the value of three hundred 
pounds, it shall be lawful for the person intending to apply for 
probate or letters of administration in England or Ireland, to 
deliver to the proper officer of the Court, or to any officer of In- 
land Eevenue duly appointed for the purpose, a notice in writing 
in the prescribed form, setting forth the particulars of such estate 
and etlects, and such further particulars as may be required to 
be stated therein, and to deposit with him the sum of fifteen 
shillings for fees of Court and expenses ; and also, in case the 
estate and effects shall exceed the value of one hundred pounds, 
the further sum of thirty shillings for stamp duty. 

" (2.) If the officer has good reason to believe that the whole 
personal estate and effects of the deceased exceeds the value of 
three hundred pounds, he shall refuse to accept the notice and 
deposit until he is satisfied of the true value thereof. 

"(3.) The principal registrars of the Probate, Divorce, and 
Admiralty Division of the High Court of Justice in England, 
and of the Probate and Matrimonial Division of the High Court 
of Justice in Ireland, in communication with the Commissioners 
of Inland Eevenue, shall prescribe the form of notice, and make 
such regulations as may be necessary ^dth respect to the trans- 
mission of notices by officers of Inland Eevenue, the steps to be 
taken for the preparation and filling up of forms and documents, 
and generally all matters which may be necessary, so as to 
authorise the grant of probate or letters of administration. 

"(4.) Officers of Inland Eevenue are hereby empowered to 
administer all necessary oaths or affirmations, and in the case of 
letters of administration, to attest the bond and accept the same 
on behalf of the president or judge of the division. 



57 & 58 Vict. c. 30. 'iS 

"(5.) Where the estate and effects shall exceed the value of §16. 
one hundred pounds, the stamp duty payable on the affidavit " 

for the Commissioners of Inland Eevenue shall be the fixed duty 
of thirty shillings, and no more." 

"35. Where representation has been obtained in conformity Provision in 
with either of the two preceding sections, and it shall be at any case of subse- 
time afterwards discovered that the whole estate and effects of quent dis- 
the deceased were of a value exceeding three hundred pounds, J^e v^alue of 
then a sum equal to the stamp duty payable on an affidavit or estate exceeded 
inventory in respect of the true value of such estate and effects 300/. 
shall be a debt due to her Majesty from the person acting in the 
administration of such estate and effects, and no allowance shall 
be made in respect of the sums deposited or paid by him, nor 
shall the relief afforded by the next succeeding section be 
claimed or allowed by reason of the deposit or payment of any 
sum." 

" 36. The payment of the sum of thii'ty shillings for the fixed Relief from 
duty on the affidavit or inventory in conformity with this Act legacy duty- 
shall be deemed to be in full satisfaction of any claim to legacy o^^Pf ^^^ under 
duty or succession duty in respect of the estate or effects to 
which such affidavit or inventory relates." 

Gross value. No deduction of any sort must apparently be 
made for debts or incumbrances under sect. 7 (1) (p. 34, supra). 
But there seems to be some hardship in not deducting at any 
rate ancestral mortgages ; it might perhaps be said in this case 
that as the only property passing on the death is the equity of 
redemption, the gross value of the property is the gross value 
of the equity of redemption. But it is doubtful whether such 
an argument would prevail. 

Exclusive of property settled otherwise than by the will. 
All settled property (except property settled by the will of the 
deceased) is excluded, whether comprised in a marriage or 
voluntary settlement. Estate duty will be paid at the appro- 
priate rates on the settled property, which will be aggregated in 
the ordinary way. 

All such property. I.e., real as well as personal property 
(exclusive of property settled otherwise by the will of the 

Q6CG3,SGQ. ) 

" The proper officer of the Court," in sect. 33 (1) of the Act of 
1881 above cited, means the officer of the Probate Division 
having jurisdiction to make the grant. The grant, unless made 
by the principal registry, can only be made by the registrar of 
the district where the deceased resided. (20 & 21 Vict. c. 77, 
s. 46.) Authority is, therefore, conferred under this section in 
most towns on Inland Eevenue officers, who act as inter- 
mediaries in obtaining the grant when the person desiring the 
grant does not live in the district where the deceased resided. 

If the gross estate (exclusive as aforesaid) is less than 100/., 
no duty would, it is thought, be payable : the fee of 15s. would 
alone be required. 

Net value. I-e., after making the deductions allowed by 
sect. 7 (1) and (5) (pp. 34, 39, supra). 



T4 



DEATH DUTIES (eNGLANd). 



§ 16. Exclusive of property settled. See twte on these words 

under sub-sect. (1), supra. 

Fixed duty. I.e., the duty payable under sub-sect. (1) in 
cases in which the gross value of the property in question does 
not exceed 5001. 

Estate duty. This will be the duty payable if the net value 
of the property is less than 1,000?., and the gross value exceeds 
500?. 

The Settlement estate duty. I.e., if the property is settled 
by the will of the deceased. 

Legacy and succession duty. Cp. sect. 36 of the Act of 

1881, cited supra. The exemption does not, of course, extend 
to property settled otherwise than by the wiU. of the deceased. 

Interest on such duty. I.e., the provisions of sect. 8 (10) 
(p. 53, supra) do not apply if the fixed duty is paid within 
twelve months after the death. If, however, the duty is not 
paid within that time, interest would run from the expiration of 
six months from the death. (Sect. 6 (7), p. 32, supra ; sect. 8 
(10), p. 53, supra.) 



Scale of rates 
of estate duty. 



17. The rates of estate duty shall be according to the 
following scale : — 



Where the Principal Value of the Estate 


Estate Duty shall be payable 
at the Eate per cent, of 


£> £ 
Exceeds 100 and does not exceed 500 


One pound. 


500 




, 1,000 


Two pounds. 


„ 1,000 




, 10,000 


Three pounds. 


„ 10,000 




25,000 


Four pounds. 


„ 25,000 




50,000 


Four pounds ten shillings. 


„ 50,000 




75,000 


Five pounds. 


,, 75,000 




, 100,000 


Five pounds ten shillings. 


,, 100,000 




, 150,000 


Six pounds. 


„ 150,000 


)> 


, 250,000 


Six pounds ten shillings. 


,, 250,000 




, 500,000 


Seven pounds. 


„ 500,000 




, 1,000,000 


Seven pounds ten shillings. 


„ 1,000,000 


" 


- . . 


Eight pounds. 



The rate of the Settlement estate duty where the pro- 
perty is settled shall be one per cent. 

Provided that for any fractional part of ten pounds 
over ten pounds or any multiple thereof, the estate duty 



57 & 58 Vict. c. SO. 70 

and the Settlement estate duty shall be payable at the § 17. 
rate per cent, for the full sum of ten pounds. 

In this section estate duty and Settlement estate duty are dis- 
tinguished. In the sections of the Act dealing with collection, 
repayment and recovery of the duty, discharges, &c., the expres- 
sion " estate duty " includes Settlement estate duty. 

Succession Duty, 
18. — (1.) The value for the purpose of succession Value of real 

, . p . , 1 ... ., successions for 

duty 01 a succession to real property arising on the successiou 
death of a deceased person shall, where the successor is *^^' 
competent to dispose of the property, be the principal 
value of the property, after deducting the estate duty 
payable in respect thereof on the said death and the 
expenses if any properly incurred of raising and paying 
the same ; and the duty shall be a charge on the pro- 
perty, and shall be payable by the same instalments 
as are authorized by this Act for estate duty on real 
property, with interest at the rate of three per cent, per 
annum ; and the first instalment shall be payable and 
the interest shall begin to run at the expiration of 
twelve months after the date on which the successor 
became entitled in possession to his succession or to the 
receipt of the income and profit thereof ; and after the 
expiration of the said twelve months the provisions with 
respect to discount shall not apply. 

(2.) The principal value of real property for the 
purpose of succession duty shall be ascertained in the 
same manner as it would be ascertained under the 
provisions of this Act for the purpose of estate duty ; 
and in the case of any agricultural property where no 
part of the principal value is due to the expectation of 
an increased income from such property, the annual 
value for the purpose of succession duty shall be arrived 
at in the same manner as under the provisions of this 
part of this Act for the purpose of estate duty. 

This section supersedes sect. 21, and the following sections of 



i 6 DEATH DUTIES (eNGLANd). 

§ 18. the Succession Duty Act, 1853, sect. 22 of The Customs and In- 
■"~'' ^ land Eevenue Act, 1888, and sects. 6 of The Customs and Inland 

Revenue Act, 1889, in cases in which the successor is competent 
to dispose of the property. 

With regard to sect. 6 of the Act of 1889, it has been pointed 
out in the notes to sect. 1 (p. 5, supra), that the duty imposed 
by that section is still apparently chargeable in cases in which 
estate duty is not payable {e.g., in the case of settled property 
where estate duty has been paid on a prior death, and the pro- 
perty is cleared of duty under sect. 5 (2), (p. 22, supra). This 
duty is an additional succession duty (Act of 1889, sect. 6 (4) and 
(o)). Succession duty is not payable if the succession does not 
fall into possession. (See note on " The first instalment shall be 
payable," infra.) 

Competent to dispose of the property. (See sect. 22 (2) (a), 
p. 85, infra.) As a successor, who has a general power of ap- 
pointment, is competent to dispose of the property, no question 
will, it is thought, arise under sects. 4 and 33 of the Succession 
Duty Act, 1853, in case the power is exercised. 

Principal value. (See the next sub-section.) 

By the same instalments as are authorised by this Act. 

See sect. 6 (8) (p. 33, supra). 

The first instalment shall be payable. The first instalment 
being made payable twelve months after the successor becomes 
entitled in possession to his succession, it follows that no duty is 
payable if the successor dies before he becomes entitled in posses- 
sion. (See 27 Hansard, 4th Ser., p. 79.) The result seems to be 
the same as if sect. 14 of the Succession Duty Act, 1853, was in 
terms made applicable to successions to real property under this 
section. Under sect. 21 of the Succession Duty Act, 1853, the 
successor had no taxable interest in real estate unless he became 
entitled in possession. 

The provisions with respect to discount. Discount at four 
per cent, is allowed under the Succession Duty Act, 1853, s. 40, 
in the case of payments in advance, and under The Customs and 
Inland Eevenue Act, 1888, sect. 22 (2), at such rate as the Com- 
missioners of the Treasury may prescribe. Under this section 
discount will apparently only be allowed on payments of duty in 
advance made before the expiration of twelve months from the 
death. 

Principal value. (See sect. 7 (5), and (8), pp. 39, 44, supra.) 
It is conceived that though the value of the property itself is 
to be ascertained, for the purpose of succession duty, in the same 
manner and by the same means as if it was being ascertained 
for the purpose of estate duty under this Act, the law as to the 
allowance to be made for incumbrances remains the same as before 
the Act. Under sect. 34 of the Succession Duty Act, 1853, no 
allowance can be made, in estimating the value of a succession, 



57 & 58 Vict. c. 30. n 

in respect of incumbrances created or incurred by the successor, § 18. 
not made in execution of a prior general power of appointment, 
but an allowance can be made for all other incumbrances. The 
incumbrances which can be deducted under the section last 
referred to include incumbrances which would not be allowed 
for in ascertaining the value of the property for the purpose of 
estate duty. 

Agricultural property. See notes on the provisions of 
sect. 7 (5), (p. 39, supra). As to the allowance of incumbrances 
under the Succession Duty Act, 1853, s. 34, see last note. 

Annual value. It is conceived that the provisions of this sub- 
section with regard to agricultural property are (equally as with 
regard to other real property) only intended to apply in the case 
of the successor being competent to dispose of the property. 
It may, however, be held that a new rule is introduced in all 
cases for the ascertainment of annual value. 

Local Taxation Grant. 
19. In substitution for the grant out of the probate Adaptation of 
duties under the Local Grovernment Act, 1888, the probate duty 
Probate Duty (Scotland and Ireland) Act, 1888, and fi''^*52Vict 
the Local Grovernment (Scotland) Act, 1889, there shall cc. 4i and 60, 
be paid, out of the proceeds of the estate duty derived c. 50. 
from personal property, such sum as the Commissioners, 
in accordance with regulations made by the Treasury 
under those Acts, may determine to be an amount equal 
to one and a half per cent, on the net value of such of 
the property in respect of which estate duty is leviable 
as would, if this Act had not been passed, have been 
chargeable with the duty imposed by section twenty- 
seven of the Customs and Inland Revenue Act, 1881, on 
Inland Revenue affidavits, and the first-mentioned Acts 
shall apply, as if the sum so determined were the pro- 
bate duty grant or one half of the proceeds of the sums 
collected in respect of the probate duties (as the case 
requires) within the meaning of those Acts. 

British Possessions. 

20. — (1.) Where the Commissioners are satisfied, that Exception as 
in a British possession to which this section applies, duty BrSish pes- 



^8 DEATH DUTIES (eNGLAND). 

-__l____ ^^ payable by reason of a deatb in respect of any pro- 
perty situate in such possession and passing on such 
death, they shall allow a sum equal to the amount of 
that duty to be deducted from the estate duty payable 
in respect of that property on the same death. 

(2.) Nothing in this Act shall be held to create a 
charge for estate duty on any property situate in a 
British possession, while so situate, or to authorize the 
Commissioners to take any proceedings in a British 
possession for the recovery of any estate duty. 

(3.) Her Majesty the Queen may, by Order in 
Council, apply this section to any British possession 
where Her Majesty is satisfied that by the law of such 
possession, either no duty is leviable in respect of pro- 
perty situate in the United Kingdom when passing on 
death, or that the law of such possession as respects any 
duty so leviable is to the like effect as the foregoing 
provisions of this section. 

(4.) Her Majesty in Council may revoke any such 
Order, where it appears that the law of the British 
possession has been so altered that it would not autho- 
rize the making of an Order under this section. 

Property situate in a British Possession. As to when 
property situate in a British Possession is liable to estate duty, 
see sect. 2 (2), (p. 14, supra). The following property, though 
in one sense colonial, is treated as situate in the United King- 
dom, and would, it is thought, be liable to estate duty, even 
though the deceased was domiciled abroad: — (1) Colonial In- 
scribed Stock transferable only on the books of the Bank of 
England, or any other bank in London ; (2) the registered 
stock of a British joint stock company carrying on business 
abroad ; (3) the registered stock of a foreign company having a 
register in the United Kingdom. 

Nothing in this Act shall be held to create a charge. 

The provisions of this sub-section appear to be general, and not 
to apply merely in the case of British Possessions to which this 
section has been applied. 

Either no duty is leviable. Before this section can be 
applied to any British Possession one or other of the two follow- 
ing conditions must be fulfilled : — (1) There must be no duty 



57 & 58 Vict. c. 30. 79 

leviable on death in tlie Britisli Possession on property situate § 20. 

in the United Kingdom ; (2) if duty is leviable in the British 

Possession on such property, a deduction must, by the law of 
the possession, be allowed of the death duties payable in the 
United King-dom. 



Savings and Definitions. 

21. — (1.) Estate duty shall not be payable on the Savings. 
death of a deceased person in respect of personal pro- 
perty settled by a will or disposition made by a person 
dying before the commencement of this part of this Act, 
in respect of which property any duty mentioned in 
paragraphs one and two of the First Schedule to this 
Act, or the duty payable on any representation or 
inventory under any Act in force before the Customs 
and Inland Revenue Act, 1881, has been paid or is 
payable, unless in either case the deceased was at the 
time of his death, or at any time since the will or 
disposition took effect had been, competent to dispose 
of the property. 

See notes on sect. 1, (p. 2, supra), "Save as hereinafter expressly 
provided." The property exempted from estate duty by this sub- 
section consists of personal property settled ( 1 ) by a will made by 
a person dying on or before the 1st August, 1894, if probate duty 
has been paid or is payable in respect thereof, either under the 
Act of 1881, or the previous Acts ; (2) by a voluntary settlement 
made by a person dying on or before 1st August, 1 894, if account 
duty has been paid or is payable in respect thereof under the Act 
of 1881. If, however, the deceased was at the time of his death, 
or had been at any time since the will or settlement took effect, 
competent to dispose (see sect. 22 (2) (a), p. 85, infra) of the 
property, estate duty will be payable on his death in the ordi- 
nary way. 
Examples : — 

(i) A., who died in 1890, settled, by his will, 10,000Z. 
Consols upon trust for B. for life, and after his death 
for C. absolutely. B. dies after 1st August, 1894. No 
estate duty is payable on his death, 
(ii) A., who died in 1890, settled, by his will, 10,000Z. 
Consols upon B. for life, but gives him a general 
power of appointment. Estate duty is payable on B.'s 
death, 
(iii) The same result takes place if B. releases his general 
power of appoirxtment, or exercises it and re-settles the 
property, giving himself merely a life interest. 



BO DEATH DUTIES (eNGLANd). 

§ 21. (iv) The same result takes place if tlie property lias been 

-"" similarly settled by a voluntary settlement made on or 

before 1st August, 1894, in respect of which Account 
duty has been paid on the death of the settlor, 
(v) Foreign personalty is settled by the will of A. (who died 
in 1890) upon trust for B. for life. Probate duty not 
having been paid in respect of this property, estate 
duty will be paid on B.'s death. 
Or is payable. In many cases (e. (/., in the case of persons 
dying on the 1st August, 1894), the Act will have come into 
operation before the death duties can possibly have been paid. 
In such cases the old duties remain payable as if this Act had 
not been passed. See next sub-section. 

(2.) Where a person died before the commencement 
of this part of this Act, the duties mentioned in the 
First Schedule to this Act shall continue to be payable 
in like manner in all respects as if this Act had not 
passed. 

Where a person died. Estate duty is not payable on the 
death of any person dying on or before 1st August, 1894; but 
the duties mentioned in the First Schedule remain payable as if 
the Act had not been passed. 

(3.) Where an interest in expectancy in any pro- 
perty has, before the commencement of this part of this 
Act, been bona fide sold or mortgaged for full con- 
sideration in money or money's worth, then no other 
duty on such property shall be payable by the purchaser 
or mortgagee when the interest falls into possession, 
than would have been payable if this Act had not 
passed ; and in the case of a mortgage, any higher 
duty payable by the mortgagor shall rank as a charge 
subsequent to that of the mortgagee. 

Interest in expectancy. See sect. 22 (l) (j), (p. 83, infra). 

This sub -section is for the benefit of persons who have purchased 
or lent money on the security of reversions, expectant on the de- 
termination of lives, on or before the 1st August, 1894. In such 
cases, allowance has always been made, in calculating the 
amount of the purchase money, in advance, for the duties which 
will become payable upon the interest falling into possession. 

Full consideration in money or money's worth. See note 
to sect. 3 (1) (p. 16, iujmx), and to sect. 7 (1) (a) (p. 34, 
supra). 



57& 58 Vict. c. 30. 81 

No other duty. The purchaser or mortgagee will, it is § 21. 
thought, have to pay the same duties, on the interest falling into ' 

possession, as would have been payable if this Act had not been 
passed, including duties which would have been covered by 
estate duty. 

Example. — Property is settled by A.'s father on A. for life, 
with remainder to B. (A.'s son) in fee. B., before 1st August, 
1894, sells his reversion to C. The duties which would become 
payable on A.'s death if this Act had not been passed, are 1 per 
cent, succession duty (First Schedule, paragraph 5), and the 
additional ^ per cent. (First Schedule, paragraph 3). C. will 
have, on A.'s death, to pay these two latter duties, and not 
estate duty. 

For the future, persons intending to purchase or lend money 
on the security of reversions must avail themselves of the pro- 
visions of sect. 12, (p. 65, supra). 

Any higher duty. The mortgagor will pay estate duty on 
his equity of redemption, but the charge (sect. 9 (1), p. 56, 
supra) will rank after the mortgage. It is thought that the 
value of an interest in expectancy will not be aggregated with 
other property upon the death upon which it falls into posses- 
sion, if it has been out and out sold before the 1st August, 1894, 
and that if it has been mortgaged, it will be exempted from 
aggregation to the extent of the moneys secured (see sect. 4, 
p. 17, supra, under which only property chargeable with estate 
duty can be aggregated). 

(4.) The Settlement estate duty of one per cent, shall 
not be payable in respect of property settled by a 
disposition which has taken effect before the commence- 
ment of this Part of this Act. 

Settlement estate duty. See sect. 5 (1), (p. 20, supra). 

(5.) Where a husband or wife is entitled, either 
solely or jointly with the other, to the income of any 
property settled by the other under a disposition which 
has taken effect before the commencement of this Part 
of this Act, and on his or her death the survivor becomes 
entitled to the income of the property settled by such 
survivor, estate duty shall not be payable in respect of 
that property until the death of the survivor. 

Where a husband or wife. The ordinary case is that of 
pin money settled by a husband on a wife. The conditions are 
(1) the instrument must have taken effect on or before 1st 
August, 1894 ; (2) the settlement must have been made by the 

F. G 



82 DEATH DUTIES (eNGLAND). 

§ SI. one spouse upon the other ; (3) the one who makes the settle- 
ment must be the survivor. 



Estate duty. It must be remembered that the Settlement 
estate duty is not payable where the only life interest, after the 
death of the deceased, is that of the wife or husband of the 
deceased (sect. 5 (1), (a), p. 20, supra). See note to that section 
on the question, whether Settlement estate duty is payable when 
there is more than one life interest after the death of the deceased, 
including that of the deceased's wife or husband. If Settlement 
estate duty is payable in such a case, this sub-section, it is 
thought, applies. (See 7iote to sect. 6 (1), p. 28, supra.) 

The rate of estate duty will, it is conceived, be the appropriate 
rate payable on property passing on the death of the survivor. 
Example : — 

(i) A. settles Whiteacre, on his marriage, on himself for 
life, charged with a rent-charge in favour of B., his 
wife, during her life, with remainder to his children in 
tail. B. predeceases A. Estate duty is not payable on 
B.'s death, 
(ii) The same result takes place if A. gives B. (his wife) the 
first life interest in his settled property. If B. survives 
A. , the duty is payable on her death in the ordinary way. 

Defiuitions. 22. — (1.) Ill this Part of this Act, unless the context 

otherwise requires : — 

(a) The expressions " deceased person " and " the 

deceased" mean a person dying after the 
commencement of this Part of this Act. 
/. e., after 1st August, 1894 (sect. 24, p. 91, infra). 

(b) The expression "will" includes any testamentary 

instrument. 

(c) The expression " representation " means probate 

of a will or letters of administration. 

(d) The expression '' executor " means the executor 

or administrator of a deceased person, and 
includes, as regards any obligation under this 
Part of this Act, any person who takes posses- 
sion of or intermeddles with the personal 
property of a deceased person. 

(e) The expression " estate duty " means estate duty 

under this Act. 

The temporary duties under sects. 5 and 6 of the Customs, &c., 
Act, 1889, are called estate duties. 



57 & 58 Vict. c. 30. 83 

(f) The expression "property " includes real property § *^^' 

and personal property and the proceeds of sale 
thereof respectively and any money or invest- 
ment for the time being representing the 
proceeds of sale. 

(g) The expression " agricultural property " means 

agricultural land, pasture and woodland, and 
also includes such cottages, farm buildings, 
farm houses, and mansion houses (together 
with the lands occupied therewith), as are of 
a character appropriate to the property. 

(h) The expression " settled property " means pro- 
perty comprised in a settlement. 

(i) The expression " settlement " means any instru- 
ment, whether relating to real property or 
personal property, which is a settlement 
within the meaning of section two of the 
Settled Land Act, 1882, or if it related to 45 & 46 Vict. 
real property would be a settlement within ^' 
the meaning of that section, and includes a 
settlement effected by a parol trust. 

Settlement. Sect. 2 (l), of tlie Settled Land Act, 1882, runs 
as follows : — "Any deed, will, agreement for a settlement, or 
other agreement, covenant to surrender, copy of court roll, Act 
of Parliament, or other instrument, or any number of instru- 
ments, whether made or passed before or after, or partly before 
and partly after the commencement of this Act, under or by 
virtue of which instrument or instruments any land, or any 
estate or interest in land, stands for the time being limited to 
or in trust for any persons bj' way of succession, creates or is 
for purposes of this Act a settlement, and is in this Act referred 
to as a settlement, or as settlements, as the case requires." 

One settlement may be created by a series of instruments. 
{Be Mundy, (1891) 1 Ch. 399 ; Re Bijiig, (1892) 2 Ch. 219.) See 
note on sect. 5 (2), (p. 22, supra). 

Parol trust. See Lewin on Trusts, 9th ed., pp. 50 et seq. 

(j) The expression " interest in expectancy " includes 
an estate in remainder or reversion and every 

g2 



84 DEATH DUTIES (eNGLANd). 

§ ^^* other future interest whether vested or con- 

tingent, but does not include reversions 
expectant upon the determination of leases. 

Interest in expectancy. (See sect. 7 (6), p. 42, supra; 

sect. 12, p. Qb, supra; sect. 21 (3), p. 80, supra.) 

Future interest. This phrase would seem to include every 
interest arising at a future time, but the right to, or exj)ectation 
of, which passed on the death of the deceased. Thus it is sug- 
gested that if A. is entitled in fee to an estate which he has 
voluntarily charged with a jointure of 100/. per annum, payable 
during the life of C. (which is not an incumbrance within the 
meaning of sect. 7 (1), p. 34, supra), the capitalized value of 
the jointure would be an interest in expectancy passing on A.'s 
death which could be dealt with under sect. 7 (6), (p. 42, supra). 

See note to sect. 5 (2), (p. 25, supra). 

(k) The expression " incumbrances " includes mort- 
gages and terminable charges. 

Terminable charges. If a terminable charge has been volun- 
tarily created by the deceased in his lifetime, it cannot apparently 
be deducted from the value of the estate under sect. 7(1) (p. 34, 
supra). As to whether it could be treated as an interest in 
expectancy, see the notes to the last definition. Under the 
Succession Duty Act, 1853, s. 34, questions have arisen whether 
a terminable charge is an incumbrance. 

(1) The expression '' j)^C)perty passing on the death " 
includes property passing either immediately 
on the death or after any interval, either 
certainly or contingently, and either originally 
or by way of substitutive limitation, and the 
expression " on the death " includes "at a 
period ascertainable only by reference to the 
death." 

Either immediately, &c. See note to sect. 2 (1) (b), (p. 6, 
sup)ra), " Property in which the deceased, &c." 

(m) The expression " the Commissioners " means the 
Commissioners of Inland Revenue. 

(n) The expression "Inland He venue affidavit " means 
an affidavit made under the enactments speci- 



57 & 58 Vict. c. 30. 95 

fied in the Second Schedule to this Act with § ^^» 
the account and schedule annexed thereto, 
(o) The expression " prescribed " means prescribed 
by the Commissioners. 

(2.) For the purposes of this Part of this Act — 
(a) A person shall be deemed competent to dispose of 
property if he has such an estate or interest 
therein or such general power as would, if he 
were sui juris^ enable him to dispose of the 
property, including a tenant in tail whether 
in possession or not ; and the expression 
" general power " includes every power or 
authority enabling the donee or other holder 
thereof to appoint or dispose of property as he 
thinks fit, whether exerciseable by instrument 
inter vivos or by will, or both, but exclusive of 
any power exerciseable in a fiduciary capacity 
under a disposition not made by himself, or 
exerciseable as tenant for life under the 
Settled Land Act, 1882, or as mortgagee : 
See note on sect. 2 (1) (a), (p. 5, supra). 

Tenant in tail, whether in possession or not. As to the 

position of a tenant in tail in remainder, see sect. 5 (3), p. 26, 
supra. 

General power . . . enabling the donee. Upon the whole 
it is thought that a person having jointly with some other 
person a general power to appoint property, is not competent to 
dispose of the property within the meaning of this definition. 

Example. — Property is limited to such uses as A. and B. shall 
jointly appoint, and subject thereto to the use of A. for life, 
with remainder to the use of B. for life. It is thought that A. 
is not competent to dispose of the property. It is conceived 
that the following sub-clause (b) has no connection with sub- 
clause (a). 

Exerciseable. The power of appointment need not have 
been exercised. 

Tinder a disposition not made by himself. Property held 

by the deceased as trustee, if held under a disposition made by 
himself within twelve months of his death, is liable to estate 
duty, but is not so liable if held under a disposition made by 



S6 DEATH DUTIES (eNGLAND). 

§ 22. the deceased more than twelve months before his death, where 

■ the possession and enjoyment of the property was bo7id fide 

assumed by the beneficiary immediately upon the creation of 
the trust, and thenceforward retained to the entire exclusion of 
the deceased, or of any benefit to him by contract or otherwise. 
(Sect. 2 (1), (c), and (3), pp. 8 & 15, supra.) It would appear, 
however, that property settled by the deceased on another 
person more than twelve months before the deceased's death, 
would be liable to duty on the deceased's death if the deceased 
had a power of sale as trustee under the settlement. If this is 
the true interpretation of the Act, it will be extremely dangerous 
in the future for any settlor to be trustee of the settled property. 

(b) A disposition taking effect out of the interest of 

the deceased person shall be deemed to have 
been made by him, whether the concurrence 
of any other person was or was not required : 

(See sect. 7 (1), (a), p. 34, supra ; and see note, sub-clause (a), 
" General power . . . enabling the donee.") 

It may possibly be said that the effect of this sub-clause is to 
put a person, having a power of appointment jointly with some 
other person, in the same position as if he were the sole donee of 
the power; but, upon the whole, it is submitted that such a 
construction would not prevail. 

(c) Money which a person has a general power to 

charge on property shall be deemed to be 
property of which he has power to disjDOse. 

(3.) This Part of this Act shall apply to property in 
which the wife or husband of the deceased takes an 
estate in dower or by the courtesy or any other like 
estate, in like manner as it applies to property settled 
by the will of the deceased. 

Estate in dower. I.e. the one-third of the rents and profits 
to which a widow becomes, on the death of her husband, entitled 
of and in the real estate undisposed of by him. 

Estate by the courtesy. I.e. the estate for life to which a 
husband becomes entitled on his wife's death of and in the real 
estates to which she was entitled in fee simple or fee tail, pro- 
vided he has had issue by her born alive capable of inheriting 
the estates. 

Any other like estate. E.g. free bench. 
Settled by the will. See sect. 5, p. 20, supra, and the 
^examples there given. 



57 & 58 Vict. c. 30. 87 

§23. 

ApjjUcation to Scotland. 

23. In the application of this Part of, this Act to Application of 
Scotland unless the context otherwise requires : — Scotland. 

(1.) The Court of Session shall be substituted for the 
High Court. 

(2.) " Sheriff court '' shall be substituted for "county 
court." 

(3.) " Confirmation " shall be substituted for " repre- 
sentation." 

(4.) The expression " receiver of the property and of 
the rents and profits thereof," means a judicial 
factor upon the property. 

(5.) The expression "Inland Revenue affidavit," 
means the inventory of the personal estate of 
a deceased now required by law, and includes 
an additional inventory. 

(6.) The expression " on delivering the Inland 
Revenue affidavit " means on exhibiting and 
recording a duly stamped inventory as pro- 
vided by section thirty-eight of the Act of the 
forty-eighth year of the reign of King Greorge 
the Third, chapter one hundred and forty- 
nine. 

(7.) Section thirty-four of the Customs and Inland 
Revenue Act, 1881, shall be substituted for 
section thirty-three of that Act, and the Acts 
referred to in such section thirty-four shall 
extend to an estate of a gross value not ex- 
ceeding five hundred pounds, and an applica- 
tion under the said Acts may be made to any 
commissary clerk, and any commissary clerk 
shall affix the seal of the Court to any repre- 
sentation granted in England or Ireland upon 
the same being sent to him for that purpose, 
enclosing a fee of two shillings and sixpence. 



DEATH DUTIES (sCOTLANd). 

§ S3. (8.) The expression " personal property " means 

moveable property. 

(9.) The expression " real property " includes herit- 
able property. 

(10.) The expression "incumbrance" includes any 
heritable security, or other debt or payment 
secured upon heritage. 

(11.) The expression "executor" means every person 
who as executor, nearest of kin, or creditor, or 
otherwise, intromits with or enters upon the 
possession or management of any personal 
property of a deceased person. 

(12.) The property comprised in any special assigna- 
tion or disposition taking effect on death shall 
be deemed to pass on death within the mean- 
ing of this Act. 

(13.) The expression "trustee" includes a tutor, 
curator, and judicial factor. 

(14.) The expression "settled property" shaU not 
include property held under entail. 

(15.) An institute or heir of entail in possession of 
an entailed estate shall, whether sui juris or 
not, be deemed for the purposes of this Act to 
be a person competent to dispose of such 
estate. 

(16.) Where an entailed estate passes on the death 
of the deceased to an institute or heir of entail, 
who is not entitled to disentail such estate 
without either obtaining the consent of one or 
more subsequent heirs of entail or having the 
consent of such one or more subsequent heirs 
valued and dispensed with. Settlement estate 
duty as well as estate duty shall be paid in 
respect of such estate, but neither estate duty 
nor Settlement estate duty shall be payable 
again in respect of such estate, until such 



57 & 58 Vict. c. 30. 89 

estate is disentailed, or until an heir of entail § ^^* 
to whom it passes on or subsequent to the 
death of the institute or heir first mentioned, 
and who is entitled to disentail it without 
obtaining the consent of any subsequent heir or 
heirs or having the consent of any subsequent 
heir or heirs valued and dispensed with, dies. 
(17.) Where an institute or heir of entail in posses- 
sion of an entailed estate, who is not entitled 
to disentail such estate without either obtain- 
ing the consent of one or more subsequent 
heirs of entail or having the consent of such 
one or more subsequent heirs valued and dis- 
pensed with, has paid estate duty in respect 
of such estate, and afterwards disentails such 
estate, he shall be entitled to deduct from the 
value in money of the expectancy or interest 
in such estate of such one or more subsequent 
heirs, payable by him to them in respect of 
their consents having been granted or dis- 
pensed with, a proper rateable part of the 
estate duty paid by him as aforesaid. 
(18.) Where any person who pays estate duty on any 
property, and in whom the property is not 
vested, is by this Act authorized to raise such 
duty by the sale or mortgage of that property, 
or any part thereof, it shall be competent for 
such person to apply to the Court of Session — 
(a) for an order of sale of the property or part 
of it, and in the event of the Court granting 
such order, it shall provide for the payment 
out of the price of the amount of the estate 
duty which has been paid by such person, 
and the Court shall thereafter make such 
order as to the disposal of the surplus, if 
any, of the price, by way of investment or 
otherwise, as to the Court shall seem proper; 



90 DEATH DUTIES (SCOTLAND ). 

§ ^-^* the Court may in such order specify the 

time and place at which, the person by 
whom, and the advertisement or notice after 
which the sale shall be made, and may ordain 
the person in whom the property is vested 
to grant a disposition thereof in favour of 
the purchaser, and if the person in whom 
the property is vested refuses or fails to do 
so, the Court shall grant authority to the 
clerk of Court to execute such disposi- 
tion, and such disposition so executed shall 
be as valid as if it had been executed by 
the person in whom the property is vested ; 
or 
(b) for an order ordaining the person in whom 
the property is vested to grant a bond and 
disposition in security over the property in 
favour of the person who has paid the estate 
duty, for the amount of the said duty, and 
if the person in whom the property is vested 
refuses, or fails to do so, the Court shall 
grant authority to the clerk of Court to 
execute such a bond and disposition in 
security, and such bond and disposition in 
security so executed shall be as valid as if 
it had been executed by the person in whom 
the property is vested, and shall be a first 
charge upon the property after any debt or 
incumbrance for which an allowance is 
directed to be made under this Act in 
determining the value of the property for 
the purpose of estate duty ; 
Provided also that summary diligence shall not 
be competent thereupon, and that nothing 
herein contained shall make the duty to be 
recovered by the methods of these sub-sec- 
tions (a) and (b) recoverable at any earlier 



57 & 58 Vict. c. 30. 91 

time than if it had been recovered by direct § 23. 
action against the person ultimately liable for 
the duty. 
(19.) This Part of this Act shall apply to property 
in which the wife or husband of the deceased 
takes an estate of terce or courtesy or any 
other like estate in like manner as it applies 
to property settled by the will of the deceased. 

Commencement. 

24. This Part of this Act shall come into operation Commence- 
on the expiration of the first day of August one of Act. 
thousand eight hundred and ninety four, in this Part of 
this Act referred to as the commencement of this Part 
of this Act. 

Short Title, 

42. This Act may be cited as the Finance Act, 1894. Short title. 



SCHEDULES. 



FIEST SCHEDULE. 
Existing Duties referred to. 

1. The stamp duties imposed by the Customs and Sections i 
Inland Eevenue Act, 1881, on the affidavit to be re- 44 & 45 Vict, 
quired and received from the person applying for probate ^' ^'^' 

or letters of administration in England or Ireland, or 
on the inventory to be exhibited and recorded in 
Scotland. 

2. The stamp duties imposed by section 38 of the 52 & 53 Vict. 
Customs and Inland Eevenue Act, 1881, as amended °' 

and extended by section 11 of the Customs and Inland 
Eevenue Act, 1889, on the value of personal or move- 
able property to be included in accounts thereby directed 
to be delivered. 



92 

1st 
Sched. 

51 & 52 Yict. 
c. 8. 



DEATH DUTIES (eNGLAND). 

3. The additional succession duties imposed by sec- 
tion 21 of the Customs and Inland Eevenue Act, 1888. 

4. The temporary estate duties imposed by sections 5 
and 6 of the Customs and Inland Eevenue Act, 1889., 

6 . The duty at the rate of one pound per cent, which 
would by virtue of the Acts in force relating to legacy 
duty or succession duty have been payable under the 
will or intestacy of the deceased, or under his disposition 
or any devolution from him under which respectively 
estate duty has been paid, or under any other disposi- 
tion under which estate duty has been paid. 

See 7iote to sect. 1, " The existing duties," (p. 4, supra). 



SECOND SCHEDULE. 
Acts referred to. 



Session and Chapter. 



55 Geo. 3, c. 184 
66 Geo. 3, c. 56 . . 



43 Vict. c. 14 

44 & 45 Vict. c. 12. 



Title or Short Title. 



The Stamp Act, 1815 



An Act the title of which begins 
with the words '' An Act to re- 
peal the several stamp duties" 
and ends with the words 
" managing the said duties." 

The Customs and Inland Revenue 
Act, 1880. 

The Customs and Inland Revenue 
Act, 1881. 



Section referred to. 



Section thirty- eight. 

Section one hundred and 
seventeen. 



Section ten. 



Sections twenty-nine and 
thirty- two. 



The 38th section of 55 Geo. 3, c. 184, is as follows: — 
" 38. And be it further enacted that from and after the expi- 
ration of three calendar months from the passing of this Act, no 
Ecclesiastical Court or person shall grant probate of the will or 
letters of administration of the estate and effects of any person 
deceased, without first requiring and receiving from the person 
or persons applying for the probate or letters of administration, 
or from some other competent person or persons, an affidavit, or 
solemn affirmation in the case of Quakers, that the estate and 



57 & 58 Vict. c. 30. 93 

effects of the deceased for or in respect of wMcli the probate or Slid 
letters of administration is or are to be granted, exclusive of Sched. 

what the deceased shall have been possessed of or entitled to as -1— 

a trustee for any other person or persons, and not beneficially, 
but including the leasehold estates for years of the deceased, 
■whether absolute or determinable on lives, if any, and without 
deducting anything on account of the debts due and owing from 
the deceased, are under the value of a certain sum to be therein 
specified, to the best of the deponent's or affirmant's knowledge, 
information, and belief, in order that the proper and full stamp 
duty may be paid on such probate or letters of administration ; 
which affidavit or affirmation shall be made before the surrogate 
or other person who shall administer the usual oath for the due 
administration of the estate and effects of the deceased." 

The 117th section of oG Geo. 3, c. 56, is as follows: — "And 
be it further enacted that from and after the commencement of 
this Act, no Ecclesiastical Court or jurisdiction in Ireland shall 
grant probate of the will or letters of administration of the estate 
and effects of any person deceased without first requiring and 
receiving from the person or persons applying for the probate 
or letters of administration, or from some other competent per- 
son or persons, an affidavit, or solemn affirmation in the case of 
Quakers, in the form contained in the schedule hereunto annexed, 
that the estate and effects of the deceased for or in respect of 
which the probate or letters of administration is or are to be 
granted are under the value of a certain sum, to be specified in 
such affidavit to the best of the deponent's or affirmant's know- 
ledge, information and belief, and according to the account to 
be annexed to such affidavit, according to which sum the stamp 
duty shall be ascertained which shall be then required on such 
probate or letters of administration, which affidavit or affirmation 
shall be made before the surrogate or other person who shall 
administer the usual oath for the due administration of the 
estate and effects of the deceased." 

The 10th section of 43 Vict. c. 14, is as follows : — 

" 10. — (1) Together with the affidavit to be required and 
received from the person applying for a probate or letters of 
administration in England, in conformity with section thirty- 
eight of the Act passed in the fifty-fifth year of the reign of 
King George the Third, chapter one hundred and eighty-four, 
there shall be delivered an account of the particulars of the 
personal estate for or in respect of which the probate or letters 
of administration is or are to be granted, and of the estimated 
value of such particulars. 

" (2) The account so delivered shall be transmitted to the 
Commissioners of Inland Eevenue, together with the documents 
mentioned in section ninety-three of the Act passed in the 
twentieth and twenty-first years of her Majesty's reign, chapter 
seventy- seven. 

"(3) A like account shall be annexed to the affidavit to be 
required and received from the person applying for a probate or 
letters of administration in Ireland, in conformity with section 
one hundred and seventeen of the Act passed in the fifty-sixth 
year of the reign of King George the Third, chapter fifty-six, 



94 DEATH DUTIES (eNGLANd). 

dud. and such account sliall be in lieu of, and in substitution for, the 
Sclied. account annexed to the form of affidavit set forth in Part III. of 

the Schedule to the said Act. 

" (4) Every account to be delivered in pursuance of this section 
shall be in accordance with such form as may be prescribed by 
the Commissioners of Her Majesty's Treasury." 

The 29th and 32nd sections of 44 & 45 Yict. c. 12, are as 
follows : — 

" 29. The affidavit to be required or received from any person 
applying for probate or letters of administration in England or 
Ireland shall extend to the verification of the account of the 
estate and effects, or to the verification of such account and the 
schedule of debts and funeral expenses, as the case may be, 
and shall be in accordance with such form as may be prescribed 
by the Commissioners of Her Majesty's Treasury; and the 
Commissioners of Inland Eevenue shall provide forms of affi- 
davit stamped to denote the duties payable under this Act." 

*' 32. If at any time it shall be discovered that the personal 
estate and effects of the deceased were, at the time of the grant 
of probate or letters of administration, of greater value than 
the value mentioned in the certificate, or that any deduction 
for debts or funeral expenses was made erroneously, the person 
acting in the administration of such estate and effects shall, 
within six months after the discovery, deliver a further affidaTit 
with an account to the Commissioners of Inland Eevenue, duly 
stamped for the amount which, with the duty (if any) previously 
paid on an affidavit in respect of such estate and effects, shall 
be sufficient to cover the duty chargeable according to the true 
value thereof, and shall at the same time pay to the said Com- 
missioners interest upon such amount at the rate of five pounds 
per centum per annum from the date of the grant, or from such 
subsequent date as the said Commissioners may, in the circum- 
stances, think proper." 



APPENDIX. 



EXTEACT FKOM THE 

* Speech of the Right Son. Sir William Harcoiirt {Chan- 
cellor of the Exchequer), on making the Financial 
Statement, Uth April, 1894. 

The Committee will anticipate that tlie first subject to 
•wMcli I shall refer is the Death Duties. Even without the 
pressure of immediate necessity, it would be a mere act 
of financial justice to redress inequalities which have too 
long existed. It is difiicult to understand how the intoler- 
able injustice of the relations between the taxation of 
various kinds of property under the Death Duties has been 
so long endured. We are bound to undertake the solution 
of this question by the pledge given in the important 
Resolution moved by the Eight Hon. Member for Mid- 
lothian on the Second E-eading of the Budget Bill in 1888. 
I will remind the Committee of that Eesolution. It was — 

" That, in the opinion of this House, after Parliament shall have 
made the appropriations it may deem just in the relief of 
local rates, the duties accruing upon death shall be so fixed 
as to equalise the charge upon real and personal property 
respectively." 

I have not time to enter on a lengthened disquisition on 
the history of those duties and their anomalous incidence. 
In a general way they are familiar to most people. A sort 
of defence has been set up that there was a compensation 
to be found in the heavier burden to which particular 
kinds of property were subject under other taxes. But 
these sorts of compensation are unsound in principle and 
mischievous in practice. It is far better to place both 
taxes on a fair and equal basis than to attempt to counter- 
balance one inequality by the creation of another. The 
whole subject is admittedly difficult and complicated. The 
Death Duties have grown up piecemeal, and bear traces of 
their fragmentary origin. They have never been estab- 
lished upon any general principles, and they present an 

* Printed by permission. 



95 DEATH DUTIES (eNGLANd). 

extraordinary specimen of tessellated legislation. Various 
endeavours have been made at different times to redress 
some of their inequalities. Here a patch and there a 
patch, but each successive modification has only left con- 
fusion worse confounded. In the fraction of time which I 
can devote to this subject I can only present to the 
Committee a very faint outline. 

Existing Death Duties. 
There exist at present five duties — the Probate Duti/y 
the Account Duty, the Estate Duty (which, however, was 
only imposed for seven years, and expires in 1896), the 
Legacy Duty, and the Succession Duty. The Probate, 
Account, and the Legacy Duties affect personalty ; the 
Estate and Succession Duties affect both personalty and 
realty. But there is a more important distinction — 
namely, the point of view from which these duties are 
levied. The difference may be illustrated by the examples 
of the Probate and the Legacy Duties. Probate is a duty 
imposed on the whole corpus of the personal property 
which passes to a man's executor or administrator ut his 
death. The Account Duty and the Estate Duty are similar 
to it in that they deal with the corpus of the estates to 
which they apply, and that the duty is charged on the 
amount of the capital passing, irrespective of its destina- 
tion. Eor shortness, I will call these the A duty class. 
The principle of this A duty is to look solely at the amount 
of property passing, without regard to its subsequent 
destination or distribution. I now turn to what I will call 
the B class of duty. Of this the Legacy Duty is an 
example. The B class of duty is an additional tax imposed 
on the interest which a man derives from property left to 
him or devolving upon him. This duty regards not the 
amount of the estate which the deceased leaves, but the 
amount of interest which the successor takes, and the rate 
of it is determined by his relationship to the man from 
whom he takes it — a distinction which is not made in the 
case of the A duty. This is the general character of the 
Legacy and Succession Duties. The point of view of the 
A duty class is the amount of property left. The point of 
view of the B duty class is the interest of the individual 
successor and his relationship to the predecessors. It is 
obvious that, accepting these principles, these duties should 
severally be applied with equality to all classes of pro- 
perty. 

Personalty and Eealty. 

But it is not so. The A duty is imposed, in the shape of 
Probate Duty, on personalty passing by will or intestacy, 



APPENDIX. 97 

and, in the shape of Account Duty, on personalty included 
in voluntary settlements and some other things, but it is 
not imposed on personalty included in other forms of settle- 
ment, or on any form of realty, settled or unsettled. In 
the case of the B duty, the principle is not equally applied. 
There is an unfair distinction between personalty and 
realty. In the case of personalty the duty is in all cases 
charged according to the interest of the beneficiary — that 
is, if he takes a life interest, he pays on the value of that 
interest ; whereas, if he takes an absolute interest, he pays 
on the principal value of what he takes. But, in the case 
of realty, the beneficiary pays in all cases only on his life 
interest, even when he takes an absolute interest — fee- 
simple — in property. These inequalities are not denied. 
The right hon. gentleman, the Member for St. George's, 
Hanover Square, attempted in some degree to redress 
them. He somewhat raised the B duty on realty, in order 
to compensate its exemption from duty A. He imposed 
also an Estate Duty, the object of which he thus de- 
scribed : — 

' * The new duty will be charged similarly on both realty and per- 
sonalty — that is to say, on the capital value, when the property 
passes absolutely." 

I entirely accept this principle, and what we desire is to 
carry it out to its legitimate conclusion. I have not time 
now to discuss the right hon. gentleman's plans in detail ; 
but they have failed of their avowed intention — they have 
not redressed the inequality, either in respect of settled 
property or of realty. Eealty is not taxed upon the prin- 
cipal value ; it is taxed on the value of the life interest of 
the successor. The basis of calculation is, not the principal 
value of the land, but the annual rental. It is, in effect, a 
tax upon rent, which is a wholly different thing. I have 
here a table which will illustrate this matter by concrete 
instances better than any elaborate statement. I will take 
the case of a property of the market value of 15,000^. If 
it is what is called free personal property, or anything else 
not settled, that property will pay 3 per cent. Probate 
Duty, 450/., and Estate Duty, T per cent., 150/., making 
600/. Supposing the same property is under settlement, it 
will pay Succession Duty, 225/. ; Estate Duty, 150/. ; or a 
total of 375/. instead of 600/. If it were divided into two 
properties, it would only pay 225/. instead of 600/. Now, 
let us take the case of land, or real property, of the market 
value of 15,000/. I take the age of the successor at 35. 
The net rental at A^ per cent, is 675/. ; the Succession 

F. H 



98 DEATH DUTIES (eNGLANd). 

Duty would be 139/. 10s., the Estate Duty 130Z. lOs., or a 
total of 2701. as against 600/., or about one-balf. If there 
were two successors and no personalty, there would be no 
Estate Duty, and the charge would be only 139/. IO5. 
instead of 600/. I do not go into the figures, but upon 
collaterals generally the charge in the case of realty will 
not be much more than half that on free personalty, and, 
when there are two successors to realty alone, less than 
one -half. 

Lea-Seholds and Freeholds. 

There is a great distinction between leasehold and free- 
hold property. The one — that is, the leasehold — is taxed 
for the purpose of probate as personal property, and the 
other — the freehold — is exempted from probate as realty. 
Leaseholds are always diminishing in value : but freeholds, 
on the other hand, are generally increasing in value. I am 
afraid that there are some freeholds that are not increasing 
in value, but there are a good many that are. I should think 
if you took some of the ground-rent proprietors in London 
they would not tell you that their receipts were decreasing. 
Now, I will suppose a person (A.), who owns two sets of 
trade premises, each worth 200/. per annum net annual 
value, the one, a leasehold, having, say, sixty years 
to run, and the other a freehold. The properties are 
rated equally for local purposes ; but mark the differ- 
ence of their contribution under the Death Duties to 
Imperial taxation. A., the father, leaves the leasehold 
to his son B., who pays probate at 3 per cent, on 
3,000/., which is fifteen years' purchase. The amount 
of probate he will pay is 90/. He leaves the freehold to 
another son, C. The freehold at twenty j^ears' purchase is 
worth 4,000/., but the "tax in this case being under the 
Succession Duty is only valued on the Hfe interest. 
Assuming C. to be forty-four (the average age of suc- 
cessors), his life interest in the property, of 200/. net 
annual value, would be 2,800/., and on that he would pay 
1^ per cent., or 42/. Therefore the leasehold, which is 
really worth 3,000/., pays 90/., while the freehold, which 
is worth 4,000/., only pays 42/. It ought at equal rates to 
pay 120/. That is to say, the leasehold pays nearly three 
times as much as the freehold. Now, is it possible to 
justify a system of taxation of that kind? I beg leave to 
call the attention of people interested in urban populations 
to this question of the position of the leaseholder and the 
freeholderi 



APPENDIX. 

Peoposed Alteration of the Law. 

TliG object of the proposal the Government have to make 
is to effect completely what the right hon. gentleman oppo- 
site (Mr. Goschen) avowed to be his object — to make as 
complete an assimilation of the charges on all kinds of 
property in respect of the Death Duties as the nature of the 
case permits. 

Assimilation of Duties of the A Class. 

The proposal of the Government, therefore, is this : "We 
propose to clear the ground by abolishing or merging the 
present Probate Dutj^, the Account Duty, the Estate Duty, 
and the addition made by the right hon. gentleman oppo- 
site to the Succession Duty and to start afresh. We con- 
stitute in their place a single duty of the A class, of which 
probate is the type, which we propose to call the Estate 
Duty. We borrow the right hon. gentleman's principle, 
and we borrow his name. We carry out his principle, how- 
ever, to its legitimate conclusion. The Estate Duty will 
be charged according to the principal value of all property, 
whether real or personal, settled or unsettled, which passes 
on the death of any person, whether by the disposition of 
the deceased or by a settlement made by others. That is 
the broad and general principle. In this duty regard will 
only be had to the sum total of the property passing, and 
not at all to the persons to whom or the shares in which it 
passes. The governing principle is this : Upon the devolu- 
tion of property of all descriptions the State takes its share 
first — before any of the successors in title or beneficiaries. 
The reason on which this is founded is plain. The title of 
the State to a share in the accumulated property of the 
deceased is an anterior title to that of the interest to be 
taken by those who are to share it. The State has the 
first title upon the estate, and those who take afterwards 
have a subsequent and subordinate title. Nature gives a 
man no power over his earthly goods beyond the term of 
his life. What power he possesses to prolong his will after 
his death — the right of a dead hand to dispose of property 
— is a pure creation of the law, and the State has the 
right to prescribe the conditions and limitations under 
which that power shall be exercised. The right to make 
wills or settlements or successions is the creation of posi- 
tive law. In case of default of disposition by intestacy, the 
State settles the destination of the property under the 
Statute of Distribution. It is most important to keep that 
clearly in view. The objection is often taken that taxes 
of this kind are so hard upon this person or that person, 

h2 



100 DEATH DUTIES (eNGLANd). 

but a duty like the Probate Duty, wbere property is be- 
queathed by will, knows nothing of distinctions of persons 
who are to be benefited by the will. We deduct the share 
of the State, and then the persons interested take according 
to their several shares. Suppose a man leaves property 
amounting to 100,000/., the Probate Duty, which will now 
be the Estate Duty, is deducted before anyone gets any- 
thing. The deduction may be 4,000/. What really 
belongs to the beneficiaries is not 100,000/., but 96,000/., 
and they never had a right to anything more. That is the 
principle of the new Estate Duty. Those who laugh cannot 
have read the most elementary books on political economy 
and finance. The State is to take its share from the corpus 
of the whole property passing on the death of the deceased, 
of whatever kind or description that property may be. 
That principle is so simple and so just. I never supposed 
till this moment that that was a principle which anyone 
disputed. It is a principle which has been laid down in 
this House for a very long time, and it had been laid down 
in every work that has ever professed to deal with political 
economy. Therefore I was not prepared to argue it. I 
have taken it as an axiom of finance. The real difiiculty 
arises in the application of the principle. 

Case of Eeal Property. 

The difficulty arises from the complication of the Law of 
Settlement, and the Law of Real Property, and likewise 
from the nature of real property. As to free personalty, 
you have to deal only with the executors, but in the case 
of settlements, you must have recourse to trustees, and 
you may often have to deal with the dispositions of persons 
other than the deceased. Eeal property passes immediately 
to the devisee or heir, and, when settled, presents the same 
difficulties as those to which I have referred in the case of 
settled property. That constitutes, no doubt, a difficulty 
in regard to collection. The evils from which we suffer, 
not only in this respect, but in all dispositions of property, 
exist to a degree which makes the IJnited Kingdom the 
most lawyer-ridden country in the world. These complica- 
tions are the work of the astute and ingenious professors 
of the law. They are the result of the accumulated 
subtleties of conveyancing. They are expensive and unin- 
telligible to everyone who is not well paid to understand 
them. It is a difficult business to unravel and break 
through all their cobwebs, but in principle there is no 
reason why settled property should be favoured in com- 
parison with unsettled property. Settlements may be good 



APPENDIX. 101 

things in some cases, but they are certainly very bad things 
in others, and there is assuredly no reason why they should 
be favoured by any fiscal exemptions. You cannot by 
fiscal enactments alter the Law of Settlement, but you may 
provide that settlements shall not be unduly favoured in 
respect of taxation. To show again what a faithful dis- 
ciple I am of the right hon. gentleman opposite, I should 
like to read a sentence upon the subject of settlements from 
his Budget Speech, 1889. He said — 

" The whole theory of the Death Duties is that the State claims a 
share in all property passing on death. If I may use a phrase of 
legitimate exaggeration, a portion of the Death Duties is practically 
evaded by settlement. From my point of view, every settlement if 
not a fraud upon the Death Duties, at all events, makes a serious 
inroad on what I may term the rights of the Chancellor of the 
Exchequer." 

I beg attention to what follows : — 

" I do not feel sure that equity and analogy do not require that a 
higher duty should be put upon settlements to compensate for the 
heavy loss to the Death Duties which they bring about." 

As regards real property, there is no reason why it should 
be charged at a different rate from other property, why the 
duty on it should be charged on a life interest when the 
real interest taken is the fee simple, why it should be esti- 
mated on an annuity, which in the case of the best classes 
of property, such as ground rents, produces a sum far 
below the principal value on which other property is 
valued. This is one of the few countries in the world 
where such a principle is adopted. I find in The Statisti- 
cal Society's Journal^ Part 85, this statement : — 

** Coming next to the question of this modification or mode of esti- 
mating the value of real property, and the substitution of the actual 
reaUsable value for the fictitious value obtained by multiplying the * 

income by a given quantity, we find there are only two countries 
besides France in which the assessment of Succession Duties on real 
estate is based on the fictitious, and not the real, value. Those 
countries are England and Belgium. In determining the value of 
real estate in all other countries, the duty is levied on the realisable 
value of the property." 

I have forgotten to mention that, in taking principal value 
as the basis of the tax, we reform a glaring injustice of 
exempting property which has a high selling value, though 
yielding little or no annual rent. There is the well-known 
Lord Sefton's case, where there was property yielding no 
rent at all, on the banks of the Mersey. Well, he paid no 
Succession Duty upon that, and ver^' shortly afterwards 
he sold the property for a very large sum. The Inland 



102 DEATH DUTIES (eNGLAND). 

Hevenue claimed Succession Duty upon what lie had re- 
ceived, but the land had no annual value, and it therefore 
paid nothing. This applies to the question of ground- 
rents and ground values. You may have a ground rent 
■which is very small, and yet you may sell that property 
to-morrow for an immense sum of money. There is no 
more difficulty in estimating the principal value of real 
property than that of jewels or pictures. The real test is 
what experienced persons estimate would be the fair 
market value at the time and under the circumstances. 
That real estate should not be treated on a more favour- 
able footing than other property was laid down by Mr. Pitt 
in 1795. 

" In a war for the protection of property it was just and equitable 
that property should bear the burden, and as it was in the nature of 
things that landed property was the most permanent it was fit that 
it should contribute accordingly." 

That principle was rejected then by the House of Commons 
of those days, but I venture to say that it will not be 
rejected by the House of Commons of to-day. But, to 
take a later example, the right hon. gentleman (Mr. 
Goschen), in his able Report of 1871, stated that — 

" Out of the total Imperial taxation, land in England paid, in 
1868, 5-28 per cent, ; in France, 18-43 per cent. ; in Prussia, 11-39 
percent.; in Belgium, 20-72 per cent. ; in Russia, 11-21 per cent.; 
in Austria, 17*54: per cent. ; in Hungary, 32*30 per cent. ; and" (he 
added) ' ' from these figures it is apparent to what a small extent the 
taxation of land has been available for Imperial purposes in the United 
Kingdom as compared with the whole of the Continent." 

If it is urged, as is unfortunately true, that the value of 
land has greatly fallen in this country, it will be remem- 
bered that the charge will be the less in proportion to the 
fall in value, and that land will, like other properties, only 
be taxed on what it is worth and what it will fetch. One 
difficulty we have to meet is one which would have been 
remedied if the House of Lords had not rejected the Land 
Transfer Bill introduced by the late Government in 1889, 
by which land would have passed, like personal property, 
to the hands of the executors. There may be more diffi- 
culty in realising at once the tax on real property, and 
regard should be had to this consideration, so long as in 
the end the same amount is realised on real property as 
that which is levied in other cases. The situation of settled 
property will also require special treatment, but the charge 
in the end should be the same. All these are questions of 
the manner of collection, which will have to be dealt with 
at a later date, and their difficulty, no doubt, is great ; but 



APPENDIX. 

I kave not time to enlarge on them now. We have done 
our best to solve them ; and I have no doubt that, with the 
assistance of the Committee, we shall be able to arrive at 
some reasonable conclusion. So long as the equal con- 
tribution of all classes of property is kept intact we have 
a very open mind as to the method of effecting it. It is 
very desirable and very important to interfere as little as 
possible with the existing system of administering the law, 
round which has grown up a great mass of established 
decisions and practice. I have said that, whilst making 
an equal charge on all kinds of property under the Estate 
Duty, we accommodate the method of collection and pay- 
ment to the different conditions of various kinds of pro- 
perty. It would, obviously, be impossible to realise at 
once the capital value of landed property in like manner 
as in the case of Stocks or other personalty. "We continue, 
therefore, the existing system of payment hy instalments ; 
but, in order that the ultimate payment may be the same 
as on other property, we charge interest on the money 
remaining due until the whole is discharged. These in- 
stalments will be a charge on the estate, and will not 
lapse with the death of the person primarily liable to pay 
them. In the case of settlement, when property is now 
settled by will, probate is charged once on the corpus of 
the property, and this payment covers all the limitations 
of the settlement. It is felt that it would not be fair to 
require a full payment on each devolution within the scope 
of the settlement when the beneficiary takes only limited 
interest, and thus treat a man with only a life interest on 
the same footing as one who had the absolute disposal of 
the estate. We now, therefore, propose to assimilate the 
treatment of property under all kinds of settlements to that 
now in force respecting settlements made by will. But, as 
the single payment in respect of the whole settlement may 
result in a diminished total produce of the tax, we propose 
to levy an additional 1 per cent, on all property under 
settlement to recoup this loss. I have, in fact, adopted 
the right hon. gentleman's policy. I have sat at his feet 
for some years, and have learned something from him. 
In this manner we levy the same amount from the estate 
as if it were left absolutely, but each beneficiary will con- 
tribute according to the extent of his interest by the 
reduction of his income resulting from the original diminu- 
tion of the capital. In the case of realty, where the duty 
will be payable in the first instance by the life tenant, he 
will have the power to charge the amount of it on the pro- 
perty. I do not propose, at the present moment, to argue 
this question in detail. The proper time for that will be 



103 



104 DEATH DUTIES (eNGLAND). 

when the Resolution relating to the Death Duties comes 
separately under discussion. I have not found it necessary 
to go into any elaborate calculations, such as those which 
were discussed in the Debate of 1888, as to the relative 
amount of various kinds of property and the charges upon 
them. Our plan does not require any such calculation, 
because it is proposed to place exactly the same charge on 
every sort of property, of whatever kind it may be. 

Sir M. Hicks-Beach: Will the right hon. gentleman 
state the percentage ? 

Sir W. Harcourt: I am coming to that directly. I 
now come to a point in this matter which is of still greater 
importance. Hitherto I have discussed the propriety of 
bringing all kinds of property under the same tax — a tax 
in the nature of the present Probata Duty. This we have 
sought to accomplish. When we have collected all the 
different heads of property passing at a man's death, and 
aggregated them in one sum, the question arises, shall the 
property be taxed at the same rate, whether it be great or 
smaU? 

Graduation of Duty. 

Shall a property of 100,000^. not contribute on a higher 
scale than a property of 1,000^. ; a property of 500,000/. 
more than 100,000/. ; and 1,000,000/. more than 500,000/. ? 
This raises in its simplest form the vital question of gradu- 
ated taxation. To my mind, the principle if applied with 
fairness and justice is a most equitable and politic principle. 
Every writer on political economy and finance has laid 
down the doctrine that taxation should be proportionate to 
the ability to bear it of those on whom it is imposed. The 
right hon. gentleman (Mr. Goschen) admitted, and indeed 
proclaimed, these principles when he established the Estate 
Duty. He stated — 

'* On the whole, I think it will be generally recognised that it is the 
men whose fortunes are considerable who pay least in proportion to 
their aggregate income and property." 

He proceeded to act to a limited extent on this principle 
by imposing the Estate Duty on estates amounting to 
10,000/,, and excepting all estates below that sum. I 
pointed out at the time that this fact, and the principle 
upon which it was propounded, contained the germ of 
graduation. It was, in fact, the first rung of the ladder, 
and we propose to ascend the scale. I read last week a 



APPENDIX. 105 

very able article in The Economist on this subject, wbicb. 
pointed out bow this principle might be applied even on a 
small scale. Mr. Pitt suggested that a man who could 
afford to keep two carriages should be taxed on each a 
higher rate than his neighbour who could only afford to 
keep one. This system of graduation is in force in many of 
our colonies. In Victoria an estate of 10,000/., to 20,000Z. 
pays 4 per cent., rising by steps to estates of 100,000/., above 
which 10 per cent, is paid. We propose a much more mode- 
rate graduation, rising to 8 per cent, at 1,000,000/., or 
double the existing maximum. I now propose to tell the 
Committee how I intend to fix the graduation. On estates 
exceeding 100/. and not exceeding 500/. the rate will be 

1 per cent.; exceeding 500/. and not exceeding 1,000/., 

2 per cent., including in both cases Legacy and Succession 
Duty ; exceeding 1,000/. and not exceeding 10,000/., 3 per 
cent. ; exceeding 10,000/. and not exceeding 25,000/. 4 per 
cent. ; exceeding 25,000/. and not exceeding 50,000/. Ah per 
per cent. ; exceeding 50,000/. and not exceeding 75,000/., 
5 per cent. ; exceeding 75,000/. and not exceeding 100,000/., 
5^ per cent. ; exceeding 100,000/. and not exceeding 
150,000/., 6 percent. ; exceeding 150,000/. and not exceed- 
ing 250,000/., 6|- per cent. ; exceeding 250,000/. and not 
exceeding 500,000/,, 7 per cent. ; exceeding 500,000/. and 
not exceeding 1,000,000/., 7^ per cent.; over 1,000,000/., 
8 per cent. Properties below 500/. will pay 1 per cent, 
instead of a minimum of 2 per cent, on personalty and of 
1^ per cent, on realty as at present, but they will be 
relieved from Legacy and Succession Duty, which, under 
the consanguinity scale, may now render such properties 
subject to a much higher charge. Properties between 
500/. and 1,000/. will pay 2 per cent., but they will be 
similarly relieved from Legacy and Succession Duty. The 
305. payment below 300/. gross will cease. Properties of 
capital value between 1,000/. and 25,000/. in free per- 
sonalty will pay as they now do. It is above 25,000/. that 
the new graduation will commence. 



Proposed Changes in B Class of Duty. 

I have yet to mention the changes which I propose to 
make in the B class of duty, the duty which falls upon the 
interest of the individual beneficiary, and is graduated ac- 
cording to the degree of his relationship to the person from 
whom he derives his interest. There are two duties of the 
B class — Legacy and Succession Duty. They always used 



106 DEATH DUTIES (eNGLANd). 

to be — and now that the additional 1^ per cent. Succession 
Duty is to be swept away and the Succession Duty on 
lineals is merged in Estate Duty they once more will be — 
identical in respect of the rates of duty. The ' ' consangui- 
nity scale," as it is called, will be the same in either case. 
But, in order to make them identical, it is necessary to re- 
move — and I propose to remove — the ajiomaly by which 
Succession Duty is in all cases, even where the successor 
takes an absolute interest, charged only on his life interest, 
and the further anomaly that Succession Duty is payable 
by instalments free of interest, whereas Legacy Duty is 
payable in one lump sum. In both these respects we pro- 
pose to place Succession Duty on exactly the same footing 
as Legacy Duty. It will in future be charged upon the 
capital value of the property where the successor takes 
absolutely. Though stiU payable in instalments, these in- 
stalments will be charged with interest, thus rendering 
them really equivalent to the lump sum paid at once under 
Legacy Duty. With these changes Legacy and Succession 
Duties — though kept up nominally as separate duties for 
the sake of administrative convenience and on account of 
the body of law and legal decisions which has grown up 
around them — will be identical in their incidence. There 
will, in fact, be only one B duty, equal in its incidence on 
all kinds of property, real and personal, settled and un- 
settled, just as there will be one A duty, the Estate Duty, 
instead of three, and that one duty likewise equal in its 
incidence all round. There will be two duties instead of 
five duties, and two equal duties in the place of the chaotic 
inequality of incidence which now prevails. 



INDEX 



ABERGAVENNY, 

lands and chattels settled on Earldom of, how dealt with, 28. 

ACCOUNT DUTY, 

when paid or payable on settled property, estate duty not pay- 
able, 2, 5. 
when still payable, 5. 

ACCOUNTABLE 

for estate duty, executor, when, 29. 

purchaser for value without notice is not, 55. 
who are, 30, 49, 50. 

ACCOUNTS, 

delivery of, by persons accountable for duty, 49. 

furnished by executor with Inland Revenue affidavit, 29, 48. 

of property, for duty on which executor is not liable, 32. 

person paying rateable part of estate duty bound by, when, 68. 

time for delivery of, 31, 50. 

verification of, 32, 50, 54. 

ACT OF PARLIAMENT, 

lands and chattels settled by, how dealt with, 27. 

AJD VALOREM 

stamp to be deducted from Settlement estate duty, 27. 

ADDITIONAL SUCCESSION DUTY, 

under the Customs and Inland Revenue Act, 1888. See Stro- 
CESSiON Duty. 

ADVOWSONS, 

exempted from estate duty, when, 3, 70. 

AFFIDAVIT, 

corrective, 30. 

Inland Revenue, 28—30, 48, 84, 92. 

provisions as to, 54. 

AGENTS, 

may be called on to give information to Commissioners, 5L 
not accountable for estate duty, 49, 50. 



108 INDEX. 

AGaREGATION, 17. 

can only take place once on same death, 36, 45. 
exemptions from. See Exemptions. 
for determining rate of estate duty, 18. 

none in case of property devolving as an estate by itself, 18, 71. 
not chargeable with estate duty, 18. 
under 1,000/. when, 71. 
of benefits reserved to immediate family, how and when efEected, 

19. 
of reversions, the duty on which has been commuted, 18, 66. 

sold or mortgaged before the 1st of August, 1894, 
queer e, 81. 

AGRICULTURAL PROPERTY, 

deduction for expenses of management in case of, 42. 

definition of, 40, S3. 

includes what buildings, 83. 

outgoings to be deducted from value of, 41. 

rates to be deducted from value of, 41. 

rules for ascertaining value of, 40. 

value, for the purpose of succession duty, 75. 

ALLOWANCES. See Deductions. 

ANNUAL VALUE 

of agricultural property, how ascertained, 41. 

ANNUITY, 

cesser of, does not create a liability to duty, when, 7, 16, 17. 

deduction allowed if granted for partial consideration, 16. 

Indian Government, exempted from estate duty, when, 3, 69. 

jointure. See Jointuee. 

pur autre vie, 7 . 

rent-charge. See Rent-Chaege. 

survivorship, exempted from estate duty, when, 3, 14, 69. 

liable to estate duty, when, 13. 
value of property passing on cesser of, 14, 43, 44. 

APPEAL, 

costs of, 61. 

from Commissioners to County Court, 59. 

to High Court, 59. 
from County Court, 61. 

High Court only by leave, 59, 61. 

APPORTIONMENT 

of estate duty, when, 67. 

ARBITRATION, 

Court may refer valuation to, when, 62. 

ASSETS,^ 

liability of executor limited to amount received, 48. 



BAILIFFS, 

not accountable for estate duty, 49, 50. 

BANK NOTES, 

subject of donatio mortis causa, 9, 



INDEX. IW 

BANKER 

may be called on to give information to Commissioners, 51. 

BANKERS' DEPOSIT NOTE, 

subject of donatio mortis causa, 9, 

BENEFICIARY, 

accountable for estate duty, when, 30, 49. 

BENEFIT ACCRUING OR ARISING, 

value of, in case of limited interests, 7. 

BILLS OF EXCHANGE, 

subject of donatio mortis causa, 9. 

BISHOP, 

estate duty not payable on emoluments of, 8. 

BONDS, 

subject of donatio mortis causa, 9. 

BOOKS, 

duty not payable on gifts of, when, 3, 69. 

BRITISH POSSESSION. See Colonial and Foeeign. 
no proceedings to be taken to recover estate duty in, 78. 

BUILDINGS, 

included in agricultural property, what, 83. 



CAPITAL MONEY 

under Settled Land Act, application of, for estate duty, 59. 

CERTIFICATE, 

of discharge effectual in case of fraud, &c., when, 63, 64. 

ineffectual in case of fraud, &c., when, 63. 

may be given, when, 63. 

must be given, when, 62. 

to be given for separate items of property, 63. 

when estate duty commuted, 66. 

when death duties commuted, 66. 
of estate duty, 57. 

evidence of charge, 57. 

repayment of overpaid duty on production of, 57. 
of valuation, separate for different classes of property, 52. 
on probate and letters of administration, 55. 
provisions as to, 54. 

CESSER, 

of annuities. See Annuity. 

of limited interests, value of property passing on, 7, 43, 44. 

CHANCELLOR OF THE EXCHEQUER, 

speech of, 95. 



110 INDEX. 

CHAEaE, 

certificate of estate duty evidence of, 57. 
estate duty is a, on what property, 56. 
estate duty is a, subject to what incumbrances, 56. 
of estate duty in favour of limited owner paying, 59. 
on Colonial property for estate duty, none, 78. 
person is competent to dispose of money which he has a general 
power to, 6, 86. 

CHARITY, 

estate duty not payable on annuities, pensions, &c., of, 3, 8. 

CHEQUES, 

subject of donatio mortis causd, 9. 

CHIEF EENTS, 

deducted in case of agricultural property, 41. 

CHURCH PATRONAGES, 

exempted from estate duty, when, 3, 70. 

CIVIL 

officer, estate duty not payable on arrears of pay or pension of, 

when, 46. 
servant, estate duty not payable on arrears of pay or pension of, 

when, 46. 

CLASSES 

of property, separate valuations for different, 52. 

COLLECTION 

of estate duty, 28, 45. 

COLLEGE, 

fellow of, estate duty not charged on emoluments of, 8. 
master of, estate duty not charged on emoluments of, 8. 
qucere whether estate duty may be remitted on gifts to, 70 

COLONIAL. See Foreign. 

property, deduction of duty payable on, when allowed, 39, 78. 
estate duty not a charge on, 56, 78. 
liable to estate duty, when, 14, 15. 
what, treated as situate in United Kingdom, 78. 

COMMENCEMENT OF ACT, 2, 91. 

COMMISSIONERS, 

have discretion to commute duty, 65. 
compound duty, 66. 
inspection by, for purposes of valuation, 44. 
may require statement of property, from whom, 50. 

COMMITTEE, 

accountable for duty, when, 49. 

COMMUTATION, 

of estate duty on interest in expectancy, 65. 



INDEX. Ill 

COMPETENT TO DISPOSE, 

definition of, 85. 

estate duty charged on settled property on death of person, 22. 

estate duty payable on, when, 2, 3. 

not, 2, 3. 
mortgagee not, 6, 85. 
of what property a person is, 5, 85. 
person having a general power of appointment is, 5, 86. 
succession duty charged on principal value when successor is, 75. 
tenant for life not, 6, 85. 
tenant in tail in possession is, 5, 85. 

in remainder, qucere, 6, 26. 
trustee, when deemed, 5, 85. 

COMPOSITION, 

of death duties, 66. 

CONSIDERATION, 

debts and incumbrances to be allowed, must be for full, 36. 
full, what is, 17, 36. 
in money or money's worth, 17, 36. 
marriage not a valuable, 17. 

of marriage, debts and incumbrances in, may bear rateable 
amount of duty, 24, 36. 
no allowance for debts and incumbrances created 
in, 35. 

CORPORATION SOLE, 

estate duty not payable on emoluments of, 3, 8. 

COSTS, 

of appeal, 61. 

of valuation by Commissioners, 44. 

COUNTY COUNCIL, 

estate duty may be remitted on gifts to, when, 69. 
to appoint valuers, 62. 

COUNTY COURT, 

appeals to, 61. 

applications to, as to apportionment of duty, 68. 

COURTESY, 

estate by the, treated as settled, 25, 86. 

CROWN DEBTORS, 

persons accountable for duty are, 45. 



DEAN, 

estate duty not payable on emoluments of, 8. 

DEATH, 

meaning of, on the, 7, 84. 

property passing on. See Peopeety passing on Death. 

DEATH DUTIES, 
composition of, 66. 
definition, 66. 
in. case of death before 1st August, 1894 . .80. 



Ii2 INDEX. 



DEBTS, 

due to foreign creditors may be deducted, when, 35. 

foreign, when and how allowed, 37, 38. 

incurred in consideration of marriage cannot be deducted, 35. 

but may bear rateable part of duty, 36. 
may be deducted, when, 35. 
must have been for deceased's own use and benefit, 36. 

full consideration in money or money's worth, 
36. 
take effect out of deceased's interest, 36. 
not deducted, if a right of reimbursement exists, 37. 

DECEASED PERSON, 

definition of, 82. 

DECLARATION OF TRUST, 

gift may be by, 8, 10. 

DEDUCTIONS, 

ad valorem stamp to be a deduction from Settlement estate duty, 

27. 
allowed in cases of purchases for partial value, 16. 

on determination of leases and annuities for lives for 
partial value, 16. 

under Income Tax Acts for agricultural property, 41. 

under Succession Duty Act, 41. 
appeal as to, 60. 

for duty payable in foreign country, 39. 

for expenses of management in case of agricultural property, 42. 
for expense of realizing foreign property, 39. 
for debts and incumbrances, 34. 8ee Debts and Incumbeances. 
for foreign debts, when, 37, 38. 
from estate duty, of duty on Colonial property, when allowed, 

39, 78. 
jointures and portions, when not allowed as, 25. 



DELIVERY 

of account, time for, 32, 50. 

DISCHARGE, 

certificate of, effectual in case fraud, when, 63, 64. 

when not, 63, 64. 
given for separate items of property, 63. 
may be given, when, 63. 
must be given, when, 62. 
when estate duty commuted, 65. 
when death duties commuted, ^^. 

DISCOUNT, 

what allowed on succession duty when successor competent to 
dispose, 76. 

DOMICIL, 

estate duty payable on foreign personalty if deceased had a 
British, 14. 



INDEX. 113 

DONATIO MORTIS CAUSA, 

estate duty payable in respect of, 8. 
property which may be subject of, 9. 
requisite of, 9. 
what is, 9. 

DONOR, 

must be excluded from all benefit of gift, 8, 10. 

DOWER, 

estate in, treated as settled, 25, 86. 

DUTIES, 

superseded by estate duty, 4. 
to what extent, 5, 80. 

DUTY, 

in foreign country, deduction of, from property, 39. 

ENFRANCHISEMENT, 

deduction of consideration for compulsory, allowed in case of 
agricultural property, 41. 

ESTATE, 

by itself, deyolution of property under 1,000^., as, 71. 

property devolves as, when, 18. 
by the courtesy treated as settled, 25, 86. 
definition of, 2. 
duty. See Estate Duty. 
includes income down to death, 32. 
in dower treated as settled, 25, 86. 
less than 100^., estate duty not payable on, 73, 74. 
small, provisions as to duty on, 71. 
tail in remainder, qucere, whether estate duty payable on failure 

of, 26. 
under 1,000?. not charged with legacy or succession duty, when, 

71. 
Settlement estate duty, when, 
21, 71. 
value of, how ascertained, 34 et seq. 

ESTATE DUTY, 

analogue of probate duty, 2. 

of succession duty, 2. 
annuities, not payable on cesser of, when, 7, 16. 
apportionment of, when, 67. 

disputes as to, 68. 
capital money under the Settled Land Acts may be applied in 

payment of, 59. 
collection and recovery of, 28, 45. 
commutation on interests in expectancy, 65. 
composition of, QQ. 
definition of, 2. 

duty on Colonial property when deducted from, 39, 78. 
exemptions from. See Exemptions. 
fixed, on small estates, 71. 
grant of, 2. 
how collected if not paid by the executor, 31, 32. 

F. I 



114 INDEX, 



ESTATE BJJTY— continued. 
in arrear, 52, 53. 

includes Settlement estate duty, when, 29. 
interest forms part of, when, 32. 
is a first charge on what property, 56. 
is not a charge on Colonial property, 56, 78. 

property passing to the executor as such, 55, 56. 
leases for lives, not payable on determination of, when, 16. 
levied on value of aggregated estate, 18. 
limited owner paying, has what charge for, 59. 
none on annuities in gross, 6. 

estates of less than 100/. . .73, 74. 
pin money, when, 81. 
settled property, when, 23, 26. 
on property not passing to executor, recovery of, 58. 
on real property, may be paid by instalments, 33. 
on settled property, 2, 3, 20. 
once leviable on same death, 45. 

payable if general power of appointment reserved to settlor, 9, 10. 
life interest reserved to settlor, 9. 
power of revocation reserved to settlor, 9. 
in respect of foreign and Colonial property, when, 14. 

joint purchases and investments, when, 

8, 11. 
policies of insurance, 11. 
survivorship annuities, 13. 
trust property, when, 15, 85. 
out of general estate, when, 30. 

specific property passing, when, 56. 
persons accountable for, 30, 48, 49. 

paying rateable part of, bound by what accounts, 68. 
postponement of payment of, when allowed, 30, 52. 
power of Treasury to remit, when, 3, 69. 
proceedings to recover, cannot be taken in colony, 78. 
raisable, how, 30, 58. 
rate of, how first calculated, 29, 52. 

receiver may be appointed in proceedings for recovery of, 53. 
recoverable by executor, how, 30. 
recovery of, 45. 

remission of, after twenty years, 53. 
repayment of, 57. 
sale to raise, 58. 

settlement. See Settlement Estate Duty. 
stamp duty, to be a, 28, 54. 
substitute for probate duty, 46. 
to be paid on sale of real estate, when, 33. 
when due, 32. 

EXECUTOR, 

accounts to be furnished by, with Inland Revenue affidavit, 

29, 48. 
course to be adopted if value of property not known, 30, 31. 
definition of, 29, 82. 
de son tort accountable, 51. 
limitation of liability of, 29, 48. 
may pay duty on other property, when, 28. 
may raise estate duty, how, 30, 58. 
may recover estate duty, how, 30, 58. 
must pay duty on all personal property of which deceased was 

competent to dispose, 28. 



INDEX. 115 

'EXECTJTO'R— continued. 

no charge for duty on property passing to him as such, 55. 

power of, to sell or mortgage, 59. 

probate will be granted to, when, 29, 30. 

recovery of duty by, in case of property not passing to hi m as 

such, 58. 
safe to deal with, 49, 55. 

EXEMPTIONS. 

from aggregation, 18, 71. 

estate duty, 2, 3, 45, 69, 79, 81. 
legacy duty, 71. 
Settlement estate duty, 71. 
succession duty, 71. 

EXPECTANCY, 

interest in. See Inteeest m Expectancy. 



FELLOW 

of a college, estate duty not payable on stipend of, 8. 

FIDUCIARY, 

power renders deceased competent to dispose, when, 85. 

FINES, 

deducted in case of agricultural property, 41. 

FIVE HUNDRED POUNDS, 

fixed duty on estates, gross value of which is under, 71. 

FIXED DUTY, 

on small estates, 71. 

FOREIGN 

country, deduction for duty payable in, 39. 
debts, how and when deducted, 37, 38. 

FOREIGN CREDITORS, 

debts due to, may be deducted, when, 35. 

FOREIGN PROPERTY, 

allowance to be made for expenses of administering, 39. 

of realising, 39. 
deductions from, 35. 

executor accountable for duty, on what, 29, 48. 
estate duty a charge on, when, 56. 
incumbrances on may be deducted, when, 35. 
liable to estate duty, when, 14. 

lineals formerly paid legacy and succession duty on foreign per- 
sonalty, 15. 

FORMS, 

provisions as to, 54. 

FRAUD, 

certificate of discharge, efPectual in case of, when not, 63, 64. 
effectual, when, 64. 

i2 



116 INDEX. 



FREEBENCH, 86. 

FRIENDLY SOCIETIES, 

estate duty not payable on sums of less than 100?. in, 45. 

FUNERAL EXPENSES, 
what are reasonable, 35. 

GENERAL POWER, 

fiduciary, renders deceased competent to dispose, when, 5, 85. 

when not, 5, 85. 
money raised under, 86. 

GENERAL POWER OF APPOINTMENT. See General Poweb. 
if unexercised, probate duty not payable, 6. 
person having-, is competent to dispose, 6, 85. 

even if unexercised, 6, 85. 
release of, 13. 

reserved to settlor, renders estate duty payable, 9. 
voluntary release of, ineffectual within year of settlor's death, 10. 

GIFT, 

how effected, 10. 

if made within twelve months of death, estate duty payable, 8, 10. 

if donor retains any interest, estate duty payable, whenever gift 

was made, 8. 
may be by declaration of trust, 8, 10. 
transfer, 8, 10. 

GUARDIAN, 

when accountable for duty, 49. 

HIGH COURT, 

appeals to, 59. 

application to, as to apportionment of duty, 68. 

IN MONEY OR MONEY'S WORTH, 

debts and incumbrances to be allowed must be for full considera- 
tion, 36. 
what is, 17, 36. 

INCOME, 

down to death included in estate, 32. 

INCOME TAX ACTS, 

deductions allowed under Schedule A, 41. 
INCUMBRANCES, 

created by way of suretyship, qiccere as to, 37. 

in consideration of marriage cannot be deducted, 35. 

may bear rateable part of 
duty, 25, 35. 
definition of, 35, 83. 
may be deducted, when, 35. 
no allowance made for contingent, 36. 
on foreign property may be deducted, when, 35. 
prior to estate duty, what are, 56. 
rateable amount of duty thrown on to, 35, 68. 
to be deducted, must have been for deceased's own use and benefit, 

36. 
full consideration in money or 
money's worth, 36. 
must take effect out of deceased's interest, 36. 



INDEX. 117 

INDIAN 

Government annuities, estate duty not payable on, when, 3, 69. 

INLAND REVENUE, 

accounts to be annexed to, 29, 48. 
affidavit, 30, 48, 84. 

what duty executor must pay on delivery of, 29. 

INSPECTION, 

Commissioners may order for purposes af valuation, 44. 

INSTALMENTS 

of estate duty on real property, 33. 

of succession duty on real property when successor is competent 
to dispose, 75. 

INSURANCE, 

deducted in case of agricultural property, 41. 
policies of. See Policies op Insueanoe. 

INTEREST, 

Court may allow, when, 61. 

deceased's, debts and incumbrances taking effect out of, 36, 37. 
quare whether mortgages under joint power of appointment 
take effect out of, 36. 
forms part of estate duty, when, 32. 
in expectancy. See Inteeest est Expectancy. 
life. See Life Inteeest. 

not charged in case of small estates, when, 33, 72. 
on arrears of duty, 53. 

on repayments of duty, when given, 53, 61. 
remission of, after 20 years, 53. 

INTEREST IN EXPECTANCY, 

commutation of estate duty on, 65. 

definition of, 83. 

does not include reversions on leases for years, 42, 83. 

may be vested or contingent, 42, 83. 

payment of duty may be postponed on, 42. 

qtccere whether aggregated if duty commuted, 18, 66. 

if sold or mortgaged before 1st August, 
1894.. 81. 
rent-charge created by settlor is an, 25. 
sold or mortgaged before Ist of August, 1894, provisions as to, 80. 
two duties payable, when, 43. 



JOINT INVESTMENT, 

estate duty payable on, when, 8. 

when not, 11. 
example of, 11. 

JOINTURE, 

cleared of estate duty, when, 24. 
contributes to duty, when and how, 24, 68. 

rent- charge charged by settlor in lifetime on settled estates, how 
dealt with, 25. 
quvere whether an interest in expectancy, 25. 
rent- charge, estate duty not payable in cases of, when, 24, 



118 INDEX. 



JUDGE, 

estate duty not payable on emoluments of, 8. 

LEASES, 

for lives, 7. 

deduction allowed on determination of, if granted for partial 

consideration, 16. 
estate duty not payable on determination of, if granted for 
value, 16. 
for years, interest in expectancy does not include reversions on, 
43, 84. 

LEGIAOY, 

in specie, valuation of, 44. 

LEGACY DUTY, 

exemption of property under 1,000?. from, -when, 71. 
one per cent, formerly payable by lineals on foreign personalty, 
15. 
not leviable on settled property if estate duty once 

paid, 22, 23. 
payable on property out of the United Kingdom, 

when, 14, 15. 
when not payable, 5. 
when still payable, 5. 

LETTEES OE ADMINISTRATION. See Peobate and Repee- 

SENTATION. 

LIABILITY, 

limitation of, as to extent, in the case of executors, 48. 

time, in the case of purchasers and mortgagees, 
46. 
trustees and executors, 48. 
LIFE ESTATES. See Life Inteeest. 

LIFE INTEREST, 

effect of release of, 10, 12, 13. 

pur autre vie, 6. 

reserved to settlor renders estate duty payable, 9. 

value of property passing on cesser of, 43, 44. 

LIMITED OWNER, 

paying estate duty has what charge, 59. 

LOCAL TAXATION GRANT, 77. 

MANAGEMENT, 

deduction in case of agricultural property for expenses of, 42. 

MANSION, 

included in agricultural property, when, 83. 

MANUSCRIPTS, 

estate duty remitted on, when, 69. 

MARINE, 

estate duty not payable on arrears of pay or pension of, when, 3, 
45, 46. 



INDEX. 119 

MARLBOROUGH, 

lands and chattels settled on Dukedom of, how dealt with, 28. 

MARRIAGE. 

debts and incumbrances created in consideration of, not deducted, 

35. 
debts and incumbrances created in consideration of, may bear 

rateable part of duty, 25, 36. 
not a valuable consideration, 17. 

MARRIAGE SETTLEMENT, 

by a third person is a gift, 10. 
See Settlement. 

MASTER, 

of a college, estate duty not payable on emoluments of, 8. 

MONEY OR MONEY'S WORTH. See In Money oe Money's 

WOETH. 

MORTGAGE, 

created under joint power of appointment, takes effect out of 

whose interest, 37. 
to raise estate duty, 58. 

MORTGAGE DEBTS, 

subject of donatio mortis causa, 9. 

MORTGAGEE, 

exempted from liability for duty, when, 46. 
may be called on to give information to Commissioners, 51. 
of interest in expectancy on or before 1st August, 1894, what 
duty payable by, 80. 

MUNICIPAL CORPORATION, 

estate duty may be remitted on gifts to, when, 3, 69. 



NATIONAL SCIENTIFIC PURPOSES, 

pictures, &c. given or bequeathed for, exempted from estate 

duty, when, 3, 69. 
what are, 70. 

NELSON, 

lands and chattels settled on Earldom of, how dealt with, 28. 

NOTICE, 

purchaser for value without, 56. 
what is, 56. 



OITICE, 

estate duty not payable in respect of stipend attached to, 3, 8. 

OFFICER, 

estate duty not payable on effects of, when, 46, 



120 INDEX. 

OFFICER OF INLAND REVENUE, 

duties of, in case of small estates, 73. 

ONE HUNDRED POUNDS, 

estate duty not payable on estates less than, 73. 

sums less than, payable to deceased's 
representatives without representa- 
tion, 3, 45. 

ONE PER CENT. See Legacy Duty and Succession Duty. 

ONE THOUSAND POUNDS, 

estates under, not charged with Settlement estate, or Legacy or 

Succession duty, when, 71. 
property under, an estate by itself, when, 71. 

OUTGOINGS, 

what are necessary, under the Succession Duty Act, 1853. .41. 

PAROL TRUST, 

settlement may be effected by, 83. 

PARSON, 

estate duty not payable on emoluments of, 8. 

PASSING UNDER 

a settlement, what is property, 12, 13. 

PAY, 

estate duty not payable on arrears of, when, 46. 

PENALTY, 

amount of, 51. 

for neglect to obtain representation, 51. 

furnish further affidavit, 51. 
how recovered, 52. 
only for wilful defaults, 51, 54. 
remission of, 51. 

PENSION, 

estate duty not payable on arrears of, when, 46. 
charitable, 6. 

PICTURES AND PRINTS, 

given for national scientific purposes, exempted from estate duty, 
when, 3, 69. 
to a county council, 3, 69. 
to municipal corporations, 3, 69. 
to universities, 3, 69. 
. valuation of, 62. 

PIN MONEY, 

estate duty not payable on, when, 81. 

PLATE, 

valuation of, 62. 

POLICIES OF INSURANCE, 

nomination, 11. 

subject of donatio ynortis causd, 9. 
survivorship, 11. 

under Married Women's Property Act, 1870, liable to estate 
duty, 11. 



INDEX. 121 

PORTIONS, 

cleared of estate duty, when, 24. 

contribute to estate duty, when and how, 24, 67. 

created by deceased, 25, 34. 

POSSESSION, 

succession duty not payable unless successor comes into, 76. 

POSTPONEMENT, 

of estate duty to death of survivor of husband and wife, 82. 
of payment of estate duty, when allowed, 30, 52. 
probate wiU be granted, when, 30. 

POWER OF APPOINTMENT. See Geneeal Power of Appoint- 
ment. 
effect of joint, 24, 86. 
mortgage created imder, takes effect out of whose interest, 37. 

POWER OF REVOCATION, 

release of, 13. 

reserved to settlor, renders estate duty payable, 9. 
voluntary release of, ineffectual within year of settlor's death, 
10, 13. 

PRACTICE, 

as to grant of probate, 29. 

PREBEND, 

estate duty not payable on emoluments of, 8. 

PRINCIPAL VALUE. See Value. 
PRINTS. See Pictures and Peints. 

PROBATE, 

certificate on, under 44 & 45 Vict. c. 12, s. 30. .55. 
penalty for neglect to obtain, 51. 
valuation for purposes of, 40. 
will be granted, when, 29, 30. 

PROBATE DUTY, 

estate duty, analogue of, 2. 

substitution for, 46. 
if paid or payable in respect of settled personalty, estate duty not 

payable, 2, 5, 79. 
not payable if power of appointment not exercised, 6. 
no valuation by Commissioners, for, 44. 

PROMISSORY NOTES, 

subject of donatio mortis causd, 9. 

PROPERTY, 

definition of, 82. 

passing on cesser of interest, value of, 43, 44, 



122 INDEX. 



TROTrntTY— continued. 

passing on death, after an interval, 7, 84. 

by way of substitutive limitation, 7, 84. 

can only be aggregated once, 36, 45. 

certainly, 7, 84. 

chargeable once with estate duty, 45. 

contingently, 7, 84. 

definition of, 84. 

immediately, 7, 84. 

originally, 7, 84. 

trust property is deemed to be, when, 15. 

when not, 15. 
what property is chargeable, when, 4. 
PURCHASE, 

in joint names, estate duty payable on, 8, 11. 

PURCHASERS, 

exempted from liability for duty, when, 46. 
for value, without notice, not accountable for estate duty, 50, 55. 
no charge for estate duty on property 

in hands of, 55, 56. 
protected in case of fraud, &c., 64. 
inquiries to be made by, 34. 

of interest in expectancy before 1st August, 1894, what duty 
payable by, 80. 

RATE, 17, 74. 

of estate duty, appeal as to, 68. 

how calculated in first instance, 29, 52. 

if payment postponed till death of survivor of 
husband and wife, 68. 
of Settlement estate duty, 74. 

RATES, 

what may be deducted from value of agricultural property, 41. 

REAL ESTATE, 

estate duty on, may be paid by instalments, 33. 

instalments of duty on, to be paid on sale, 33. 

limitation of liability, when estate duty payable by instalments 

on, 47. 
situate abroad, not as a rule liable to estate duty, 15. 

when liable to estate duty, 15. 
what inquiries should be made by purchaser of, 34. 

REALIZATION 

of foreign property, allowance for cost of, 39. 

RECEIVER, 

may be appointed in proceedings for recovery of estate duty, 54. 

RECOVERY, 

of estate duty, 28, 45. 

by executor in case of property not passing to him 
as such, 58. 

proceedings for, not to be taken in a colony, 78. 

receiver may be appointed in proceedings for, 54. 

when apportioned, 68. 
of penalty, how effected, 52. 



INDEX. 123 

REGISTRAR, 

of County Court, duties of, under sect. 16. .72. 

REIMBURSEMENT, 

debts cannot be deducted if a right to, when, 37. 

RELEASE, 

of general power of appointment, effect of, 13. 

ineffectual within year of re- 
leasor's death if voluntary, 10. 
secies, if for value, 13. 
of life interest, effect of, 12, 13. 

ineffectual within year of releasor's death if 

voluntary, 10, 12. 
secus, if for value, 13. 
of power of revocation, effect of, 13. 

ineffectual within year of releasor's death 

if voluntary, 10, 13. 
secus if for value, 13. 

REMAINDER. See Inteeest in Expectancy. 

estate duty not payable under a settlement on failure of interest 

in, 26. 
qucere whether estate duty payable on failure of estate tail in, 26. 

REMISSION 

of estate duty or interest after twenty years, 53. 

RENT-CHARGE. See Annuity. 

created by deceased, qucere wheiher an interest in expectancy, 25. 

no deduction allowed for, when, 25, 34. 

pur autre vie, 7. 

value of property passing on cesser of, 43, 44. 

REPAIRS, 

deduction in case of agricultural property, 41. 

REPAYMENT 

of estate duty, 53. 

interest allowed, when, 53, 61. 
to person producing certificate, 57. 

REPRESENTATION, 

definition of, 46, 82. 
penalty for neglect to obtain, 51. 

sums payable to deceased's representatives without, free from 
estate duty, 3, 45. 

REVERSIONS. See Inteeest in Expectancy. 

ROYAL GRANT, 

lands and chattels settled by, how dealt with, 27. 



SALE, 

of real property, estate duty payable on, 33. 

to raise estate duty, 58. 

SAYINGS BANK, 

estate duty not payable on sums of less than 100^. in, 46. 



124 INDEX. 

SCOTLAND, 

application of the Act to, 87 seq. 

SEAMEN, 

estate duty not payable on arrears of payor pension of, when, 46. 
effects of, when dying in Her Ma- 
jesty's service, 45. 
SETTLED LAND ACTS, 

capital money under, applicable for estate duty, 59. 

SETTLED PROPERTY, 

capital money under the Settled Land Acts applicable for payment 

of estate duty on, 59. 
definition of, 83. 

effect of first life interest given by husband to wife in, 3, 81. 
estate duty levied on, 6. 
estate duty levied on, how, 20. 

not levied on, when, 2, 3, 23. 
exempted from estate duty, how long, 22. 

though beneficiary takes absolutely, 
23. 
one per cent, legacy and succession duty, when, 
22, 23. 
Settlement estate duty not payable on, if settled before 1st 

August, 1894.. 81. 
succest^ion duty (additional) payable in respect of, when, 5, 23. 
temporary estate duty, payable in respect of, when, 5, 23". 
under dispositions made before 1st August, 1894. .5, 79, 81. 

SETTLEMENT, 

ad valorem stamp on, may be deducted from the Settlement estate 
duty, 27. 

by Act of Parliament, how dealt with, 27. 

by parol trust, 83, 

by Royal Grant, how dealt with, 27. 

composite, what is continuance of, 23. 

continuance of, what is, 22, 23. 

definition of, 83. 

effect of release of life interest, &c. under, 12, 13. 
taking property out of, 12. 

effected by exercise of joint power of appointment, 24. 

estate duty payable if power of revocation is reserved to settlor, 9. 

foreign personalty comprised in an English, liable to estate duty, 
15. 

jointures and portions under a, 24, 25, 67. 

made before 1st August, 1894, Settlement estate duty not payable 
on, 81. 

marriage and voluntary, on same footing, 10, 12. 

on failure of interest in remainder under a, estate duty not pay- 
able, when, 26. 

re -settlement, what is the continuance of, 23. 

SETTLEMENT ESTATE DUTY, 

ad valorem stamp may be deducted from, 27. 
included in estate duty, when, 29. 
levied on principal value, 22. 

once during continuance of settlement, 20, 21. 

when, 20. 



INDEX. 125 

SET ELEMENT ESTATE T>VTY— continued. 
not levied on estates under 1,000?., when, 21. 

property settled before 1st August, 189i. .20, 21, 81. 
wlien only life interest that of husband or wife of 

deceased, 20, 21. 
when property passes to a person competent to dis- 
pose, 20, 21. 

SETTLOR, 

general power of appointment reserved to, renders estate duty 

payable, 9. 
release of, 10, 13. 
life interest of, release of, 10, 12. 
must be excluded from all benefit or control over settlement, 10, 

15, 86. 
power of revocation reserved to, renders estate duty payable, 10. 

release of, 10, 13. 
property held by, as trustee, when chargeable with estate duty, 

15, 86. 
not chargeable with estate 
duty, 15, 86. 
should not be trustee of a settlement made by himself, 15, 86. 

SHREWSBURY, 

lauds and chattels settled on Earldom of, how dealt with, 28. 

SIX YEARS, 

the limit of liability for estate duty, when, 47. 

SMALL ESTATE. See Estate. 

SOLDIERS, 

effects of, exempted from estate duty, when, 3, 45, 46. 

SOLICITOR, 

may be called on to give information to the Commissioners, 51. 

STAMP, 

ad valorem, may be deducted from the Settlement estate duty, 27. 
estate duty may be collected by means of, 28, 54. 

STATEMENT, 

of property, Commissioners may require, when, 50. 
provisions as to, 54. 
verification of, 54. 

SUCCESSION DUTY, 

additional, under the Act of 1888, when payable on settled pro- 
perty, 23. 
when still payable, 6. 
charged on principal value when successor competent to dispose, 

75. 
estate duty, analogue of, 2. 

exemption of property under 1,000/. from, when, 71. 
no valuation by the Commissioners for, 44. 
not payable unless successor comes into possession, 76. 



126 INDEX. 

SUCCESSION DVTY— continued. 

one per cent, formerly payable by lineals, when, 15. 
when still payable, 5. 

not payable, 5, 22, 23. 
payable on foreign property, when, 14, 15. 

impaid instalments of, deducted in the case of agricultural pro- 
perty, 41. 

SUCCESSOR, 

competent to dispose, succession duty in case of, 75. 
succession duty not payable by, unless he comes into posses- 
sion, 76. 

SURETY, 

no deduction for debts for which deceased was, when, 37. 



TAIL, 

estate. See Estate. 

TAKE EFFECT OUT OF INTEREST. See Inteeest, 86. 

TAXES, 

deduction of, in case of agricultural property, 41. 

TEMPORARY ESTATE DUTY, 

payable on settled property, when, 23. 
when payable, 6. 
when not, 6. 

TENANT FOR LIFE, 

accountable for estate duty, when, 49. 
not competent to dispose, 6, 85. 

TENANT IN TAIL, 

in possession, is competent to dispose, 5, 85. 

in remainder, competent to dispose, when, 5, 6, 26. 

qucere whether estate duty payable on death of, 26 
under Act of Parliament, provisions as to, 27. 
under Royal G-rant, 27. 

TERMINABLE CHARGE, 

an incumbrance, 84. 
to raise estate duty, 59. 

THREE HUNDRED POUNDS, 

fixed duty on estates, gross value of which is under, 71. 

TIMBER, 

queer e how valued, 41. 

TIMBER ESTATES, 

how dealt with, 42. 

TITHE AND TITHE RENT- CHARGE, 

deducted in case of agricultural property, 41. 

TRANSACTIONS FOR VALUE, 

estate duty not payable on, when, 16. 



INDEX. 127 

TRANSFER, 

gift may be made by, 8, 10. 

of property into joint names, estate duty payable on, when, 8. 

when not, 11, 
TREASURY, 

may remit estate duty, when, 3, 69. 

TRUSTEE, 

accountable for estate duty, when, 30, 49. 
limitation of liability for duty in case of, 48. 
property held by, liable to duty, when, 15, 85. 

when not, 15, 85. 

TWELVE YEARS, 

the limit of liability for duty, when, 47. 



UNITED KINGDOM, 

what Colonial property treated as situate in the, 78. 

UNIVERSITY, 

gifts to, when exempted from estate duty, 69. 



VALUATION, 

appeal as to, 60. 

by Commissioners, 44. 

costs of, 40, 44. 
for purposes of probate, 40. 
inspection by Commissioners for purpose of, 44. 
persons paying rateable part of estate duty bound by, when, 68. 
separate, for different classes of property, 52. 

VALUE, 

annuities granted for, exempted from estate duty, 16, 17. 
deduction allowed in cases of leases and annuities granted for 

partial, 16, 17. 
gross, what is, 73. 

leases for lives granted for full, exempted from estate duty, 16. 
of agricultural property for succession duty, 75. 
of lands and chattels settled by Act of Parliament, how ascer- 
tained, 27. 
of lands and chattels settled by Royal Grant, 27. 
of property, course to be adopted if executor does not know, 30, 
31. 
passing on cesser of interest, 43. 
principal, general rule for ascertaining, 39, 40. 
of agricultural property, 40. 
of annuities, 7, 14. . 
piirchaser for, without notice, exempted from liability, 55, 64. 

no charge for duty on property in 
hands of, 55, 64. 
transactions for full, exempted from estate duty, when, 16. 

partial, exempted from estate duty, when, 16. 

VALUERS, 

County Council to appoint, 62. 

Court may refer questions as to value to arbitration of, 62. 



128 INDEX. 

VOLUNTARILY, 

now omitted from 44 & 45 Vict. c. 12, s. 38, and 52 & 53 Vict 
c. 7, 8. 11.. 8, 10. 

VOLUNTARY. 

now omitted from 44 & 45 Vict. c. 12, s. 38,' and 52 & 53 Vict, 
c. 7, s. 11.. 8. 
effect of omission, 10. 

VOLUNTEER, 

accountable for estate duty, 50. 

•reference to, omitted from 44 & 45 Vict. c. 12, 8. 38, and 52 & 
53 Vict. c. 7, s. 11.. 8, 10. 



WELLINGTON, 

lands and chattels settled on Dakedom of, how dealt with, 28. 

WILL, 

definition of, 82. 

WOODLAND, 

qucere, how valued, 41. 

WRIT OF SUMMONS, 

for account and payment of estate duty, 45, 60. 



PEINTED BY C. F. EOWOETH, aHEAT NEW STREET, FETTEB LANE, E.G. 



'-<J 



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