EXEMPTIONS.

4921. Express Exemption.—Should a testator direct a sum to be expressly reserved to free the individual legatees of the expense of legacy duty, such reserved amount is, in itself, expressly exempt from duty.

4922. Savings Banks.-Legacies, of any amount, derived from an estate in a savings bank, of less aggregate value than £50, are exempt from duty.

4923. Under £20.-Legacies under £20 in value, however derived, are exempt from duty; but,

4924. Exceeding £20.—If a legatee takes two or more legacies, under the same will or intestacy, which legacies, added together, amount to £20, the duty must be paid, subject to the other exceptions. 4925. Royal Family.—If the legatee is a member of the Royal Family, there is no duty to pay.

4926. Literature and Science.—If the legacy be in the nature of a literary or scientific bequest to a public body, there is no duty to pay.

QUALIFICATIONS.

4927. Widows and Widowers.—If the legatee is the widow or widower of the deceased, there is no duty to pay.

4928. Charity. If a legacy be for a "charitable purpose" (4211), then it is chargeable with duty.

4929. Fathers and Mothers.—If the legatee is the father or mother of the deceased, the duty is at the rate of one per cent.

4930. Children and their Descendants.—If the legatee is a child, or other descendant of the deceased, the duty is at the rate of one per cent.

4931. Brothers and Sisters, and their Descendants.—If the legatee is the brother or sister of the deceased, or any descendant thereof, the duty is at the rate of three per cent.

4932. Uncles, Aunts, and their Descendants.—If the legatee is a brother or sister of the father or mother of the deceased, or any descendant thereof, the duty is at the rate of five per cent.

4933. Great-Uncles, Great-Aunts, and their Descendants.-If the legatee is a brother or sister of a grandfather or grandmother of the deceased, or any descendant thereof, the duty is at the rate of six per cent.

4934. Remote Kindred.-If the legatee is related to the deceased in any degree more remote [than a brother or sister of a grandfather or grandmother of the deceased, or any descendant thereof], the duty is at the rate of ten per cent.

4935. Strangers.--If the legatee is not related in any degree to the deceased, the duty is at the rate of ten per cent.

4936. Marriage Complications. If a legatee is the wife or husband of a person who is more nearly related to the testator than the legatee may happen to be, then the duty is only chargeable as if the legatee was so much nearer related as such wife or husband may be.

DIRECT PAYMENT ESSENTIAL.

4937. Personal Payment.—All legacy duties must be paid personally, at the office of the Receiver General of Inland Revenue in London, or to a stamp distributor in the country; for,

4938. Remittances not Effectual.-A remittance to any office of an amount for legacy duty is ineffectual.

EXECUTOR LIABLE.

4939. The law charges the executor who pays the legacy with the responsibility of paying the duty; therefore,

4940. Deduction Authorized. - The executor, in paying any legacy, is authorized to deduct the amount of duty; but,

DUTY UPON ANNUITIES.

4941. Four Annual Instalments.-When the legacy is in the nature of an annuity, the total value of the annuity being calculated, the whole duty is payable thereon out of the first four years, by annual instalments.

4942. Life Interests.-If the legacy is a life interest, or any temporary benefit, the duty is chargeable only as if it was an annuity; on the other hand,

DEFERRED LEGACIES.

4943. Any person taking a deferred legacy (4761) is liable to pay the duty at the time of so taking, at the same rate according to relationship, and just as if the legacy had been immediate.

HEIRLOOMS.

4944. Plate, pictures, heirlooms in general, and other properties which fall into the hands of any legatee, with a proviso that the same do pass from generation to generation, and which, therefore, cannot be sold, or converted into value, are exempted from duty; thus, 4945. Life Interest of Maidens.—If plate, furniture, or othre properties are left for the occupation and enjoyment of a maiden daughter for her life, and at her death to pass by the will to some

other member of the family, the maiden daughter pays no duty, but it must be paid by her successor on accepting the goods.

4946. When Liable.-If any plate, pictures, or other properties fall into the hands of a person for life, and then pass to a deferred legatee, with power of sale, then the duty must be paid; but,

UNCERTAIN VALUES.

4947. When the legacy is of uncertain value, the executor must employ a licensed appraiser, and, upon his appraisement, duty may be tendered and accepted; but if the Commissioners of Stamps are, for any reason, dissatisfied with the appraisement, they may order another appraisement, and in case of continued dispute, the appeal is to the next meeting of the Commissioners of Land Tax, with costs against the party failing in the appeal.

MINORS.

4948. Duty Deferred.-When the legatee is a minor, and the legacy is paid into the Bank of England (4886) for safe keeping during the minority, the duty is not payable till the minor is of age and comes into possession (4943).

NO RESTRICTION OF TIME.

4949. No time is specified wherein an estate is required to be realized and the duty paid; but,

TWO YEARS.

4950. Composition.-If the full realization of the estate requires more time than two years, it is lawful for the executor and the Commissioners of Stamps to agree together, and compound for the amount of duty then to be paid in final discharge of the obligation.

SUCCESSION DUTY.

IN LIEU OF LEGACY DUTY.

4951. Real Property.-The object of succession duty is to charge, in lieu of, and in the manner of, legacy duty, any real property devolving by will; or,

4952. By Reason of Death.-Any real or personal property devolving, by reason of death, under any instrument other than by will or intestacy.

4953 Leases. For purposes of succession duty, leases, though only chattels real, are esteemed to be realty, and are exempt from legacy duty and liable to succession duty.

4954 Joint Tenancies.-The survivor of joint tenants (253) must pay succession duty immediately after his survivorship falls in.

4955. Policies.-An amount receivable under a policy of life assurance is liable to succession duty.

4956. Proceeds of Land.—If land is directed by will to be sold the proceeds are chargeable, not as succession, but as legacy duty. 4957. Timber and Crops.-Timber and growing crops upon real property must be valued and made chargeable to legacy duty.

4958. Corporate Bodies.-Corporate bodies, acquiring land other than by will, must pay succession duty at the rate of ten per cent. without the privilege of instalments (4978).

4959. Under £100.-Succession duty is not chargeable upon any part of an estate which, in the aggregate, does not amount to £100; in other respects,

4960. Former Difference. Formerly there were considerable differences between the rates of legacy and succession duties; but,

4961. Same as Legacy Duty.—The rates, conditions, and exceptions of succession duty are now precisely the same as those of legacy duty (4920).

WHO ACCOUNTABLE.

4962. The Successor.-Any person to whom property devolves. which is liable to succession duty; or, otherwise, the trustee, guardian, committee, tutor, curator, or husband of such person, is accountable for the duty.

4963. Notice to be Given.-The person accountable for succession duty, upon coming into possession of the property in respect of which it is payable, is required to give notice thereof to the Commissioners of Inland Revenue, if in London, at Somerset House, or if in the country, then at the district inland revenue office.

PENALTY.

4964. If the person accountable fails to give notice of the succession of any property, he is liable to a penalty of ten per cent. upon the amount of duty, and, in addition, for each and every delay of one calendar month, one per cent. upon the value of the succession. 4965. Power of Authorities.—Should the party accountable, regardless of penalties, continue neglecting to make the required. return, the Commissioners (4963) have power to take proceedings in the Court of Exchequer, which Court has power to order a return, or, upon default, to take possession of the property, paying the duty and all incidental costs, leaving only the residue for the successor.

OFFICIAL FORMS OF NOTICE.

4966. Forms of notice of succession may be obtained gratis at Somerset House, or at any district inland revenue office.

4967. Form Not Under Will.-When the succession is to personal property other than by will, the following is the form :

An account of the succession to personal property of William Burton and John Burton, of Thame, upon the death of John Burton [their father], who died on the 29th day of December, 1865, derived from the said John Burton, the predecessor, under a deed of settlement dated 19th April, 1845, made be tween John Burton, of the first part, Maria Atkins (afterwards Burton), of the second part, James Hassell and Samuel Hart of the third part, Amelia Burton having died before John Burton, namely, 1st November, 1865.

JAMES HASSELL.

Value.

Description of Property.

Proceeds of house and land at Reading, inthe county of Berks, directed to be sold at the death of the survivor of John and

Amelia Burton

9,000

3 per cent. Consols (10,000), price of the day, £90

I declare that this is a just and true account of all the personal property to which William Burton and John Burton were entitled to succeed beneficially upon the death of the before-named John Burton, and that the said William Burton and John Burton are lineal issues from whom the said property is derived.

Dated this 25th day of May, 1866.

JAMES HASSELL,

Trustee.

4968. Form for a Lease.-When the succession is to leasehold property the form is as follows: