Rules for valuing lands,

XXII. In estimating the annual value of lands used for agricultural purposes, houses, buildings, houses, &c. tithes, teinds, rent-charges, and other property yielding or capable of yielding income not of a fluctuating character, an allowance shall be made of all necessary outgoings.

Rule as to timber.

XXIII. Where timber, trees or wood, not being coppice of underwood, shall be comprised in any succession, the successor shall be chargeable with duty upon his interest in the net monies, after deducting all necessary outgoings for the year, which shall from time to time be received from any sales of such timber, trees or wood, and shall account for and pay the same yearly; provided, that no duty shall be payable on the net monies received from the sale of timber, trees or wood in any one year, unless such net monies shall exceed the sum of ten pounds; provided, that if the successor shall be desirous of commuting the duty, and shall deliver to the commissioners an estimate of the net monies obtainable by him from the sale of such timber, trees and wood as may, in a prudent course of management of the property, be felled by such successor during his life, the commissioners, if satisfied with such estimate, shall accept the same and assess the duty accordingly (u).

seised in fee, is not competent to dispose by will. It will no doubt be contended, that the exception applies to the extent of the party's interest without reference to his capacity to dispose by will.

(u) By this section the duty is charged on the net income exceeding 101. received from the sales of any timber yearly. It has been suggested, that the statute only provides for the case of timber, for which net monies exceeding the sum of 101. shall be received, and that this section does not apply to the case where the owner of timber manufactures it himself and sells it as a manufactured article, as in the case where the owner of the timber saws it in his own saw-mill and sells the planks. Another case may be put, where timber devolves on a carpenter, machine maker or ship builder, who uses it for the purposes of his trade, in which case no provision is made for assessing the duty. Supposing also the successor fells his timber, and stacks it in his own timber-yard until it is properly seasoned for use, and then sells it, is he to be charged on the improved value? See 18 Jur. 59. So, if the successor

advowsons.

XXIV. A successor shall not be chargeable with Rule as to duty in respect of any advowson or church patronage comprised in his succession, unless the same, or some right of presentation, or some 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 so disposed of at the time of such disposal.

property

leases.

XXV. Where a successor, entitled to any real Rule as to property, subject to any lease by reason whereof subject to he shall not be presently entitled to the full enjoy- beneficial ment thereof, shall not have paid duty in respect of the full yearly value of such property, he shall be chargeable with duty upon his interest in any fine or grassum or other consideration which may be received during his life for the renewal of any such lease, or the grant of any reversionary lease of the same property (v).

manors,

XXVI. The yearly value of any manor, opened Rule as to mine, or other real property of a fluctuating yearly mines, &c. income shall either be calculated upon the average profits or income derived therefrom, after deducting all necessary outgoings, during such a number of preceding years as shall be agreed upon for this

yearly fells timber under the value of 107., and stacks it annually until it becomes of the value of 100%., is he to pay any and what duty? So again, how are all the necessary outgoings for the year to be ascertained, except in the case of regular wood, if it should be necessary to hire a plot of ground upon which to stack the timber? It seems clear that the rent for such ground would be a necessary outgoing, but it is very difficult to say what would be a necessary outgoing in the case of timber felled in a park or from hedge-rows, unless the Commissioners of Inland Revenue will adopt a rule satisfactory to the parties called upon to pay duty. In short, the construction of this section appears to be full of difficulties, but the editor has neither time nor inclination to suggest or solve them.

(v) If the lease is not renewed upon the determination of it, duty will be payable in respect of the increase accruing to the successor upon such determination, unless it was a lease at rack-rent. Sect. 20, ante, p. 260. See also sect. 6, ante, p. 251.

Duty payable by corporations, &c. taking real estates.

Allowance for fines, &c.

cessor.

purpose between the commissioners and the successor, before the first payment of duty on the succession shall have become due; or if no such period shall be agreed upon, then the principal value of such property shall be ascertained, and the annual value thereof shall be considered to be equal to interest calculated at the rate of three pounds per centum per annum on the amount of such principal value.

XXVII. Where any body corporate, company or society shall become entitled as successors to any real property, the duty in respect thereof shall be assessed upon the principal value of such property, but shall be payable by such instalments, at such times, and in such manner as the same would be payable if assessed in respect of property devolving on a successor in fee simple (x); and it shall be lawful for such body corporate, company or society, or any trustee thereof, to raise the amount of any duty due in respect of their succession upon the security thereof, at interest, with power for them to give effectual discharges for the money so raised.

XXVIII. If a successor, or any person on his paid by suc- behalf, upon becoming entitled to any copyhold or other real property, shall be subject to any fines, casualties of superiority, compositions, reliefs or charges incident to the tenure thereof, and due in respect of his succession, he shall be entitled to have a deduction allowed to him of the amount of such fines, casualties, compositions, reliefs or charges from the assessable value of his interest in such copyhold or other real property.

Real property directed to be sold to be charged as personalty.

XXIX. The interest of any successor in monies to arise from the sale of real property under any trust for the sale thereof, so far as the same shall not be chargeable with duty under the Legacy Duty Acts, shall be deemed to be personal property chargeable with duty under this act; provided that

(x) See sect. 21, ante, p. 260.

The rate of duty payable under this section will be 107. per The act does not contain any directions peculiarly applicable to an assessment upon an estate in fee simple.

cent.

where such monies shall be subject to any trust for the re-investment thereof in the purchase of other real property, to which the successor would not be absolutely entitled, such monies shall be deemed to be real property, and for the purpose of this act each successor's interest therein shall be considered to be of the value of an annuity, payable during his life, or for any less period during which he shall be entitled, equal in amount to the annual produce of the actual trust property at the time of his becoming entitled in possession, whether the same shall then be the real property subject to the trust or direction for sale, or any property purchased in substitution for it, or any intermediate investment of the produce of the sale of the original property.

Provisions respecting Personal Property.

be invested

perty how to

XXX. The interest of any successor in personal Personal property subject to any trust for the investment property to thereof in the purchase of real property to which in real prothe successor would be absolutely entitled shall, so be charged. far as the same shall not be chargeable with duty under the Legacy Duty Acts(y), be chargeable with duty under this act as personal property; and personal property subject to any trust for the investment thereof in the purchase of real property to which the successor would not be absolutely entitled shall, so far as the same shall not be chargeable with duty under the Legacy Duty Acts, be chargeable with duty under this act as real property; and for the purposes of this act each successor's interest therein shall be considered to be of the value of an annuity, payable during his life, or for any less period during which he shall be entitled, equal in amount to the annual produce of the actual trust property at the time of his becoming entitled in possession, whether the same shall be the real property directed to be purchased, or any

(y) See 36 Geo. 3, c. 52, s. 19, ante, p. 100, as to charge of legacy duty on personal estates directed to be applied in the purchase of real estates.

N

Annuities under this

act and the

Acts to be

valued according to the tables annexed to this act.

intermediate investment of the personal property directed to be invested in such purchase.

XXXI. Where it shall be required to calculate, for the either of this act or of the Legacy purposes Legacy Duty Duty Acts, the value of any annuity, or of any interest chargeable with duty as an annuity, such value shall, after the time appointed for the commencement of this act, be calculated according to the tables in the schedule annexed to this act (z), and not according to the tables in the schedule annexed to the act of the thirty-sixth year of the reign of king George the Third, chapter fifty-two, and such annuity or interest shall be chargeable with duty accordingly.

Provisions as

ment of per

sonalty.

XXXII. The following provisions relating to the to the assess- assessment and payment of duty on personal estate, and the exemption thereof from duty in certain cases, namely, the eighth, tenth, eleventh, twelfth (a), fourteenth and twenty-third sections (b) of the said act of the thirty-sixth year of the reign of king George the Third, chapter fifty-two, shall be applicable to the personal property comprised in any succession, and to the assessment and payment of duty thereon, as if such personal property were a legacy bequeathed by the predecessor to the successor, and were subject to the said provisions, and as if the tables in the said act referred to were the tables in the schedules annexed to this act.

Allowance to donee of general power of

appointment.

Real and Personal Property.

XXXIII. Where the donee of a general power of appointment shall become chargeable with duty in respect of the property appointed by him under such power, he shall be allowed to deduct from the duty so payable any duty he may have already paid in respect of any limited interest taken by him in such property (c).

See the tables, post, p. 279.

Ante, pp. 89, 92, 93.

(b) Ante, pp. 96, 105.

(c) See ante, s. 4, p. 250; 36 Geo 3, c. 52, s. 18, ante, p. 90.