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England) Land Union (London.

The new land taxes and mineral rights duty. The Land Union's handbook on provisional valuations; being general advice to owners of land and house property in dealing with valuations under the Finance (1909-10) Act, 1910, as amended by the Revenue Act, 1911 online

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Online LibraryEngland) Land Union (LondonThe new land taxes and mineral rights duty. The Land Union's handbook on provisional valuations; being general advice to owners of land and house property in dealing with valuations under the Finance (1909-10) Act, 1910, as amended by the Revenue Act, 1911 → online text (page 10 of 19)
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setting forth the particulais of the land and the estimated
value of the benefit accruing to the lessor by the determina-
tion of the lease.

(3) If any person who is under an obligation to deliver an
account under this section knowingly fails to deliver such
an account within the period of three months after the
determination of the lease, he shall be liable to pay to His
Majesty a sum not exceeding ten per cent, upon the amount
of any duty payable unde? this section, and a like penalty
for every three months after the first month during which
the failure continues.



LAND UNION HANDBOOK 95

(4) Section seventeen of the Customs and Inland Revenue 48 & 49 Vict.
Act, 1885 (which relates to the power to assess duty accord- c - jl -
ing to accounts rendered, and to obtain other accounts),
shall apply with respect to any account delivered under this
section (with the exception of any provisions relating to
appeals).

Undeveloped Land Duty.

16. (1) Subject to the provisions of this part of this Act Duty on
there shall be charged, levied, and paid for the financial year Slt ® va 'ue of
ending the thirty-first day of March nineteen hundred and j^eveloped
ten, and every subsequent financial year in respect of the
site value of undeveloped land a duty, called undeveloped
land duty, at the rate of one half-penny for every twenty
shillings of that site value.

(2) For the purposes of this Part of this Act, land shall be
deemed to be undeveloped land if it has not been developed
by the erection of dwelling-houses or of buildings for the
purposes of any business, trade, or industry other than
agriculture (but including glasshouses or greenhouses),
but is not otherwise used bona fide for any business, trade,
or industry other than agriculture :

Provided that —

(a) Where any land having been so developed or used

reverts to the condition of undeveloped land owing
to the buildings becoming derelict, or owing to the
land ceasing to be used for any business, trade, or
industry other than agriculture, it shall, on the
expiration of one year after the buildings have so
become derelict or the land ceases to be so used,
as the case may be, be treated as undeveloped land
for the purposes of undeveloped land duty until it
is again so developed or used ; and

(b) Where the owner of any land included in any scheme

of land development shows that he or his predecessors
in title have, with a view to the land being developed
or used as aforesaid, incurred expenditure on roads
(including paving, curbing, metalling, and other
works in connection with roads) or sewers, that
land shall, to the extent of one acre for every
complete hundred pounds of that expenditure,
for the purposes of this section, be treated as land
so developed or used although it is not for the time
being actually so developed or used, but, for the
purposes of this provision, no expenditure shall
be taken into account if [ten\* years have elapsed
since the date of the expenditure, or if after the
date of the expenditure the land having been



* Altered to twenty by Section 4 of the Revenue Act 1911.



96



LAND UNION HANDBOOK



Exemptions
from unde-
veloped land
duty, and
allowances.



developed reverts to the condition of undeveloped
land, and in a case where the amount of the
expenditure does not cover the whole of the land
included in the scheme of land development, the
part of the land to be treated as land developed
or used as aforesaid shall be determined by the
Commissioners as being the land with a view to
the development or use of which as aforesaid the
expenditure has been in the main incurred.

(3) For the purposes of undeveloped land duty, the site
value of undeveloped land shall be taken to be the value
adopted as the original site value or, where the site value
has been ascertained under any subsequent periodical
valuation of undeveloped land for the time being in force, the
site value as so ascertained :

Provided that where increment value duty has been paid
in respect of the increment value of any undeveloped land,
the site value of that land shall, for the purposes of the
assessment and collection of undeveloped land duty, be
reduced by a sum equal to five times the amount paid as
increment value duty.

(4) For the purposes of undeveloped land duty unde-
veloped land does not include the minerals.

17. (1) Undeveloped land duty shall not be charged in
respect of any land where the site value of the land does not
exceed fifty pounds per acre.

(2) In the case of agricultural land of which the site value
exceeds fifty pounds per acre, undeveloped land duty shall
only be charged on the amount by which the site value of
the land exceeds the value of the land for agricultural
purposes.

(3) Undeveloped land duty shall not be charged —

(a) On the site value of any parks, gardens, or open

spaces which are open to the public as of right ;
or

(b) On the site value of any woodlands, parks, gardens, or

open spaces reasonable access to which is enjoyed
by the public or by the inhabitants of the locality
(including access regularly enjoyed by any of the
naval or military forces of the Crown for the purpose
of training or exercise) where, in the opinion of the
Commissioners, that access is of public benefit ; or

(c) On the site value of any land where it is shown to

the Commissioners that the land is being kept
free of buildings in pursuance of any definite
scheme, whether framed before or after the passing
of this Act, for the development of the area of
which the land forms part, and where, in the opinion
of the Commissioners, it is reasonably necessary
in the interests of the public, or in view of the



LAND UNION HANDBOOK 97

character of the surroundings or neighbourhood,

that the land should be so kept free from buildings ;

or

(d) On the site value of any land which is bona fide used

for the purpose of games or other recreation where

the Commissioners are satisfied that the land is so

used under some agreement with the owner which,

as originally made, could not be determined for a

period of at least five years, or where, in the opinion

of the Commissioners, other circumstances render

it probable that the land will continue to be so

used.

Where any land kept free from buildings in pursuance of

any definite scheme has received the benefit of an exemption

from undeveloped land duty by virtue of this section, that

land shall not be built upon unless the Local Government

Board give their consent, on being satisfied that it is

desirable in the interests of the public that the restriction

on building should be removed ; and any such consent may

be given subject to such conditions as to the mode in which

the land is to be built upon as the Local Government Board

think desirable under the circumstances.

The opinion of the Commissioners as to matters which are
expressed to be matters for the opinion of the Commissioners
under this sub-section shall be final and not subject to any
appeal.

(4) Undeveloped land duty shall not be charged on the
site value of any land not exceeding an acre in extent occupied
together with a dwelling-house or on the site value of any
land being gardens or pleasure grounds so occupied when the
site value of the gardens and pleasure grounds together
with the site value of the dwelling-house does not exceed
twenty times the annual value of the gardens, pleasure
grounds, and dwelling-house as adopted for the purpose of
income tax under Schedule A. :

Provided that the exemption under this provision shall not
apply so as to exempt more than five acres, and where the
land, gardens, or pleasure grounds occupied together with
a dwelling-house exceed five acres in extent, those five
acres shall be exempted which are determined by the Com-
missioners to be most adapted for use as gardens or pleasure
grounds in connection with the dwelling-house.

Where the dwelling-house, gardens, and pleasure grounds
are valued for the purpose of income tax under Schedule A.,
together with other land, the total annual value shall be
divided between the dwelling-house, gardens, and pleasure
grounds and the other land in such manner as the Com-
missioners may determine.

(5) Where asrricultural land is at the time of the passing
of this Act held under a tenancy originally created by a



98



LAND UNION HANDBOOK



Exemption
of small
holdings
from unde-
veloped land
duty.



Recovery of
undeveloped
land duty.



lease or agreement made or entered into before the thirtieth
day of April, nineteen hundred and nine, undeveloped land
duty shall not be charged on the site value of the land during
the original term of that lease or agreement while the tenancy
continues thereunder. Provided that where the landlord
has power to determine the tenancy of the whole or any
part of the land, the tenancy of the land or that part of
the land shall not be deemed for the purposes of this pro-
vision to continue after the earliest date after the commence-
ment of this Act at which it is possible to determine the
tenancy under that power.

18. Undeveloped land duty shall not be charged on the
site value of any agricultural land, occupied and cultivated
by the owner thereof, where the total value of that land,
together with any other land belonging to the same owner,
does not exceed five hundred pounds.

For the purposes of this provision the expression " owner "
includes a person who holds land under a lease which was
originally granted for a term of fifty years or more.

19. Undeveloped land duty shall be assessed by the Com-
missioners and shall be payable at any time after the first
day of January of the year for which the duty is charged,
and any such duty for the time being unpaid shall be
recoverable from the owner of the land for the time being
as a debt due to His Majesty, and shall be borne by that
owner notwithstanding any contract to the contrary.

If at any time undeveloped land duty is not assessed
within the year for which it is charged, owing to there being
no value either shown in the provisional valuation or finally
settled on which the duty can be assessed, or for any other
reason, the duty may be assessed at any time, and shall be
payable at any time after the expiration of two months
from the date of the assessment, so, however, that no such
duty shall be assessed more than three years after the
expiration of the year for which it is charged.



Mineral Rights Duty and Provisions as to Minerals.



Mineral 20. (1) There shall be charged, levied, and paid for the

rights duty, financial year ending the thirty-first day of March, nineteen
hundred and ten and every subsequent financial year on the
rental value of all rights to work minerals and of all mineral
wayleaves, a duty (in this Act referred to as a mineral rights
duty) at the rate in each case of one shilling for every twenty
shillings of that rental value.

(2) The rental value shall be taken to be —

(a) Where the right to work the minerals is the subject
of a mining lease, the amount of rent paid by the



LAND UNION HANDBOOK 99

working lessee in the last working year in respect of
that right ; and

(b) Where minerals are being worked by the proprietor

thereof, the amount which is determined by the
Commissioners to be the sum which would have
been received as rent by the proprietor in the
last working year if the right to work the minerals
had been leased to a working lessee for a term and
at a rent and on conditions customary in the district,
and the minerals had been worked to the same
extent and in the same manner as they have been
worked by the proprietor in that year :

Provided that the Commissioners shall cause a
copy of their valuation of such rent to be served
on the proprietor ; and

(c) In the case of a mineral wayleave the amount of rent

paid by the working lessee in the last working
year in respect of the wayleave :

Provided that if in any special case it is shown to the
Commissioners that the rent paid by a working lessee
exceeds the rent customary in the district, and partly
represents a return for expenditure on the part of any pro-
prietor of the minerals which would ordinarily have been
borne by the lessee, the Commissioners shall substitute
as the rental value of the right to work the minerals or the
mineral wayleaves, as the case may be, such rent as the
Commissioners determine would have been the rent custom-
ary in the district if the expenditure had been borne by the
lessee.

(3) Every proprietor of any minerals and every person
to whom any rent is paid in respect of any right to work
minerals or of any mineral wayleave shall, upon notice
being given to him by the Commissioners requiring him
to give particulars as to the amount received by him in
respect of the right or wayleave, as the case may be, and
where the proprietor is working the minerals, particulars
as to the minerals worked, make a return in the form required
by the notice, and within the time, not being less than thirty
days, specified in the notice, and in default shall be liable
to a penalty not exceeding fifty pounds to be recovered in
the High Court.

(4) Mineral rights duty shall be assessed by the Commis-
sioners and shall be payable at any time after the first day of
January in the year for which the duty is charged, and any
such duty for the time being unpaid shall be recoverable
as a debt due to His Majesty from the proprietor of the
minerals, where the proprietor is working the minerals,
and in any other case from the immediate lessor of the work-
ing lessee. As between the immediate lessor and the work-
ing leesee, the duty shall be borne by the immediate lessor,



100



LAND UNION HANDBOOK



Deduction of
duty in case
of inter-
mediate leases
of minerals.



pecial
provisions as
to increment
value duty
and reversion
duty in the
case of
minerals
worked or
leased.



notwithstanding any contract to the contrary, whether
made before or after the passing of this Act.

(5) Mineral rights duty shall not be charged in respect of
common clay, common brick clay, common brick earth, or
sand, chalk, limestone, or gravel.

21. (1) Any immediate lessor who under this Act pays
any mineral rights duty and is himself a lessee of the right to
work the minerals or of the wayleave in respect of which
the duty is paid, shall be entitled to deduct from the rent
paid by him in respect of the right to work the minerals or
the wayleave, as the case may be, to his lessor a sum equal
to the mineral rights duty on a rental value of the same
amount as the rent payable ; and any person from whose
rent any such deduction is made may make a similar
deduction from any rent paid by him in respect of the right
to work the minerals or in respect of the wayleave, as the
case may be.

(2) Any person in receipt of rent from which a deduction
may be made under this section shall allow the deduction,
and the person making the deduction shall be discharged
from the payment of an amount of rent equal to the amount
deducted, and any contract for the payment of rent without
allowing such a deduction shall be void.

(3) If any person refuses to allow a deduction which he is
required to allow under this section, he shall be liable to a
penalty not exceeding fifty pounds to be recovered in the
High Court.

(4) Where in any special case mineral rights duty has
been charged on a rental value based on a rent which has
been substituted under the provisions of this Act for the
rent actually payable by the working lessee, or where in
any special case the rental value with reference to which
increment value duty is charged has been reduced under the
provisions of this Act for the purposes of the collection of
that duty, the Commissioners shall, on the application of any
lessor from whose rent a deduction may be made in respect of
mineral rights duty or increment value duty, as the case
may be, make a corresponding substitution or reduction
as regards that rent, if they consider that the grounds for
the substitution or reduction, as the case may be, are
applicable in the case of the rent with respect to which the
application is made.

22. (1) No reversion duty shall be charged on the deter-
mination of a mining lease, and no increment value duty
shall be charged on the occasion of the grant of a mining
lease or in respect of minerals which are comprised in a
mining lease, or are being worked, except as a duty payable
annually in manner provided by this Act.

(2) Increment value duty shall not be charged in the ca3e
of any minerals which were, on the thirtieth day of April,



LAND UNION HANDBOOK 101

nineteen hundred and nine, either comprised in a mining
lease or being worked by the proprietor, so long as the
minerals are for the time being either comprised in a
mining lease, or being worked by the proprietor.

Provided that the exemption under this section shall
continue to apply in the case of any minerals, although
they cease for a temporary period to be comprised in a
mining lease or to be worked, so long as the period does not
exceed two years.

(3) Increment value duty in respect of the increment value
of minerals which are comprised in a mining lease or are
being worked shall, where that duty is chargeable, be
charged annually ; and the increment value shall, instead
of being estimated as a capital sum, be taken to be the sum
(if any) by which, in each year during which the lease con-
tinues or the minerals are being worked, as the case may be,
the rental value on which mineral rights duty is charged in
respect of the right to work the minerals exceeds the annual
equivalent of the original capital value of the minerals,
or the capital value of the minerals on the last preceding
occasion on which increment value duty has been collected
otherwise than as an annual duty, if increment value duty
has been so collected before the minerals have become com-
prised in a mining lease or have commenced to be worked ;
and the annual equivalent of any such capital value of the
minerals shall be taken to be two twenty-fifth parts of that
capital value.

(4) If in any case it is shown to the Commissioners that
the rental value on which mineral rights duty is charged
represents in part a return for money expended within
fifteen years by a lessor in boring or otherwise proving the
minerals, the rental value shall be reduced for the purposes
of the collection of increment value duty by the amount
which represents that return.

(5) Increment value duty payable annually under this
section shall, instead of being collected as provided by this
Act in other cases, be recoverable in the same manner as
mineral rights duty, with the same right of deduction.

(6) Any proprietor or lessor of any minerals who pays
increment value duty in pursuance of this provision shall be
entitled to be relieved in any year from the payment of
mineral rights duty, as such proprietor or lessor, up to the
amount paid by him in that year in respect of increment
value duty.

For the purposes of this provision, a deduction of any
amount from the rent payable to a lessor on account of
mineral rights duty shall be deemed to be a payment of
that duty, and the relief may be given either by allowance
or repayment or both of those means, as the occasion may
require.



102 LAND UNION HANDBOOK

(7) Where minerals cease to be comprised in a mining
lease or to be worked within the meaning of this section,
the capital value of the minerals at the time shall be specially
ascertained in accordance with the provisions of this Act, and
the capital value as so ascertained shall be treated as the
original capital value of the minerals.

(8) Nothing in this section shall apply to minerals which
are exempt from mineral rights duty under this Act.

Application 23. (1) For the purposes of this Part of this Act, the total

of provisions value of minerals means the amount which the fee simple of

as to total and ^ minerals, if sold in the open market by a willing seller

minerals. ln their then condition, might be expected to realise, and

the capital value of minerals means the total value, after

allowing such deduction (if any) as the Commissioners may

allow for any works executed or expenditure of a capital

nature incurred bona fide by or on behalf of any person

interested in the minerals for the purpose of bringing the

minerals into working, or where the minerals have been

partly worked, such deduction as is, in the opinion of the

Commissioners, proportionate to the amount of minerals

which have not been worked.

(2) For the purposes of valuation under this Part of this
Act, all minerals shall be treated as a separate parcel of
land ; but where the minerals are not comprised in a
mining lease or being worked, they shall be treated as having
no value as minerals, unless the proprietor of the minerals,
in his return furnished to the Commissioners, specifies the
nature of the minerals and his estimate of their capital
value.

Minerals which are comprised in a mining lease or are being
worked shall be treated as a separate parcel of land, not only
for the purposes of valuation, but also for the purpose of
the assessment of duty under this Part of this Act.

(3) The provisions of this Part of this Act with respect to
valuation shall not apply to minerals which were, on the
thirtieth clay of April, nineteen hundred and nine, either
comprised in a mining lease or being worked by the proprietor
so long as they are for the time being either comprised in
a mining lease or being worked by the proprietor, nor shall
such provisions apply to any minerals which cease for a
temporary period to be comprised in a mining lease or to be
worked so long as the period does not exceed two years.

(1) Except where the context otherwise requires, any
references in this Part of this Act to the site value of land
shall, in cases where the land consists solely of minerals, or
comprises minerals, be construed, so far as respects the
minerals, as a reference to the capital value of the minerals.



LAND UNION HANDBOOK 103

24. For the purpose of the provisions of this Act as to Definitions
. . r r r for purposes

minerals — of m i ner al

The expression " proprietor " means the person for the provisions,
time being entitled in possession to the minerals, or to
the rents and profits thereof, or any part of
those rents and profits, but does not include a
person entitled as lessee other than a person entitled
to the possession of land comprised in a lease for
any long term of years to which Section sixty-five
of the Conveyancing and Law of Property Act, 1881, 44 & 45 Vict.

i" c. 41.

applies ;

The expression " rent " includes yearly or other rent, and
shall, in addition to the meaning assigned to it for
the general purposes of this Part of this Act, be
construed as including any fine, premium, or foregift,
and any payment, consideration, or benefit in the
nature of a fine, premium, or foregift ;

Where any rent is paid or rendered otherwise than
in money or money's worth, the amount of the rent
shall be taken to be such sum as the Commissioners
consider to be the value thereof ;

The expression " mining lease " means a lease for mining
purposes, that is, for searching for, winning, working,
getting, making merchantable, carrying away, or
disposing of, mines and minerals, or purposes con-
nected therewith, and includes an agreement for
such lease, or any tenancy or licence, whether by
deed, parol, or otherwise for mining purposes, and
the expressions " lessor " and " lessee " shall in
addition to the meaning assigned to them for the
general purposes of this Part of this Act be construed
so as to include respectively a licensor and a licensee ;

The expression " working lessee " means as respects the
right to work minerals the lessee who is actually
working the minerals, or who would have the right
actually to work the minerals if the minerals were
worked, and as respects mineral way-leaves the
lessee who is in actual enjoyment of the way-leave,
and the expression " immediate lessor " shall be
construed accordingly ;

The expression " working year " means the year ending
the thirtieth day of September, or such other day
as may in any case be approved by the Com-
missioners ; and the expression " last working year "
means the working year completed immediately
before the first day of January in any financial
year for which the duty is paid ;

The expression " mineral way-leave " means any way-
leave, air-leave, water-leave, or right to use a shaft


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Online LibraryEngland) Land Union (LondonThe new land taxes and mineral rights duty. The Land Union's handbook on provisional valuations; being general advice to owners of land and house property in dealing with valuations under the Finance (1909-10) Act, 1910, as amended by the Revenue Act, 1911 → online text (page 10 of 19)