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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 12 of 19)
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(2) For the purposes of this section the expression
" rating authority " means any body who have power to
raise a rate or administer money raised by a rate ; and
the expression " rate " means a rate the proceeds of which
are applicable to public local purposes, and which is leviable
on the basis of an assessment in respect of the yearly value
of property, and includes any sum which, though obtained
in the first instance by a precept, certificate, or other
instrument, requiring payment from some authority or
officer, is or can be ultimately raised out of a rate as before
defined.

36. Where in pursuance of any public general or local Deduction
Act any capital sum or any instalment of a capital sum from incre-
has been paid to any rating authority in respect of the menfc value of

SUIT1 T)&lfi to

increased or enhanced value of any land due to any improve- ra ti Q o-

ments made or other action taken by the authority, the authority in

amount of that capital sum or instalment shall be deducted respect of

from any increment value of the land for the purposes mc - rease in

• -Veil lit*

of the collection of increment value duty and from the site
value of the land for the purposes of the collection of
undeveloped land duty, and from the value of the benefit
accruing to the lessor for the purposes of reversion duty, and
in the case of increment value duty the duty on the amount
deducted shall be deemed to have been paid.

37. (1) No reversion duty or undeveloped land duty Special pro-
under this Part of this Act shall be charged in respect of , visi ?'? ^f
land or any interest in land held by or on behalf of any charitable ° r
governing body constituted for charitable purposes while purposes, &c
the land is occupied and used by such a body for the purposes

of that body, and increment value duty shall not be
collected on any periodical occasion in respect of the fee
simple of or any interest in any land held for the purposes
of such a body, whether it is occupied or used by that body
or not, without prejudice, however, to the collection of the
duty on any other occasion.

The expression " governing body constituted for
charitable purposes " includes any person or body of
persons who have the right of holding, or any power of
government of, or management over, any property appro-
priated for charitable purposes (including property
appropriated for the purpose of any of the naval or military
forces of the Crown), and includes any corporation sole
and all universities, colleges, schools, and other institutions
for the promotion of literature, science, or art.



114



LAND UNION HANDBOOK



8 Edw.
c. 69.



59 & 60 Vict,,



Special pro
vision for
statutory
companies.



(2) This section shall apply to the fee simple of, or any
interest in, any land held by a registered society or by a
company within the meaning of the Companies (Con-
solidation) Act, 1908, or any body of persons incorporated
by special Act, if that company or body are by their
memorandum or Act precluded from dividing any profit
amongst their members, as if the purposes of the society,
company, or body of persons were charitable purposes.

In this provision the expression " registered society "
means" any society or body of persons who are registered,
or whose rules are certified or registered, by a registrar of
friendly societies in pursuance of any Act of Parliament, and
who by their rules make provision for the benefits set out
in section eight, subsection one, of the Friendly Societies
Act, 1896, and where the contract between the society
and the member is of a permanent character.

38. (1) Neither increment value duty, reversion duty,
nor undeveloped land duty shall be charged in respect
of any land whilst it is held by a statutory company for
the purposes of their undertaking and cannot be appro-
priated by the company except to those purposes ; but
nothing in this provision shall prevent the collection of
increment value duty when any such land is sold or ceases
to be so held.

This provision shall not be construed so as to exclude
from the benefit thereof land held by a statutory company
which is intended to be ultimately appropriated for the
purpose of works forming or to form part of the company's
undertaking, but, pending the carrying out of those works,
is used for other purposes.

(2) The Commissioners shall not require a statutory
company to make any returns with respect to any such
land for the purpose of the provisions of this Part of this
Act as to valuation other than as to the actual cost to the
company of the land, and that cost shall, for the purposes
of this Part of this Act, be substituted for the original
site value of the land.

(3) For the purposes of the Lands Clauses Acts, as
incorporated with any special Act, the amount (if any)
payable by the transferor as increment value duty shall
not be treated as part of the costs or expenses of a con-
veyance of land, and shall not be taken into account in
assessing the compensation to be paid to the transferor.

(4) For the purposes of this section the expression
" statutory company " means any railway company,
canal company, dock company, water company, or other
company who are for the time being authorised under any
special Act to construct, work, or cany on any railway



LAND UNION HANDBOOK



115



Power to
charge duty
on land in
certain cases.

45 & 46 Vict,
c. 38.



canal, dock, water, or other public undertaking, and
includes any person or body of persons so authorised ;
and the expression " special Act " includes any Provisional
Order or order having the force of an Act of Parliament.

39. (1) Where the fee simple of any land, or any
interest in land, in respect of which increment value duty or
reversion duty is charged, is settled land within the meaning
of the Settled Land Act, 1882, or is vested in a trustee,
and the tenant for life, or persons having the powers of a
tenant for life, or the trustee, is the person who is liable
to pay any sums on account of either of these duties, he
shall be entitled to charge by deed upon the land or interest
in land any amount paid by him, or which he may then be
or may thereafter become liable to pay, in respect of either
of these duties, and the amount of any expenditure which
he may have reasonably incurred in connection with the
valuation, and the benefit of any such charge, may be
transferred in like manner as a mortgage.

(2) In the case of settled land a deed executed for the
purposes of this section shall not take effect until notice
thereof has been given to the trustees of the settlement
for the purposes of the Settled Land Act, 1882.

(3) Sections fifty-nine, sixty, and sixty-two of the Settled
Land Act, 1882 (which relate to the exercise of powers on
behalf of infants and lunatics), shall apply to the exercise
of the power under this section in the same manner as they •
apply to the exercise of the powers of a tenant for life under
that Act.

(4) Where the fee simple of any land, or any interest in
land in respect of which increment value duty or reversion
duty is charged, is vested in a mortgagee who is liable
to pay any sum on account of either of those duties, he
shall be entitled to add to his security the sum for which
he is so liable, including any costs or expenses properly
incurred by him in respect of the payment of the duty.

(5) In Scotland, where any person, having a limited
interest in the land or interest in land in respect of which
any duty under this Part of this Act is charged, is the person
who is liable to pay any sums on account of the duty, he
shall be entitled to charge such land or such interest in
land by means of a bond and disposition or bond and
assignation in security in his own favour which he is hereby
authorised to grant.

40. The following provisions shall have effect with respect Application
to the application of this Part of this Act to copyholds, of Part I.
including customary freeholds : — ■ copyholds.

(1) In the case of copyholds of inheritance, and copyholds
held for a life or fives or for years where the tenant
has a right of renewal, and customary freeholds —



116 LAND UNION HANDBOOK

(a) The total and site values of the laud shall be
ascertained as if the land were freehold land, subject
to a deduction of such an amount as is proved to
the Commissioners to be equal to the amount which
it would cost to enfranchise the land ;

(6) References to the fee simple of land shall be
treated as references to the whole copyhold or
customary interest or estate ;

(c) In the definition of " owner," a reference to
the person entitled to the rents and profits of the
land as tenant by copy of court roll or customary
tenure shall be substituted for the reference to the
person entitled to the rents and profits of the land
in virtue of an estate of freehold ;

(2) In the case of copyhold land held for a life or lives, or
for years where the tenant has not a right of renewal,
this Part of this Act shall have effect as if the land
were freehold land and the copyhold interest were
a leasehold interest.

Definitions. 41. In this Part of this Act, unless the context otherwise

requires : —

The expression " land " does not include any incorporeal
hereditament issuing or granted out of the land ;

The expression " rentcharge " means tithe or tithe rent
charge, or other periodical payment or rending in lieu
of or in the nature of tithe, or any fee farm rent, rent
seek, quit rent, chief rent, rent to assize, or any other
perpetual rent or annuity granted out of land ;

The expression " rent " has the same meaning as in the
44 & 45 Vict., Conveyancing and Law of Property Act, 1881, and

c 41. does not include a rentcharge ;

The expression " lease " includes an under-lease and an
agreement for a lease or under-lease, but does not
include a term of years created solely for the purpose
of securing money until the term becomes vested
in some person free from any equity of redemption ;

The term of a lease shall, where the lease contains an
obligation to renew the lease, be deemed to include the
period for which the lease may be renewed, and, in the
case of a lease for life or lives, shall be deemed to be
a number of years equal to the mean expectation of
life of the person for whose life the lease is granted, or,
in the case of a lease granted for lives, of the youngest
of the persons for whose lives the lease is granted, and
a lease renewed in pursuance of such an obligation
shall not on its renewal be deemed to be determined ;

The expression " interest " in relation to land includes
any undivided share in a fee simple in possession and
includes a reversion expectant on the determination



LAND UNION HANDBOOK 117

of a lease, but does not include any other interest
in expectancy or an incumbrance as denned by this
Act or any fixed charge as defined by this Act or
any purely incorporeal hereditament or any leasehold
interest under a lease for a term of years not exceed-
ing fourteen years or any tenancy which is, or is
deemed to be, subject to statutory conditions under
the Land Law (Ireland) Acts ;

The expression " incumbrance " includes a mortgage
in fee or for a less estate, and a trust for securing
money, and a lien, and a charge of a portion, annuity,
or any capital or annual sum, but does not include
a fixed charge as defined by this Act ;

The expression " fixed charge " means any rentcharge
as defined by this Act, and any burden or charge
(other than rates or taxes) arising by operation of
law or imposed by any Act of Parliament, or imposed
in pursuance of the exercise of any powers or the
performance of any duties under any such Act,
otherwise than by a person interested in the land or
in consideration of any advance to any person
interested in the land ;

The expression " fee simple " means the fee simple
in possession not subject to any lease, but does
not include an undivided share in a fee simple in
possession ;

The expression " owner " means the person entitled in
possession to the rents and profits of the land in virtue
of any estate of freehold, except that where land is let
on lease for a term of which more than fifty years are
unexpired, the lessee under the lease or if there are
two or more such leases the lessee under the last
created under-lease shall be deemed to be the owner
instead of the person entitled to the rents and profits
as aforesaid ;

The expressions " lessor " and " lessee " include an
under-lessor and under-lessee ; and the expression
" lessor " includes the person for the time being
entitled to the reversion, whether freehold or lease-
hold, expectant on the determination of the lease ;
and the expression " lessee " includes executors,
administrators, and assigns of the lessee ;

The expressions " transferor " and " lessor " do not
include any persons who join in the execution of the
instrument by which the transfer or lease is effected,
or agreed to be effected, for the purpose only of con-
veying any estate vested in them as trustees or
incumbrancers, or of acknowledging the receipt of the
consideration money, or of giving consent and sections
fifty-nine, sixty, and sixty-two' of the Settled Land



118 land union handbook

45&46\ict., ^ ct> jgg2 (which relate to the exercise of powers

on behalf of infants and lunatics), shall appl)'' to the
exercise of the powers of an owner under this Part
of this Act in the same manner as they apply to the
exercise of the powers of a tenant for life under that
Act ;
The expression " agriculture " includes the use of
land as meadow or pasture land or orchard or osier
or woodland, or for market gardens, nursery grounds,
or allotments ; and the expression " agricultural
land " shall be construed accordingly.

Application 42. I n the application of this Part of this Act to Scotland,

9 tl ] ' ° uruess the context otherwise requires, — ■

(1) The expression " land " does not include teinds,
titles or offices of honour, or any servitude, super-
iority, casualty, feu duty, or ground annual, or any
incorporeal heritable right ;
The expression " rent " includes yearly or other rent,
toll, duty, royalty, or other reservation by the acre,
the ton, or otherwise ; and, for the purpose of section
thirty-one of this Act, includes feu-duty and ground
annual ;
The expression " rent charge " includes feu duty and

ground annual ;
The expression " interest "in relation to land includes
the landlord's right of reversion to the subjects let
on the determination of the lease, but does not in-
clude teinds, servitudes, superiorities, any interest in
expectancy, whether vested or not, heritable securi-
ties, bonds of provision, jointures, annuities, or
other capital or annual sums, or other debts secured
upon heritage, or any sporting right, or any lease
thereof ;
The expression " owner " means the fiar of the land,
except that where land is let on lease for a term of
which more than fifty years are unexpired, the
tenant under the lease shall be deemed to be the
owner, and includes an institute or heir of entail in
possession ;
The expression " freeholder " includes " fiar," " life-
renter of land settled within the meaning of the
Finance Act, 1894," and " institute or heir of entail
in possession," and the expression " freehold " shall
be construed accordingly ;
The expression " incumbrance " includes any heritable
security, or other debt or payment secured upon
heritage, and the expression " incumbrancer " shall
be construed accordingly ;



LAND UNION HANDBOOK 119

" Servitudes " shall be substituted for " easements,"
and shall be deemed to include public rights ;

" Local Government Board for Scotland " shall be
substituted for " Local Government Board " ;

The expression " borough or urban district " means a
royal, parliamentary or police burgh ;

A reference to an appeal to quarter sessions shall not
apply ;

" Court of Session " shall be substituted for " High
Court " : Provided that, for the purposes of appeals
from the decisions or referees, the judges of the Court
of Session named for the purpose of hearing appeals
under the Valuation of Lands (Scotland) Acts shall
be substituted for the High Court, subject to such
regulations as may be prescribed by Act of Sederunt,
and the appeal from such judges shall be to the
House of Lords, and in subsections (2), (3), and (4)
of section ten of the Finance Act, 1894, as applied 57 & 58 Vict.,
with reference to any such appeal the said judges c - 30.
shall be substituted for the High Court. " Sheriff
Court " shall be substituted for " County Court," and
there shall be an appeal from the sheriff court to
the said judges, whose decision in such cases shall
be final.

(2) Any order of a referee as to expenses shall be enforce-

able as a recorded decree arbitral.

(3) Subsection (2) of section two of this Act shall be

construed as if after paragraph (d) thereof the follow-
ing paragraph were added (that is to say) —

(e) where the occasion is the grant of any feu
of the land or the creation of any ground annual
thereon, the value of the fee simple of the land
calculated on the basis of the value of the con-
sideration for such grant or creation, by way of feu
duty, ground annual, or otherwise.

Where increment value duty falls to be collected on a
feu the contract or feu or a contract or ground
annual, it shall be paid by the person by whom or
on whose behalf the feu is granted or the ground
annual is created, and, for the purposes of this Part
of this Act, that person shall be deemed to be the
transferor or the transferor on sale and the contract
or charter to be the instrument, and the expressions
" transfer " and " transfer on sale " shall be construed
accordingly.

The expressions " lessor " and " lessee " include a sub-
lessor and sub-lessee and the heirs, executors, adminis-
trators, and assigns of a lessor and lessee respectively.

(4) Where arrangements are made under section four of

this Act for dispensing with the presentation of any in



120



LAND UNION HANDBOOK



strument or particulars thereof, it shall be the duty
of the keeper of the general register of sasines and
of the respective keepers of burgh or other local
registers, to furnish to the Commissioners particulars
of instruments presented for registration or registered
in their respective registers as may be prescribed by
regulations of the Commissioners, and in such case
the provisions of subsection (3) of section four shall
not apply.



PART III.— Death Duties.



Amendment
as to value of
property.



Deduction of
amount paid
for increment
value duty
from value
of estate for
purposes of
estate duty.



Protection of
purchasers
and mort-
gagees of
interests in
expectancy.



60. (1) In the case of any person dying on or after the
thirtieth day of April nineteen hundred and nine, the
proviso to subsection (5) of section seven of the principal
Act (which relates to the estimation of the principal value
of property for the purposes of estate duty) shall cease to
have effect.

62. Where increment value duty is to be collected on the
occasion of the death or any person in respect of the fee
simple of any land or any interest in land comprised in the
property passing on the death of that person, allowance shall
be made in determining the value of the estate for the pur-
poses of estate duty under subsection (1) of section seven of
the principal Act, for the amount of increment value duty
so to be collected as if it were a debt.

64. Where an interest in expectancy within the meaning
of Part I. of the principal Act in any property has, before the
thirtieth day of April nineteen hundred and nine, bona fide
sold or mortgaged for full consideration in money or money's
worth, then no other duty on that property shall be payable
by the purchaser or mortgagee when the interest falls into
possession than would have been payable if in this Part
of 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.



PART VIII.— General.



Laying of
Rules and
regulations
before
Parliament.



93. (1) All rules and regulations made by the Treasury or
by the Commissioners of Inland Revenue or by the Com-
missioners of Customs and Excise under this Act shall be
laid before each House of Parliament as soon as may be
after they are made, and, if an address is presented to His
Majesty by either House of Parliament within the next



LAND UNION HANDBOOK 121

subsequent forty days on which that House has sat next
after any such rule or regulation is laid before it, praying
that the rule or regulation may be annulled, His Majesty
in Council may, if it seems fit, annul the rule or regulation
and it shall thenceforth be void, but without prejudice
to the validity of anything previously done thereunder.

(2) If any rule or regulation is so annulled any duty
previously paid which, but for the rule or regulation, would
not have been payable, shall be repaid by the Commissioners,
without prejudice, however, to the right of the Commis-
sioners to reassess the duty in accordance with any rule
or regulation which may be substituted for the annulled
rule or regulation.

94. If any person for the purpose of obtaining any allow- Penalty for
ance, reduction, rebate, or repayment in respect of any duty making false
under this Act, either for himself or for any other person, or jeprtsenta" 1 "
in any return made with reference to any duty under this t j 0Ilt
Act, knowingly makes any false statement or false repre-
sentation, he shall be liable on summary conviction to
imprisonment for a term not exceeding six months with
hard labour.

96. (1) The Acts specified in the Sixth Schedule to this Repea .^ con ' d
Act are hereby repealed to the extent mentioned in the g^ori, title 811
Third column of that Schedule.

(2) Any reference to " the Commissioners " in Part II.,
Part VI., or Part VII. of this Act shall be construed as a
reference to the Commissioners of Customs and Excise, and
any reference to " the Commissioners " in any other Part
of this Act shall be construed as a reference to the Com-
missioners of Inland Revenue.

(7) This Act may be cited as the Finance (1909-10) Act,
1910.



122 LAND UNION HANDBOOK



REVENUE ACT, 1911 (1 Geo. 5, Ch. 2).
ANNOTATED.



General Purport of the Act.

The Revenue Act, 1911, was passed on March 31, 1911. Part I.
dealt with duties on land values, and modifies to a slight extent
certain provisions contained in Part I. of the Finance (1909-10)
Act, 1910.

The main purport of Part I. of the Revenue Act may be stated
very briefly.

1. Contracts between transferor and transferee or a lessor and
lessee for the payment of increment value duty by the transferee or
lessee are made null and void. (Section 1.)

2. What is known as the " twenty years clause " of the Finance
Act, permitting the substitution of the site value at the date of pur-
chase within twenty years of April 29, 1909, for the original site
value on April 29, 1909 (Sub-section (3) of Section 2 of the Finance
Act) is extended so as to apply in the case of purchase by the owner
of the land, or of any interest in the land, at any previous date, and
is not limited to twenty years. (Section 2.)

3. The law as to reversion duty is explained and modified, the
principal amendment being, in effect, a more equitable definition of
the " benefit accruing " upon a determination of a lease prior to its
expiration by effluxion of time. The full duty that would be pay-
able at the natural expiration of the term is discounted at four
per cent, for the unexpired term. (Section 3, Sub-sections (1) 2
and (2).)

4. In certain cases of determination of leases by consent and their
renewal, reversion duty is not payable at all. (Section 3, Sub-
section (3).)

5. The exemption from undeveloped land duty in respect to one
acre of land for every complete hundred pounds expended on roads,
etc., during the previous ten years (Section 16 of the Finance Act)
is extended, twenty years being substituted for ten years. (Sec-
tion 4.)

6. Provision is made for the valuing together of contiguous lands
in the same ownership but in different occupations at the request
of the owner. The power of the Commissioners to so value the lands
is, however, permissive, and not obligatory. They must be satisfied
that in the special circumstances of the case it is equitable to do so.
The contiguous lands so valued together must not exceed one hundred


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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 12 of 19)