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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 18 of 19)
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matters has a right of appeal direct to the Referee, as against
a " determination of any other matters which the Com-
missioners are to determine." But the right of appeal is
subject to the provisions of Rule 4 (2) of the Land Values
Reference Rules (1910), (see above, p. 131), by which
notice of appeal must be given within 30 days after the
service of the Provisional Valuation, treating the latter
as the " determination " of the Commissioners in respect of
the Gross Value, the Full Site Value and the Value for
Agricultural purposes.

Therefore it would be prudent for any person who wishes
to alter the Gross Value, the Full Site Value or the
Value for Agricultural purposes stated in the Provisional
Valuation to give, within 30 days of the service of the same
(to the Commissioners of Inland Revenue, Land Values
Branch, Somerset House, London, W.C., and to J. Johnston,
Esq., Secretary to the Reference Committee, Room 174,
Royal Courts of Justice, Strand, W.C., respectively), the
two notices of appeal in respect thereof. The forms of
these appeals can be obtained from the Commissioners ;
they are in fact the form B set out in the Schedules to the
Land Values Reference Rules, 1910. (See Rules 3, 4 (2) and
13 and the Schedules thereto, pages 131-135 above.)

As regards the Deductions from Total Value to arrive
at the Assessable Site Value, other than the Difference
between the Gross Value and the Full Site Value, the Land
Union is of opinion that they can be legally claimed under
the form of an " objection " to the Provisional Valuation
and this view is apparently shared by the Commissioners,
as is evidenced by the form of the Provisional Valuation ;
which provides for these items. But as regards the head-
ings in respect of any part of the Total Value due to " works
executed," " Capital Expenditure " (Section 25, Sub-
section 4, paragraphs (b), (c) and (d), i.e., the items 5 (k)
to 5 (p) in the subjoined suggested form), it must not be
overlooked that the deductions are such as are " proved
to the Commissioners," and if they are not satisfied with
the claim as stated in the " objection," it will be incumbent
on the person objecting, to tender further evidence in
support of his claim. Accordingly, in the subjoined sug-
gested Form of Objection, we have included an offer to
furnish such further evidence as may be necessary.



LAND UNTON HANDBOOK 171

Hitherto the Commissioners, in receiving a claim for
these "optional" deductions, have usually forwarded to
the person objecting, a copy of Form 7 (set out at
page 138). This has no statutory force ; it is simply a
form drawn up by the Commissioners for their own con-
venience, and it is suitable only for the simplest cases.
Moreover, in so far as it asks for the " Amount Expended"
on " Works Executed " and the actual amount of the
" Capital Expenditure," the Land Union is of opinion that
it goes beyond the requirements of the statute, and that it is
not necessary to prove the actual amount expended by the
present owner or his predecessor in title; the better view
seems to be that the fact that the works were executed
by the owner or his predecessor is sufficient to ground the
claim, and that the amount of the Total Value due to such
works and expenditure alone has to be estimated, though
of course, if it be possible to do so, there is no reason why
the figures should not be produced.

Another point arising on Subsection (2) of Section 27
is whether in his " objection " the person objecting is
bound to give the actual figures of the amendments which
he desires to be made in the Total Value and Site Value, or
whether it would be sufficient, for instance, to say that he
wishes the value to be increased or as the case may be.

In the House of Commons, Secretaries to the Treasury
have given somewhat inconclusive and conflicting answers
to these questions (see the Land Union Journal of June,
1912, Vol. iii., p. 30), and until it is otherwise decided by
the Courts, it is the Land Union's opinion that the person
objecting should give the figures of the amendments in the
Total and Site Values which he desires, but there is nothing
to prevent him, on negotiation with the Commissioners,
from subsequently agreeing to other figures.

As regards the details of the deductions from Total
Value to arrive at the Site Value, having regard to
the fact that the amount of each item has to be " proved
to the Commissioners," it is prudent to give them in
each case. But there is no reason why the items
"Works" and " Capital Expenditure " should be separate;
although they are distinct in the Provisional Valuation,
they come under the same clause in the Act (Sec. 25 (4) (b).)

In adopting the course recommended by us, the person
using the Form of Objection set out below should, in the
first instance, form his own opinion of the correct Total
Value (i.e., approximately the market value of the fee
simple in possession free from any lease) of his property
and insert it in the third column of the Table in the Form
against item No. 1 .



172 LAND UNION HANDBOOK

If the property is subject to any of the incidents classed
under " Deductions from Gross Value to arrive at Total
Value " (items No. 4 (a) to 4 (i) of the Form) the Owner
should then consider the value at which his property would
stand if it were free from such incidents, and this would
give him the figure at which the Gross Value (on the basis
of his new Total Value) ought to be placed ; it will not be
necessary or desirable for him to enter this new Gross
Value in the Form, but he should insert the several amounts
of such of the items 4 (a) to 4 (i) as affect the property
and have been taken into account.

The Owner should next consider the hypothetical value
of the fee simple in possession of the land free from all
leases, rent charges, tithe and divested of all buildings,
timber, &c, and insert the difference between the new Gross
Value and this hypothetical value in items No. 3 and No. 5
(j) of the Form. This will in effect give him the part of
the Gross Value due to the existence (not the cost) of the
buildings, trees, &c.

He will then insert in the third column of the Form his
own estimate of the proper figures against such of the items
5 (k) to 5 (q) as may be applicable and complete the two
additions and fill in the totals A and B, also the item No. 2,
the amended Assessable Site Value, which will be the
difference between the " Total Value " and the total B.

If the Owner wishes to object to the Value for Agri-
cultural purposes and does not at the same time take
objection to the Total and Assessable Site Values, then the
present view of the Land Union is that the safest course for
the owner to adopt is as follows : —

The Owner should, shortly after the service of the
Provisional Valuation, write to the Commissioners of
Inland Revenue for the forms of appeal to the Referee " in
respect of any matter other than the Total or Site Value
on a Provisional Valuation," stating that, without prejudice
to his right to object to those latter values, he is not satisfied
with the Value for Agricultural purposes shown in the
Provisional Valuation, and wishes to appeal to the Referee
in respect thereof, and that he considers it doubtful whether
he can obtain an amendment of this Value as stated in the
Provisional Valuation by objecting thereto under Section 27,
Subsection (2). On receipt of the two forms, which are
identical except as regards the names of the addressee, the
Owner should fill them up and forward them within 30 days
of the Service of the Provisional Valuation to Mr. Johnson
and the Commissioners respectively, as mentioned on
page 170.



LAND UNION HANDBOOK 173

The Land Union is also of opinion that even if the Owner
does intend to object to the Total Value or the Site Value
it would be prudent to adopt this course as regards the
Valuation for Agricultural purposes. But unless he
wishes to have the value for Agricultural purposes amended,
it is doubtful whether the same procedure should be adopted
merely for the purposes of altering the Gross Value and Full
Site Value, because if the Owner succeeds in his objection
to the Total Value, Site Value or any other item in the
subjoined Form which involve any modification of the
Gross Value or the Full Site Value, then the necessary
alterations will have to be made in the last-mentioned
Values. Further, so far as the present taxes are concerned,
the two last values are not of importance.

In some cases of Agricultural Land having a considerable
building value, the District Valuers have omitted to insert
in their Provisional Valuation any value for Agricultural
purposes. As the Commissioners are bound under
Section 26, Subsection (1) to show that value when it "is
different from the Site Value," an interesting legal point
arises whether this omission amounts to a " determination "
by the Commissioners that the Value for Agricultural
purposes and the Site Value are identical, or is a mere
accidental omission which can be remedied.

As regards the persons who are entitled to object to
Provisional Valuations, see above, page 7.

Finally, the necessity must be emphasised for great
caution in the earliest stages of a controversy with the
Commissioners, and we would point out that a notice of
objection or a notice of appeal in the case of Gross Value,
Site Value and the Value for Agricultural purposes may be
a step in litigation which may end only in the House of
Lords ; it is therefore of the utmost importance that all
technical points should be considered in the earliest stages,
bearing in mind that even if the Commissioners do not
themselves raise technical points, it is still open to Counsel
on the hearing of appeals to raise the most abstruse technical
points. An example of this is furnished in the Deptford
Case, reported in the Land Union Journal of May, 1912.

While this aspect of the case has received the fullest
consideration, there may be points and considerations
which have not yet occurred to the Land Union or its
advisers, and the Land Union can accept no responsibility
for the views herein expressed, whether arising from
omission, or from excessive caution or otherwise.



FORM OF OBJECTION TO PRO-
VISIONAL VALUATIONS.

Finance (1909-10) Act 1910.



REFERENCE as in the
Provisional Valuations



DUTIES ON LAND VALUES.



NOTICE OF OBJECTION TO PROVISIONAL
VALUATION.



Description of Property.






. of

itament.


Situation.


County.


Parish No
hered


Name of Occupier.




Extent.


Acres.


Roods. Perches.


Yards.



To the COMMISSIONERS OF INLAND REVENUE.

I (or we) hereby give you notice that I (or we) object to the Total Value
and Site Value stated in the Provisional Valuation of the above hereditament

dated the 19 on the ground that such values

do not represent the true values as provided by the Act to be ascertained as
on the 30th April, 1909.

I (or wc) also give you notice that the amendment I (or we) desire are as
follows : —



1.

2.
3.


That the Total Value of £ be altered to


£


£


WITH REGARD TO DEDUCTIONS FROM
GROSS VALUE TO ARRIVE AT FULL
SITE VALUE.

That the " Difference between Gross Value and
Value of the Fee Simple of the Land divested
of Buildings, Trees, etc." be altered to


£





LAND UNION HANDBOOK



175



4.


WITH REGARD TO DEDUCTIONS FROM
GROSS VALUE TO ARRIVE AT TOTAL
VALUE.

That the item in respect of : —

(a) Fee Farm Rent, Rent Seek, Quit Rent,

Chief Rent or Rent of Assize be altered

to or fixed at

(6) Other perpetual rent or annuity „

(c) Tithe or Tithe Rent Charge . . „

(rf) Burden or Charge arising by
operation of law or imposed
by Act of Parliament . . ,,

(e) Cost of Enfranchisement (if

Copyhold) . . . . . . „

(/) Public Rights of Way or User ,,

(g) Rights of Common . . . . „

(h) Easements . . . . . , „

(i) Restrictions under Covenant or

Agreement . . . . . . „


£


£


£


£


£


£


£


£


£






(a.) Total deductions from Gross Value to arrive
at Total Value


£




5.


WITH REGARD TO DEDUCTIONS FROM
TOTAL VALUE TO ARRIVE AT
ASSESSABLE SITE VALUE.

That :—

(j) The difference between the
Gross Value and the Value of
the Fee Simple of the Land
divested of buildings, trees,
etc. (Note, this is the same as
No. 3) . , . . be put at

That the part of the Total Value
due to : —

(k) Works Executed or Capital

Expenditure . . . . . . „

(I) Appropriation of Land for

Streets, Roads, Open Spaces „

(m) Redemption of Land Tax or

Fixed Charge . . . . . . „

(n) Enfranchisement of Copyhold „

(o) Release of Restrictive Cove-
nants . . . . . . . . „

(p) Goodwill or Personal Elements .,

That (q) The cost of clearing the Site „


£


£


£


£


£


£


£


£







(b.) Total deductions from Total Value to

arrive at Site Value . . . . . . £







176 LAND UNION HANDBOOK

I (or we) further give you notice that with respect to any amendment
desired to items 5 (k) to 5 (p) inclusive I am (or we are) prepared upon demand
to furnish you with such further evidence in support of my (or our) claim that
the parts of the Total Value mentioned in the third column of the above table
are respectively attributable to the grounds and causes set against the same
in the second column of the said table as may be necessary.



Signed .



Address .



Dated day of 19.



If the Notice of Objection is signed by an Agent, the name of the Principal
should be stated.



The Land Union's copyright Forms of Objection to Provisional
Valuations (one penny each, or ninepence per dozen) may be obtained
at the offices of

THE LAND UNION,

St. Stephen's House,

Westminster.



LAND UNION HANDBOOK 177



NOTE ON SEPARATE VALUATION OF
PARTS OF LAND IN ONE OCCUPA-
TION AND COMBINED VALUATION
OF CONTIGUOUS LANDS IN
SEPARATE OCCUPATIONS— WITH
FORMS.



There are two other points riot arising on a Provisional
Valuation on which a few remarks may be of use, viz. : —

(1) The right which an " owner " has under Subsection 1

of Section 26 of the Finance (1909-10) Act, 1910,
to require any part of any land under one occupation
to be separately valued.

(2) The power of the Commissioners under Section

5 of the Revenue Act, 1911, on the request of the
owner to value together any pieces of contiguous
land (not exceeding in the aggregate one hundred
acres) although such pieces of land may be under
separate occupation.

As regards the first point, the Commissioners have
expressed their opinion that the request of the owner
should be sent in before the service of the Provisional
Valuation and until this attitude of the Commissioners
is altered or their contention has been held by the Courts
to be invalid, it would be prudent to send in any claim
before the receipt of the Provisional Valuation.

As regards the second point, experience of the attitude
of the Commissioners towards owners leads us to recom-
mend owners to apply to the Commissiouers under Section 5
of the Revenue Act, 1911, at once, that is, before the receipt
of the Provisional Valuation, if it is possible.

We append forms of the request or application under
these three headings which may be of service.

M



178



LAND UNION HANDBOOK



FORM OF NOTICE TO THE COMMISSIONERS

THAT THE OWNER REQUIRES PARTS OF

HEREDITAMENTS IN ONE OCCUPATION TO BE

SEPARATELY VALUED.



Finance (1909-10) Act 1910.



DUTIES ON LAND VALUES.



To the COMMISSIONERS OF INLAND REVENUE.



REFERENCE as in
Form 4.



Description of Property.




Situation.


County. Parish. No. of

hereditament.


Name of Occupier.




Extent.


Acres. | Roods.


Perches.


Yards.



I (or we) hereby give you notice that pursuant to Section 26, Subsection 1,
I (or we) desire that for the purpose of valuation under the above Act, the above
hereditaments be divided into parts and separately valued as follows : —

(Here follows a plan or tracing and schedule or other particulars necessary
for showing the parts which it is desired should be separately valued.)



Signed

Address

Date 19.



LAND UNION HANDBOOK 179

FORM OF APPLICATION TO THE COM-
MISSIONERS OF INLAND REVENUE TO VALUE
LANDS IN DIFFERENT OCCUPATION TOGETHER.



Finance (1909-10) Act 1910

AND

The Revenue Act 1911.



DUTIES ON LAND VALUES.



To the COMMISSIONERS OF INLAND REVENUE.



REFERENCE as in
Form 4.



Description of Property.



Situation. County. Parish. No. of

hereditament.



Name of Occupier.

Extent. Acres. Rood;?. Perches. I Yards.



REFERENCE as in
Form 4.



. Description of Property.




Situation


County. Parish. No. of

hereditament.


Name of Occupier.




Extent.


Acres. Roods. Perches. | Yards.



Gentlemen,

Pursuant to Section 5 of the Revenue Act 1911, I (or we) hereby apply
to you to allow the contiguous pieces of land (parts of ) the above here-

ditament (hereinafter indicated) to be valued together.

(Here follows a plan or tracing and schedule or other particulars necessary
for showing the parts which it is desired should be valued together.)
I am (or we are) your obedient servant(s),

Signed

Address



Dated 19.



INDEX.

Agents— page

Duties of 60-64

AGRICULTURAL HOLDINGS—

Exemption from Increment Value Duty .. .. 11

AGRICULTURAL LAND—

Exemption from Increment Value Duty . . . . 9, 10

Exemption from Undeveloped Land Duty . . . . 18. 21

Improvements . . . . . . . . • • • • 151

Value of 66-69

AGRICULTURAL VALUE—

For Agricultural Purposes .. .. .. .. .. 41,42

Of Undeveloped Land . . . . . . . . . . 152

APPORTIONMENT 12, 14, 86, 108

APPEALS 6, 7

ASSESSABLE SITE VALUE—

Definition of 38-40

Valuations for . . . . . . . . . . . . 1

Various Site Values . . . . . . . . . . . . 2



Betterment 12

BODIES—

Corporate and Unincorporate . . . . . . x., 9, 53

BUILDINGS—

Deemed to be divested . . . . . . . . . - 152

Value attributable to . . . . . . . . . . 151

BUILDING VALUE—

Existing or Future 49, 50, 68-76

BUILDING SOCIETIES 57



CAPITAL VALUE (on Minerals) 31, 32

CASES—

See Referee's Decisions.

CHARITABLE BODIES 53

COMPANIES (Statutory) 57

CORPORATIONS—

See Bodies Corporate and Unincorporate.

COPYHOLDS 51, 52

CROWN LANDS 58, 59

CUSTOMARY FREEHOLDS 51



182



INDEX,



Deductions—

For Site Value

gg^TFor Value of Tithe

For Value of Turf

DETERMINATIONS OF TENANCIES-
Of Undeveloped Land

DEVELOPMENT—

Deductions for Value of Scheme of

DRAINS—

Improved Value for



PAGE

48, 49
151
152



153
154
151



.XEMPTIONS—
From Increment Value Duty
From Mineral Rights Duty
From Reversion Duty
From Undeveloped Land Duty
Personal (Charities, Rating Authorities, etc.)



9-11

30

25-27

18-21

53-59



Fee simple in possession

FENCES—

Improved Value for

FINANCE (1909-10) ACT, 1910

FIXED CHARGE

Ignored in Gross and Full Site Values . .

FLATS—

Exemption from Increment Value Duty

FORMS—

Issued by Commissioners
Of Objection prescribed by Land Union
Requiring Land to be separately Valued
Recpuiring Lands to be Valued together

FRIENDLY SOCIETIES

FULL SITE VALUE—
Definition of . .



35

151
81-121

x.

. 35-37

11

138-143

174-176

178

. . 179

57
36



G AMES—

Exemption of Land used for, from Increment Value Duty 1 1

Ditto from Undeveloped Land Duty . . . . . . 19

GARDENS—

Attached to a House . . . . . . . . . . 20

Exemption from Undeveloped Land Duty . . . . 21

GLEBE LANDS 54



GROSS VALUE-
Definition of



35



INDEX.



183



Increment value duty-

Assessment and Apportionment of

Assessment on Occasion

A Stamp Duty

Exemptions from

Ditto on Grant of Mining Lease

Occasions for

On Minerals

Who Liable for







PAGE


f






159-168






14






.. 9-11






30






8






. 32, 33, 155






12



Land—

Definition of . .

LAST WORKING YEAR

LEASEHOLDS—

Liable for Increment Value Duty

LEASES—

Exemption of Certain Leases from Reversion Duty
Surrender of . .

LESSORS—

Obligation of to make Returns



2
29

11

25
23

24



Mansion—

Pasture let with
MEADOW ..



MERGER—
Of Lease
See also Surrender

MINERALS—

As regards Undeveloped Land

Duty charged on Sale, Leasing, &c.

Exemptions

To be treated as of no Value

Valued separately

Increment Value Duty on . .

MINERAL RIGHTS DUTY—
Arrears of Rents
Assessment of
Duty of Proprietor
Exemptions from
In respect of Wayleaves
Right of Sub-Lessees
Surface Rights
When Payable

MINERAL WAYLEAVES

MINING LEASES—
Definition of . .
Exemption from Reversion Duty

MORTGAGEES—
Duties : of



MORTGAGES—

Exemption of Leasehold



153
153



23
25-27

21
33
33
32
32
32

154
28
29
30

154
29

154
29

29



31
26



60-64



26



184



INDEX.



Objections—

Form of

Land Union's View of Presenting
See also Provisional Valuation.

OCCASION—
Periodical
Value on for Increment Duty

ONE OCCUPATION—

Form requiring Land to be separately Valued

OWNER—

Exemption from Increment Value Duty . .
" Limited " . .



PAGE

174-176
. . 169



46
.. 42,43

178

10
31, 60-64



Parks—

See Gardens.

PASTURE—

Let with Mansion
Periodical Occasion

PERSONAL EXEMPTIONS—

See Exemptions.

PERSONAL REPRESENTATIVES-
Duties of

PROVISIONAL VALUATION—
Amended
Objections to
Form of Objection to
Typical Examples of . .
Form of



.. 153
9, 53, 57



. 60-64



4-7, 169
.. 174
. . 73, 74
.. 143



[UINQUENNIAL VALUATIONS-

For Undeveloped Land Duty



16



R



ATING AUTHORITIES . .

RAILWAY COMPANIES—

See Companies.

RECREATION—
See Games.

REFEREE'S DECISIONS—

Burghes v. The Attorney General

Deptford Case

Earl Fitzwilliam's Case

Newcastle Case

Palmer's Green Case

Plymouth Case

Richmond Case

Substituted Sit« Value



53



158
157
157
156
157
156
156
15S



INDEX.



185



RE-GRANT OF LEASE—

Provisions under Revenue Act, 1911

REVENUE ACT, 1911

REVERSION DUTY—
Assessment of
Exemptions from

Ditto on Termination of Mining Lease
When and by whom Payable

ROADS—

Exemption for Expenditure on
Land Appropriated for

RULES (REFERENCE) OF 1910



PAGE
26

122-130



23

. 25-27

30

24

19, 151
151

. 131



OEPARATE OCCUPATION—

Form requiring Combined Valuation
Valuation of Land in

SET OFF—

For Increment Value Duty
For Mineral Rights Duty
For Reversion Duty



179
2



17
34
12



SEWERS—




See Roads.




SITE VALUE—




Deductions


48, 49


On Death


45


On Grant of Lease


46


On Periodical Occasions


. . 46, 159-168


On Sale


44-46


SOLICITORS—

Responsibilities of


60-64


SPORTING RIGHTS


10, 42



STAMP DUTY—

Increment Value Duty is .

STATUTORY COMPANIES.
See Companies.

SUBSTITUTED SITE VALUE-
Notes on

Purchase of Ground Rents
Settled Property

SURFACE RENTS



14



41, 147-149, 155

158

. . 155

30



Tenements—

See Flats.

TITHE—

See Fixed Charge.
Deduction for Value of

TOTAL VALUE—
Definition of . .
Of Minerals



39, 151



. 37, 3S
.31, 32



186



INDEX.



TRUSTEES—

Position and Responsibilities of .

TURF—

Deduction for Value of



PAGE

60-64



152



U:



INDERLEASES—

Exemption from Reversion Duty . . . . . . 25

Grant of, may be an Occasion for Increment Value Duty 8

UNDEVELOPED LAND—

Agricultural Value of .. .. .. .. .. 152

Definition of . . . . . . . . . . . . . . 16

Determination of Tenancies . . . . . . . . 153

UNDEVELOPED LAND DUTY—

Amount of . . . . . . . . . . . . 16

Basis of Assessment . . . . . . . . . . 1

Exemptions from . . . . . . . . . . . . 18-21

Exoneration from . . . . . . . . . . . . 17

When Payable .. .. .. .. .. .. 16

Who Liable for . . . . . . . . . . . . 16



V ALUES—

As at Date fixed by Act
Calculation of
Checking of . .
Definition of . .
For Agricultural Purposes



36

3

65-76

35-40

41



Water companies—

See Companies.

WORKING YEAR—
Definition of . .



29



THE LAND UNION.

A National Organisation for the Protection of all Interests in

Land, Buildings and House Property.

President - - E. G. PRETYMAN, M.P.



OBJECTS AND POLICY.

The Land Union is a National Organisation for the protection of
all interests in Land, Buildings and House Property, and has estab-
lished itself as a powerful lighting body, with definite aims and policy.

The POLICY of the Land Union is as follows :—

i. To carry on a determined and unceasing agitation


1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 18

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 18 of 19)