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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 9 of 19)
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section that the site value of any land at the time of any
transfer on sale of the fee simple of the land or of any interest
in the land, which took place at any time within twenty
years before the thirtieth da}' of April, nineteen hundred and
nine, exceeded the original site value of the land as ascer-
tained under this Act, the site value at that time shall
be substituted, for the purposes of increment value duty,
for the original site value as so ascertained, and the pro-
visions of this Part of this Act shall apply accordingly.

Site value shall be estimated for the purposes of this
provision by reference to the consideration given on the
transfer in the same manner as it is estimated by reference to
the consideration given on a transfer where increment value
duty is to be collected on the occasion of such a transfer
after the passing of this Act.

This provision shall apply to a mortgage of the fee simple
of the land or any interest in land in the same manner as it
applies to a transfer with the substitution of the amount
secured by the mortgage for the consideration.

An application for the purpose of this section must be
made within three months after the original site value of
the land has been finally settled under this Part of this Act.

3. (1) On each occasion on which increment value duty
is collected on the increment value of any land, such an
amount of duty shall be deemed to be unsatisfied as the
Commissioners determine after giving credit for the amounts
of duty paid on previous occasions. The Commissioners
shall make such apportionments and re-apportionments
of any duty paid on previous occasions as they think
necessary for the purpose of giving effect to this provision.

(2) Where increment value duty is collected on the occa-
sion of the transfer or passing on death of the fee simple
of anv land, or on any periodical occasion in the case of
land held in fee simple by a body corporate or unincorporate,
the whole amount of the duty which is determined to be
unsatisfied shall be collected by the Commissioners in
accordance with rules made by them for the purpose.

(3) Where increment value duty is collected on the
occasion of the grant of a lease, or on the transfer or passing
on death of any interest in land, or on any periodical
occasion in the case of an interest in land held by a body
corporate or unincorporate, such proportionate part of the
duty shall be collected as may be determined by the Com-
missioners to be payable in respect of the interest in land
created, transferred, passing on death, or held, in accordance
with rules made by them for the purpose.



LAND UNION HANDBOOK



87



(4) Where on the occasion of the death of any person the
property passing on the death comprises settled land in
which the deceased or any other person had an interest
ceasing on the death of the deceased, then—

(a) if the subject of the settlement at the time of the death

is the fee simple of the land, increment value duty
shall be collected as if the fee simple of the land
passed ; and

(b) if the subject of the settlement at the time of the

death is any other interest in the land, increment-
value duty shall be collected as if that interest-
passed ;
but that duty shall not be collected on any such occasion if,
under the provisions of section five of the Finance Act, 1894,
as amended by any subsequent enactment, estate duty is not
payable in respect of the settled land.

(5) For the purpose of the collection of duty on the incre-
ment value of any land under this section, the increment
value shall be deemed to be reduced on the first occasion
for the collection of increment value duty by an amount
equal to ten per cent, of the original site value of the land,
and on any subsequent occasion by an amount equal to ten
per cent, of the site value on the last preceding occasion
for the collection of increment value duty, and the amount
of duty to be collected shall be remitted in whole or in part
accordingly.

Any duty which by reason of this provision is remitted on
any occasion shall not be collected and shall be deemed
to have been paid :

Provided that no remission shall be given under this
provision on any occasion which will make the amount of the
increment value on which duty has been remitted during the
preceding period of five years exceed twenty-five per cent, of
the site value of the land on the last occasion for the collec-
tion of increment value duty prior to the commencement
of that period or of the original site value if there has then
been no such occasion.

(6) Increment value duty shall be a stamp duty collected
and recovered in accordance with the provisions of this Act.

4. (1) On any transfer on sale of the fee simple of any Collection
land or of any interest in land, or on the grant of any an ^ T ^ co _ v
lease of any land for a term exceeding fourteen years, caseg ' {
increment value duty shall be assessed by the Commissioners transfers and
and paid by the transferor or lessor, as the case may be.

(2) It shall be the duty of the transferor or lessor, on the
occasion of any transfer on sale of the fee simple of any land
or of any interest in land or on the grant of any lease of any
land for a term exceeding fourteen years, to present to the
Commissioners, in accordance with regulations made by
them, the instrument bv means of which the transfer or the



39.



88 LAND UNION HANDBOOK

lease is effected or agreed to be effected or reasonable
particulars thereof for the purpose of the assessment of duty
thereon, and, if the transferor or lessor fails to comply with
this provision, he shall be liable on summary conviction to
a fine not exceeding ten pounds, and to pay interest at the
rate of five per cent, per annum on any duty ultimately
payable by him as from the date on which the instrument
has been executed, but any person aggrieved by any con-
viction or order of a court of summary jurisdiction under
this provision may appeal therefrom to a court of quarter
sessions.
54 ™ 55 ^ ict ' (**) ^ n y sucn instrument shall not, for the purposes of
section fourteen of the Stamp Act, 1891, and notwithstand-
ing anything in section twelve of that Act, be deemed to be
duly stamped unless it is stamped —

(a) either with a stamp denoting that the increment value
duty has been assessed by the Commissioners and
paid in accordance with the assessment ; or

(b) with a stamp denoting that all particulars have been
delivered to the Commissioners, which, in their
opinion, are necessary for the purpose of enabling
them to assess the duty, and that security has been
given for the payment of duty in any case where the
Commissioners have required security ; or

(c) with a stamp denoting that upon the occasion in
question no increment value duty was payable ;

but where an instrument is so stamped, it shall, notwith-
standing any objection relating to the increment value duty,
be deemed to be duly stamped so far as respects that duty.

(4) Any duty assessed by the Commissioners under this
section shall be a debt due to the Crown from the transferor
or lessor, as the case may be, and for the purpose of calcu-
lating the amount of increment value duty to be collected
on any subsequent occasion shall be deemed to have been
paid.

(5) Regulations may be made by the Commissioners with
respect to the mode in which any instrument is to be
presented to them in order to be dealt with under this section
and for dispensing with the presentation of any instrument
or particulars thereof, in cases where arrangements are
made for obtaining those particulars through any registry
of lands, deeds, or title, or through a Register of Sasines, and
with respect to the mode in which any application for a
return of duty under this section is to be made, and for the
payment of any increment value duty by instalments in
the case of any lease or transfer on sale where the considera-
tion is in the form of a periodical payment ; and the Com-
missioners shall deal with any instruments presented to them
and allow payment by instalments in accordance with those
regulations. The regulations shall provide that where the



LAND UNION HANDBOOK



89



duty to be collected on the grant of a lease is payable by
instalments, and the lease is determined before all such
instalments have fallen due, the instalments which have
not fallen due shall be remitted, and that in that case the
amount of duty which, under this section, is deemed to
have been paid shall be reduced by the amount of the instal-
ments so remitted.

(6) In any case where increment value duty shall have
been paid under the provisions of this section, but the
transaction in respect of which the duty shall have been
paid was subsequently not carried into execution, the duty
shall be returned to the transferor or lessor on his making
application to the Commissioners within two years after
the payment of the duty in accordance with regulations to
be made by them under this section, and in that case the
duty returned shall not be deemed to have been paid for the
purposes of this section.

(7) Where any agreement for a transfer or agreement for
a lease is stamped in accordance with this section, it shall
not be necessary to stamp any conveyance, assignment,
or lease made subsequently to and in conformity with the
agreement, but the Commissioners shall, if an application
is made to them for the purpose, denote on the conveyance,
assignment or lease the amount of duty paid.

5. The provisions as to the assessment, collection, and
recovery of estate duty under the Finance Act, 1894, shall
apply as if increment value duty to be collected on the
occasion of the death of any person were estate duty ; but,
where any interest in land in respect of which increment
value duty is payable is property passing to the personal
representative as such, the duty shall be payable out of
that interest in land in exoneration of the rest of the de-
ceased's estate, and shall be collected upon an account to be
delivered by the personal representative, setting forth the
particulars of the increment value in respect of the property :

Provided that in respect of all property of the deceased,
other than that assessed to increment value duty, the Crown
shall, as a creditor in respect of such increment value duty,
rank pari passu with the other creditors of the deceased.

6. (1) Where the fee simple of any land or any interest in
land is held by any body corporate or by any body unincor-
porate, as defined by section twelve of the Customs and
Inland Kevenue Act, 1885, in such a manner or on such
permanent trusts that the land or interest is not liable to
death duties, the occasions on which increment value duty
is to be collected shall be the fifth day of April in the year
nineteen hundred and fourteen and in every subsequent
fifteenth year.



Collection
and recovery
of duty in
case of death.
57 & 58 Vict,
c. 30.



Collection
and recovery
of duty in
case of pro-
perty held
by bodies
corporate or
unincor-
porate.
48 & 49 Vict,
c. 51.



90



LAND UNION HANDBOOK



Exemption

for agricul-
tural land.



Exemption
of small
houses antl
properties
in owner's
occupation.



(2) The account to be delivered under section fifteen of
the Customs and Inland Revenue Act, 1885, shall, in the case
of the account to be delivered in the year nineteen hundred
and fourteen and in every subsequent fifteenth year, contain
an account of the increment value of the land, as on the
preceding fifth day of April, and that section shall, save as
in this Act is hereafter provided, apply for the purpose of
increment value duty, whether the body corporate or
unincorporate are chargeable with duty under Part II. of the
Customs and Inland Revenue Act, 1885, or not.

(3) The provisions of sections thirteen to eighteen, of
sub-section (1) of section nineteen, and of section twenty of
the Customs and Inland Revenue Act, 1885 (with the
exception of any provisions relating to appeals), shall have
effect for the purpose of the assessment and recovery of
increment value duty as they have effect for the purpose
of the duty charged under section eleven of that Act :

Provided that increment value duty may, if the body
corporate or unincorporate chargeable therewith so desire,
be paid by fifteen equal yearly instalments, and the first
instalment shall be due immediately after the assessment
of the duty.

Any part of any duty so payable by instalments may
be paid up at any time.

(4) Any increment value duty assessed by the Com-
missioners on an account delivered in accordance with this
section shall, for the purpose of determining the amount of
increment value duty to be collected on any subsequent
occasion, be deemed to have been paid.

(5) Nothing in this section shall affect the collection of
increment value duty on the occasion of the grant of any lease
or the transfer on sale of the fee simple of any land or any
interest in land by a body corporate or unincorporate, or
oblige an account to be delivered of the increment value
of any land on any periodical occasion, if, under the sub-
sequent provisions of this Part of this Act, increment value
duty in respect thereof is not to be collected on that occasion.

7. Increment value duty shall not be charged in respect
of agricultural land while that land has no higher value than
its market value at the time for agricultural purposes only :

Provided that any value of the land for sporting purposes,
or for other purposes dependent upon its use as agricultural
land, shall be treated as value for agricultural purposes only,
except where the value for any such purpose exceeds the
agricultural value of the land.

8. (1) Increment value duty shall not be charged on the
increment value of any land, being the site of a dwelling
house, where immediately before the occasion on which the
duty is to be collected the house was, and had been for
twelve months previously, used by the owner thereof as his



LAND UNION HANDBOOK 91

residence, and the annual value of the house as adopted
for the purpose of income tax under Schedule A., does not
exceed —

(a) in the case of a house situated in the administrative

county of London, forty pounds ; and

(b) in the case of a house situated in a borough or urban

district with a population according to the last-
published Census for the time being of fifty thousand
or upwards, twenty-six pounds ; and

(c) in the case of a house situated elsewhere, sixteen

pounds.

(2) Increment value duty shall not be charged on the
increment value of any agricultural land where, immediately
before the occasion on which the duty is to be collected, the
land was, and had been for twelve months previously,
occupied and cultivated by the owner thereof, and the total
amount of that land, together with any other land belonging
to the same owner, does not exceed fifty acres, and the
average total value of the land does not exceed seventy-five
pounds per acre :

Provided that the exemption under this provision shall not
apply to any land occupied together with a dwelling-house
the annual value of which, as adopted for income tax under
Schedule A., exceeds thirty pounds.

(3) Where a dwelling-house is valued for the purposes of
income tax under Schedule A. together with other land, and
it is necessary for the purpose of this section to determine the
annual value of the dwelling-house, the total annual value
shall be divided between the dwelling-house and the other
land in such manner as the Commissioners may determine.

(4) For the purposes of this section —

(a) The expression " owner " includes a person wbo

holds land under a lease which was originally
granted for a term of fifty years or more : but in
such a case nothing in this section shall prevent the
collection of increment value duty so far as it is
payable in respect of any other interest in the
land other than that leasehold interest ; and

(b) the site of a dwelling-house shall include any offices,

courts, and yards, and gardens not exceeding
one acre in extent, occupied together with the
dwelling-house.

(5) Any increment value duty which would, but for this

section, be charged shall, for the purpose of the provisions Special pro-
of this Act, as to the collection of the duty, be deemed to viaion for
i i -j J increment

have been paid. value dutv

9. Increment value duty shall not be collected on any in fcne case
periodical occasion in respect of the fee simple of, or any ° f land use(

*• * tor Ciirnos

interest in, any land which is held by any body corporate or an d recrea-
unincorporate, without any view to the payment of any tion.



92



LAND UNION HANDBOOK



Provision as
to Crown
lands. &c.



10 Geo. 4.
c. 50.
8 Edw. 7.
c. 48.



Special pro-
vision as to
flats.



Provision as
to claims for
deductions.



dividend or profit out of the revenue thereof, bona fide
for the purpose of games or other recreation, if the Com-
missioners 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
under other circumstances which render it probable that
the land will continue to be so used, without prejudice,
however, to the collection of the duty on any other occasion.

10. (1) Any increment value duty in respect of the fee
simple of or any interest in, any land held by, or in trust
for, His Majesty or any department of Government, which
would have been collected on any occasion had it been
held by a private person, shall for the purposes of the pro-
visions of this Act as to the collection of increment value
duty be deemed to have been paid.

(2) Neither section seventy-seven of the Crown Lands
Act, 1829, nor section thirty-eight of the Post Office Act,
1908, nor any other enactment exempting from stamp duty
any document made or executed on behalf of, or for the
purpose of, the Crown or any Government department, shall
apply so as to prevent increment value duty being collected
on any instrument by which the transfer on sale of the
fee simple of, or any interest in, any land, or the grant of any
lease of any land, to the Crown or to any Government
department, or to any officer on behalf of, or for the purposes
of, the Crown or any Government department, is effected or
agreed to be effected.

11. Where a building is used for the purpose of separate
tenements, flats, or dwellings, the grant of a lease of any
such separate tenement, flat, or dwelling, and the transfer
on sale or passing on death of any lease of any such separate
tenement, flat, or dwelling, shall not be an occasion on which
increment value duty is to be collected under this Act, nor
shall duty be collected on any periodical occasion from a
body corporate or unincorporate where the interest held
by the body is only a leasehold interest in any such separate
tenement, flat, or dwelling.

12. A person shall not be entitled to claim any deduction
for the purpose of ascertaining the site value of any land
on any occasion on which increment value duty becomes
payable if the deduction is one which could have been, but
was not, claimed for the purpose of ascertaining the original
site value of the land.



Reversion Duty.

Reversion 13. (1) On the determination of any lease of land there

duty. shall be charged, levied, and paid, subject to the provisions

of this Part of this Act, on the value of the benefit accruing to



LAND UNION HANDBOOK



93



the lessor by reason of the determination of the lease a
duty, called reversion duty, at the rate of one pound for
every complete ten pounds of that value.

(2) For the purposes of this section the value of the
benefit accruing to the lessor shall be deemed to be the
amount (if any) by which the total value (as defined for the
purpose of the general provisions of this Part of this Act
relating to valuation) of the land at the time the lease deter-
mines, subject to the deduction of any part of the total
value which is attributable to any works executed or
expenditure of a capital nature incurred by the lessor during
the term of the lease and of all compensation payable by
such lessor at the determination of the lease, exceeds the
total value of the land at the time of the original grant of
the lease, to be ascertained on the basis of the rent reserved
and payments made in consideration of the lease (including,
in cases where a nominal rent only has been reserved, the
value of any covenant or undertaking to erect buildings
or to expend any sums upon the property), but, where the
lessor is himself entitled only to a leasehold interest, the
value of the benefit as so ascertained shall be reduced in
proportion to the amount by which the value of his interest
is less than the value of the fee simple.

14. (1) Where, in the case of a reversion to a lease pur- Exemptions
chased before the thirtieth day of April, nineteen hundred from rever-
and nine, the lease on which the reversion is expectant and aiiow.
determines within forty years of the date of the purchase, ancea.
no reversion duty shall be charged under this Part of this
Act on the determination of the lease : Provided that this
exemption shall not apply where the lease is determined
within forty years by agreement between the lessor and the
lessee, whether express or implied, not contained in the lease
itself, unless the lease would, apart from any such agreement,
have determined within that period.

(2) No reversion duty shall be charged on the determina-
tion of the lease of any land which is at the time of the
determination agricultural land, nor on the determination
of a lease, the original term of which did not exceed twenty-
one years, nor shall reversion duty be charged where the
interest of the lessor expectant on the determination of a
lease is a leasehold interest which does not exceed that
Dumber of years.

(3) *Where a lease of any land is determined before the
expiration of the term of the lease by agreement between the
lessor and the lessee, whether express or implied, and a fresh
lease of the land is then granted to the lessee the term of which
extends at least twenty-one years beyond the date on which the
original lease would have expired, the Commissioners shall

* Repealed and superseded by Section 3 of the Revenue Act.



94 LAND UNION HANDBOOK

make an allowance in respect of the reversion duty payable
of two and a half per cent, of the duty for every year of the
original term of the lease which is unexpired when the lease is
determined, and any sum so allowed shall be treated as having
been paid :

Provided that the allowance shall not exceed fifty per cent,
of the whole duty payable.

(4) Where on any occasion on which increment value duty
is due in respect of any increment value it is proved to the
satisfaction of the Commissioners that reversion duty has
been paid in respect of any benefit accruing to a lessor, or
part of such a benefit, which is identical with the increment
value, such sums as the Commissioners determine to have
been paid in respect of th.e benefit or part of the benefit shall
be treated as being also a payment on account of increment
value duty ; and where on any occasion on which reversion
duty is due in respect of any benefit accruing to a lessor,
it is shown to the satisfaction of the Commissioners that
increment value duty has been paid on any increment value
which is identical with that benefit or any part of that
benefit, such sums as the Commissioners determine to
have been paid in respect of that value shall be treated as
being also a payment on account of the reversion duty in
respect of that benefit or part of a benefit.

(5) Where a reversion has been mortgaged before the
thirtieth day of April, nineteen hundred and nine, and the
mortgagee has foreclosed before the lease on which the
reversion is expectant determines, the mortgagee shall not be
liable to pay reversion duty in excess of the amount by
which the total value of the land at the time of the deter-
mination of the lease exceeds the amount payable under the
mortgage at the date of the foreclosure.

Recovery of 15. (1) Reversion duty shall be recoverable from any lessor

reversion to whom any benefit accrues from the determination of a

dut y- lease as a debt due to His Majesty, but shall rank pari passu

with all other debts due from such lessor.

(2) Every lessor shall, on the determination of a lease
on the determination of which reversion duty is payable
under this section, deliver an account to the Commissioners


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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 9 of 19)