Hide Articles List

11 articles on this Page

".-----[ALL BIGHTS RESERVED.]

A CABINET MINISTER OF HEALTH.

SOME FACTS ABOUT THE RUSSIAN…

GOSSIP ON DRESS.

Mlt. LOWELL ON INTERN ATION…

[No title]

----CHILD MURDER AT TRAME.

THE BOARD OF TRADE RETURNS.

A SAD DOMESTIC STORY.

CORPORATE PROPERTY AND LEGACY…

News
Cite
Share

CORPORATE PROPERTY AND LEGACY DUTIES. An official memorandum has been issued from the Treasury relating to the Customs and Inland Revenue Bill, 188[j-tba£is, the Budget—explanatory of the proposals in the bill affecting the duties (1) on pro- perty of bodies corporate and unincorporate, and (2) on accounts and successions and legacies. The former subject is dealt with in Clauses 19 to 28. By this part of the bill an annual tax of five per cent, is imposed on the profits or income of pro- perty belonging to corporations. This is an entirely new tax, imposed because corporate property at pre- sent escapes probate and legacy or succession duties. The tax applies both to real and personal property, and is to be charged on the profits or income after deducting all necessary outgoings, which are the same as those allowed under the existing law as to succes- sion duty The following classes of property are ex- empt from the tax: Crown property property legally appropriated to any public or semi-public purpose, to religious or charitable purposes or to the promotion of education, literature, science, or art; property belonging to friendly societies or savings banks, or belonging to trading companies if already liable to legacy or successive duties; and property acquired by Corporations within the last thirty years. The new taxi s to be considered a stamp duty, a first charge on the property, and is to be under the control of the Board of Inland Revenue. The Corporation and every accountable officer thereof is to be answerable for the payment. Each Corporation is to send, under penalties, on October 1 of every year, a return to the Board, stating its gross income and the deduc- tions claimed, with other particulars, whereon the- Board may assess the tax, subject to an appeal to the High Court of Justice. If proceedings are taken in any court of law for the administration of property subject to the tax, the Court is to provide for the payment. The new duties on property devolving by death are dealt with in Clauses 29 to 35 of the bill. There are at present four such ta.xes, called respectively probate, account, legacy, and succession duties. Successions to personal property under will, intestacy, or voluntary deeds are liable to two of these taxes, probate or account duty, and legacy or succession duty whereas personal property passing by marriage settlement and successions to real property are liable to succession duty only. The bill will remedy this anomalous state of things by imposing an actual probate or account duty, or an equivalent tax, on all property passing on death by will or by settlement. Probate or account duty will be imposed on property locally situated abroad belonging to a person domiciled in the United Kingdom, and certain estates pur cadre vie: on real estates directed to be sold by will, or held on trust for sale and on all money charged on real estate by will, other than charges by way of annuity. All these are, under the existing law, exempt from probate duty. The 1 per cent. legacy and succession duty on pro- perties where this new probate and account duty is paid will be abolished. Increased succession or legacy duty will be imposed as an equivalent the probate duty on all successions which do uuo pay probate or account duty. The increase will be 2 per cent. to the existing 1 per cent., and 3 per cent. to all the other existing rates. Husbands and wives, who now pay probate and account duty, will be brought into charge for legacy and succession duty at the rate of 3 per cent. in respect of property which does not pay probate or account duty. In the case of personal property settled on a husband or wife for life, with remainder to lineal issue or lineal ancestors, the duty is to be paid at once and for all. In future real pro- perty to be enjoyed by a person absolutely or as tenant in tail will be taxed upon the capital value, and not only on the life interest, but this tax will only have to be paid, as well as the tax on charges on real estate, by way of annuity, in four annual instalments. The bill shortens the period for payment of account duty to three months. Leaseholds which already pay pro- bate duty will not be additionally taxed, and rever- sionary rights already sold will not be charged to the new tax.

[No title]