^^^>^-^ 
 
 . ^ ..7S^ 
 
■■^^'^■' 
 
THE 
 
 NEW LAND TAXES 
 
 AND 
 
 THEIR PRACTICAL APPLICATION 
 
 BEING AK 
 
 EXAMINATION AND EXPLANATION FEOM A LEGAL POINT 
 
 OF YIEW OP 
 
 THE LAND CLAUSES 
 
 OF THE 
 
 FINANCE (1909—10) ACT, 1910 
 [10 Edw. 7, Ch. 8] 
 
 AJND 
 
 THE EEVENUE ACT, 1911 
 
 [1 Geo. 5, c. 2] 
 
 BY 
 
 T. B. NAPIER, LL.D., 
 
 FELLOW OF THE UNIVERSITY OF LONDON, 
 AND 
 OF THE INNER TEMPLE BARRISTER-AT-LAW. 
 
 SECOND EDITION. 
 
 LONDON: 
 
 STEVENS AND SONS, LIMITED, 
 
 119 & 120, CHANCEEY LANE, 
 
 llatn Ipublialreris. 
 
 1912, 
 

PUBLISHEES* NOTICE. 
 
 Unfortunately the Author, on account of a severe 
 attack of illness, has been unable to furnish a Preface 
 to this edition. 
 
 There being so many inquiries for the work, the 
 Publishers have deemed it advisable to publish at once, 
 and they are confident that it will be found to have 
 been brought well up to date. 
 
 March, 1912. 
 
 263164 
 
PREFACE TO FIRST EDITION. 
 
 The Finance (1909 — 10) Act, 1910, opens a new chapter 
 in the fiscal history of the United Kingdom. The task 
 of arriving at the taxable entity, designated the site 
 value, of land, which has been the subject of expenditure 
 for years, and of applying the site value taxes to the 
 intricate arrangements under which that land is held 
 is one necessarily of magnitude and complexity. It is 
 far greater and infinitely more complex than that involved 
 in either of the two processes with which the law is 
 now familiar, namely, that of arriving at annual value 
 for the purpose of local taxation or income tax, or that 
 of arriving at capital value for the purpose of imperial 
 taxation on death. The law relating to it must enter far 
 more largely into the ordinary work of a legal practitioner 
 than that relating to either of the two methods of taxation 
 referred to, because every sale, or lease for over fourteen 
 years of land, as well as every death, may be an occasion 
 on which one of the new duties, the increment value 
 duty, may have to be paid. The levying of that duty 
 involves an application of all the complicated provisions 
 relating to site valuation contained in the new Finance 
 Act. 
 
 The difficulties of successfully framing Acts of Parlia- 
 ment, dealing with the mysteries of Conveyancing Law, 
 are well known. A popular assembly is not the body 
 best adapted for considering one of the most technical 
 subjects in the universe. But when behind the tech- 
 nicalities of a Bill great principles are believed to be 
 at stake which excite the utmost passions of party, those 
 difficulties are multiplied a hundred-fold. In consequence, 
 
ii Preface. 
 
 lucidity is often, as it were, of necessity sacrificed to 
 compression. Legislation by incorporation of prior 
 enactments, not exactly fitting the new arrangements, 
 reigns triumphant. The interpretation of a statute thus 
 compounded is necessarily very difiicult and somewhat 
 uncertain. In his study of the Finance (1909 — 10) Act, 
 1910, the writer has been fully conscious of this fact, 
 but he has felt also that his work would be worthless 
 if he did not boldly, almost to the verge of presumption, 
 grapple with the difficulties of his subject. He has, 
 therefore, not hesitated freely to express his opinion on 
 the main points in the Act, which appear to him to 
 be of doubtful meaning. Many of these opinions are 
 probably mistaken, and for them he apologises ; but at 
 least their statement in these pages will have roused the 
 critical faculties of more competent lawyers, whose views 
 he will be only too grateful to receive. 
 
 Not much help,, it is believed, is to be obtained from 
 the analogy of legal decisions on existing systems of 
 taxation. The present Act has different fiscal aims from 
 the statutes which have previously settled the imperial 
 and local taxation of the country. The Courts will 
 interpret it according to its spirit. For this reason 
 attention is mainly given in the following pages to the 
 principles of the Act, their probable application, and the 
 practical consequences which will result from them ; and 
 not to uncertain analogies between this and former Acts 
 of Parliament. 
 
 The writer's sincere thanks are due to his friend, 
 Mr. H. F. Chettle, of Gray's Inn, for his labour and care 
 in the preparation of the Index and Table of Cases. 
 
 T. B. N. 
 
 7, New Squaee, 
 
 Lincoln's Inn, 
 
 May, 1910. 
 
CONTENTS. 
 
 PAGE 
 
 Pbefaoe i 
 
 Table of Contents iii 
 
 Table of Oases ix 
 
 Practical Notes xxi 
 
 I. Vendors and Purchasers and Increment Value Duty . xxi 
 
 II. Special Points relating to Sale of Minerals . . . xxv 
 
 III. Increment Value Duty on Death xxix 
 
 IV. Eetums for Original Valuation (Form 4) . . , xxix 
 V. The Provisional Valuation . . . . . . xxxui 
 
 VI. Reversion Duty xxxv 
 
 VII. Undeveloped Land Duty xxxvii 
 
 VIII. Appeals to a Referee xxxviii 
 
 Explanatory Summary xlii 
 
 I. The New Taxes xlii 
 
 II. Increment Value Duty . . • . . . . . xliv 
 
 III. Eeversion Duty Ixxxvi 
 
 IV. Undeveloped Land Duty xcv 
 
 V. Mineral Eights Duty cv 
 
 VT. Valuation ......... cxviii 
 
 VII. Appeals cxxiv 
 
 VIII. Miscellaneous Provisions cxxviii 
 
 IX. Construction arid Evasion of Statutes .... cxxxi 
 
 X. Procedure in relation to Duties and Penalties , . cxxxviii 
 
 THE FINANCE (1909—10) ACT, 1910 (10 Edw. 7, c. 8), with 
 which is incorporated ss. 1 to 7 of The Eevenue Act, 1911 
 (1 Geo. 5, c. 2) and The Etjles issued thereunder ... 1 
 
 PAET I. 
 
 Duties on Land Values. 
 Increment Value Duty. 
 
 SECTION* 
 
 1. — Duty on increment value 2 
 
 2. — Definition of increment value . . . . . . .26 
 
 * Section of Finance (1909-10) Act, 1910, unless otherwise stated. 
 
iv Contents. 
 
 SECTION* PAGE 
 
 2 (Revenue Act, 1911). — ^Amendment of s. 2 of the principal Act . 44 
 1 (Revenue Act, 1911). — Avoidance of contracts for payment of Incre- 
 ment Value Duty 46 
 
 3. — General provisions as to collection of increment value duty . 47 
 
 Rules by Commissioners under s. 3 52 
 
 4. — Collection and recovery of duty in cases of transfers and leases . 72 
 
 5. — Collection and recovery of duty in case of death .... 89 
 6. — Collection and recovery of duty in case of property held by 
 
 bodies corporate or unincorporate 121 
 
 7. — Exemption for agricultural land 130 
 
 8. — Exemption of small houses and properties in owner's occupation 137 
 9. — Special provision for increment value duty in the case of land 
 
 used for games and recreation 141 
 
 10. — Provision as to Crown lands, etc 144 
 
 11. — Special provision as to flats 147 
 
 12. — Provisions as to claims for deductions 148 
 
 Reversion Duty. 
 
 13. — ^Reversion duty 161 
 
 14. — 'Exemptions from reversion duty, and allowances .... 164 
 
 3 (2), (5), (4), (3) (Revenue Act, 1911). — Explanation and amendment 
 
 of law as to reversion duty 168 
 
 15. — Recovery of reversion duty 174 
 
 3 (1) (Revenue Act, 1911). — Explanation and amendment of law as to 
 
 reversion duty 174 
 
 Undeveloped Land Duty. 
 16. — ^Duty on site value of undeveloped land 
 4 (Revenue Act, 1911).— Amendment of s. 16 (2) (b) . 
 17. — ^Exemptions from undeveloped land duty, and allowances 
 18. — Exemption of small holdings from undeveloped land duty 
 1 9. — Recovery of imdeveloped land duty .... 
 
 180 
 182 
 194 
 203 
 203 
 
 Mineral BigJits Duty and Provisions as to Minerals. 
 
 20.— Mineral rights duty 209 
 
 21. — Deduction of duty in case of intermediate leases of minerals . 227 
 22. — Special provisions as to increment value duty and reversion duty 
 
 in the case of minerals worked or leased 230 
 
 23. — Application of provisions as to total and site value to minerals . 245 
 24. — Definitions for purpose of mineral provisions 
 
 265 
 
 Valuation for Purposes of Duties on Land Values. 
 
 25. — ^Definition of values of land 272 
 
 26. — Valuation of land for purposes of Act 309 
 
 * Section of Finance (1909-10) Act, 1910, unless otherwise stated. 
 
Contents. v 
 
 aEOTION* PAOK 
 
 6 (Eevenue Act, 1911).— Amendment of s. 26(1) . . . . 315 
 27. — Ascertainment of the original site value of land .... 320 
 
 28. — Periodical valuation of undeveloped land 333 
 
 29. — Assessment of duty on separate parcels of land and apportionment 
 
 of valuation 335 
 
 30. — Duties of Commissioners as to keeping records and giving 
 
 information .......... 344 
 
 31. — Information as to names of owners of land 346 
 
 32. — Determination of value of consideration 350 
 
 Appeals. 
 
 33. — Appeals to referees 358 
 
 7 (Eevenue Act, 1911). — Eight of Commissioners to appeal . . 368 
 34. — Appointment of referees to hear appeals 371 
 
 Eules relating to appeals to referee and notes thereon . . .371 
 Eules relating to appeals from referee to High Court and notes 
 
 thereon . 382 
 
 Supplemental. 
 35. — Exemption for land held by rating authorities 
 36. — Deduction from increment value of sum paid to rating authority 
 
 in respect of increase in value 
 
 37. — Special provision for land held for charitable purposes, etc. . 
 38. — Special provision for statutory companies .... 
 6 (Eevenue Act, 1911). — Increment value duty and certain statutory 
 
 companies . 
 
 39. — Power to charge duty on land in certain cases 
 
 40. — Application of Part I. to copyholds 
 
 41. — Definitions 
 
 42. — ^Application of Part I. to Scotland 
 
 386 
 
 389 
 391 
 405 
 
 411 
 412 
 428 
 434 
 471 
 
 PAET III. 
 
 Death Duties. 
 
 55.— Eelief from estate duty in respect of settled property . . . 474 
 
 56.- — Power to transfer land to satisfy duties 474 
 
 59. — Provision as to gifts and dispositions inter vivos .... 475 
 
 60. — ^Amendment as to value of property ...... 478 
 
 61. — Special provisions with respect to certain classes of property . 480 
 62. — Deduction of amount paid for increment value duty from value 
 
 of estate for purposes of estate duty 480 
 
 PAET vn. 
 
 Provisions as to Payments to Local Authorities and to 
 EoAD Improvement Account. 
 91. — Payment of half the proceeds of the duties on land values for 
 
 benefit of local authorities 480 
 
 * Section of Finance (1909-10) Act, 1910, unless otherwise stated. 
 
vi Contents. 
 
 PAET VIII. 
 
 G-ENERAIi. 
 
 SECTION* PAG* 
 
 93. — Laying of rules and regulations before Parliament . . , 481 
 
 94. — Penalty for making false statement or representation . . . 483 
 95. — Provision as to assessments, payments, etc., made on account of 
 
 duty before passing of Act 484 
 
 96. — Eepeal, construction, and short title 485 
 
 SCHEDTTLES 486 
 
 REGUi:iA.TIONS UNDER S. 4 OF THE FINANCE (1909—10) ACT, 1910, 
 
 AND Note thereon 487 
 
 Forms under above Eegulations 495 
 
 APPENDIX OF PEINCIPAL FOEMS, etc., ISSUED UP TO 
 JANUARY, 1912, AND NOTES THEEEON. 
 
 (The Forms are given so far as possible in order of date of publication.) 
 
 Form 4 and Comments, and notes on Dyson v. Attorney-General 
 
 ([1911] 1 K B. 410 ; W. N. p. 232), General Valuation . . 500 
 
 Form 1 and Comments, General Valuation Deductions . . 513 
 
 Form 5 and Comments, Mineral Eights Duty .... 519 
 
 Form of Account in respect to Eeversion Duty and Comment 623 
 
 Form 3 and Comment, Statutory Company 526 
 
 Form 6 and Comment, Unworked Minerals . . . .531 
 Form 8 and note referring to Burghes v. Attorney- General ([1911] 2 
 
 Ch. 139 ; W. N. 231), Notice to Furnish Information . . 536 
 
 Circulars of Commissioners relating to Increment Value Duty 538 
 
 Form 8a, Notice to Furnish Information as to Minerals . 540 
 
 Forms 43, 44, and 45, relating to substituted Site Values . 543 
 
 Forms 35 and 36, relating to Provisional Valuation . . 545 
 Four per Cent. Tables referred to in Eule 1 (4) of the 
 Commissioners' Eules under s. 3 (2), (3) or the Finance 
 
 Act, 1910 548 
 
 APPENDIX OF STATUTES. 
 
 The Finance (1909—10) Act, 1910 (10 Edw. 1, c. 8), so far as 
 material 549 
 
 The Eevenue Act, 1911 (1 Geo. 5, c. 2), so far as material . . 586 
 The Finance Act, 1894 (57£& 58 Vict. c. 30), Death Duties, so far as 
 mAterial 589 
 
 The Finance Act, 1896 (59 & 60 Vict. c. 28), ss. 14, 15, IS, 40, and 
 Schedule, Part III 601 
 
 * Section of Finance (1909-10) Act, 1910. 
 
Contents. vii 
 
 PAGE 
 
 The Finance Act, 1898 (61 & 62 Vict. c. 10), s. 13 . . . .603 
 
 The Finance Act, 1900 (63 Vict. c. 7), ss. 11, 14 . . . . 603 
 
 The Finance Act, 1907 (7 Edw. 7, c. 13), s. 14 604 
 
 The Conveyancing and Law of Peoperty Act, 1881 (44 & 45 
 Vict. c. 41), s. 65 604 
 
 The Conveyancing Act, 1882 (45 & 46 Vict. c. 41), b. 11 . . .605 
 
 The Settled Land Act, 1882 (45 & 46 Vict. c. 38), s. 2 (1)— (7), 
 and s. 6 605 
 
 The Customs and Inland Eeventje Act, 1891 (44 & 45 Vict. 
 c. 12), s. 38 609 
 
 Customs and Inland Eevenue Act, 1885 (48 & 49 Vict. c. 51), 
 ss. 11 — 19 (1) inclusive, and s. 20 610 
 
 Customs and Inland Revenue Act, 1889 (52 & 53 Vict. c. 7), 
 ss. 12, 13, 14 613 
 
 Local Eegistration of Title (Ireland) Act, 1891 (54 & 55 Vict, 
 c. 66), s. 47 616 
 
 The Stamp Duties Management Act, 1891 (54 & 55 Vict. c. 38), 
 8. 1 617 
 
 The Stamp Act, 1891 (54 & 55 Vict. c. 39), ss. 2, 5, 12, 13, 14, 15, 16, 
 54, 55, 56, 57, 62 617 
 
 The Finance Act, 1898 (61 & 62 Vict. c. 10), s. 6 . . . .620 
 
 The Finance Act, 1911 (1 & 2 Geo. 5, c. 48), s. 18 . . . . 621 
 
 EuxES OF 11 April, 1911, Eegulating Appeals to County Court 
 UNDER s. 33 (4) ■ 622 
 
TABLE OF CASES. 
 
 PAGE 
 
 Allen, In re, Hargi-eaves v. Taylor, [1905] 2 Ch. 400 ; Y4 L. J. Ch. 593 ; 
 
 [1905] W. N., p. 127 394 
 
 Amherst v. Somers, 2 T. K. 372 ; 100 E. E 144 
 
 Andrew v. Hancock, 1 Ball & B. 37 ; 3 Moore, 278 ; 13 E. E. . . 228 
 Ashby's Cobham Brewery Co., In re, and In re Ashby's Staines Brewery 
 Co., [1906] 2 K. B. 754; 75 L. J. K B. 983; 95 L. T. 260; 22 
 
 T. L. E. 725 279 
 
 Attorney-General v. Beech, [1898] 2 Q. B. 147 ; 67 L. J. Q. B. 585 ; 78 
 
 L. T. 584 ; 46 W. E. 435 . . , . cxxxiii 
 
 V. Bradlaugh, 14 Q. B. D. 667 ; 54 L. J. Q. B. 205 ; 
 
 52 L. T. 589 ; 33 W. E. 673, C. A. . . .79 
 
 V. Carlton Bank, [1899] 2 Q. B. 158 ; 68 L. J. Q. B. 
 
 788; 81 L. T. 115 cxxxiv 
 
 V. Dodd, [1894] 2 Q. B. 150 ; 63 L. J. Ch. 319, 743 ; 
 
 70 L. T. 660 ; 42 W. E. 524 . . . . 92 
 
 V. Felixstowe Gas Co., [1907] 2 K. B. 984 ; 76 L. J. 
 
 K B. 1107 ; 97 L. T. 340 78 
 
 V. Glossop, [1907] 1 K. B. 163 ; 76 L. J. K. B. 199 ; 
 
 95 L. T. 823 115, 116 
 
 - V. Grey, [1900] A. C. 124 ; 69 L. J. Q. B. 308 ; 82 
 
 L. T. 62 ; 79 L. T. 235 19 
 
 V. Hay, [1899] 2 Q. B. 245 ; 68 L. J. Q. B. 557 ; 80 
 
 L. T. 712 67 
 
 V. Herrick, Amb. 712 ; 27 E. E 394 
 
 V. Holden, [1903] 1 K B. 832 ; 72 L. J. K B. 420 ; 
 
 88 L. T. 729 ; 51 W. *Si. 685 .. . 20, 476 
 
 V. Horner, 11 App. Cas. 66; 55 L. J. Q. B. 193 . 437 
 
 V. Jameson, [1905] 2 I. E. 218 96 
 
 V. Montagu, [1904] A, C. 316 ; 73 L. J. Z. B. 442 ; 
 
 88 L. T. 120, 600 ; 52 W. E. 518 .. . 17 
 
 V. Penrhyn, 83 L. T. 103 116 
 
 V. Eichmond (Duke of), No. 2, [1907] 2 K B. 940; 
 
 77 L. J. K B. 38 ; 23 T. L. E. 739 ; 97 L. T. 
 
 802 cxxxix, 178 
 
 V. Eichmond (Duke of), [1909] A. C. 466; 76 L. J. 
 
 K. B. 998 ; 101 L. T. 241 ; 25 T. L. E. 775 
 
 cxxxvii, 188 
 
 V. Seccombe, [1911] 2 K. B. 688 ; 80 L. J. K B. ; 
 
 105 L. T. 18 19, 116 
 
X Table of Cases. 
 
 PAGE 
 
 Attorney-General v. Strange, [1898] 2 Q. B. 39 ; 61 L. J. Q. B. 629 ; 
 
 78L. T. 516; 46 W. E. 663 . . . .113 
 
 V. TiU, [1910] A. C. 50 ; 79 L. J. K. B. 141 ; 10 L. T. 
 
 819 ; 26 T. L. E. 134, H. L. (E.) . . 78, 178 
 
 V. Tomline, 15 Ch. D. 150 ; 48 L. J. Ch. 593 ; 43 
 
 L. T. 486 212 
 
 — V. Welsh Granite Co., 36 W. E. 617 . . . . 212 
 
 — V. Wood, [1897] 2 Q. B. 102 ; 66 L. J. Q. B. 522 ; 76 
 
 L. T. 654; 45 W. E. 663 67 
 
 Attorney-General for New South Wales v. Palmer, [1907] A. C. 179 ; 
 
 76 L. J. P. 0. 41 ; 96 L. T. 278 ; 23 T. L. E. 304, P. C. . . .84 
 Austen v. Boys, 27 L. J. Ch. 714; 2 De G. & J. 626; 6 W. E. 729; 
 
 4 Jur. 719 ; 44 E. E 300 
 
 Baggs, In re, [1894] 2 Ch. 416 ; 63 L. J. Ch. 612 ; 71 L. T. 138 . . 426 
 Bagot, In re, [1894] 1 Ch. 177 ; 63 L. J. Ch. 515 ; 68 L. T. 520 ; 41 W. E. 
 
 375 424 
 
 Bailey v. Isle of Thanet Light Eailways Co., [1900] 1 Q. B. 722 . . 277 
 
 Barlow v. Smith, Eox, 293 ; 9 T. L. E. 67 138 
 
 Bedford (Duke of), v. Emmett, 3 B. & Aid. 360 ; 106 E. E. . . . 437 
 
 V. St. Paul's, Covent Garden, 51 L. J. M. C. 41 ; 
 
 45L. T. 616; 30 W. E. 411 . . . .437 
 
 V. Trustees of British Museum, 2 M. & K. 552 ; 
 
 39 E. E 291 
 
 Bell V. WHson, L. E. 1 Ch. 30 ; 35 L. J. Ch. 337 ; 14 W. E. 493 ; 14 
 
 L. T. N. S. 115 212 
 
 Bentinck, In re, [1897] 1 Ch. 673 ; 66 L. J. Ch. 359 ; 76 L. T. 284 ; 45 
 
 W. E. 397 . .84 
 
 Berry v. Gaukroger, [1903] 2 Ch. 116; 72 L. J. Ch. 435; 88 L. T. 521 ; 
 
 51 W. E. 449 Ill 
 
 Betts V. Great Eastern Eailway, 49 L. J. Ex. 197 ; 3 Ex. D. 132 ; 28 
 
 W. E. 504 • 406, 407 
 
 Bird V. Baker, 1 El. & El. 12 ; 28 L. J. Q. B. 7 ; 7 W. E. 8 ; 120 E. E. 12, 
 
 445 
 V. Higginson, 2 A. & E. 696; 6 A. & E. 824; 4 N. & M. 505; 
 
 1 H. & W. 61; 111 E. E 438 
 
 Bish, Doe d., v. Keeling, 1 M. & S. 95 ; 105 E. E 187 
 
 Blair v. Duncan, [1902] A. C. 37; 71 L. J. P. 0. 22 ; 86 L. T. 157; 30 
 
 W. E. 369, H. L. (So.) .394 
 
 Bolton Estates Act, 1863, In re, [1904] 2 Ch. 289 ; 73 L. J. Ch. 688 ; 91 
 
 L. T. 259 67 
 
 Boyce v. Paddington Borough Council, [1903] 1 Ch. 109 ; 72 L. J. Ch. 
 
 28; 87L. T. 564; 51 W. E. 109 184 
 
 Bradford-on-Avon Committee and White, In re, [1898] 2 Q. B. 630 ; 67 
 
 L. J. Q. B. 643 ; 78 L. T. 758 ; 46 W. E. 603 .... 280 
 
 BramweU v. Lacy, 10 Ch. D. 691 ; 48 L. J. Ch. 339 ; 40 L. T. 361 ; 27 
 
 W. E. 463 187 
 
 Bridgman v. Daw, 40 W. E. 253 . .354 
 
 Brook V. Badley, 3 Ch. App. 672 448 
 
 Brown v. N. B. Eailway, 8 F. 534 407 
 
 Browne r. Black, [1911] 1 K. B. 975 ; 80 L. J. K B. 758 . . . 350 
 
Table of Cases. xi 
 
 Browne v. Peto, [1900] 2 Q. B. 653 ; 69 L. J. Q. B. 869 ; 83 L. T. 303 ; 
 
 49 W. R. 324 ; 16 T. L. R. 561 443 
 
 BuUivant v. Attorney-General, [1901] A. C. 196 ; 70 L. J. K. B. 645 ; 
 
 84 L. T. 737 ; 50 W. E. 1, H. L. (E.) cxxxv 
 
 Burghes v. Attorney- General, [1911] 2 Ch. 139 ; 80 L. J. Oh. 506; 55 
 
 S. J. 520 ; 27 T. L. R. 433; [1911] W. N. 232, C. A. . xii, cxx, cxlii, 
 
 cxliii, 225, 323, 347, 482, 512, 536, 540 
 Burton v. Bevan, [1908] 2 Ch. 240 ; 77 L. J. Ch. 591 ; 99 L. T. 342 . 178 
 
 Caledonian Rail. Co. v. Glenboig, [1911] A. C. 290; 80 L. J. P. C. 
 
 128 ; 104 L. T. 657 212 
 
 Caledonian Railway v. Symington, [1911] S. C. 552, Ct. of Sess. . . 212 
 Capital and Counties Bank v. Rhodes, [1903] 1 Ch. 631 ; 72 L. J. Ch. 
 
 336 ; 88 L. T. 255 ; 51 W. R. 470, C. A 153 
 
 Cartwright v. Guardians of Sculcoates, [1900] A. C. 15 ; 69 L. J. Q. B. 
 
 403 ; 82 L. T. 157 ; 48 W. R. 394 279 
 
 Cayley, In re, Awdry v. Cayley, [1904] 2 Ch. 781 ; 74 L. J. Ch. 31 ; 91 
 
 L. T. 743 ; 53 W. E. 260 120 
 
 Chanter v. Dickenson, 12 L. J. C. P. 147 ; 5 Man. & G. 253 ; 7 Jur. 89 cxxxiv 
 
 Charlesworth, In re, [1910] W. N. 18 396 
 
 Chesterfield Brewery Co. v. Inland Revenue, [1899] 2 Q. B. 7 ; 79 
 
 L. T. 559 ; 4 W. R. 320 7, 8 
 
 Chissum v. Dewes, 5 Russ. 29 ; 38 E. R. . . . . . .300 
 
 Church V. Inclosure Commissioners, 11 C. B. N. S. 664; 31 L. J. C. P. 
 
 201 ; 8 Jur. 893 215 
 
 Clarendon (Earl of) v. Rector of St. James', 10 C. B. 806 ; 20 L. J. 
 
 M. C. 213 . . 143 
 
 Clerical, Medical, etc. Society v. Carter, 24 Q. B. D. 444 ; 58 L. J. Q. B. 
 
 224 ; 37 W. R. 346 cxxxiv 
 
 Cleveland v. Meyrick, 37 L. J. Ch. 125 ; 16 W. R. 104 ; 17 L. T. N. S. 
 
 238 212 
 
 Clifford V. Holt, [1899] 1 Ch. 698; 68 L. J. Ch. 332 ; 80 L. T. 48 . . 185 
 Clonmel Traders v. Waterford, etc. Rail. Co., 4 Ry. & Can. Gas. 92 . 183 
 
 Cluff V. Cluff, 2 Ch. D. 222 ; 24 W. R. 632 448 
 
 Coats, J. & P., Ltd. V. Inland Revenue, [1897] 2 Q. B. 423 ; 66 L. J. 
 
 a B. 732; 77L. T. 270; 46 W. R. 1, C.A 8 
 
 Colchester v. Kewney Local Board, L. R. 1 Ex. 368 ; 2 Ex. 253 . . 145 
 Colquhoun v. Brooks (1889), 14 App. Cas. 493; 61 L. T. 518 . cxxxii 
 Coltness Iron Co. v. Black (1881), 6 App. Cas. 315 ; 51 L. J. Q. B. 626; 
 
 45 L. T. 145 ; 29 W. R. 717 cxxxii 
 
 Coomber v. Justices of Berks (1883), 9 App. Cas. 61 ; 53 L. J. Q. B. 
 
 239 ; 32 W. R. 525 ; 50 L. T. 405 144 
 
 Cooper V. Metropolitan Board of Works, 25 Ch. D. 472 ; 53 L. J. Ch. 
 
 109 ; 50 L. T. 602 ; 32 W. R. 709 300 
 
 V. Pearse, [1896] 1 Q. B. 562 ; 65 L. J. M. C. 95 ; 74 L. T. 495 ; 
 
 44 W. R. 494 7 
 
 Cotton's Trustees and School Board for London, In re, 19 Ch. D. 624 ; 
 
 61 L. J. Ch. 514 ; 46 L. T. 813 ; 30 W. R. 610 . . . 449 
 
 Oowley V. Inland Revenue, [1899] A. C. 198 ; 68 L. J. Q. B. 435 ; 80 
 
 li, T, 361 ; 47 W. R. 52 16 
 
xii Table of Cases. 
 
 PAGE 
 
 Cowley V. WeUesley, 1 Eq. 656 ; 35 Beav. 635 ; 14 W. E. 528 ; 14 
 
 L. T. 245 ; 55 E. E 215 
 
 Crossley, In re, [1897] 1 Ch, 928; 66 L. J. Ch. 558; 76 L. T. 419; 45 
 
 W. E. 615 448 
 
 Grossman v. The Queen, 18 Q. B. D. 256 ; 56 L. J. Q. B. 241 ; 55 L. T. 
 
 848 ; 35 W. E. 303 19, 99 
 
 Culverliouse, In re, Cook v. Culverhouse, [1896] 2 Ch. 251 ; 65 L. J. 
 
 Ch. 484; 74L. T. 347 92,120 
 
 CundifE v. Fitzsimmons, [1911] 1 K B. 513; 80 L. J. K. B. 422 ; 103 
 
 L. T. 511 455 
 
 Danson, /n re, 11 T. L. E. 455 435 
 
 Darvill v. Eoper, 24 L. J. Ch. 779 ; 3 W. E. 467 ; 25 L. T. 302 . . 215 
 Dashwood v. Magniac, [1891] 3 Ch. 306; 60 L. J. Ch. 809; 65 L. T. 
 
 811 467 
 
 Dean of Windsor's Case, 5 Eep. 25 ; 77 E. E 175 
 
 Deare v. Attorney-General, 1 Y. & C. Ex. 197 ; 2 Dow & CI. 377 ; 
 
 6 E. E . .611 
 
 Delany v. Delany, 15 L. E. Ir. 55 . . 187 
 
 De La Warr's (Earl of) Setded Estates, In re, 27 T. L. E. 534 . . 198 
 De Moleyn's Contract, In re, [1908] 1 Ch. 110; 77 L. J. Ch. 9; 97 
 
 L. T. 630 ; 51 S. J. 824 426 
 
 Dendy v. Evans, [1910] 1 K. B. 263 ; 79 L. J. K. B. 121 ; 102 L. T. 4; 
 
 54 S. J. 151 152 
 
 Dodds V. South Shields Union, [1895] 2 Q. B. 135 ; 64 L. J. Q. B. 508 ; 
 
 72 L. T. 645 ; 43 W. E. 532 279, 280 
 
 Donald, In re, [1909] 2 Ch. 410; 78 L. J. Ch. 761 ; 101 L. T. 377 . 399 
 
 Drax, In re, [1903] 1 Ch. 781; 72 L. J. Ch. 505 415 
 
 Driver v. Broad, [1893] 1 Q. B. 744 ; 63 L. J. Q. B. 12 ; 69 L. T. 1694; 
 
 41 W. E. 483, C. A 448 
 
 Dyson v. Attomey-aeneral, [1911] 1 K B. 410 ; 80 L. J. K. B. 531 ; 
 
 103 L. T. 707 ; 27 T. L. E. 143 ; [1911] W. N. 232, C. A. . xii, cxx, 
 
 cxxxiii, cxlii, 319, 347, 500, 612 
 
 Edwards v. Hall, 25 L. J. Ch. 84 cxxxvii 
 
 Edwards v. Eusholme, L. E. 4 Q. B. 554 ; 38 L. J. M. C. 153 ; 17 
 
 W. E. 821 206 
 
 Elwes v. Payne, 12 Ch. D. 468; 48 L. J. Ch. 831; 41 L. T. 118; 28 
 
 W. E. 234, C. A 437 
 
 Ewart V. Graham, 7 H. L. 331; 29 L. J. Ex. 88; 7 W. E. 621; 11 
 
 E. E 438 
 
 FnfCH V. Prescott, 17 Eq. 554; 43 L. J. Ch. 728; 30 L. T. 156; 22 
 
 W. E. 437 415 
 
 Eishboume v. HamUton, 25 L. E. Ir. 483 216 
 
 Floyd, In re, Floyd v. J. Lyons & Co., [1897] 1 Ch. 633 ; 66 L. J. Ch. 
 
 350; 76 L. T. 251 ; 45 W. E. 435, C. A 84 
 
 Forth Bridge Bail. Co. v. Dunfermline Guildry (1909), S. C. 493 . .213 
 Foster v. Eraser, [1893] 3 Ch. 158; 63 L. J. Ch. 91 ; 69 L. T. 136; 42 
 
 W. E. 11 184 
 
 Foster (John) & Sons, Ltd. v. Inland Eevenue, [1894] 1 Q. B. 516; 63 
 
 L. J. Q. B. 173 ; 69 L. T. 817 ; 42 W. E. 259, C. A. . . . 8 
 
Table of Cases. - xiii 
 
 PAGE 
 
 Foveaux, In re, [1895] 2 Ch. 501 ; 64 L. J. Ch. 856 ; 73 L. T. 202 ; 43 
 
 W. E. 661 396 
 
 Fox V. Bishop of Chester, 2 B. & C. 635 ; 107 E. E. . . . cxxxvii 
 
 Galvin, In re, [1897] 1 Ir. E. 520 84 
 
 Gaskellv. King, 11 East, 165; 103 E. E. 229 
 
 German v. Chapman, 7 Ch. D. 271 ; 47 L. J. Ch. 250; 37 L. T. 685; 26 
 
 W. E. 149, 0. A 291 
 
 Ginesi v. Cooper, 14 Ch. D. 596 ; 49 L. J. Ch. 601 ; 42 L. T. 751 . 278, 281, 
 
 300 
 •Glasgow (Lord Provost) v. Farie, 13 A. 0. 657 ; 58 L. J. P. C. 33 ; 37 
 
 W. E. 627 ; 60 L. T. 274 214,215,216 
 
 Goldsmid v. Great Eastern Eail. Co., 25 Ch. D. 511 ; 53 L. J. Ch. 371 ; 
 
 49 L. T. 717 ; 32 W. E. 341, C. A 437 
 
 Good, In re, [1905] 2 Ch. 60; 74 L. J. Ch. 512 ; 92 L. T. 796 ; 53 
 
 W. E. 476 399 
 
 Gosman, In re, 17 Ch. D. 771; 50 L. J. Ch. 624; 45 L. T. 267; 29 
 
 W. E. 793, C. A 109 
 
 Goiigh and Aspatria Water Board, In re, [1904] 1 K. B. 417 ; 73 L. J. 
 
 K. B. 228 ; 90 L. T. 43; 52 W. E. 652 277 
 
 Grainger v. Gough, [1896] A. C. 325 187 
 
 Great Western Eail. Co. v. Blades, [1901] 2 Ch. 624 ; 70 L. J. Ch. 847 ; 
 
 85 L. T. 308 214 
 
 V. Carpalla, [1910] A. C. 83 ; 79 L. J. Ch. 
 
 117; 101 L. T. 785; 26 T. L. E. 190 . 213, 
 
 215, 216, 263, 264 
 
 V. Inland Eevenue, [1894] 1 Q. B. 507 ; 63 
 
 L. J. Q. B. 405 ; 70 L. T. 86 ; 42 W. E. 
 
 211, C. A 8, 78, 354 
 
 V. May, L. E. 7 H. L. 283 ; 43 L. J. Q. B. 
 
 223 ; 23 W. E. 141 408 
 
 Greville v. Hemingway, 87 L. T. 443 212 
 
 Grimond v. Grimond, [1905] A. 0. 124 ; 74 L. J. P. C. 35 ; 92 L. T. 
 
 477 394 
 
 Hadley, In re, Johnson v. Hadley, [1909] 1 Ch. 20 ; 78 L. J. Ch. 254 ; 
 
 100 L. T. 54 93 
 
 Hanley (Commissioners of) v. Granville (Lord), 10 Bing. 69 . . . 185 
 Harding v. Commissioners, etc., [1898] A. C. 769 ; 67 L. J. P. C. 144; 
 
 79 L. T. 42, P. C 176 
 
 Hare v. Overseers of Putney, 7 Q. B. D. 223 ; 50 L. J. M. C. 81 ; 45 
 
 L. T. 337 ; 29 W. E. 721 207 
 
 Harris v. Amery, L. E. 1 C. P. 148 ; 35 L. J. C. P. 89; 13 L. T. 504 ; 
 
 14 W. E. 199 186, 187 
 
 Harris's Case, 7 Ch. 587 ; 41 L. J. Ch. 621 ; 26 L. T. 781 ; 20 W. E. 
 
 690 349 
 
 Harrison v. Harrison, 28 Ch. D. 220 ; 54 L. J. Ch. 617 ; 52 L. T. 204 ; 
 
 33 W. E. 240 467 
 
 Hartland, In re, Banks v. Hartland, [1911] 1 Ch. 459 ; 80 L. J. Ch. 305 ; 
 
 104 L. T. 490 20 
 
 N. h 
 
xiv Table of Cases. 
 
 PAGK 
 
 Hay's Trustees v. BaiUie, [1908] S. C. 1224, Ct. of Sess. . . .394 
 Haywood v. Brunswick Building Society, 8 Q. B. D. 403 . . . 291 
 
 Heard v. Stuart (1908), 24 T. L. E. 104 184 
 
 Henley, In re, 9 Ch. D. 469 ; 39 L. T. 53 ; 26 W. E. 885, C. A. . . 84 
 Henthorn v. Fraser, [1892] 2 Ch. 27 ; 61 L. J. Ch. 373; 66 L. T. 439 . 349 
 Hext V. Gill, 7 Ch. 699 ; 41 L. J. Ch. 293, 761 ; 20 W. E. 520, 
 
 957 ; 26 L. T. 502 ; 27 L. T. 291 213, 215 
 
 Holywell Union v. Halkyn Drainage Co., [1895] A. C. 117; 64 L. J. 
 
 M. C. 113; 71L. T. 818 313 
 
 Hooper v. Bourne, 3 Q. B. D. 258 ; 5 A. C. 1 ; 49 L. J. Q. B. 370 ; 
 
 42 L. T. 97 ; 26 W. E. 295 406 
 
 Horner v. Whitechapel Board of Works, 54 L. J. Ch. 148 ; 55 L. J. Ch. 
 
 289 437 
 
 V. Stepney Assessment Committee, 98 L. T. 450 . . . 437 
 
 Horsnail, Li re, [1909J 1 Ch. 631 ; 78 L. J. 331 ; 100 L. T. 603 . . 449 
 Household Fire Insurance Co. v. Grant, 2 Ex. D. 216; 41 L. T. 298; 
 
 27 W. E. 858, C. A 349 
 
 Howe's Settled Estates, In re [1903] 2 Ch. 69 ; 72 L J. Ch. 461 ; 88 L. T. 
 
 438 ; 51 W. E. 468 . 107,415 
 
 Hudson, In re, Spencer v. Turner, [1911] 1 Ch. 206; 80 L. J. Ch. 129; 
 
 103 L. T. 718 120 
 
 Hunter v. Attorney-General, [1899] A. C. 309 ; 68 L. J. Ch. 449 ; 80 
 
 L. T. 732 ; 47 W. E, 673 ; H. L. (E.) 394 
 
 Income Tax Commissioners v. Pemsel, [1891] A. C. 531 ; 61 L. J. Q. B. 
 
 265 ; 65 L. T. 621 394, 396 
 
 Ingle i\ Vaughan Jenkins, [1900] 2 Ch. 368 ; 69 L. J. Ch. 618 ; 83 L. T. 
 
 155 ; 48 W. E. 684 153 
 
 Inland Eevenue v. Forrest, 15 A. C. 334; 60 L. J. Q. B. 281 ; 63 L. T. 
 
 36 ; 39 W. E. 33 . . . . 397, 398, 400, 401 
 
 V. Glasgow and Great Western Eail. Co., 12 A. C. 315 ; 
 
 57 L. T. 370 ; 56 L. J. P. C. 82 ; 36 W. E. 241, 
 
 H. L. (Sc.) 8, 352 
 
 V. Maple, [1908] A. C. 22 ; 77 L. J. K B. 55 ; 97 L. T. 
 
 814 ; 24 T. L. R 140, H. L. (E.) 
 V. Marr's Trustees, 44 Sc. L. E. 647 . 
 
 V. MuUer, [1901] A. C. 217; 70 L. J. K B. 677 
 
 W. E. 603 ; 84 L. T. 729 . 
 
 V. Priestley, [1901] A. C. 208 ; 70 L. J. P. C. 41 
 
 L. T. 729 ; 49 W. E. 603 . 
 
 V. Scott, [1892] 2 Q. B. 152 ; 61 L. J. Q. B. 432 
 
 L. T. 173 ; 40 W. E.' 632 . 
 
 Jamieson v. North British Eail. Co., 6 Sc. L. E. 188 . . . . 212 
 
 Jarvis v. Jarvis, 63 L. J. Ch. 10 ; 69 L. T. 412 448 
 
 Jersey (Earl of) v. Neath Union, 22 Q. B. D. 555 ; 58 L. J. Q. B. 573 ; 
 
 37 W. E. 388 5, 214, 215 
 
 Johnstone v. Crompton, [1899] 2 Ch. 190 ; 68 L. J. Ch. 559 ; 81 L. T. 
 
 165; .47 W. E. 604 . 213 
 
 
 8 
 
 
 96 
 
 49 
 
 
 278, 
 
 300 
 
 84 
 
 
 17 
 
 ,68 
 
 66 
 
 
 396, 
 
 398 
 
Table of Cases. xv 
 
 PAOK 
 
 Jones V. Mersey Docks, 11 H. L. Cas. 443 ; 35 L. J. M. C. 1 ; 13 
 
 W. E. 1062 ; 12 L. T. 643 144, 145 
 
 Jump, In re, [1903] 1 Ch. 129; 72 L. J. Ch. 16; 87 L. T. 502; 51 
 
 W. E. 266 449 
 
 Kemp v. Sober, 20 L. J. Ch. 602; 1 Sim. N. S. 517 ; 15 Jur. 458; 61 
 
 E. E 187 
 
 Kerr's Policy, In re, L. E. 8 Eq. 331 ; 38 L. J. Ch. 539 ; 17 W. E. 989 . 415 
 King, In re, Travers v. Kelly, [1904] 1 Ch. 363 ; 73 L. J. Ch. 210 ; 90 
 
 L. T. 281 ; 52 W. E. 230 120 
 
 V. Henderson, [1898] A. C. 720 ; 67 L. J. P. C. 134 ; 79 L. T. 
 
 37 ; 47 W. E. 157 482 
 
 Kingdon and Wilson's Contract, In re, [1902] 2 Ch. 242 ; 71 L. J. Ch. 
 
 604 ; 86 L. T. 639 ; 50 W. E. 533 76 
 
 Knight V. City of London Brewery Co., [1912] 1 K. B. 10 . 11, 13, 167 
 V. Simmonds, [1896] 2 Ch. 294 ; 65 L. J. Ch. 583 ; 74 L. T. 
 
 563 ; 44 W; E. 580 291 
 
 Knowles v. Booth, 32 W. E. 432 404 
 
 Laragoity v. Attorney-General, 2 Price, 172 511 
 
 Lawrence v. Hitch, L. E. 3 Q. B. 521; 37 L. J. Q. B. 209 ; 18 L. T. 
 
 483; 16 W. E. 813 437 
 
 Lewis V. Baker, [1905] 1 Ch. 46 ; 74 L. J. Ch. 39 ; 91 L. T. 744 ; 21 
 
 T. L. E. 17 11, 167, 443 
 
 In re, Lewis v. Smith, [1900] 2 Ch. 176 ; 69 L. J. Ch. 406 ; 82 
 
 L. T. 291 ; 48 W. E. 426 120 
 
 • : V. Fothergill, 5 Ch. 103 221 
 
 Lippard v. Eicketts, 14 Eq. 291 ; 41 L. J. Ch. 595 ; 20 W. E. 898 . 415 
 Liverpool Library v. Liverpool Corporation, 29 L. J. M. C. 221 ; 8 
 
 W. E. 498 143, 403 
 
 Llangattock v. Watney, [1910] 1 K. B. 236 ; A. C. 394 ; 79 L. J. K. B. 
 
 599 ; 102 L. T. 548 ; 26 T. L. E. 418, H. L. (E.) . . 11, 13, 167 
 
 Llewellyn v. Eutherford, L. E. 10 C. P. 156; 44 L. J. C. P. 281 ; 32 
 
 L. T. 601 301 
 
 London and Northern Bank (Jones' Case), In re, [1900] 1 Ch. 220 ; 69 
 
 L. J. Ch. 24; 81 L. T. 512 349 
 
 London and North-Western Eailway v. Buckmaster, L. E. 10 Q. B. 
 
 444 ; 44 L. J. M. C. 180 ; 33 L. T. 329 ; 24 W. E. 16 . . . 396 
 London County Council and City of London Brewery Co., Li re, [1898] 
 
 1 Q. B. 387 ; 67 L. J. Q. B. 382 ; 77 L. T. 
 463 ; 46 W. E. 172 ; 14 T. L. E. 69 . . 279 
 
 V. Pearcc, [1892] 2 Q. B. 109 ; 66 L. T. 685 ; 
 
 40 W. E. 543 . . . . " 287 
 
 London (Mayor, etc., of) and Tubbs' Contract, [1894] 2 Ch. 524; 63 
 
 L. J. Ch. 524 ; 7 E. 265 ; 70 L. T. 719 348 
 
 London University v. Jarrow, 1 De G. & J. 72 ; 26 L. J. Ch. 430 ; 29 
 
 L. T. O. S. 172 ; 5 W. R. 543 ; 44 E. E 396 
 
 Long Eaton Eecreation, etc., v. Midland Eailway, [1902] 2 K. B. 574 ; 
 
 71 L. J. K. B. 837 ; 86 L. T. 873 ; 50 W. E. 693 . . . . 186 
 
 b 2 
 
xvi Table of Cases. 
 
 PACK 
 
 Loosemore r. Tiverton, etc., Eail. Co., 22 Ch. D. 25 ; 51 L. J. Ch. 570 ; 
 
 30 W. E. 628; 47L. T. 151 213 
 
 Lucas and Chesterfield Gras, etc.. Board, In re Arbitration between, 
 
 [1909] 1 K. B. 16; 77 L. J. K. B. 1009 ; 99 L. T. 767 . . . 277 
 Luicott V. Wakely, [1911] 1 K. B. 905 ; 80 L. J. K. B. 713 ; 104 L. T. 
 
 290; W.N. 46 . 160 
 
 Macfie v. Callander, [1S98] A. C. 270 ; 67 L. J. P. C. 58 ; 78 L. T. 598.. .406, 
 
 407 
 M'Couochie's Trustees v. M'Conochie, [1909] S. C. 1046 . . .394 
 Mackinnon's Trustees v. Mackinnon, [1909] S. C. 1041, Ct. of Sess. . 394 
 Mersey Docks v. Birkenhead Union, [1901] A. C. 175 ; 69 L. J. Q. B. 
 
 260 ; 81 L. T. 798 ; 48 W. E. 259 ... 280 
 
 r V. Liverpool, L. E. 9 Q. B. 84 ; 43 L. J. M. C. 33 ; 22 
 
 W. E. 184 280 
 
 Metropolitan Water Boord v. New Eiver Co., 20 T. L. E. 687, H. L. (E.) 407 
 Micklethwaite, In re, 11 Ex. 452; 25 L. J. Ex. 19 . . . cxxxii 
 Middlesex County Council v. St. George's Union, [1897] 1 Q. B. 64 ; 
 
 66 L. J. Q. B. 101 145 
 
 Midland EaH. Co. v. Checkley, L. E. 4 Eq. 19; 36 L. J. Ch. 380; 15 
 
 W. E. 61 ; 16 L. T. N. S. 260 . . . 212, 215 
 
 V. Haunchwood, etc., Co., 20 Ch. D. 552 ; 51 L. J. Ch. 
 
 778 ; 46 L. T. 301 . . . . . 4, 213 
 
 V. Eobinson, 15 A. C. 19 ; 59 L. J. Ch. 442 ; 38 
 
 W. E. 577 ; 62 L. T. 194 . . 215 
 
 Moran v. Marsland, [1909] 1 K. B. 744 ; 78 L. J. K B. 346 ; 100 L. T. 
 
 374 ; 25 T. L. E. 235 185, 287 
 
 Morice V. Bishop of Durham, 10 Ves. 405 ; 32 E. E 393 
 
 Music (Eoyal College of) v. Westminster Vestry, [1898] 1 Q. B. 809 ; 
 
 67 L. J. Q. B. 540 ; 78 L. T. 441 403 
 
 Newex, In re, [1894] 2 Ch. 297 ; 63 L. J. Ch. 763 ; 70 L. T. 653 ; 43 
 
 W. E. 68 424 
 
 Nind I'. Nineteenth, etc., Century Society, [1894] 2 Q. B. 226; 63 
 
 L. J. Q. B. 636 ; 70 L. T. 831 ; 42 W. E. 481 . . . . 152 
 North British Eail. Co. v. Budhill Coal Co. and Others, [1910] A. C. 
 
 116 ; 79 L. J. P. C. 31 ; 101 L. T. 609 ; 26 T. L. E. 79, H. L. 
 
 (Sc.) 213, 215, 263 
 
 Northam, In re, E. v. Inland Eevenue, 12 Q. B. D. 461 ; 53 L. J. Q. B. 
 
 229; 51 L. T. 46; 33 W. E. 543 99 
 
 Nottage, In re, [1895] 2 Ch. 649 ; 64 L. J. Ch. 695 ; 73 L. T. 269 ; 44 
 
 W. E. 22 476 
 
 Nussey v. Provincial Bill Posting Co., [1909] 1 Ch. 734 ; 78 L. J. Ch. 
 
 539 ; 100 L. T. 687 184 
 
 Ogden, In re, 25 T. L. E. 382 . . 401 
 
 Oriental Bank Corporation v. Wright (1880), 5 App. Cas. 842; 50 
 
 L. J. P. C. 1 ; 43 L. T. 177 cxxxu 
 
 Osborne v. Bradley, [1903] 2 Ch. 446; 73 L. J. Ch. 49 ; 89 L. T. 11 . 291 
 
Table op Cases. xvii 
 
 PAG a 
 Parker- Jeevis, In re, [1898] 2 Ch. 643 ; 67 L. J. Oh. 682 ; 79 L. T. 403 ; 
 
 47 W. E. 147 110, 111 
 
 Parker v. Jones, [1910] 2 K. B. 32 ; 79 L. J. K. B. 921 ; 102 L. T. 685 ; 
 
 26 T. L. R. 453 . .163 
 
 Partington v. Attorney-General, 4 H. L. 100 ; 38 L. J. Ex. 205 ; 21 
 
 L. T. 370 ; 10 E. E cxxxiii 
 
 Pasmore v. Oswaldtwistle Urban Council, [1897] A. C. 387; 67 
 
 L. J. Q. B. 635 ; 78 L. T. 569 cxlviii 
 
 Paterson's Trustees v. Paterson, [1909] S. C. 485, Ct. of Sess. . .394 
 Phen6 v. Popplewell, 12 0. B. N. S. 334; 31 L. J. C. P. 235; 6 L. T. 
 
 247; low. E. 523 154 
 
 Phillips V. Morrison, 13 L. J. Ex. 212 ; 12 M. & W. 740 ; 8 Jur. 343 
 
 cxxxii 
 Pile V. Pile, 3 Ch. D. 36; 45 L. J. Ch. 841 ; 35 L. T. 18 ; 24 W. E. 
 
 1003, C. A 352 
 
 Pimm, In re, Sharpe v. Hodgson, [1904] 2 Ch. 345 ; 73 L. J. Ch.627 ; 91 
 
 L. T. 190 ; 52 W. E. 648 120 
 
 Pocock V. Gilham, 1 Cab. & El. 104 . . .... .184 
 
 Porte V. Williams, [1911] 1 Ch. 188 ; 80 L. J. Ch. 127 ; 103 L. T. 798. ..120 
 Powell V. Boraston, 34 L. J. C. P. 71 ; 18 C. B. N. S. 175; 11 L. T. 
 
 734; 13 W. E. 465 185 
 
 V. Guest, 34 L. J. C. P. 73 ; 11 L. T. 599 ; 13 W. E. 274 . . 138 
 
 Punnett, Ex parte, 16 Ch. D. 226; 50 L. J. Ch. 212 ; 44 L. T. 226 ; 29 
 
 W. E. 129 .... ...... .300 
 
 Purser v. Worthing Local Board, 18 Q. B. D. 818 ; 56 L. J. M". C. 78 ; 
 
 35 W. E. 652 188, 469 
 
 Eamsden v. Lupton, L. E. 9 Q. B. 17 ; 43 L. J. Q. B. 17 ; 29 L. T. 510 cxxxv 
 Eeeve v. Bird, 1 C. M. & E. 31 ; 3 L. J. Ex. 282 ; 4 Tyr. 612 . . 154 
 E. V. Archbishop of Canterbury, [1902] 2 K. B. 503 ; 71 L. J. K. B. 
 
 894 ; 86 L. T. 779 . cxlix 
 
 — V. Assessment Committee of City of London, [1907] 2 K. B. 764 ; 
 
 76 L. J. K. B. 1087 ; 97 L. T. 346 ; 23 T. L. E. 502, C. A. cxlvii 
 
 — V. Bayly, 1 Dr. & War. 231 ; 4 Ir. Eq. E. 142 .... cxliv 
 
 — V. Bradford, 4 M. & S. 171 ; 105 E. E 279 
 
 — V. — , [1908] 1 K. B. 365 ; 77 L. J. K. B. 475 ; 98 L. T. 620 . 198 
 
 — V. Brandt, 16 Q. B. 462 ; 20 L. J. M. C. 119; 15 Jur, 223 . . 399 
 
 — V. Brown, L. E. 2 Q. B. 630 277 
 
 — V. Commissioners of Taxes for Clerkenwell, [1901] 2 K. B. 879 . cxlix 
 
 — V. Commissioners of Woods and Forests, 17 L. J. Q. B. 341 ; 12 Jur. 
 
 915 cxlvi 
 
 — V. Great Western Eail. Co., 62 L. J. Q. B. 572 ; 69 L. T. 572 . . cxlix 
 
 — V. Income Tax Commissoiners (1909), 78 L. J. K. B. 576; 100 L. T. 
 
 585 ; 25 T. L. E. 368, C. A. . . . • . . . .395 
 
 — V. Institution of Civil Engineers, 5 Q. B. D. 48 ; 49 L. J. M. C. 34 ; 
 
 42 L. T. 15 399 
 
 — V. Justices of Derbyshire, 19 W. E. 934 325 
 
 — V. Justices of London, 25 Q, B. D. 357 . ... . . 79 
 
 — V. Justices of West Eiding, 2 Q. B. 505 ; 11 L. J. M. C. 80... 139, 203, 314 
 
 — V. Local Government Board, L. E. 9 Q. B. 148 ; 43 L. J, Q. B. 49 ; 
 
 29L. T..769 • . . • . cxlvi 
 
xviii Table of Cases. 
 
 PA OK 
 
 E. V. Manchester Overseers, 3 El. & Bl. 336 ; 23 L. J. M. C. 48 ; 2 
 
 C. L. E. 974; 118 E.E .144 
 
 — V. Manning, 1 C. C. E. 338 ; 41 L. J. M. C. 11 ; 25 L. T. 573 ; 20 
 
 W. E.102 185 
 
 — V. New Eiver Co., 1 M. & S. 503; 105 E. E. .... 438 
 
 — V. North Curry, 4 B. & C. 959 ; 107 E. E 138 
 
 — V. St. Martin-in-the-Fields Overseers, 21 L. J. M. C: 53 ; S. C. sub nom. 
 
 Beg. V. Cockburn, 16 Q. B. 462 399 
 
 — V. St. Pancras Assessment Committee, 2 Q. B. D. 581 ; 46 L. J. M. C. 
 
 243; 37 L. T. 126 396 
 
 — V. Salisbury (Marquis), 8 A. & E. 716 ; 3 N. & P. 476 ; 7 L. J. M. C. 
 
 110; 112E. E 437 
 
 — V. Shepherd, 1 Q. B. 170 144 
 
 — V. Skeffington, 3 B. & A. 382 ; 110 E. E cxxxiv 
 
 — V. Smith, [1910] 1 K. B. 17 ; 79 L. J. K. B. 1 ; 101 L. T. 816 ; 26 
 
 T. L. E. 23 11 
 
 — V. Southampton Port Commissioners, 30 L. J. Q. B. 244 ; 6 B. & S. 
 
 407 , 4 
 
 — V. Stepney Corporation, [1902] 1 K. B. 317; 71 L. J. K. B. 238; 86 
 
 L. T. 21 cxlviii 
 
 — V. Stewart, 8 E. & B. 360 ; 27 L. J. M. C. 81 ; 6 W. E. 35 . . 144 
 
 — V. "Wilts and Berks Canal Navigation, 3 A. & E. 477 ; 111 E. E. cxlix 
 
 — V. Wimbledon Urban Council, Ex parte Halton, 77 L. T. 599 ; 62 
 
 J. P. 84 cxlix 
 
 — V. Wraith, [1907] 2 K. B. 756 297 
 
 Eipley v. Great Northern Eail. Co., 10 Ch. 435 ; 31 L. T. 869 ; 23 
 
 W. E. 685 277 
 
 Eoberts v. Aylesbury Overseers, 1 El. & Bl. 432 ; 22 L. J. M. C. 34 ; 
 
 17 Jut. 236; 118 E. E 437 
 
 Eogers v. Grazebrook, 8 Q,. B. 895 455 
 
 Eokeby v. EUiot, 13 Ch. D. 277 ; 49 L. J. Ch. 163 ; 28 W. E. 282 ; 41 
 
 L. T. 537 221 
 
 Eoper V. Williams, Turn. & E. 18 ; 37 E. E 291 
 
 Eoyal V. Yaxley, 20 W. E. 903 437 
 
 Eussell Literary Institution, In re, [1898] 2 Ch. 72 ; 67 L. J. Ch. 411 ; 78 
 
 L. T. 588 400 
 
 Sadler v. Whiteman, [1910] 1 K. B. 868; A. C. 514; 103 L. T. 296 ; 
 
 79 L. J. K. B. 1050; 26 T. L. E. 655, H. L. (E.) . . . .482 
 St. Werburgh, Derby, Overseers i*. Hutchinson, L. E. 5 Ex D. 19 . 207 
 SaUsburj' v. Gladstone, 9 H. L. C. 692 ; 34 L. J. C. P. 222 ; 9 W. E. 
 
 930; 11 E. E 215 
 
 Salter v. Metropolitan Eail. Co., L. E. 9 Eq. 432 ; 39 L. J. Ch. 567 . 185 
 Sayers v. Collyer 28 Ch. D. 103 ; 54 L. J. Ch. 1 ; 61 L. T. 723 ; 33 
 
 W. E. 91 291 
 
 Scott, /« re, [1901] 1 K. B. 228; 70 L. J. Q. B. 66; 83 L. T. 613; 49 
 
 W. E. 178, C. A 17 
 
 V. Midland Eail. Co., [1901] 1 K. B. 317; 70 L. J. K B. 228; 83 
 
 L. T. 737; 49 W. E. 318 214 
 
 Sharman, In re, AVright v. Sharman, [1901] 2 Ch. 280 ; 70 L. J. Ch. 67 ; 
 
 84 L. T. 859 ; 49 W. E. 555, C. A. . . ... 93, 120 
 
Table of Cases. xix 
 
 PAGE 
 
 Simms v. Eegistrar of Probates, [1900] A, C. 323 ; 69 L. J. P. C. 51 ; 
 
 82 L. T. 433, P. C 13, cxxxv 
 
 Simpson v. South StafPordshire Water Works, 34 L. J. Ch. 380 ; 13 
 
 W. E. 729, 908 ; 3 De G. J. & S. 679 . . . . . . 407 
 
 Skey V. Parsons (19,09), 101 L. T. 103 ; 25 T. L. E. 708 .. . 214 
 Slaughter v. Mayor of Sunderland, 60 L. J. M. C. 91 ; 65 L. T. 250; 
 
 55 J. P. 519 184 
 
 Smale v. Burr, L. E. 8 C. P. 64 ; 27 L. T. 555 ; 42 L. J. C. P. 20 ; 21 
 
 W. E. 193 13, cxxxv 
 
 Smith V. Anderson, 15 Ch. D. 247 ; 50 L. J. Ch. 39 ; 43 L. T. 329 ; 29 
 
 W. E. 21 187 
 
 V. Birmingham Union, 7 EI. & Bl. 4 ; 26 L. J. M. C. 105 ; 1 19 E. E. 144 
 
 V. Eichmoud, [1899] A. C. 488 ; 68 L. J. Q. B. 898 ; 81 L. T. 269 ; 
 
 48 W. E. 115 185, 188, 469 
 
 Spencer's Case, 5 Eep. 16 ; 77 E. E 175 
 
 Stamford and Warrington's (Earl of) Settled Estates, In re, [1911] 1 Ch, 
 
 648; 80L. J. Ch. 361; 105L. T. 12 452 
 
 Staples V. Young, [1908] 1 Ir. E. 135, C. A 215 
 
 Stebbing v. Metropolitan Board of Works, L. E. 6 Q, B. 37 ; 40 L. J. 
 
 Q. B. 1 ; 23 L. T. 530 ; 19 W. E. 73 277 
 
 Strickland v. Maxwell, 2 Cr. & M. 539 ; 4 Tyr. 346 ; 3 L. J. Ex. 161 . 12 
 Sudeley (Lord) and Baines, In re, [1894] 1 Ch. 334 ; 63 L. J. Ch. 194 ; 
 
 70 L. T. 549 ; 42 W. E. 231 449 
 
 Sunderland-near-Sea v. Sunderland Union, 34 L. J. M. C. 121 ; 18 
 
 C. B. N. S. 531 ; 13 L. T. 239 ; 13 W. E. 943 ; 11 Jur. 688 . . 280 
 Surgeons' (Eoyal College), In re, [1899] 1 Q. B. 871 ; 68 L. J. Q. B. 613 ; 
 
 80 L. T. 611 ; 47 W. E. 452 397, 398, 400 
 
 Sutton, In re, Stone v. Attorney-General, 28 Ch. D. 464 ; 54 L. J. Ch. 
 
 452 ; 33 W. E. 519 394 
 
 Swansea Harbour Ti'ustees v. Swansea Union, 97 L. T. 585 ; 71 J. P. 
 
 497 437 
 
 Swayne v. Inland Eevenue, [1900] 1 Q. B. 172 ; 69 L. J. Q. B. 63; 81 
 
 L. T. 623 ; 48 W. E. 197 . . . . 32, 39, 353, 355, 356 
 
 Tait v. Macleay, [1901] 2 Ch. 631 ; 74 L. J. Ch. 43 ; 91 L. T. 474 ; 22 
 
 T. L. E. 149, H. L. (E.) 178 
 
 Tennant v. Smith, [1891] A. C. 150 ; 61 L. J. P. C. 11 ; 66 L. T. 327 . cxxxii 
 Thellusson v. Liddard, [1900] 2 Ch. 635; 69 L. J. Ch. 673; 82 L. T. 
 
 753; 49 W. E. 10 153 
 
 Thomas, In re, Thomas v. Howell, 34 Ch. D. 166 ; 56 L. J. Ch. 9 ; 55 
 
 L. T. 629 448 
 
 Thompson v. Sunderland Gas Co., L. E, 2 Ex. D. 429 ; 46 L. J. Ex. 
 
 710; 37L. T. 30; 25 W. E. 809 185 
 
 Thomson v. Shakespear, 29 L. J. Ch. 276 ; 1 De G. F, & J. 399 ; 2 L. T. 
 
 479 ; 8 W. E. 265 476 
 
 Todd, In re, Birleston, & Co., v. North-Eastern Eail. Co., [1903] 1 K. B. 
 
 603 ; 72 L. J. K. B. 337 ; 88 L. T. 366 214 
 
 Tottenham Local Board v. Williamson, 62 L. J. Q. B. 322 ; 69 L. T. 
 
 51 ; 57 J. P. 614 461 
 
 Trego V. Hunt, [1896] A. C. 7 ; 65 L. J. Ch. 1 ; 73 L. T. 514 ; 44 
 
 W. E. 225 . .-.•.. . . . . . .278 
 
XX Table of Cases. 
 
 PAGE 
 
 Tubbs V. Esser (1909), 26 T. L. E. 145 184 
 
 TumbuU, In re, Skipper v. Wade, [1905] 1 Ch. 726 ; 74 L. J. Ch. 438 ; 
 
 53 W. E. 440 120 
 
 ViGEE V. Dudman, L. E. 6 C. P. 470 ; 7 C. P. 72 466 
 
 "Wallis, In re, Ex parte Sully, 14 Q. B. D. 950 ; 52 L. T. 625 ; 33 
 
 W. E. 733 466 
 
 Walmsley v. Eice, 29 S. J. 256 448 
 
 Watts, Li re, 29 Cb. D. 947 ; 55 L. J. Ch. 332 ; 53 L. T. 426; 33 W. E. 
 
 885, C. A 448 
 
 Wauton V. Coppard, [1899] 1 Cb. 92 ; 68 L. J. Cb. 8 ; 79 L. T. 467 ; 47 
 
 W. E. 72 . . . 187 
 
 Webber, In re, Gribble v. Webber, [1896] 1 Cb. 914 ; 65 L. J. Cb. 544 ; 
 
 74 L. T. 244 ; 44 W. E. 489 93, 107 
 
 V. Lee, 9 Q. B. D. 315 ; 51 L. J. Q. B. 485 ; 47 L. T. 215 ; 30 
 
 W. E. 866, C. A 438 
 
 Weir and Pitt's Contract, /n re (1911), 55 S. J. 536 .... 19 
 West London Syndicate v. Inland Eevenue, [1898] 2 Q. B. 507 ; 67 
 
 L. J. Q. B. 956 ; 79 L. T. 289 ; 47 W. E. 125, C. A. . . . 301 
 Wbitaker, In re, [1901] 1 Cb. 9 ; 70 L. J. Cb. 6 ; 83 L. T. 449 ; 49 
 
 W. E. 106, C. A 84 
 
 In re, [1904] 1 Cb. 299; 73 L. J. Cb. 166 ; 90 L. T. 277 . 84 
 
 Whiteman v. Sadler. See Sadler v. Wbiteman. 
 
 Wbitmore v. Wenlock, 13 L. J. C. P. 55 ; 7 Jur. 60, 64 ; 5 M. & G. 9 . 185 
 
 WUcox V. Steel, [1904] 1 Cb. 212 ; 73 L. J. Cb. 217 ; 89 L. T. 640 . 437 
 Williams v. Bedminster Assessment Committee, 45 L. J. M. C. 117 ; 34 
 
 L T. 795 437 
 
 Wilson V. Queen's Club, [1891] 3 Cb. 522 ; 60 L. J. Cb. 698 ; 65 L. T. 
 
 42 ; 40 W. E. 172 185 
 
 Winans v. A.-G. (1907), 23 T. L. E. 705 cxlv 
 
 Wisbart v. Lord Advocate, 8 S. S. C.,4tbS., 74 104 
 
 Wixon V. Tbomas, [1911] 1 K B. 43; 80 L. J. K. B. 104; 103 L. T. 
 
 730; 27T. L. E. 35 144 
 
 Wood V. Cooper, [1894] 2 Cb. 671 ; 63 L. J. Cb. 845 ; 71 L. T. 222 ; 43 
 
 W. E. 201 184 
 
 — V. Leadbitter, 13 M. & W. 833 ; 14 L. J. Ex. 161 ; 9 Jur. 187 . 267 
 Wooler V. Nortb-Eastern Breweries, [1910] 1 K. B. 287 ; 79 L. J. K B. 
 
 138 ; 101 L. T. 909 ; 26 T. L. E. 129 207 
 
 Worcestersbire County Council r. Worcestershire Union, [18.97] 1 Q. B. 
 
 480; 66 L. J. Q. B. 323 ; 76 L. T. 138 ; 45 W. E. 309 . . . 145 
 
 Wrigbt V. Davies, 1 C. P. D. 638 cxxxvii 
 
 Writers to tbe Signet r. Inland Eevenue, 14 Sess. Cas. 4tb Series, p. 34. ..398 
 
 Wytbes, In re, [1893] 2 Cb. 369; 69 L. T. 281 ; 42 W. E. 125 . . 424 
 
 YoRKSHlEE Eailway, ETC., Co. V. Maclure, 21 Cb. D. 309 ; 51 L. J. Cb 
 
 857 ; 47 L. T. 290 cxxxvi 
 
 Young & Co. V. Liverpool Assessment Committee, [1911] 2 K. B. 195; 
 
 104 L. T. 676 ; 75 J. P. 233 313 
 
 Young's Contract, In re, 31 Ch. D. 168 ; 53 L. T. 837 ; 34 W. E. 84 ; 
 
 50J, P. 245 348 
 
NOTES ON THE PRACTICAL WORKING OF THE 
 LAND CLAUSES OF THE FINANCE (1909-10) 
 ACT, 1910. 
 
 The following note was originally written as the first edition was 
 passing through the press, by special request, and in the hope that it 
 might be of some assistance pending the settlement of the practice 
 under the Act, and especially before the original site valuation (under 
 s. 26) had been made. It is retained with a good deal of modification 
 and much addition, as its use is not thought to be exhausted. 
 
 CONTENTS OF PRACTICAL NOTE. 
 
 I. Vendors and Purchasers and Increment Value Duty 
 II. Special Points relating to Sale of Minerals . 
 III. Increment Value Duty on Death . 
 IV. Eetums for the Original Valuation. — Form 4 
 V. The Provisional Valuation .... 
 
 VI. Eeversion Duty 
 
 VII. Undeveloped Laud Duty ... 
 VIII. Appeals to a Eeferee 
 
 PAGE 
 
 xxi 
 
 XXV 
 
 xxix 
 
 xxix 
 
 xxxiii 
 
 XXXV 
 
 xxxvii 
 xxxviii 
 
 I. Vendors and Purchasers and Increment Value Duty. 
 
 The increment value duty (referred to in this note as I.V.D.) is Practice on 
 payable on all site value increment which has accrued since April 30, assessment. 
 1909. But in many cases the valuation has not yet been made of site 
 value as on that date. Such valuation will not in some cases be made 
 and settled for years. Nevertheless, a vendor will have to pay I.V.D. on 
 the difference (being an increase in value) between the site value of 
 the property sold as on April 30, 1909, and as on the date of sale. 
 The practice as to the assessment for I.V.D. is at present substantially 
 as follows. The vendor, in compliance with the regulations, either 
 presents the instrument, usually the conveyance, on which he desires 
 the I.V.D. stamp placed, together with a copy or abstract of the instru- 
 ment (see Regulation 3, p, 488), or he presents the copy or abstract 
 without the instrument, under the language of s. 4 (2) as " reasonable 
 particulars thereof." The abstract is usually furnished by filling in the 
 official non-compulsory form I.V.D. (B) (see p. 496), which, however, 
 may have to be supplemented by a claim for deductions. A receipt 
 is given for these documents. Usually one of the three stamps 
 
XXll 
 
 Notes on Practice, 
 
 What stamp 
 impressed. 
 
 The valua- 
 tion under 
 ss. 1 and 2. 
 
 Informal 
 intimation of 
 increment. 
 
 referred to in s. 4 (3) is ready to be impressed by the Commissioners 
 within one or two days at most after the lodging of the documents 
 referred to. The stamp commonly impressed is (b) " 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." Sometimes, though it seems rarely, stamp (c), denoting that 
 upon the occasion in question no increment value duty is payable, is 
 impressed. The readiness of the aixthorities to impress stamp (b) on 
 instruments without requiring security for the duty has greatly facili- 
 tated the working of the Act, and has removed certain legitimate 
 apprehensions that transactions would necessarily be delayed. The 
 stamp impressed affords, it is thought, security to the purchaser that 
 I.V.D. has been assessed and therefore paid (s. 4 (4) ) up to the date of 
 his conveyance (see note on p. 85). Ft does not, however, seem to 
 secure the purchaser against an under-assessment of I.V.D., arising from 
 either (1) an under-calculation of the consideration, (2) an over- 
 allowance for deductions which could not be sustained in the future ; or 
 (3) a mistake in giving an exemption which is not siistained on future 
 occasions. 
 
 The authorities practically give credit to the vendor for the I.V.D. 
 till the original site value has been fixed and the formal assessment, if 
 there is increment value, can be made. The particulars of the instru- 
 ment requiring the stamps are sent to the district valuer, who either 
 has already made, or will shortly make, the original site valuation (see 
 Report of Commissioners of Inland Revenue, 1911, pp. 161, 163). 
 Whether this is the case if the sale is of a house in a neighbourhood 
 known by all men to be decaying, as a Brixton or Holloway by-street, 
 does not appear. It may be that in such a case the particulars are 
 passed without further inquiry as disclosing no increment. Whether 
 the district valuer, in all cases sent to him, reports the amount of the 
 original site value, and the value then arrived at (under s. 2 (2) ) as on 
 the sale, or whether, when in his opinion there is no increment value, 
 he simply reports that opinion without giving details, either of the 
 original valuation or of the then value is not known. Nor is it known 
 how far the information furnished to the Commissioners is really 
 tabulated and recorded for future use in cases where there is clearly at 
 the moment no increment. 
 
 If it appears to the district valuer that there has been increment, he 
 usually gives an informal intimation of the figures he has arrived at to 
 the vendor with a view to arriving at an agreement before an assess- 
 ment is formally made by the Commissioners in pursuance of his report 
 (see Report for 1911, p. 161). Either as the result of agreement or 
 otherwise an assessment is finally made. The liability for I.V.D. may 
 thus be hanging over the head of the vendor for some time, though he 
 does not seem to have much score to complain on this head, since the 
 Crown cannot claim interest on the duty. But assuming the value of 
 
Increment on Sales. xxiii 
 
 the consideration properly arrived at, and that no improper deductions 
 are made, the purchaser appears to be safe. 
 
 As soon as any intimation is conveyed to a vendor that a claim for Deductions 
 I.V.D. is to be made, he must carefully consider the question of ™^?*' ^? 
 
 ols-irtipcl 
 
 deductions, and especially have regard to the deductions already claimed 
 for on the original valuation. All those deductions, so far as still 
 applicable, and also all value added since 30th April, 1909, by expendi- 
 ture either before or since that date, should be claimed for, in order to 
 reduce the increment value. 
 
 It appears advisable in all cases where a claim for I.V.D. is likely to Deductions 
 
 be made, and where deductions are claimable, that the abstract before ^°o"^" |*^ 
 ' ' claimed on 
 
 referred to, I.V.D. (B.) should refer to the fact that deductions will, if stamping, 
 necessary, be claimed. This course doubtless suggests that increment 
 value is probable. In many cases, however, it is clear that from the 
 amount of the consideration that a claim nrnat arise, and in these cases 
 a special letter might be written and accompany the form I.V.D. setting, 
 out such deductions. It seems advisable that they should be before the 
 valuer when making his valuation imders, 2 (2) (a) in the first instances 
 and not brought before him for the first time after he has sent the 
 "informal intimation" of his figiires (referred to at p. 161 of the Com- 
 missioners Report for 1911) to the vendor. But there is no time 
 expressly, and there appears to be no time impliedly fixed by the Act 
 within which dediictions may be claimed. It seems that deductions not 
 claimed on I.V.D. (B), or not claimed in reply or in negotiations 
 relating to the " informal intimation " preceding the rejort of the , 
 
 valuer, could still be claimed from the Commissioners before formal 
 assessment, and could even be claimed after that assessment on appeal. 
 In the last mentioned case, even if the deduction were allowed, the 
 expenses of the appellant on appeal (s. 33 ( 3) ) would probably not be 
 allowed, and he might be ordered to pay those of the Crown. 
 
 If the Commissioners, being satisfied with the particulars furnished, security for 
 should nevertheless requii'e security to be given under s. 4 (3) (b) for duty, 
 the amount of the duty, the vendor must perforce give that security. 
 
 The purchaser appears to have no "say" before the Commissioners in position of 
 the fixing of the duty, though it is to his interest that it should be fully purchaser, 
 assessed to date. If the consideration is not fully stated, or if deduc- 
 tions not sustainable on future occasions are allowed, the site value on 
 the occasion in question will come out lower than it ought to be. When 
 the purchaser in his turn sells the property, the true site value may 
 emerge, and the former purchaser, who is then the vendor, will have to 
 pay duty which ought to have been paid by his vendor Amongst the 
 deductions in which a purchaser is interested is that in s. 25 (4) (a), the 
 ascertainment of which involves gross and full site valuations under 
 s. 25 (1) and (2). If either the gross valuation is too high, or the full 
 site valuation is too low, the difference between the two which is the 
 non-site element of the property represented by the deduction 4 (a) 
 
XXIV 
 
 Notes on Practice. 
 
 Can a 
 purchaser 
 appeal .' 
 
 Difficulties of 
 
 vendor and 
 
 purchaser 
 
 before 
 
 original 
 
 valuation. 
 
 Sale after 
 
 original 
 
 valuation. 
 
 will be too large, and the site value, which is the result of this and the 
 other deductions mentioned in s. 25 (4) from the value of the con- 
 sideration (s. 2 (2) (a)) will be too low. Whetlier a purchaser is a 
 "person aggrieved " within s. 33 (1) by the fixing of a too low site and 
 increment value on an occasion under ss. 1 (a) and 2 (2) (a), must be 
 treated as a doubtful point. It may be that his interest would be 
 thoiight to be too remote; but he might die or sell next day and the 
 full duty then be charged. 
 
 The position of a vendor who has sold his land before the original site 
 valuation has been made, the Commissioners placing stamp (6) on the 
 deed, may be a little difficult. 
 
 He will have ceased to be the owner when that valuation is made. 
 The purchaser will have had his conveyance. It might be the interest 
 of the purchaser, having regard to the undeveloped land duty, to cause 
 the site to be valued as low as possible. The vendor's interest is a high 
 site value. The lower the original site value the more I.V.D. will the 
 vendor have to pay ; and yet apparently he is not a person interested in 
 the land within the meaning of s. 27 (5) who may object to the valuation.* 
 It appears, however, from rule 11 of the Land Values (Reference) Rules 
 of December 6, 1910, regulating appeals under s. 33 to a referee (see 
 p. 378), that as a person " otherwise interested in the appeal " he may 
 be allowed by the referee to put his case before the referee and to take 
 part in any consultation with reference to the appeal. But if, in such a 
 case, the vendor has his difficulties, the purchaser has his also. He 
 may wish to have a low original site value because he intends holding 
 as undeveloped land. Therefoi-e he must ascertain from the vendor all 
 the facts necessary to enable him to claim all the deductions and 
 allowances which may be made from total value in order to ascertain 
 assessable site value under s. 25 (4). Further, he must at all events 
 obtain, if not legal proof of such expenditure, such evidence as will 
 satisfy the Commissioners thereupon. 
 
 The moral of these considerations is that in a contract of sale or lease 
 entered into previously to the original site valuation, full consideration 
 should be given to the probability of a claim for I.V.D. In the 
 absence of provisions relating to the question it would appear 
 that both vendor and purchaser might in certain eventualities be 
 prejudiced. 
 
 On a sale after the original site valuation has been made it will still be 
 the interest of the vendor or lessor to minimise so far as possible the value 
 of the consideration given for the purchase or lease. Under s. 2 (2) 
 that value, subject to the statutory deductions, is taken to be the then 
 site value of the property from which the original site value must be 
 deducted to obtain the amount (if any) of increment value. It is not 
 clear by any means what can be taken into consideration by the Com- 
 
 * See an interesting case of this nature discussed in the House of Commons 
 on July 25, 1911, Parliamentary Debates, pp. 1536 — 7. 
 
Sales cf. Minerals. xxv 
 
 missioners as being part of the value of the consideration. It is not 
 even certain that anything else than money payments (except in the 
 two cases referred to in s. 32 (2), see p. 353), is to be reckoned as 
 consideration, or included as part of the consideration, in the case of 
 a sale or lease. It is true that the official form, I.V.D. (B) (see 
 p. 496), requires certain particulars to be given in cases of sale or lease : 
 see especially ilequisition 8, i.e., " Covenants by the purchaser to build 
 or improve property ; or to form, make, maintain, or contribute towards 
 cost of roads." and "any other covenant or condition affecting the 
 value of the interest created or transferred," which suggest that, in the 
 official view, site value on the occasion of sales or leases may be 
 measured by the value of the whole real consideration, whether stated 
 in terms of money or otherwise. Even in contracts entered into after 
 the original site valuation has been made, it would appear wise for the 
 purchaser in tliose cases in which the consideration comprises covenants 
 for expenditure by himself, or some thing given, or to be done, by himself, 
 other than a money payment, to take precautions to secure that the 
 consideration which is the test of the then value of the property is fully 
 explained to the Inland Revenue. In siich cases the interest of the 
 purchaser is also to see that deductions are not obtained by the vendor 
 under s. 25 (4) which will not be sustainable on future occasions. It 
 should be observed that the amount of the deduction (s. 25 (4) (a) ) 
 which must be made on any occasion for payment of I.V.D. , since 
 it represents the non-site element in the property (see commentary^ 
 pp. 305 — 309), depends on the difference between the gross and full 
 site values.* It is the interest of persons paying I.V.D., i.e., vendors 
 and lessors, that this difference should be great, i.e., that the gross 
 value should be high and the full site value low, since this will 
 give a larger sum to deduct under s. 25 (4) (a) from the value of the 
 consideration, etc., and so lessen the assessed site value. The interest 
 of a purchaser in this respect will not necessarily be adverse to that of 
 the vendor, since when he sells or dies the same proportion between gross 
 and full site values will most probably be preserved. 
 
 As to the subject of vendor and purchaser, see further notes on the 
 Regulations as to payment of I.V.D., pp. 493—5. 
 
 II. Special Points Relating to the Sale and Purchase of 
 Minerals. 
 
 Both vendors and purchasers must walk warily in the matter of the Difficulty of 
 
 sale and purchase of minerals and increment value duty. No general ™^tter. 
 
 advice on the subject can be given in measurable compass of space, since 
 
 the following factors are all of moment. Has an original capital value 
 
 been placed on the minerals? Or is that capital value ''nil" under 
 
 s. 23 (2)? If no original capital value has been placed on the minerals 
 
 > 
 See the instructions by the Inland Revenue to their valuers recently 
 published as a Parliamentary paper (p. cl). 
 
XXVI 
 
 Notes on Pkactice. 
 
 Interest of 
 purchaser on 
 sale of surface 
 and minerals. 
 
 Illustration. 
 
 Position 
 under open 
 contract. 
 
 what was the original site vahie of the land 1 Was it a site value equal 
 to, or less than, the value of the land together with the minerals ? Has 
 any increment value duty been paid on this site value 1 The questions 
 for consideration are not of great difficulty in a plain case where it is 
 quite clear, or almost clear, that there are paying minerals, and that 
 they can be got with very little disturbance to the surface. They are of 
 great difficulty in the many cases in which land with mineral deposits 
 of doubtful quantity or quality is in the market. One or two things 
 seem plain. It is the interest of the purchaser of minerals to have 
 the consideration apportioned on the sale between site and minerals, 
 so that the duty up to date on both is paid by the vendor. 
 This may operate hardly on a vendor whose original site value may 
 have been fixed on the basis that the land would not be injured by 
 mining operations, and who now finds that site value practically 
 valueless, while at the same time he has to pay a heavy increment value 
 duty on the minerals which were estimated at nil. Thus, supposing the 
 original site value of ten acres near the town of X. were 10,000^., the 
 minerals then considered not to be a paying product being put at 
 "nil." If in 1918 the proprietor sells his minerals for 12,000^. with 
 surface rights which practically destroy the value of the land for 
 building purposes, he has to pay 2,400^. for increment value duty on 
 his minerals, and cannot set off any part of this sum against the 
 decrement of his surface. But on the other hand, if he sells the whole 
 property as a single parcel of land for 12,000^., not specifically men- 
 tioning the minerals, he would only have to pay increment value duty 
 on 2,000^., i.e. 400/. The latter method of dealing with the transaction 
 would not, however, suit the purchaser. 
 
 He will probably want to work or lease the minerals. Then he will 
 have to pay annual increment value duty under s. 22 (3). That duty is 
 one-fifth of the excess of the rent on the lease or the hypothetical rent 
 on the working fixed imder s. 20 (2) (6) over /g- of the original capital 
 value of the minerals, or of the capital value of the minerals on the last 
 preceding occasion on which increment value duty had been collected on 
 the minerals as a lump sum, if there has in fact been such an occasion. 
 The purchaser therefore wishes the increment value duty on the 
 minerals to be fully paid up to the date of his purchase, so that the 
 annual increment value duty which he will pay may be less. Practically, 
 therefore, as between vendor and purchaser the qiiestion ought to be 
 one of bargain. What the position would be if the matter is left open, 
 that is if there is a sale for, say, 12,000/. of Blackacre, comprising 
 unworked mineral deposits, no stipulation being made in the contract as 
 to increment value duty, depends partly on the action of the Crown. 
 Suppose that the original site value of Blackacre was 10,000/., and 
 the original value of the minerals nil. Then the vendor will desire to 
 treat the sale as a sale of Blackacre as a whole for 12,000/., and to 
 escape with paying increment value duty on 2,000/. The purchaser 
 
Sales of Minerals. xxvii 
 
 will wish to have the consideration of 12,000/. apportioned between the 
 site value of, and the minerals comprised in, Blackacre, so that the 
 vendor shall pay the increment value duty to the date of the sale on 
 the minerals, which of course may be a heavy sum. As between vendor 
 and purchaser it would seem that in the absence of special stipulation 
 as to the increment value duty the vendor would have fulfilled his 
 obligations vmder the contract see (s. 4) by producing a conveyance 
 stamped with one of the three stamps referred to in s. 4 (3). This must, 
 however, be taken for the present as matter of opinion. Bxit it appears The view of 
 doubtful whether the Crown can require the apportionment of considera- *"^ Crown, 
 tion so beneficial to the purchaser. If it can, it seems that the vendor must 
 pay increment value duty on the value of the minerals as indicated by the 
 apportioned consideration. On the other hand the Crown may prefer 
 to take its increment value duty later when the minerals are leased or 
 worked by the purchaser. The result is that every contract of sale of 
 surface and minerals, the latter having an original capital vahie of nil, 
 should (a) either apportion the price or (b) have regard to the fact that 
 the whole price may otherwise be attributable to the surface, and that 
 therefore no increment value duty at all will be paid in respect of the 
 minerals on the sale, leaving one-fifth of their value to be paid as 
 increment value diity in the futvu'e. It will also be remembered that 
 both the powers and the policy of the Crown as to requiring the con- 
 sideration to be apportioned in such a case are not clear. 
 
 In the case of a contract to sell land and minerals therein as a whole, Right of 
 the original site value of which land, and the original capital value of ^'"''^'^. ^ 
 the minerals under which land, were separately vahied on the original consideration, 
 site valuation, it would seem to be clear that the Crown would be 
 entitled under s. 32 (3) to apportion the consideration between site and 
 minerals and to assess the duty on each separately. Nevertheless, to 
 prevent any doubt arising, it would be advisable that the contract should 
 plainly state what is to be done. 
 
 It will of course be remembered that under s. 1 of the Revenue Act, 
 1911, a contract throwing the liability for increment value duty on the 
 purchaser is void. It is not thought that this section prohibits an 
 agreement between vendor and purchaser for non-apportionment of con- 
 sideration between site and minerals (with an original capital value of 
 nil), whereby all the purchase-moneys become attributable to site only, 
 leaving increment value duty to be paid in the future on the whole 
 realised value of the minerals. 
 
 The position may thus be summarised from a purchaser's point of The purchase 
 
 view. A person may buy minerals apart from the surface. He must ^^ minerals 
 ^1 -11 • ,1 IT apart from 
 
 then reqiiire the vendor to pay mcrement value duty m the ordmary surface. 
 
 way. The minerals will be treated as a separate parcel of land (s. 23 (2)) ; 
 
 their capital value will be ascertained under s. 23 (1) on the occasion by 
 
 applying the process indicated in s. 2 (2) (a). Their original capital 
 
 value will either have been separately ascertained under s. 23 (1), (2), 
 
XXVlll 
 
 Notes on Pkactice. 
 
 The purchase 
 of both sur- 
 face and 
 minerals. 
 Consideration 
 apportioned. 
 
 Purchase of 
 
 land 
 
 containing 
 
 minerals. 
 
 Consideration 
 
 not 
 
 apportioned. 
 
 As to effect of 
 8. 4 (1). 
 
 and ss. 26 and 27, or will be nil, and in either event increment value 
 duty will be arrived at as in the case of land not comprising minerals, 
 but with the necessary modifications owing to the nature of the subject 
 (s.23(l)). 
 
 A person may buy minerals together with the surface, apportioning in 
 the contract and the conveyance the consideration between the surface 
 and the minerals. In that case increment value duty will be paid 
 separately on surface and minerals exactly as if there were two separate 
 transfers on sale of separate parcels of land. Two ad valorem stamps under 
 s. 4 of the Stamp Act, 1891 (54 k 55 Vict. c. 39), and probably two incre- 
 ment value duty stamps under s. 4 (3) of the Act of 1910, will be necessary. 
 
 There is yet a third class of cases in which a man buys land believed 
 by him to contain minerals, and where neither in the contract nor 
 conveyance is there any reference to the minerals. The minerals, it is 
 assumed, have not been valued as a separate parcel of land on the 
 original site valuation, and no increment value duty has therefore been 
 paid before the sale in respect of the minerals. The construction of the 
 Act may well be that all the purchase-money will in the absence of appor- 
 tionment be treated as having been paid in respect of value other 
 than mineral value ; that the minerals will be considered to have been 
 treated as of no value on the original valuation (s. 23 (2)), and as of no 
 value on the sale to the purchaser, and that consequently the whole of 
 the consideration money received by him on a future sale or lease of the 
 minerals, apart from the surface or the principal value of the minerals 
 on a death valuation under the Finance Act, 1894, will (subject to 
 statutory dedvictions) be treated as increment. Whether relief to any 
 extent could be obtained by getting the Commissioners to apportion 
 under s. 32 (3) former considerations, and under s. 3 (1) former payments 
 of increment value duty (if any), seems extremely doubtful. 
 
 The conclusion is that on a purchase of land for the sake of its 
 minerals it will be wise for a purchaser to insist on treating the 
 minerals apart from the land, and to have the consideration apportioned 
 between surface and minerals. This is a matter which should be pro- 
 vided for in the contract. It woiild probably be too late to raise the 
 question on the settlement of the conveyance. For the vendor to concede 
 the request of the purchaser to apportion the consideration might be to 
 make himself liable to pay increment value duty on minerals vahied on 
 the original site valuation as worth nothing. 
 
 It may be a question whether in the case of a sale of land containing 
 minerals, but without mention of the minerals in the contract, the 
 purchaser can by virtue of s. 23 (2) reqiiire the Commissioners to assess 
 increment value duty on the minerals as a separate parcel of land 
 under s. 23 (2). If, indeed, the purchaser has this power, it will 
 clearly be wise in him to use it, since he thereby clears the minerals 
 of duty to date. 
 
Original Valuation. xxix 
 
 III. Increment Value Duty on Death. 
 
 No special difficulty seems to arise in relation to the practice as to 
 the payment of this duty on death. The circidar letter of July, 1910, 
 from the Commissioners (see p. 94 and Appendix, p. 538) makes it 
 plain that in the first instance it is unnecessary to present any accounts 
 relating to this duty other than the affidavit and accounts furnished for 
 estate duty purposes. If the Commissioners from a perusal of the 
 accounts in question suspect increment, they will themselves raise the 
 question and call for a further account.''" 
 
 Under s. 2 (2) (c) the site value of the property on a death 
 occasion is, subject to deduction, the principal value of the land as 
 ascertained for the purposes of estate duty. It might therefore be con- 
 sidered that no valuation would be necessary under s. 25 in order to 
 fix the site value on a death occasion. This is not the case. In order 
 to ascertain the amount of the deduction under s. 25 (4) (a), one of the 
 matters which by virtue of s. 2 (2) must be deducted from the principal 
 value in order to ascertain the site value, it is evidently necessary that 
 the gross and full site valuations should be ascertained under s. 25 (1) 
 and (2). The difference between these two valuations represents the 
 non-site element in the property, and must under s. 25 (4) and s. 2 (2) 
 be deducted from the principal (which on a death occasion represents 
 the total (s. 25 (3) ) or selling value of the property in order to arrive 
 at the site and increment values. It is to the interest of the taxpayer 
 that on such an occasion gross value should be high and full site value 
 should be low, since the greater the difference between them the larger 
 the sum to be deducted from the principal value, and the less the site 
 and increment values. As a matter of practice, however, gross value 
 will no doubt be based upon principal value by the valuers for either 
 Crown or taxpayer. The full site value will be the crux of the process, 
 and it will be the interest of the subject to keep this as low as possible. 
 Of course all deductions under s. 25 (4) (l>) to (e) will be claimed for 
 on a death occasion exactly as on the occasion of a sale. 
 
 IV. Returns for Original Valuation. — Form 4. 
 
 The forms under s. 26 (2) have for some time been in the hands of 
 owners and persons receiving rent, requiring them to give particulars 
 with reference to their land for the purpose of enabling the Com- 
 missioners to make the original total and site valuations under s. 26 (1) 
 of the whole of the land in the United Kingdom. 
 
 The unit of taxation is the property of an owner in a separate occupa- -j-^jg ^nit of 
 tion (s. 26 (1)). In other words the Commissioners must require a taxation, 
 return from an owner for each piece of property in a separate occupation, 
 whether that occupation be the occupation of the owner or of his tenant 
 
 * When the original site value has not been fixed there is often much 
 delay in getting an intimation from the Inland Revenue that duty will not 
 be claimed. They are waiting for the report of their district valuer. 
 
 N. c 
 
XXX Notes on Practice. 
 
 or licensee. They may not divide up property in a single occupation 
 and require returns to be made as to the divided portions. Nor may 
 they himp together two or more pieces of propei'ty in separate occupa- 
 tions and require a joint return for the aggregate. If the Commissioners 
 require a return for a divided occupation, or two or more aggregated 
 occupations, it is thought that the owner need not fill in the Form 4 
 served upon him, and would not be liable to the penalty imposed by 
 s. 26 (2) for not doing so. He should in such a case write to the Com- 
 missioners, stating clearly his objections to the validity of their notice 
 and the required return. If the Commissioners persist in requiring him 
 to make the return in dispute, he may, it is thought, bring an action 
 grounded on Dyson v. Attorney -General, [1911] 1 K, B. 410, C. A. (see 
 pp. 319 and 510), and Bu7'ghes \. Attorney-General, [1911] 2 Ch. 139 
 (see p. 347), for a declaration that he is not bound to make the return ; * 
 or he may await and defend an action for the penalty iinder s. 26 (2). 
 If an owner does object to an unauthorised unit of taxation it seems 
 tolerably clear that he should not fill in the form IV. sent to him in 
 relation to that \init. If he does so, especially if he does so without 
 taking written objection to the proposed unit, he may find it too late to 
 make an objection later. 
 Exceptions to In two cases the owner may cause the unit of taxation to be varied. 
 
 (1) I'art of Under s. 26 (1), " if the owner so requires any part of any land which is 
 occupation. under separate occupation shall be separately valued." It is clear that 
 
 if this provision is to be taken literally an agreement of owners could 
 render the valuation clauses unworkable. The owners of Whitehall or 
 Queen Anne's Mansions are, however, not likely to split up the dozen or so 
 storeys of their buildings into an infinite number of irregularly shaped and 
 sized pieces of land and require each piece to be separately valued. But 
 even where owners act, as they will, reasonably, it is quite evident that 
 difficult questions might ai'ise as to buildings let in chambers and flats. 
 For convenience' sake and to avoid controversy, owners will agree and 
 are agreeing to the valuation of such buildings as a whole, notwith- 
 standing that different portions thereof may be in divers occupations. 
 
 (2) Joint The second exception arises under s. 5 of the Revenue Act, 1911 (p. 588), 
 valuation. under which in certain cases at the request of the owner a joint valuation 
 
 of properties under separate occupations may be allowed. This is fully 
 
 treated of at p. 315 of the Commentary. Special attention should be 
 
 given to the time within which the request should be made. The 
 
 exception applies mainly to urban properties likely to be rebuilt at an 
 
 early date with a better class of buildings than is at present upon them. 
 
 Qufpre high One of the first things which an owner receiving Form 4 must 
 
 °^.^?^^, ., ask himself is whether he wants a high or a low site valuation. 
 
 original site ° 
 
 value wanted. The advantage of a high valuation is that on a future sale or lease 
 
 * But it appears that even if successful in such an action he cannot get 
 his costs against the Crown (see p. 167 of the case last above cited). These 
 cases have now been affirmed on appeal. [1911] W. N. p. 232. 
 
Original Valuation. xxxi 
 
 the increment value will be less than on a low original valuation. 
 The same will be the case on the death of the owner. But if the 
 land is liable to undeveloped land duty, the lower the site value 
 the less duty will be charged. This balancing of considerations is, 
 however, applicable only to undeveloped land. As to land fully 
 developed, as, for example, a house in a London square, it is better, it 
 seems, that the original site value should be high. Increment value in 
 the future will be less. At the same time it must be remembered that 
 site value is a consequence of certain deductions from total value. It 
 might be difficult to support a low principal value on death of the total 
 hereditament as ascertained for the purposes of Part I. of the Finance 
 Act, 1894, on which not only increment value duty but estate duty 
 would be paid, in the face of a high total value, perhaps the owner's 
 own estimate under s. 26 (3).'" This consideration is not, however, 
 applicable in the case of bodies corporate and unincorporate who do not 
 pay death duties, but who pay either income tax or corporation duty, 
 which are both taxes on income. 
 
 Many owners will therefore be much exercised as to whether they 
 shall avail themselves of the provision just referred to (s. 26 (3)), and 
 place before the Commissioners their estimates of total and site value. 
 The only advice which can be given them is to review the whole pro- 
 babilities of the future of the land (see hereon p. xxxiv). Remainder- 
 men and reversioners should note the practical advice in the note to 
 s. 27 (5) (see p. 328). 
 
 Owners will remember that no time is fixed within which the No time 
 
 expenditure on the statutory deductions in s. 25 (4) need have been ^'™'*^ ,.": 
 
 ^ •' ^ ' expenditure, 
 
 made. The value added by embankment works made in the reign of 
 
 Queen Anne can apparently be claimed to-day. Especially must they 
 
 note that it is not the expenditure, but the result of the expenditure on 
 
 site value, which maybe deducted. The results of extensive advertising 
 
 must not be overlooked. The cost of clearing the land under 
 
 s. 25 (4) (e) may be an item which ought to be claimed. 
 
 Attention is specially directed to s. 12 (see p. 148), by virtue Note 
 
 of which, unless deductions capable of being claimed on the original site specially 
 
 valuation are so claimed, they cannot be claimed on any occasion on 
 
 which increment value duty becomes payable. This will, of course, 
 
 affect all owners of land, but it specially demands the attention of 
 
 purchasers of land before the original site valuation is made, as the 
 
 vendors may be indifferent. Deductions will usually be claimed for 
 
 in full, at all events in the case of undeveloped land, since they will 
 
 reduce its assessable site value. Although a high original site value is 
 
 advisable so far as increment value duty is concerned, yet deductions 
 
 * See a case discussed in the House of Commons, 25th July, 1911, Parlia- 
 mentary Debates 1534 and onwards, in which the Treasury undertook to 
 refund estate duty paid on a valuation exceeding the original site valuation 
 and made about the same time. 
 
 c 2 
 
xxxii Notes on Practice. 
 
 allowed on the original site valuation may be claimed and will be 
 allowed on all occasions under s. 1 for payment of increment value 
 duty. 
 Original It must be noted that the original site value upon the increment 
 
 unalterable ^^ which duty is payable is for ever unalterable. But the true value 
 for undeveloped land duty is fixed only till April 30, 1914, and is to 
 bo quinquennially revalued. Deductions not claimed in 1911 on the 
 original site valuation can yet be claimed in 1914, on the quin- 
 quennial valuation, for purposes of undeveloped land duty (sections 12 
 and 28). A mistake is not irrevocable. It must, however, be added 
 that if an owner entitled to claim deductions did not do so on the 
 original site valuation, and thereby obtained a high original site value, 
 and then in 1914 piled on deductions unclaimed on the original valua- 
 tion for the purpose of obtaining a low qiiinquennial valuation for 
 undeveloped land duty, he might be pursuing a risky course. In the 
 view of the writer, however, which of course may be mistaken, except as 
 concerns the deduction in s. 25 (4) (a), the right to claim deductions is a 
 privilege of the subject under the Act, which may be exercised how and 
 when he pleases, and in such a way as to lessen his own taxation to the 
 fullest extent possible. It is thoiight that the Crown has no right to 
 make deductions meri niota, and no right, except in the case provided 
 for by s. 12, to refuse to allow them because they have not been claimed 
 on a former occasion when they might have been claimed. 
 
 It is of course clear that all the deductions claimed for in fixing 
 original site vahie can be claimed for in fixing site value on occasions 
 for payment of increment value duty under s, 1, so far as the benefit 
 of the expenditure is continuing. As regards undeveloped land it is 
 therefore safer to claim deductions to the fullest extent, in order to keep 
 down the undeveloped land duty. 
 
 Deductions should be claimed for on Form 7 (see Appendix, p. 514), 
 which will be sent to the owner if (v) on Form 4 (see p. 503) is filled 
 in with an expression of his intention to claim for deductions. He 
 should not wait till after the provisional valuation is served upon him 
 and then claim for deductions by way of objection under s. 27 (2), or of 
 appeal under s. 27 (4) and s. 33. It is not clear whether after the 
 provisional valuation is made deductions can be claimed for, though, if 
 the necessity should arise for doing so, there is a strong argument in 
 favour of holding such a claim to be valid. 
 
 The attention of owners of land which comprises minerals is directed 
 to the difficulty of their position on the first valuation, in the Intro- 
 duction (see p. cxv), and in the commentary on the text (see pp. 216 
 and 246). Great caution is clearly necessary on their part in the return 
 which they will make to the Commissioners under s. 26 (2). It must 
 not be lost sight of that some of the substances referred to, s. 20 (5) 
 (p. 226), exempted from mineral rights duty, are doubtless minerals 
 under the valuation clause, s. 23 (p. 246), as to minerals. 
 
Original Valuation. xxxiii 
 
 V. The Provisional Valuation, 
 
 Provisional valuations are at the present time being daily served on 
 owners of land under s. 27 (1). They should be scrutinised with some 
 care. 
 
 They may be divided into four classes : (I) Valuations of developed Four classes of 
 (built upon) sites, where there is no probability of an increase in site ?jT^|)'~i j 
 value, and where there is no liability to undeveloped land duty. These sites unlikely 
 are for the most part the sites of dwelling-houses in the side streets and to appreciate, 
 roads of urban and qtiasi-iirban places. It is notorious that they rarely 
 increase in value. Nevertheless it must be remembered that at the 
 present time (December, 1911) there is admittedly a great wave of depres- 
 sion in the market for properties of the kind in question. Nine out of 
 ten towns in the United Kingdom are overbuilt. The increase of 
 travelling facilities in recent years has brought into the markets 
 thousands of acres available for houses, and the movement in all 
 industrial places has been from the centre to the circumference. This 
 movement will in time exhaust itself, and some revival of site values 
 may be expected within a measurable distance of time. The owners of 
 the class of houses under consideration will therefore be wise in objecting 
 to, and if necessary appealing from, an unduly low original site value. 
 They will also consider whether they are able to avail themselves of the 
 provisions of s, 2 (3) of the Act of 1910 and s. 2 of the Revenue Act, 
 1911, for the substitution of a higher site value, based on previous 
 dealings with the property. They must remember that a high original 
 site vahie is their defence against claims for increment value duty. A 
 higher site value substituted under the provisions just referred to is not 
 of course dangerous from the point of view of the death duties, since it is 
 admittedly a fictitious value and not the real value of the site on 
 April 30, 1909. But a site value fixed, apart from these provisions, 
 at an unduly high figure may involve an unduly high total value, and 
 so be dangerous when a claim arises for estate duty. The limits of 
 time, three months after the original site value has been finally settled, 
 or before July 1, 1911, as the case may be, under s. 2 (3) of the Finance 
 Act, 1910, and s. 2 of the Revenue Act, 1911, for the applications 
 referred to should be noted. 
 
 (2) Valuations of urban properties which being in main streets or (2) Urban 
 
 near the centre of populous towns are likely to appreciate in value. ^^^^^ likely to 
 
 ^ ^ Til appreciate. 
 
 Dwelling-houses are often at a small expenditure turned into shops, 
 
 and their rental value greatly increased. Squares and streets are 
 
 rebuilt, with bigger houses and palatial hotels. Witness the recent 
 
 transformation scenes in Chelsea and Bloomsbury. The like is happening 
 
 in many provincial towns. In cases where this is likely to happen, it is 
 
 wise to have as high an original site vakie to start with as possible. 
 
 No doubt in such cases some part of the rise in site values may be met 
 
 by deductions under s. 25 (4) (6), (c), and (d). Nevertheless it is not 
 
 advisable to allow a site likely to be affected by an imminent improvement 
 
XXXIV 
 
 Notes on Practice. 
 
 (3) Purely 
 agricultural 
 laud not near 
 the building 
 line. 
 
 (4) Land on 
 the building 
 line. 
 
 to be valued on its former basis. The provisional valuations of these 
 properties, and especially their full and assessable site values, must 
 therefore be carefully scrutinised. 
 
 (3) The original site value of purely agricultural land not near the 
 building line may seem almost to be a matter of indifference. For the 
 moment it is by virtue of ss. 7 and 17 of the 1910 Act liable neither to 
 increment value nor to undeveloped land duty. 
 
 The consideration of liability to increased death duties seems to be 
 hardly counterbalanced by the possibility that the original site value of 
 April 30, 1909, may at some future date be used as a new departure 
 for taxation. On the whole it would seem that in this class of cases a 
 low site value is desirable. 
 
 (4) Land on or approaching the building line presents the greatest 
 difficulties to an owner. He hardly knows whether he wants a high or 
 a low site value. A high natural site value, that is a site value not 
 made high because of expenditure on, or in connection with the site, 
 is a protection against future claims for increment value duty. But it 
 exposes the owner to a higher undeveloped land duty. A low natural 
 site value means that the undeveloped land duty is less, but may mean 
 that more increment value duty becomes payable in the future. 
 Clearly this may be the case on occasions of sale or lease, where the test 
 of total value is the consideration. It may be the case even on a death 
 occasion, or on a periodical occasion in the case of a body corporate or 
 unincorporate, since there is nothing in the Act to bind the Crown on 
 such occasions to the figures of the original gross and total valuations. 
 Tt will usually be advisable for owners to claim for all the deductions 
 they are entitled to, since while they lower the site value for purposes 
 of undeveloped land duty, they can again be claimed for on all future 
 occasions of payment of increment value duty (s. 12). Though it is 
 thought that deductions need not be allowed at the same amounts on 
 an occasion as on the original valuation, and on a later as on a former 
 occasion, yet in most cases it seems probable that they will be allowed 
 at the same or approximately the same amounts. Deductions are 
 usually of a permanent nature. Some deductions, however, may not 
 be of such a nature. It may indeed, in cases where the land is likely 
 to be at once sold, so that there is no practical liability for undeveloped 
 land duty, be advisable to claim no deductions at all. But it will of 
 course be remembered that if this is done the expenditure antecedent 
 to April 30, 1909, can never be claimed either by the present or by 
 future owners on occasions for payment of increment value duty (s. 12). 
 
 Further, it miist be remembered that undeveloped land duty (^d. in 
 the £ on the capital value) can be paid for very many years before it 
 equals an increment value duty of 4«. in the £. Whether on the 
 whole it will be cheaper to have a higher site value by, say, 100/. and 
 pay 4s. 2c?. a year more for an indefinite number of years, rather than 
 lo pay 20/. more increment value duty at some uncertain time, involves 
 
Reversion Duty. xxxv 
 
 a calculation in which owners will sometimes have to seek the aid both 
 of actuaries and surveyors. The probable time it will take to dispose of 
 the land, the possibility of a death occasion, and various problems as to 
 interest and discount are elements of that calculation, as for example, 
 in how many years will 4s. ^d. a year accumulated at, say, 4 per cent. 
 compound interest amount to 20/. It is clear, however, that if the 
 probable sale of the land is anywhere near at hand, it is better to claim 
 the high natural site value. Stress is laid on the word " natural" since 
 the same expenditure which reduces original site value will generally be 
 available to reduce site value on an occasion. 
 
 If it is determined to object to the provisional valuation, the pro- 
 visions of s. 27 must be carefully followed (see pp. 320 to 333). Note 
 also s. 33 (1) (a). 
 
 VI. Reversion Duty. 
 
 If, when a lease has determined, some reversion duty is clearly pay- When some 
 able, the lessor shoidd apply to the Commissioners for their form of "'^ty clearly 
 account in relation to that duty (see Appendix, p. 523) and should fill 
 in and return the form. The return on this form is not apparently 
 obligatory, but as the particulars required by the form do not seem in 
 substance to exceed those which may properly be required under s. 15 (3), 
 the return on the form is a convenient means of fulfilling the statutory 
 obligation. The account required by the form in question requires Examination 
 some examination. Items or requisitions 1 to 7 thereof present no °^ ^^'""^ °* 
 
 fliCCOUllt 
 
 difficulty. Item 8 can only as a rule be answered from the lease itself ; 
 but it is possible that the existence of old agreements or documents 
 held with the title deeds may enable either (a) or (b) to be answered in 
 the affirmative, in the absence of which a negative answer, or an answer 
 stating want of knowledge, would have to be given. It is important 
 that (a) should if possible be answered in the affirmative, since the 
 greater the " rent reserved and payments made in consideration of the 
 lease" the less the taxable value of the benefit accruing to the lessor 
 by reason of the determination of the lease (s. 13 (1)). {h) of No. 8 is 
 only of importance where a "nominal rent only" is reserved by the 
 lease ; a nominal rent is not defined by the Act. The term is thought 
 to be used in its popular sense and to mean a rent of trifling amount. 
 It is not thought that a rent of, say, 25/. a year for premises worth 
 lOOZ. is a nominal rent. 
 
 No. 9 is perhaps justified on the ground that it is an index of the Whether No. 9 
 present total value of the premises. It may be that the validity of this ^® ^^^''^ '''""'^** 
 requirement depends on the determination of the point raised in Dyson 
 V. Attorney-General, [1911] 1 K. B. 410 (see Appendix, p. 510), as 
 to the validity of requisition (*') in Form 4. 
 
 With regard to No. 10 the reader is referred to the Commentary on 
 s. 13 (2), post, pp. 158 and 159. 
 
 No. 11 theoretically involves a gross valuation under s. 25 (1) as well How total 
 
 value arrived 
 at. 
 
XXXVl 
 
 Notes on Pbactice. 
 
 Claim for 
 deductions 
 and 
 compensation, 
 
 Claims for 
 exemption. 
 Duty to 
 account. 
 
 Allowances 
 under s. 14 
 and Revenue 
 Act, 1911. 
 
 as a total valuation under s. 25 (3) of the unincumbered fee simple of 
 the property. Substantially total value is selling or market value of 
 the fee simple as it stands, subject to all easements, fixed charges and 
 burdens, public and private rights, and restrictive covenants, but subject 
 as to the latter to the modification as to restrictions entered into after 
 April 30, 1909, contained in s. 25 (3). Gross value has a meaning and 
 plays an operative part in the ascertainment of increment value duty 
 on an occasion for the collection of that duty (see p, 306). But apparently 
 it has no real meaning and plays no part in the ascertainment of total value 
 on the determination of a lease. Nevertheless for form's sake a valuer 
 answering No. 11 should arrive first at the gross value of the property 
 and then find the amount by which that value would be diminished if 
 the land were sold subject to the various incidents referred to in 
 s. 25 (3). This amount deducted from the gross value gives the total 
 value to be entered on the space opposite requisition 11. The gross 
 value and the deduction need not be referred to in the answer, but 
 must be ascertained for the purpose of supporting the total valuation on 
 any appeal. 
 
 Deductions and compensation will of course be claimed under No. 12, 
 where possible. Expenditure by the lessee for w'hich he is practically 
 repaid by the lessor through the operation of a reduction of rent should 
 be claimed. As to expenditure generally see the Explanatory Summary, 
 p. Ixxxix, and the Commentary on the text, p. 157. 
 
 The answer to No. 13 will be the mathematical result of the answers 
 to the three preceding questions and requires no comment. 
 
 No comment is required on No. 14. No. 15 gives rise to some 
 difficulty. The reader is referred to the commentary on s. 15 (2) 
 contained on p. 176. The following additional remarks may be made. 
 It is thought that if exemption is claimed on the ground, for example, 
 allowed in s. 14 (1) (purchase of reversion within forty years), or on the 
 grounds (a) that the land is agricultural land at the time of the 
 determination of the lease (s. 14 (2) ), (b) that the lessor's interest 
 does not exceed twenty-one years (s. 14 (2) ), an intimation to the 
 Commissioners that the lease in question has determined and that 
 exemption is claimed on the ground stated is all that is necessary, and 
 that the form of account, and especially Nos. 9 to 13 thereof, need not 
 be answered. If exemption is claimed under s. 14 (5) (deficient 
 mortgage security), the account showing the basis of the claim can 
 clearly be called for by the Commissioners. In this case the Com- 
 missioners' form of accoimt should be fully filled in and returned to 
 them, accompanied by the mortgagee's account showing the deficiency 
 relied on to confer exemption. 
 
 The only allowance which, since the passing of the Revenue Act, 1911, 
 can be claimed under s. 14 is that conferred by sub-s. (4) (identity of 
 "benefit accruing" with increment value on which increment value duty 
 has been paid and vice versd). The allowance which could formerly 
 
Undeveloped Land Duty. xxxvii 
 
 have been claimed under sub-s. (3) of s. 14 (reduction of 2^ per cent. 
 per annum of the duty on leases determined and renewed) has been 
 superseded and the sub-section repealed by s. 3 (2) and (5) of the Revenue 
 Act, 1911 (post, p. 167), under which a more liberal application of the 
 system of discounts for prematurely determined leases has been intro- 
 duced. If the provisions of the Revenue Act are relied on for an 
 allowance from the full duty the Commissioners' form of account should 
 be fully complied with. 
 
 If exemption is claimed under s.' 3 (3) of the Revenue Act, 1911 Sect. 3(3), 
 (purchase of reversion of small holdings, post, p. 169), it is thought that J^fiT'^"^ ^'^^^^ 
 strictly no intimation need be given of the determination of the lease, 
 but in order to prevent any question arising it is suggested that, 
 pending the settlement of the practice, a short intimation should be 
 given to the Commissioners stating the material facts. 
 
 It should be noted that notwithstanding the exemption from reversion Sect. 3 (4), 
 duty conferred by s. 3 (4) of the Revenue Act, 1911, upon the determina- Jl®,^'^"'^ ^^^' 
 tion of a trust lease by surrender to the lessor prior to the division of 
 the same property through a number of new leases from the same lessor 
 amongst the cestuis que trust, an account must be delivered by the lessor 
 under s. 15 of the Act of 1910, " in the same manner as if reversion duty 
 were payable on the determination of the lease." This provision is not 
 without weight in leading to the conclusion that exemption from duty 
 is under the Act exemption from liability to account. 
 
 VII. Undeveloped Land Duty. 
 
 The practical points to be noted in relation to this duty are few. A 
 low site value is of course desirable, but a high agricultural value under 
 s. 26 is also desirable, because this duty is paid on the excess of site 
 over agricultural value (s. 2). Deductions to the fullest extent should 
 be claimed even if the full site value without the deductions is clearly 
 under 50^. The site value may increase from natural causes, and 
 deductions claimable but not claimed on the original or a quinquennial 
 site valviation may be looked upon with some suspicion when claimed on 
 a subsequent quinquennial valuation. 
 
 Deductions are claimed on Form 7 (see post, p. 514). One of the 
 items on such form (No. 10) has reference to the 100^. expenditure per 
 acre exemption allowed by s. 16 (2) (b) (see p. 182) and s. 4 of the 
 Revenue Act, 1911 (see p. 182). It seems that expenditure on roads 
 and sewers, already referred to under item No. 5 on Form 7, must again 
 be referred to under 10 with the additional particulars required. 
 There is a note on these provisions on p. 190 from which it appears 
 that care should be taken to derive the greatest benefit from the 
 conjoint effect of s. 16 (2) (6) of the Finance Act, 1910, and s. 4 of the 
 Revenue Act, 1911, on the one hand, and s. 25 (4) (6) of the Act of 
 1910 on the other hand. It seems impossible to give any useful advice 
 in general terms on the subject, particularly as the problem is compli- 
 
XXXVlll 
 
 Notes on Practice. 
 
 cated by the existence of probable claims to increment value duty as 
 to the same property. Each case must be worked out on its own 
 merits. 
 
 It is thought that the " agricultural value " as found by the provisional 
 valuation cannot be appealed against, but is not conclusive (see note on 
 p. 312). 
 
 The proviso of sub-s. (3) of s. 16 must not be overlooked, under which 
 payments on account of increment value duty multiplied five times may 
 be deducted from the site value. This provision will be of great value 
 to buyers of building land. 
 
 Times within 
 which made. 
 
 Notices of 
 appeal. 
 
 Grounds to be 
 stated. 
 
 Grounds of 
 appeal. , 
 Form A. 
 
 VIII. Appeals to a Referee. 
 
 For the rules relating to such appeals see p. 376 and comments 
 thereon (p. 371). Immediate practical points to bear in mind are : 
 (1) The respective times within which the appeal must be made 
 according as the appeal is against a provisional valuation or is in 
 respect of some other matter. If the time for appealing has expired, 
 application may still be made in writing under r. 5 to the Reference 
 Committee for an extension of time for appeal. No grounds are stated 
 by the rules for such an application. Apparently there is no appeal 
 to the Court from the refusal in the exercise of their discretion by the 
 Reference Committee to allow an extension of time, but of course 
 they must exercise their discretion. (2) Printed notices of appeal 
 can be obtained from the Commissioners or a district valuer or 
 other authorised person. The notice must be in one of these or 
 similar form. (3) The notice must show the grounds of appeal to which 
 the appellant will be limited, but the referee has powers to allow the 
 notice of appeal to be amended at any time. There is nothing in the 
 Act or rules to directly limit the grounds of appeal to the same grounds 
 as the objections made to the provisional valuation under 27 (2). It 
 is true that an appeal cannot be made against that valuation " except 
 on the part of a person who has made an objection " ; but that is not 
 the same thing. Objection may be made only on one ground, but it 
 is possible that appeals may lie on more than one ground by a person 
 who has made one objection. It seems that as soon as the appellant 
 has had notice from the Commissioners of the name of the referee 
 selected, that referee is the person to whom application should be made 
 to amend the notice of appeal. Before the referee is appointed, if the 
 notice is thought insufficient, it may be withdrawn under s. 3 (4) and a 
 new notice substituted. No penalty as to costs seems to be incurred 
 thereby. The notice of appeal is to " give particulars of the grounds 
 of the appeal " (r. 3 (1) ). The grounds according to the form of notice 
 given in the schedule may be very briefly stated (see the forms on 
 pp. 379 to 381). 
 
 In relation to Form A (appeal against a provisional valuation), it 
 
Appeals. xxxix 
 
 seems that the figures proposed to be substituted need not be stated. 
 
 Having regard to the fact that it is not known what views the respective 
 
 referees may adopt as to costs, it seems advisable that the prescribed 
 
 form of notice should be literally followed. If, as is not likely to be 
 
 the case, the Commissioners do not as a matter of fact know the actual 
 
 figures proposed to be substituted, and want to know them, they can 
 
 ask for them. If asked for they should be given. Grounds of 
 
 "^ " appeal. 
 
 With regard to Form B of appeal, the following may serve as an Form B. 
 
 illustration : — 
 
 County, Middlesex. Parish, Fincldey. No. of hereditament, 1. 
 To the Reference Committee [or to the Commissioners of Inland 
 Revenue^. 
 
 I hereby give notice of my intention to appeal against the assess- 
 ment of reversion duty under Part I. of the Finance Act. 
 The particulars of my grounds of appeal are as follows : — 
 The said assessment is excessive. The value of the benefit accruing 
 to the lessor on the determination of the leasee is not 1,000^. as alleged 
 by the Commissioners, but 500^. The total value of the hereditament 
 at the time the lease determined was not 1,500/. as alleged by the 
 Commissioners, but 1,200/. The Commissioners ought to have allowed 
 the sum of 5001. for a neiv storey built by the lessor during the term, 
 in lieu whereof they have allowed only 300/. 
 
 {Signed) T. Jones, 
 
 Acacia Villa, Finchley. 
 Date, July 1, 1911. 
 The notice of appeal having been framed must be posted as directed by 
 r. 13 (p. 379). 
 
 The Reference Committee will then inform the appellant of the name 
 and address of the referee selected by them to hear the appeal. 
 
 Probably a formal letter will be sent by the referee to the Com- Suggested 
 missioners and the taxpayer, informing them of his appointment and preliminary 
 making suggestions as to the consultation with reference to the appeal 
 which must take place (r. 7 (1), p. 378). It would seem sometimes 
 advisable that a preliminary meeting of both parties and the referee 
 should be held, not being the actual hearing of the appeal, for the 
 purposes (1) of defining, if necessary, more closely than the notice of 
 appeal the actual differences between the parties ; (2) ascertaining 
 whether the referee requires any further documents or any information 
 (see r. 7 (2) ) ; (3) ascertaining generally what course of procedure the 
 referee proposes to adopt (r. 7 (3)), that is whether he will hear Counsel, 
 or expert evidence, though it seems there is no power to take this on 
 oath, and, if he will, how many witnesses on each side ; whether he pro- 
 poses himself to view the property, and, if so, when, and accompanied by 
 whom. Advantage might be taken of such a preliminary meeting to 
 discuss the question in the presence of the referee as to the necessity for 
 proving outlay, and the kind of proof to be given. Generally the object of 
 
xl 
 
 Notes on Peactice, 
 
 Posting of 
 notice of 
 appeal. 
 
 Notice to be 
 given of 
 appeal to 
 owners and 
 persons 
 interested. 
 
 Rights of such 
 persons to 
 support or 
 oppose appeal. 
 
 such a meeting should be to facihtate the arrival at the real points of 
 difference and to minimise the cost of evidence. The referee must hear 
 and " consult " with any persons nominated by the Commissioners and 
 appellants respectively, but it is not thought that this would give a 
 right to compel the referee to listen to a string of expert witnesses, if 
 he did not wish to hear them. The position of the referee seems to be 
 intended to be rather that of a conciliator than of a judge or arbitrator, 
 and unless treated in this manner by both parties his intervention will 
 lose most of its usefulness. 
 
 The notice of appeal may, it is thought, be sent by post both to the 
 Reference Committee and to the Commissioners (r. 13). As to this 
 provision see s. 26 of the Interpretation Act, 1889 (p. 350). 
 
 In the case of an appeal by one of several owners the Commissioners 
 are to give notice thereof to the other owners, i.e., persons from whom 
 returns have been required under s. 26 (2), and in all cases of appeal 
 they are to give notice to any person who has applied to the Com- 
 missioners for a copy of the provisional valuation of the land under 
 sub-s. 5 of s. 27 (r. 11 (1)). Any one of such persons, as well as any 
 other person who appears to the referee to be interested in the land in 
 respect of which the appeal is made, or be otherwise interested in the 
 matter of the appeal, may ask the referee for an opportunity of putting 
 his case before the referee in writing, and of taking part in any 
 consultation with reference to the appeal (r. 11 (2)). These provisions 
 will cover the cases {inter alia) of — 
 
 (1) A remainderman in tail or fee who objects to the low original site 
 value wanted by the tenant for life. He fears mainly increment value 
 duty whilst the tenant for life fears chiefly undeveloped land duty. The 
 tenant for life is appealing. 
 
 (2) A mortgagee who wishes to be present at the fixing of the values 
 in question. 
 
 (3) (Probably). A cestui que trust who also wishes to be present. 
 
 (4) A leaseholder whose term is less than fifty years in possession. 
 He is not an owner (s. 41). 
 
 (5) A leaseholder with a term of over twenty-one years unexpired in 
 reversion where the owner is a lessee with a term of over fifty years 
 (s. 27 (7) ). It is doubtful whether the term of over twenty-one years 
 xmexpired must be reckoned from the date of valuation or the expiry 
 of the prior term -of over fifty years, but the latter is thought to be 
 the case (see note on p. 331). 
 
 (6) The reversioner entitled in fee where the owner is a leaseholder 
 with a term of over fifty years unexpired (s. 27 (7) ). 
 
 The persons above referred to and all other persons who appear " to 
 be interested in the matter of the appeal " may make the application 
 above referred to, and, it seems, either support the appeal or oppose it, 
 though an appeal could not be initialed by them unless they had 
 made an objection to the provisional valuation (s. 33 (1) (a)). They 
 
Appeals. xli 
 
 should in the first instance write to the referee stating their position 
 and desire, and asking for the opportunity or opportunities before 
 mentioned. It would seem that there is no such discretion in the 
 referee to refuse the request as would prevent an appeal from the 
 refusal. It is thought an appeal could be made as to whether a person 
 was or was not interested in the land, or in the matter of the appeal, 
 and as to whether it was necessary that he should take part in the 
 consultation. These two points being established, the right to be 
 heard necessarily follows under s. 11 (1). 
 
 As the referee has power over the expenses of the appeal (s. 33 (3)), Expenses of 
 his direction should, where they are a matter of importance, be taken ^^^^^ ' 
 by the appellant as to any course involving extraordinary or perhaps 
 even ordinary but substantial expenditvire. For instance the costs of 
 counsel will not doubtless be allowed in all cases. So the costs of the 
 expert evidence of surveyors, etc., may only be allowed to a limited 
 extent. This point emphasises the necessity for an early preliminary 
 consultation between the parties and the referee, except in the simplest 
 cases. If a referee does not himself suggest such a conference, the 
 appellant might well do so. 
 
 Appeals to the Courts from the decision of the referee must be made Appeals to 
 
 within one month from the date of the decision of the referee (see Rules Court from 
 
 referee, 
 of Supreme Court (Finance (1909-10) Act, 1910), dated January 16, 
 
 1911, post, pp. 383 — 386). No time is fixed under the Referee Appeal 
 
 Rules (r, 9) within which copies of the decision of the referee must 
 
 be furnished to the Commissioners and appellant. All parties to the 
 
 appeal should therefore arrange with the referee to have their copies 
 
 immediately after his decision is made and dated. 
 
 It is not proposed to extend these practical notes to the appeal to the 
 High Court. For the purposes of such an appeal the best expert legal 
 assistance will naturally be sought. The rules relating to appeals to 
 the High Court are on pp. 383 to 386 inclusive. 
 
 The rules relating to county court appeals from the referee will be, 
 found in the Appendix, p. 622. 
 
THE NEW LAND TAXES. 
 
 The incidence 
 of the taxes. 
 
 AN EXPLANATOEY SUMMARY OF THE NEW 
 
 TAXATION. 
 
 CONTENTS OF EXPLANATORY SUMMARY. 
 
 I. 
 
 II. 
 III. 
 IV. 
 
 V. 
 
 The New Taxes . . xli 
 Increment Value Duty . xliv 
 Reversion Duty . Ixxxvi 
 Undeveloped Land Duty . xcv 
 Mineral Rights Duty . cv 
 
 VI. Valuation 
 
 VIL Appeals . . . cxxiv 
 VIII. Miscellaneous Provisions cxxviii 
 IX. Construction and Evasion 
 
 of Statutes . . cxxxi 
 X. Procedure in relation to 
 
 Duties, &c. . . cxxxviii 
 
 I. THE NEW TAXES. 
 
 The new land taxes are four in number, namely : — 
 
 (1) THE INCREMENT VALUE DUTY (I.V.D.). 
 
 (2) THE REVERSION DUTY (R.D.). 
 
 (3) THE UNDEVELOPED LAND DUTY (U.L.D.). 
 
 (4) THE MINERAL RIGHTS DUTY (M.R.D.). 
 
 The first two are taxes on capital values, levied directly 
 on owners or persons who practically stand in the position 
 of owners using that word in its vulgar and non-technical 
 sense. This statement is subject to a nominal, but 
 perhaps not a real exception in the case of the annual 
 increment value duty payable in respect of minerals com- 
 prised in a mining lease commencing after the 30th April, 
 1909, or which have been begun to be worked after that date 
 
 Note. — The object of this Introduction is to give a general, but it is hoped a 
 correct, outline of the new taxation ; and not to supersede for practical purposes 
 in concrete cases, a careful study of the Act, and Notes. 
 
The New Taxes. xliii 
 
 by the proprietor. The undeveloped land duty is also levied 
 directly on the owner, and, though payable annually, is fixed 
 by its relation to capital value. The mineral rights duty is 
 an annual duty payable in respect of rental value and is 
 levied on the proprietor (in other words the owner) of the 
 minerals if he is working them himself, and in any other case 
 on the immediate lessor of the working lessee. The imme- 
 diate lessor, who is a lessee and pays rent, is entitled to deduct 
 from his rent the duty paid by him in respect of that 
 amount of rent. Agreements by owners of undeveloped 
 land and proprietors of minerals with their tenants that 
 the latter shall pay the respective duties are void (sects. 19 
 and 21). The term "owner" under sect. 41 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 underlease, shall be deemed to be 
 the owner instead of the person entitled to the rents and 
 profits as aforesaid." In this sense of the term both 
 increment value duty and reversion duty are sometimes 
 payable by persons who are not owners. The increment 
 value duty is the only one of the new taxes which is 
 payable on death, and death is only one of the events upon 
 which it is payable. 
 
xliv Explanatory Summary. 
 
 II. INCREMENT VALUE DUTY. 
 
 INCEEMENT VALUE. 
 
 Increment Value Duty (I.V.D.) is a wholly novel tax. 
 The theoretical basis of the duty or tax is clear, however 
 diJBicult may be its practical application to the complex 
 arrangements under which English land is held. 
 
 Increment Value under the Finance (1909-10) Act, 1910, 
 is an increase accruing after the 30th April, 1909, in the 
 site value of land (sects. 1 and 2) ; but (1) the expression 
 " site value " has a technical meaning given to it, and (2) it 
 is not every increase in site value which gives rise to the 
 increment value, the subject of the tax. 
 
 SITE VALUE. 
 
 The rise in The roufi^h idea of site value running through the Act is 
 
 site -values. *-' . 
 
 that of the value of the land, as a cleared site, ready for 
 building and trade purposes. It is asserted that, as popu- 
 lation and industry grow, the value of land in England 
 for such purposes steadily, automatically, and inevitably 
 increases. That increase is quite apart from, and in addition 
 to, any increase arising from the expenditure, skill, or fore- 
 sight of the owner or occupier. It is a perpetual stream of 
 communal wealth deposited from year to year on the 
 property of the fortunate owners of land in, or near, the 
 growing towns and villages of the country. Hence that 
 land is said to be specially and naturally the legitimate 
 subject of national as well as local taxation. These 
 arguments, or assertions, may be right or wrong; there 
 may or may not be material differences for purposes of 
 
Increment Value Duty. xlv 
 
 taxation between land and other things, but it is 
 necessary to understand them if the theory of the incre- 
 ment value and the undeveloped land duties is to be 
 grasped. No doubt the same arguments which support the 
 taxation of urban and quasi-urban sites are capable of being 
 applied in theory to the growth in the value of agricultural 
 land, arising from the increase in population, the consequent 
 greater demand for produce, and the resulting higher prices / 
 and higher rents. But agricultural value is either wholly, 
 or almost, excluded from the new taxation. It is recognised 
 that, owing to the fact that there has, in modern times, 
 sprung up a world market for, and a world price of, most agri- 
 cultural produce, the value of purely agricultural land in 
 the United Kingdom has in recent years greatly declined. 
 Agricultural land, on the average, sells to-day in England 
 at 20 to 25 per cent, less than it did in the year 1878. 
 It is the expressed intention of the authors of the new 
 land taxes that until agricultural land has recovered its 
 former value it should not be the subject of the new taxes. 
 But it is not suggested that the grounds on which those 
 taxes are defended are not, in abstract theory, as applicable 
 to agricultural as to urban land, nor, if its lost value should 
 be regained by the former class of land, has anything been 
 said in parliamentary debate by the authors of the new 
 taxes which would be inconsistent with an extension of the 
 taxes to such land. 
 
 FULL SITE VALUE. 
 Full site value, under the Act is in fact, though the idea Definition of 
 is expressed in a very complicated manner (sect. 25 (2) (4) ), ^'*^^^^"^' 
 the value which the unincumbered fee simple of the land, if 
 sold in the open market, free from any burden, charge, or 
 restriction (except rates and taxes), by a willing seller,* 
 
 * It is suggested that the words " by a willing seller " neither add to, nor de- 
 tract from, nor alter the meaning of the sentence as it would stand without them 
 (see note on p. 275). 
 
 N. d 
 
xlvi Explanatory Summai{Y. 
 
 might be expected to realise if the land were divested of 
 buildings and other structures appurtenant to buildings 
 (including fixed or attached machinery) on, in, or under 
 the surface, and of all growing timber, fruit trees, fruit 
 bushes, and other things growing thereon. (Sect. 25 (2).) 
 
 ASSESSABLE SITE VALUE. 
 
 The essential But the result of this valuation is not the site value 
 
 deductions. , . , . 
 
 which IS the subject of the tax. The real or selling value 
 of the site may be less than the full or cleared site value, 
 because in the estimate of the latter no account is taken 
 of easements, profits, restrictions by way of covenant, or 
 fixed charges, such as rent charges, affecting the land. 
 Moreover the valuation of the full site referred to may 
 include the results of much expenditure on the land. It 
 may have been drained, or levelled. Boads may have 
 been made through or near to it. A well may have been 
 sunk to supply it with water. The land tax, or tithe upon 
 it may have been redeemed. Open spaces may have been 
 dedicated in order to increase its amenities. Advertise- 
 ments may have given it a vogue, or popularity. The 
 diminution in value of the full site owing to the existence 
 of the fixed charges, easements, profits, or restrictions, as 
 well as the value added to the site by any works executed 
 or capital expenditure, together with the cost of clearing the 
 land from buildings, trees, etc. , must be deducted from the 
 value of the full or cleared site before the taxable entity known 
 as the "assessable site " is discovered. (Sect. 25 (4).) 
 
 We have now arrived at the meaning of " assessable site 
 value." It is called "assessable" to distinguish it from 
 " full " site value, on which no duties are levied. As there 
 is no time limit within which the antecedent expenditure 
 need have been made to entitle it to deduction, assessable 
 site value is perhaps not unlike what is popularly known 
 
Increment Value Duty. xlvii 
 
 as "prairie value." It may indeed be that assessable site 
 value is a minus quantity, as where the nominal value of a 
 rent charge issuing out of the land, either itself or with 
 the cost of roads, drainage or embankment exceeds the 
 selling value of the land free from that charge. 
 
 Increment value is the amount of the increase in this 
 assessable site value on a date when a claim for increment 
 value duty arises, over that value on the 30th day of 
 April, 1909 (sect. 2(1)).* Exactly the same kind of deduc- 
 tions, but brought up to date as to amount, are to be made 
 in ascertaining the site value on the later as on the earlier 
 day (ih., sub-s. (2) ). On this increment value," thus ascer- 
 tained, the duty is payable at the rate afterwards mentioned. 
 
 THE OCCASIONS WHEN THE DUTY BECOMES 
 
 DUE. 
 
 Increment Value Duty is collected on the following 
 occasions (sect. 2), i.e. : — 
 
 (1) On a transfer on sale of the fee simple of the land,t or 
 
 of any interest in the land, or the grant of a lease 
 of over fourteen years, unless the contract for the 
 sale or lease were made before the commencement of 
 the Act, i.e., the 29th April, 1910. 
 
 (2) On the death of any person dying after the com- 
 
 mencement of the Act where the fee simple of the 
 land or any interest in the land is subject to estate 
 duty on such death under the Finance Act, 1894, 
 as amended by any subsequent Act, which doubtless 
 includes the Act of 1910 itself. 
 
 * It is not overlooked that under s. 25 (4) site value on an occasion for pay- 
 ment of duty is not termed assessable site value ; but this it is thought is a 
 mere drafting provision and does not affect the substantial accuracy of the above 
 statement. 
 
 t Land includes "messuages, tenements and hereditaments, houses and 
 buildings of any tenure" (see Interpretation Act, 1889, s. 3), but does not 
 under this Act include " any incorporeal hereditament issuing or granted out of 
 the land" (s. 41). 
 
 d2 
 
xlviii 
 
 EXPLANATOKY SuMMARY. 
 
 Increment 
 value duty 
 payable in 
 respect of 
 interests 
 other than 
 fee. 
 
 (3) If the fee simple of the land or any interest in the 
 land is held by a body corporate or a body unin- 
 corporate, as defined by sect. 12 of the Customs 
 and Inland Kevenue Act, 1885, then the duty is 
 collected on the 5th April, 1914, and every subse- 
 quent fifteenth year ; but the body in question may, 
 if they so desire, pay the duty by fifteen equal yearly 
 instalments, and the first instalment is due imme- 
 diately after the assessment of the duty. (Sect. 6 
 (1). (3))- 
 
 The duty thus becomes due not only on sale, etc. , of the 
 fee simple of the land, but of "any interest in the land." 
 The expressions " fee simple " and " interest " have, how- 
 ever, a conventional meaning placed upon them. By 
 the definition clause (sect. 41) 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. By the same clause 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 of a lease, but does not amongst other 
 things include any other interest in expectancy or an 
 incumbrance as defined by the Act or a lease for a term 
 of years not exceeding fourteen years. Thus increment 
 value duty will, if increment value exists, be payable on the 
 sale of a leasehold house with a term of fourteen years and 
 a day unexpired. Whether it is so payable if the original 
 term were longer than fourteen years, but the transfer is 
 made within the last fourteen years of the term, appears 
 not quite clear. It is thought that it is so payable. It 
 is not payable on the sale of a remainder, whether expectant 
 on a life estate, or an estate for years, nor is it payable on 
 the sale of an executory interest. It is not payable on a 
 mortgage or on a transfer of mortgage. But it is payable 
 
Increment Value Duty. xlix 
 
 on the death of a tenant for life, where in such case estate 
 duty is payable in respect of the land in question. 
 
 The wording of sect. 1, fixing the occasion on which the Each interest 
 duty becomes due, is by no means clear. Is it the amount of assessed. 
 duty on the land and every interest in the land which is 
 fixed, on the transfer either of the land or of one of those 
 interests ? For example, suppose that A. is the reversioner 
 in fee simple, expectant on a lease to B., of which eighteen 
 years are unexpired, if B. sells and transfers his lease, then if 
 there is increment value B. must, of course, pay duty 
 on it, calculated on its enjoyment for a period of eighteen 
 years. In order to arrive at the amount of B.'s duty (under 
 sect. 2, sub-s. (b) )- the value of the fee simple of the land 
 at the date of the transfer of the lease has to be deduced 
 from the consideration given for the lease — perhaps a 
 somewhat difficult calculation. Having by this method 
 arrived at the value of the fee simple of the land, the 
 proper deductions as to buildings, expenditure, etc., are 
 made (by means of the complicated process of sect. 25), 
 and the site value of the fee simple on the occasion 
 appears. From this the leasehold site value for the 
 remainder of the lease may and has to be deduced, and the 
 duty calculated on it. But a serious point which has been 
 raised is whether in any way the elaborate calculation 
 which is necessary to arrive at B.'s duty also fixes the 
 amount of duty to which the fee simple in reversion will 
 at some time or other be made liable. 
 
 Notwithstanding the ambiguous language of sect. 1, 
 it is submitted that sect. 3 (2) and (3) make it clear 
 that only the interest in respect of which the occasion 
 has arisen is liable to increment value duty on that 
 occasion. The ascertainment of the value of the fee 
 under sect. 2 (2) is necessary simply in order to arrive 
 at the value of the interest which is being dealt with 
 
1 EXPLANATOKY SuMMARY. 
 
 or has passed on death. Moreover it seems reasonably 
 plain that the site value of the fee simple then ascertained 
 does not in any w^ay affect the owner of the fee simple 
 reversion when an occasion arises for the payment of 
 increment value duty in relation to that reversion, as for 
 example when it is sold, or passes upon death. When 
 that event happens a wholly new set of valuations, deduc- 
 tions, and calculations must be made for the purpose of 
 ascertaining the site value on that occasion, and these 
 of course may, even allowing for changed circumstances, 
 differ widely from those made on the former occasion. 
 
 No doubt curious results may occur if this view is 
 correct. Increment value duty may be due on the devolution 
 of a short leasehold interest, and yet not be due on the 
 devolution a few years later of the fee simple of the 
 same land ; or vice versa. 
 
 It further seems clear that on the grant of a lease of over 
 fourteen years the grantor, whether he himself is a free- 
 holder or a leaseholder, will pay duty only on the incre- 
 ment apportionable to the term created (sect. 3 (3) ). 
 
 Since the first edition of this work was published the 
 Commissioners of Inland Revenue have issued the "Regula- 
 tions " or " Rules " for the collection of increment value 
 duty under the powers conferred upon them by sect. 3 (2) 
 and (3) (see post, p. 53), which are in accordance with the 
 views expressed in the foregoing pages. 
 
 THE AMOUNT OF THE DUTY. 
 
 The duty is at the rate of One Pound for every full 
 Five Pounds of the increment value of the site accruing 
 after the 30th day of April, 1909 (sect. 1). 
 
Increment Value Duty. li 
 
 THE FIXING OF OEIGINAL SITE VALUE. 
 
 Increment value, as we have seen (p. xliv), is the amount 
 of the increase in site value on a date when a claim for 
 increment value duty may arise over that value on the 
 30th April, 1909. This site value on the 30th April, 1909, 
 is the original site value. It is ascertained in the following 
 manner. 
 
 The Commissioners of Inland Kevenue are, as soon as a universal 
 may be after the passing of the Act, to cause all the land ^^ ^^^ '^°' 
 in the United Kingdom to be valued. This valuation is to 
 be of agricultural as well as of urban land. The " total 
 value " and the " site value " (both of which phrases have 
 a technical meaning under the Act) of each piece of land 
 are to be separately shown ; and in the case of land used 
 in agriculture, the value of the land for agricultural 
 purposes, where that value is different from the site value. 
 
 The unit of valuation is separate occupation, but an unit of 
 
 , c- 1 1 1 • 1 • 1 valuation. 
 
 owner can- requn-e any part or any land which is under 
 separate occupation to be valued separately. Under the 
 Revenue Act, 1911, sect. 5, he has a very limited power of 
 requiring properties under different occupations to be valued 
 as a single property. For the forms and instructions as to 
 answering the same issued by the Commissioners under the 
 powers of sect. 26, see Appendix, pp. 500 to 518. The value 
 is to be estimated as on the 30th day of April, 1909 (sect. 
 
 26(1)). 
 
 Owners and "any person receiving rent in respect of any Returns hy 
 land " are obliged, if required, to furnish full particulars to 
 the Commissioners of all matters within their knowledge 
 relating to the land (^ih., sub-s. (2) ) (see Dijson v. Attorney- 
 General, [1911] 1 K. B. 410, W. N. 231, and note thereon in 
 Appendix, at p. 510). An ownel'may, if he pleases, furnish 
 to the Commissioners his own estimate of either total or 
 
lii 
 
 Explanatory Summary. 
 
 Objections. 
 
 Object of 
 valuation 
 section. 
 
 site value, or both ; and the Commissioners in making 
 their valuation are bound to consider the estimate so 
 furnished by the owner (ib., sub-s. (3) ). 
 
 Provisions are contained in the Act securing, not only to 
 the owner but to all persons interested (a phrase the exact 
 meaning of which is perhaps doubtful, but under which the 
 authorities in practice include mortgagees), the right of 
 objecting to the Commissioners' valuation, and of appealing 
 from it, in the first instance to a practical surveyor or land 
 agent known as a Beferee, and in the second from the Referee 
 to the High Court. 
 
 In this manner the original site value is fixed. It would 
 unnecessarily encumber this Introduction if an attempt were 
 made in this place to analyse closely the provisions of sect. 25 
 under which assessable site value is defined or explained. 
 
 It is sufficient for this Introduction to state that the 
 various valuations there directed to be made are intended 
 first to ascertain the total or real selling value of the 
 hereditament free from incumbrances in the open market, 
 and when that has been done to ascertain the amount 
 of value which has been added to the naked or cleared site 
 by the buildings and by all other expenditure, except 
 expenditure adding only agricultural value. The value 
 added to the site by all such buildings and expenditure 
 (which may be termed the non-site value of the property) is 
 then deducted from the total or selling value of the property, 
 and the result is the original assessable site value. It is 
 important to note that the value of the total hereditament 
 is not the value of the site plus the value of or amount spent 
 upon the buildings and improvements, but is the value of 
 the site plus the value added to that site by the buildings 
 and improvements. Original site value having thus been 
 fixed and recorded in the Domesday books of the Com- 
 missioners, the problem next to be considered is : 
 
Increment Value Duty. liii 
 
 THE FIXING OF SITE VALUE ON THE OCCASIONS 
 ON WHICH THE DUTY IS COLLECTED. 
 
 The method of ascertaiDing site values varies accord- 
 ing to the occasion on which the duty becomes due.* 
 Roughly speaking, the method of the Act is to ascer- 
 tain, as laid down in the Act, the value of "the land," 
 i.e., the total hereditament, including buildings and 
 improvements on the land, and to deduct from this value 
 the value attributable to the various matters presently 
 mentioned, all of them being matters of the nature just 
 referred to as creating or contributing to the non-site value 
 of the property. Where the occasion of the payment of Value on sale, 
 duty is the sale of the fee simple of the land, the value of 
 the total hereditament is taken to be the value of the con- 
 sideration for that sale. Where the occasion is the grant Vaiueon lease, 
 of any lease of the land or the transfer on sale of any 
 interest in the land, such as a leasehold, in, or the 
 reversion expectant on a lease of, the land, the value of 
 the total hereditament is taken to be the value of the fee 
 simple of the land, calculated on the basis of the value of 
 the consideration for the grant of the lease or the transfer 
 of the interest (sect. 2 (2) (a) and (h) ). In this case 
 it is possible, without in the least straining probabilities, 
 to imagine cases in which the consideration for the grant of 
 a lease for fifteen years, or the sale of a reversion which 
 will fall into possession in fifty years, would not be an appro- 
 priate basis upon which to calculate the value of the fee. 
 Where the occasion is death — and the fee simple is On death, 
 property passing on death — the value of the total here- 
 ditament is taken to be the principal value of the land, as 
 ascertained for the purposes of Part I. of the Finance 
 Act, 1894, and there is a corresponding provision as to the 
 
 * See p. xlvii for the statement of the occasions on which increment value duty 
 is payable. 
 
Uv 
 
 Explanatory Summary. 
 
 On a 
 
 periodical 
 
 occasion. 
 
 The deduc- 
 tions on the 
 occasion. 
 
 General pro- 
 visions as to 
 valuation. 
 
 valuation of interests in land so passing (ih. (c)). Where the 
 occasion is a periodical occasion on which the duty is due in 
 respect of land held by a body corporate or unincorporate, 
 as defined by sect. 12 of the Customs and Inland Revenue 
 Act, 1885, the value of the total hereditament is taken to 
 be the value of the fee simple of the land, as ascertained 
 under the general valuation clauses of the Act of 1910 
 
 {ib.{d)) 
 
 The value on the " occasion " of the total hereditament 
 having by one or other of these diverse methods been fixed, 
 there must, in order to arrive at the site value on that 
 occasion, be deducted from that value so fixed the value of 
 everything which, in the purview of the Act, is not an 
 element of site value. This is expressed in the Act by 
 the direction to make the like deductions from the value of 
 the total hereditament, as ascertained by one of the methods 
 just mentioned, as are made under the general provisions of 
 Part I. (imposing the new land taxes) as to valuation, for the 
 purpose of arriving at the site value of land from the total 
 value (sect. 2 (2) ). 
 
 The general provisions of the Act as to valuation thus 
 referred to are those contained mainly in sect. 25, but also 
 in the succeeding sections up to and including sect. 32, and 
 have already been briefly referred to on p. xxxiii. The 
 provisions of sect. 25 are applicable in their entirety to the 
 original valuation. They are also applicable to the ascer- 
 tainment of site value on an occasion for payment of 
 increment value duty, with the single exception that instead 
 of a direct valuation of the " total value " of the land under 
 sect. 25 (3), that total value is taken to be, or to be repre- 
 sented by, the value of the property as ascertained in one 
 of the several ways just referred to and expressed in 
 sect. 2 (2). They are of an involved nature. In this 
 Introduction it is thought better to state what is believed 
 
Increment Value Duty. Iv 
 
 to be their real effect in a rough, but it is hoped, a correct 
 manner, rather than to encumber what is intended to be a 
 plain and practical statement of outlines with too much 
 detail. 
 
 The total value of land is the amount which the fee Total value. 
 simple might be expected to realise if sold at the time in 
 the open market, in its actual condition, free from incum- 
 brances, but subject (a) to any rent-charges and other similar 
 burdens or charges called in the Act " fixed charges " ; (h) to 
 any public rights of way and user ; (c) to any rights of com- 
 mon, and easements ; and (d) to any restrictive covenants 
 entered into before the 30th April, 1909, or with certain 
 restrictions after that date (sect. 25 (1) and (3) ). The 
 " total value " of the property within the meaning of the Act 
 corresponds, as will be seen, very nearly if not entirely with 
 the "value " of the property, as the word would be used by 
 the man in the street. That which is valued to arrive at 
 total value is not a hypothetical but a real thing, with all 
 its legal incidents, and such as people actually buy and sell ; 
 although it must be admitted that sect. 25 does not state 
 this as plainly as it might. 
 
 From the " total value " of the property as thus ascer- Deductions 
 tained certain deductions are to be made under sect. 25 (4) site value. 
 for the purpose of arriving at site value. They are (1) the (i) Non-site 
 difference between the total value just arrived at, and the 
 value which the unincumbered fee simple of the same 
 property might be expected to realise, if sold at the time in 
 the open market, as a cleared site, or in the words of 
 sect. 25 (2) as divested of any buildings, and of any other 
 structures, or machinery, on, in, or under the surface, appur- 
 tenant to, or used in connection with, any such buildings, 
 and of all growing timber, fruit trees, fruit bushes, and other 
 things growing thereon, free from incumbrances,* but subject 
 
 * This is understood to be the case, though not expressed in s. 25 (2). 
 
Ivi 
 
 Explanatory Summary. 
 
 to the same matters a, h, c, and d referred to on p. Iv, as 
 deductions from total value. This difference thus deducted 
 is the value added to the site by the buildings, structures, 
 machinery, timber, produce, etc., which are actually in, on, 
 or under the land. In other words it is the non-site value 
 of the property which must necessarily be deducted from the 
 value of the property as a whole in order to arrive at the 
 cleared site value. The anomaly of the definition (for which, 
 however, there is a reason) is that the result (the cleared 
 site value) is necessarily ascertained before the process 
 the object of which is to obtain that result is set in motion.* 
 
 (2)^E^pe°^i- (2) Any part of the total value directly attributable to 
 works or expenditure of a capital nature (including expenses 
 of advertisement), incurred for the purpose of improving 
 the value of the land as building land, or for the purpose 
 of any business, trade, or industry, other than agriculture. 
 This deduction of course represents value created by 
 expenditure other than that which has been the subject of 
 deduction under (1). It is expenditure on or in relation 
 to the cleared site, and not on or in relation to anything 
 (buildings or produce) on that site. (3) Any part of the 
 total value directly attributable to the appropriation or 
 gift of any land for the purpose of streets, roads, squares, 
 gardens, or other open spaces for the use of the public. 
 Cinder this clause the various garden city and similar 
 undertakings will be able to avoid taxation on an increment 
 created at their own cost. (4) Any part of the total value 
 directly attributable to money spent on redeeming the land 
 tax or any fixed charge, or enfranchising copyholds, or 
 
 (5) Goodwill, effecting the release of restrictive covenants. (5) Any part 
 of the total value directly attributable to goodwill, | or 
 
 * This is perhaps not quite an unimpeachable statement of the effect of s. 25. 
 The difference referred to in the text might conceivably not be exactly the same 
 as the difference referred to in s. 25 (2) and (4) (a). 
 
 t The question of deductions for goodwill is one of some difficulty (see notes 
 on pp. 276 and 295). 
 
 (3) Open 
 spaces. 
 
 (4) Redemp- 
 tion of fixed 
 charges, etc. 
 
Increment Value Duty. Ivii 
 
 any other matter personal to the owner, occupier, or other 
 person interested for the time being in the land. This 
 deduction will, though it is not perhaps quite certain, 
 secure an owner who has carried on a successful business, 
 and the site value of whose premises has thereby been 
 increased, from being charged on so much of the incre- 
 ment as is attributable to his personal exertions and 
 ability. (6) Any sums necessary to expend in order to (<>) Cost of 
 
 . . . . clearing. 
 
 divest the land of buildings, timber, trees, or other things 
 of which it would be necessary to divest the land for the 
 purpose of realising the full site value (sect. 25 (4) ). 
 This deduction is applicable in cases where the materials of 
 old buildings, or where growth, which would have to be 
 removed before the site could be fully utilised, have no sale- 
 able value, and the owner would have to pay for the removal. *g 
 If a person would cart away the materials or produce for 
 the gift of them, no deduction could be claimed. 
 
 It will be observed that what is to be deducted is not the Amount of 
 amount of the expenditure referred to, but the value added 
 to the site by that expenditure ; so that the expenditure 
 of 1,000/. may result in a deduction of more or less than 
 that sum. A sea wall may add fifty times its cost to the 
 value of the land which it protects. Without it the land 
 might be worth nothing and the site value be zero. 
 
 Further, the value added by the same expenditure may 
 be different in amount on different occasions when a valua- 
 tion is made for the purposes of the Act. 
 
 When these deductions have been made from total value 
 the entity called " assessable site value " is reached. 
 
 In describing the process by which " assessable site value" Gross value 
 is fixed all reference to the two elements of " gross value " value. 
 and " full site value " has been designedly omitted (sect. 25). 
 That has been done for the purpose of simplicity of 
 explanation only. In the view of the writer, which of 
 
Iv 
 
 1^111 
 
 Explanatory Summary. 
 
 Some deduc- 
 tions on 
 occasions as 
 on original 
 valuation. 
 
 course may be mistaken, the subject has not been simplified 
 by the introduction on the Report stage in the House of 
 Commons of these two elements. It may be admitted 
 that the new elements have an effect in tempering the tax 
 to the realised benefits (see p. 308). The result neverthe- 
 less is a scheme too complicated and subtle for the under- 
 standing of the common man whose property is subject to 
 its operation. Gross value is simply " total value " without 
 any allowance or deduction for such of the elements 
 a, h, c, and d, referred to on p. Iv, as in fact affect or 
 depress the value of the property. Full site value is simply 
 " assessable site value" without any deduction either for the 
 same elements, or for value added to the site under the 
 heads (2) to (6) inclusive set out on pp. Ivi to Ivii, although 
 the value of the cleared site may have been enhanced by one 
 of the matters therein referred to.* For reasons explained 
 in the notes to sect. 25, in the body of the work, the words 
 "willing seller" in sect. 25 (1) and (2) have been treated 
 as not affecting the question of value. 
 
 The deductions above referred to which are made from 
 the total value of the land as part of the original valuation 
 under sect. 26, the result of which is the fixing of original 
 assessable site value, are also made on an occasion of pay- 
 ment of increment value duty from the value of the land as 
 ascertained under the rules referred to on p. liii (sect. 2) 
 for the purpose of fixing the site value on that occasion. 
 Of course on an " occasion " there may be deductions 
 claimable in addition to those allowed either on the original 
 site valuation or on a former "occasion." Expenditure on 
 or in relation to the land of the nature referred to may have 
 been made since the original valuation or the former pay- 
 ment of duty. Even if a deduction is not claimed on an 
 occasion when it was claimable, it may still be claimed on a 
 
 * The deduction under head No. (1) being the value of the non-site element 
 is necessarily made from " gi'oss value " in order to arrive at " full site value." 
 
Increment Value Duty. lix 
 
 later occasion, but subject to this important limitation, that 
 if the deduction is one which could have been, but was not, 
 claimed on the original site valuation, it may never be 
 claimed for the purpose of ascertaining the site value of the 
 land on any occasion- on which increment value duty 
 becomes payable (sect. 12). It is of course obvious that if 
 this were not the case owners would be tempted to keep back 
 claims for deductions in respect of expenditure made pre- 
 viously to the 30th of April, 1909, for the purpose of counter 
 balancing the natural increment of the land. No such corre- 
 sponding rule is made to apply to undeveloped land duty. 
 That duty is levied on the results of a quinquennial valuation. 
 The site value on the " occasion" on which the duty is to 
 be collected having been ascertained in manner pointed out, 
 the amount of the original site value is deducted from it, and 
 the balance is increment value, on which the duty is levied 
 (sect. 2 (1)). 
 
 THE LIABILITY OF INCREMENT VALUE TO 
 
 DUTY. 
 
 Increment value is not liable to duty unless it accrued 
 after the 30th April, 1909 (sect. 1). 
 
 By a sub-section (sect. 3 (5)), which is not altogether The lo per 
 
 • 1 Tr»- 1 • • • 1 T 1 1 cent, allow- 
 
 without dimculties, it is believed to be enacted as follows : — ance. 
 
 Unless the increment value, on the first occasion after the 
 passing of the Act, when an event happens on which 
 increment value duty can be claimed under the Act, 
 exceeds 10 per cent, of the original site value, no duty is 
 payable. If on such first occasion the increment value 
 exceeds 10 per cent, of the original site value, duty must 
 only be paid on the increment value which remains after 
 deducting therefrom 10 per cent, of the original site value. 
 If on a second or any subsequent occasion there is incre- 
 ment value, but such increment value does not exceed 
 10 per cent, of the site value on the last occasion when 
 
Ix Explanatory Summary. 
 
 increment value duty became collectable under the Act, 
 no duty is payable ; and if on such second or subsequent 
 occasion the increment value exceeds 10 per cent, of the 
 site value on the last occasion on which increment value 
 duty became collectable, duty must be paid on this the 
 latest increment value, subject to a deduction therefrom 
 of 10 per cent, of the last site value. But no deduction 
 is to be made which will cause the total amount of the 
 deductions in this respect during the last five years to 
 exceed 25 per cent, of the site value of the land on the last 
 occasion for the collection of increment value duty before 
 that period of five years ; or if there has been no such 
 occasion, 25 per cent, of the original site value. Roughly 
 speaking, this means that the owner of land has a site 
 value margin of 10 per cent, on which he pays no duty, a 
 margin intended to cover any expenses to which he may be 
 put by the Act, and also the contingencies of mistakes in 
 estimating increment values. 
 
 Increment value duty is not payable on any future rise 
 in a site value unless such rise makes the site value greater 
 than the original site value on 30th April, 1909. Thus, 
 suppose the site value of Blackacre is 1,000/. on 30th April, 
 1909 ; is 800/. on 30th April, 1912, on the occasion of a sale 
 of Blackacre ; and again is valued on the death of the pur- 
 chaser on 30th April, 1915, at 999/. Increment value duty 
 is not payable, although since the last "occasion " there has 
 been a rise in site value to the extent of 199/. (sect. 2 (1) ). 
 
 BELIEF FOB OWNEBS OF SITES DEPBECIATED 
 ON 30th APBIL, 1909. 
 
 On the date referred to many site values were worth 
 less than they had been at some previous time. It is the 
 interest of owners of site values that their site value on 
 the 30th April, 1909, should be a high one on the register, 
 
Increment Value Duty. Ixi 
 
 so far as increment value duty is concerned. The higher the 
 value on that day, the less the future increment value and 
 the duty on such value will be. To some extent the case 
 of owners of depreciated site values was met by sect. 2 (3) 
 of the Act of 1910. Where it is proved that the site value 
 of any land at the time of a transfer on sale or mortgage 
 of that land, or of any interest in the land made within 
 twenty years before the 30th April, 1909, exceeded the 
 original site value of the land on the 30th April, 1909, the 
 former site value is, on an application, to be substituted for 
 the latter for the purposes of increment value duty 
 (sect. 2 (3) ). It is to be noted that the fact giving rise to 
 the relief is not purchase or mortgage by the owner or 
 person seeking the relief, but apparently any transfer on 
 sale, or mortgage made by the present owner or his 
 predecessors in title within the period. It is further to be 
 noted that the grant of a lease of the land within twenty 
 years before the 30th April, 1909, is not a circumstance 
 which will give rise to the claim for relief, though very 
 curiously the transfer on sale of such a lease will enable the 
 claim to be made. Lastly, it is to be noted that an appli- 
 cation for the relief afforded by the sub-section must be 
 made within three months after the original site value has 
 been finally settled. The limitation of the right of substitu- Amendment 
 
 . by Revenue 
 
 tion to a period of twenty years antecedent to the Act, i9ii. 
 30th April, 1909, has now by sect. 2 of the Revenue Act, 
 1911 (1 Geo. 5, c. 2), been removed, so far as transfers on 
 sale (but qucere as to mortgages) to existing owners are 
 concerned. Persons desiring to avail themselves of this sec- 
 tion must have applied, if their original site value was finally 
 settled before the passing of the Act, within three months 
 from the 31st March in the present year. (1911). If their 
 original site value was not so settled, they must apply within 
 the three months above referred to (see pos^, p. 46). 
 
 N. e 
 
Ixii Explanatory Summary. 
 
 ALTERATIONS OF ORIGINAL SITE VALUES. 
 
 The method of fixing original site value has been 
 considered (see p. li). On the original valuation, each 
 piece of land which is under separate occupation, and if 
 the owner so requires, any part of any land which is under 
 separate occupation, is to be separately valued (sect. 26 (1) ). 
 When an owner sells in the future the whole of a piece of 
 land thus separately valued, no difficulty arises as to the 
 amount of the original site value. The original site value is 
 recorded on the register. The site value on " the occasion " 
 is ascertained as previously described (p. liii). The excess of 
 the latter over the former is the increment value, on which, 
 subject to the 10 per cent, deduction, duty is paid. 
 Illustration Let US now take a more complicated case. Suppose that 
 
 ment. Blackacro, the original site value of which is ascertained as 
 
 a whole as on 30th April, 1909, is at that time a large field, 
 just coming into the market as building land. What is the 
 position in the year 1912, when the estate is well within 
 that categoiy, and is " ripe," as it is phrased? (1) A portion 
 (A) fronts a main road, is suitable for shop plots, and is 
 worth 8Z. a foot frontage ; (2) another portion (B) is best 
 developed as a side street for small houses, and naturally 
 fetches a lower price, say 5/. a foot frontage ; and (3) the 
 remaining portion (C) is land on a slope or in a valley, which 
 must be levelled or filled up before it is possible to build 
 upon it, and even then cannot be utilised tor building under 
 local bye-laws for, may be, ten years. / When the owner sells 
 a plot, or part, of the land in either of the categories A or C 
 referred to, and has to pay increment value duty, either {a) the 
 owner or (&) the Commissioners will not be content with 
 spreading the original site value of Blackacre equally over 
 the whole of the original Blackacre. If land in category 
 A is sold, the owner would object to the averaging of the 
 original site value, because it would tend in this case to 
 
Increment Value Duty. Ixiii 
 
 increase the increment value. He would wish the original 
 site value to be as high as possible. If land in category C 
 is sold, the Commissioners would object to the averaging 
 of the original site value, because it would tend to lessen 
 the increment value. They would wish the original site 
 value to be as low as possible. In order to meet the 
 difficulty thus arising, it is provided that the Commis- 
 sioners shall make such apportionments and re-apportion- 
 ments of original site value, or any site value fixed on a 
 periodical occasion, as they consider necessary for the 
 purpose of the collection or assessment of increment value 
 duty, or undeveloped land duty, or which they may be 
 required to make on the application of any person entitled 
 to the fee simple of any land, or to an interest in any land 
 (sect. 29 (1) ) ; and further that any duty may be assessed 
 on or in respect of any such pieces of land, whether under 
 separate occupation or not, as the Commissioners think fit 
 (sect. 29 (1)). 
 
 In the case referred to the Commissioners will first 
 apportion the original site value amongst the various 
 categories A, B, and C, under sect. 29 (2), and will then 
 assess the duty on the occasion under sub-s. (1) on the piece 
 as to which the occasion has arisen. 
 
 It further appears from sect. 29 (2), just referred to, that Owner may 
 an owner need not wait until an occasion has arisen on which appoHion- 
 increment value duty has become due to obtain an apportion- S..^ ^°^ 
 ment of that original site value on the various portions of 
 his land. He may, at any time, himself require the Com- 
 missioners to make an apportionment, and apparently will 
 not have to bear any of the Commissioners' expenses in 
 relation to such apportionment. But, of course, every such 
 apportionment is an occasion when disagreement may arise 
 between owner and Commissioners, which may result in the 
 former having to incur the costs of professional advice and 
 
 e 2 
 
Ixiv Explanatory Summary. 
 
 assistance. It does not, however, appear that there is any 
 power in the Commissioners so to apportion or re-apportion 
 the original site value as to alter the aggregate amount 
 of the original site value of the whole plot. All that they 
 can do is to fix, or vaiy, the proportions in which that 
 aggregate rests on the particular portions of the plot in 
 question. Once the original site value of a given area has 
 been fixed, that area, however it may be afterwards 
 divided, is, it is thought, for ever, as an aggregate, stamped 
 with that original site value. The importance, therefore, 
 of obtaining in the first instance an accurate original site 
 value cannot be exaggerated. 
 
 THE UNIT OF TAXATION. 
 
 From the foregoing paragraphs two things will have 
 become plain. First, that the original unit of valuation 
 (which is separate occupation unless an owner has required 
 property in a single occupation to be valued in portions, and 
 except in cases falling within sect. 5 of the Revenue Act, 
 1911 (1 Geo. 5, c. 2) ) is not necessarily the unit in respect 
 of which increment value duty may ever be assessed ; and, 
 secondly, that the unit in respect of which the duty will be 
 assessed is to be fixed (subject, of course, to appeal) by the 
 Commissioners. No rules or principles are laid down for 
 their direction or guidance in this task. Doubtless in 
 ninety-nine cases out of one hundred the proper unit of 
 taxation will be unmistakably fixed by the physical con- 
 dition of the property, and a splitting up of that unit will 
 be either practically impossible, or wholly immaterial in its 
 effect upon the yield of the tax. When a house is sold, it 
 is clear that only one unit of taxation is possible. But in 
 the hundredth case the revenue may benefit by the adoption 
 of one unit of taxation rather than of another ; and these 
 are the cases which will give rise to controversy. Roughly 
 
Increment Yalue Duty. Ixv 
 
 speaking, it may be said that small units of assessment are 
 likely to benefit the Crown, and large units the subject. 
 The increment of one portion of an estate may be reduced 
 by the decrement of another. The low capital value of one 
 portion of the property may reduce the average value of 
 the whole to a sum below the 501. per acre which is the limit 
 of the undeveloped land duty (sect. 17 (2)).* The valua- 
 tion of minerals as a separate parcel of land (sect. 23 (2) ) 
 may have the effect of subjecting the owner to increment 
 value duty on a sale of the minerals while giving him no 
 compensation for any decrement to the surface necessarily 
 accompanying mining operations. Of course an owner may 
 desire to sell or lease a small portion, which has not incre- 
 mented, of a large estate which, taken as a whole, has 
 incremented. In that case he will require apportionment 
 of site value under sect. 29 (2), and the Commissioners 
 must make such apportionment. If an owner is selling or 
 leasing land the subject of original valuation as a whole, 
 part of which has incremented and part of which has decre- 
 mented, it seems that the Commissioners have the power to 
 apportion the original site value and the consideration, and 
 then to assess the duty on each part separately, leaving the 
 owner to pay his duty on the incremented land and bear his 
 loss on the decremented land. It is, however, impossible 
 to believe that an arbitrary assessment of this kind would 
 either be attempted by the Commissioners or allowed by the 
 High Court on an appeal. Limits will no doubt be laid 
 down in practice, on the one hand, as to the splitting up of 
 land for taxation by the Commissioners, and, on the other, 
 as to the rights or privileges of owners to treat adja.cent or, 
 adopting the language of sect. 5 of the Revenue Act, 1911, 
 "contiguous" land, acquired in separate pieces as a single 
 
 * As to this it must, however, be noted that a large unit of taxation may tend 
 to increase the aggregate capital value of the land and its liability to undeveloped 
 land duty. 
 
Ixvi 
 
 Explanatory Summary. 
 
 unit. It is not conceived that the laying down of such 
 limits will present problems of greater difficulty than are 
 daily decided by the Courts. 
 
 Duty mast 
 often be 
 apportioned. 
 
 The rules as 
 to apportion- 
 meiit. 
 
 GENERAL PEOVISIONS AS TO THE COLLECTION 
 OF INCREMENT VALUE DUTY. 
 
 The Commissioners are to collect the duty on the 
 occasions on which it is due. For that purpose they are 
 to make such apportionments and re-apportionments of 
 duty paid on previous occasions as are necessary to enable 
 them to ascertain the duty then due (sect. 3 (1)). It 
 is clear that just as original site value must be appor- 
 tioned on the cutting up by sale, lease, or devolution 
 of the piece of land originally valued as an aggregate, so 
 must previous payments of duty in respect of that piece 
 as a whole be apportioned amongst the various portions 
 into which it has been divided. Under the scheme of the 
 Act the duty is levied on the difference between the 
 original site value and the site value on each occasion on 
 which it is collected. That duty must be paid on each such 
 occasion, except in so far as it has already been paid, or is 
 deemed to have been paid, under one of the various sections 
 of the Act (sect. 1). Hence it is essential that on the division 
 of a piece of land the duty already paid on that land as an 
 aggregate should be divided amongst its separated portions. 
 
 The amount of the duty payable on any occasion is, 
 subject to appeal, determined by the Commissioners, and 
 is to be collected by them in accordance with rules made 
 by them for the purpose (sect. 3). 
 
 The Rules made by the Commissioners under the section 
 referred to will be found in the text (p. 53). From these 
 it appears that the theory upon which the Commissioners 
 have proceeded is to consider the duty, that is one fifth 
 
Increment Value Duty. Ixvii 
 
 part of the difference between the original site value and the 
 site value on the particular occasion for collection of the duty, 
 as payable in respect of the fee simple of the land. From this 
 sum the duty paid on previous occasions, which comprises 
 duty deemed to have been paid under one or other of the 
 various sections of the Act under which duty is to be deemed 
 to have been paid, is to be deducted. The balance is the 
 duty then unsatisfied. If the occasion for payment of the 
 duty is one which affects the fee simple in the conventional 
 meaning of that phrase assigned to it by sect. 41, i.e., the 
 fee simple in possession not subject to any lease, and not 
 being simply an undivided share in a fee simple in 
 possession, the whole amount of the unsatisfied duty is to be 
 paid (see rule 2 (1) and (2), pp. 57 and 58) ). It is of course 
 quite clear that such an assessment is correct. The whole 
 interest in the property is in one hand, and that hand must 
 pay the whole duty. If on the other hand the occasion is 
 one which affects an " interest " (as explained by sect. 41) 
 in the land, such as a reversion expectant upon a term of 
 years, or a leasehold interest, or an undivided share in fee 
 simple, the calculation is one of greater complexity. The 
 theory upon which Kule 3 (see p. 58) appears to be based 
 is that each of the separate interests shall pay a sliding 
 proportion of the increment value duty from time to time 
 becoming due. As a term of years diminishes in length, the 
 proportion of the unsatisfied duty, which it pays on sale, 
 lease, or passing on death, diminishes in exact pro- 
 portion to the diminished duration of the term. In the 
 case of the reversion expectant upon that term a converse 
 process is going on. By an ingenious arrangement pay- 
 ments of duty are, at all events in the first instance, confined 
 to the franking of the interest in respect of which they are 
 made (see rule 3). The rules are difficult to understand in 
 more than one particular, and an explanatory pamphlet. 
 
Ixviii 
 
 Explanatory Summary. 
 
 To be col- 
 lected as a 
 stamp duty. 
 
 The three 
 alternative 
 
 with practical illustrations, to be issued by the Cora- 
 missioners, is almost a necessity of the future. 
 
 Increment Value Duty is a Stamp Duty (sect. 3 (6) ). 
 
 COLLECTION AND EECOVEEY ON TRANSFEES 
 ON SALE AND ON LEASE. 
 
 In these cases the duty is to be collected on the 
 instrument by means of which the transfer or lease is 
 effected, or agreed to be effected, and is to be paid by 
 the transferor or lessor as the case may be (sect. 4 (1)). 
 
 It is the duty of the transferor or lessor, enforced by 
 penalties under the section, to present to the Commissioners, 
 in accordance with regulations made by them, either the 
 instrument intended to be stamped or reasonable par- 
 ticulars thereof for the purpose of the assessment of duty 
 thereon. It is thought that, in addition to the option to 
 present reasonable particulars, sect. 4 (2) gives the trans- 
 feror or lessor an option to present for assessment either the 
 agreement for the transfer on sale or the lease, or the 
 document, i.e., the conveyance or lease, carrying out such 
 agreement. The Commissioners, however, while willing, as 
 a matter of grace, to allow this option in the case of a 
 transfer on sale, require by regulation any agreement for 
 a lease or particulars of such agreement to be presented for 
 stamping (see Regulations under sect. 4, Appendix, p. 489 
 (No. 7), and comment thereon, p. 494). 
 
 The instrument by which the transfer or lease is effected, or 
 agreed to be effected, is not to be deemed to be duly stamped, 
 so as to be admissible in evidence, 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 
 
 (h) with a stamp denoting that aU particulars have been 
 delivered to the Commissioners which, in their 
 
Increment Value Duty. Ixix 
 
 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 is, notwith- 
 standing any objection relating to the increment value duty, 
 to be deemed to be duly stamped so far as respects that 
 duty (sect. 4 (3) ). 
 
 The increment value duty stamp is thus assimilated to the Comparison 
 
 ,. ,, , Ti'pji between ad 
 
 ordmary ad valorem stamp as a necessary condition oi the valorem and 
 admission in evidence of a document. But there is this value duty 
 possible distinction between the consequences of the coiaveyances 
 omission to get the increment value duty stamp placed on 
 the document and the omission to get the ad valorem stamp 
 placed upon it : that in the latter case, by paying the 
 amount of the unpaid duty, the penalty, and a further 1/., 
 the document may be admitted at the trial at which it is 
 objected to for defect of stamping (see sect. 14 of the Stamp 
 Act, 1891), while in the former (the omission of the incre- 
 ment value duty) it is doubtful whether the document can 
 be admitted at all at the trial in question, first because it 
 may be that as a matter of law the provisions of sect. 14 
 just referred to do not cover the increment value duty 
 stamps under sect. 4 (3) of the Act of 1910, and, secondly, 
 because as a matter of fact it is impossible to go through 
 the complicated process of assessing the duty at the trial, a 
 process which requires valuations as well as calculations. 
 No doubt, as a matter of practice, deeds defective as to 
 stamping are admitted in evidence on the undertaking of a 
 solicitor to pay the duty and penalties, and it may be said 
 that the same could be done in relation to the increment 
 
Ixx 
 
 Explanatory Summary. 
 
 A second 
 difierence. 
 
 Increment 
 
 value duty 
 is a debt due 
 from trans- 
 feror. 
 
 value duty stamps. The acceptance of the undertaking in 
 lieu of payment is, however, simply to economise the time of 
 the Court. If it were necessary, the Court could usually 
 determine the amount of the ad valorem stamp to be placed on 
 a deed, but it is not likely that the Legislature ever contem- 
 plated that the Courts could or would determine the amount 
 of increment value duty payable on a sale which may have 
 taken place years before the trial. For these reasons the 
 omission to get placed on a conveyance or lease one of the 
 three stamps referred to on p. Ixviii is even more dangerous 
 than the omission to stamp such a conveyance with its 
 proper ad valorem duty. 
 
 It seems, however, to be clear that the deed can be 
 stamped at any time after execution by the Commissioners 
 under the provisions of sect. 4 (2) of the Act of 1910, as 
 well as under sect. 15 of the Stamp Act, 1891. 
 
 A second point of difference between the effect of the 
 ordinary ad valorem stamp on a conveyance or lease and an 
 increment value duty stamp is that the sufficiency of the 
 former stamp (unless accompanied by a denoting stamp 
 under sect. 12 (4) of the Stamp Act, 1891) is a matter of 
 which the Court must under sect. 14 of the Stamp Act 
 take notice, while the presence on the conveyance or lease 
 of one of the stamps referred to in sect. 4 (3) is under that 
 sub-section conclusive upon the Court that the instrument 
 is duly stamped so far as respects the increment value duty. 
 
 Any duty assessed by the Commissioners is to be a debt 
 due to the Crown from the transferor or lessor, as the case 
 may be, and for the purpose of calculating the amount of 
 increment value duty due on any subsequent occasion is to 
 be deemed to have been paid {ib., sub-s. (4) ). It seems, 
 therefore, that increment value duty, arising on the occasion 
 of a sale, or lease, is not a charge on the land so as to be 
 capable of being enforced against the land, in the hands of 
 
Inceement Value Duty. Ixxi 
 
 a purchaser or lessee, even with notice that the duty has 
 not been paid. It is no more a charge on the land than 
 the ordinary ad valorem transfer duty. 
 
 Sect. 1 of the Eevenue Act, 1911 (1 Geo. 5, c. 2), 
 invalidates all contracts entered into after the 3 1st March, 
 1911, for payment of increment value duty by the transferee 
 or lessee, including (so it seems) contracts indirectly designed 
 to effect that object. 
 
 Conveyances or leases of purely agricultural land as to 
 which there is no suspicion of taxable increment value must 
 nevertheless be stamped in accordance with (c).* 
 
 The Commissioners may make regulations | with respect Regulations 
 
 , , 1 1 • I • 1 • , 1 1 1 1 to be made as 
 
 to the mode m which any instrument executed on a sale to stamping, 
 or lease is to be presented to them in order to be stamped, 
 and also for the payment of any increment value duty by 
 instalments in the case of any lease or transfer on sale 
 where the consideration is in the form of a periodical 
 payment, and the Commissioners are to deal with any 
 instrument presented to them and to allow payment by 
 instalments in accordance with those regulations. The 
 regulations are to provide that where the duty due 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 are to be remitted, and 
 that in that case the amount of duty which is deemed to 
 have been paid is to be reduced by the amount of the 
 instalments so remitted (ih., sub-s. (5) ).% 
 
 In any case where increment duty has been paid on the 
 occasion of a proposed transfer on sale or lease, but the 
 transaction in respect of which the duty shall have been paid 
 is subsequently not carried into execution, the duty is to be 
 returned to the transferor or lessor on his making application 
 to the Commissioners within two years in accordance with 
 
 * See Eegulation 10 (p. 490). t See Eegulations 1 to 13 (p. 487). 
 
 t See Eegulation 16 (p. 491). 
 
Ixxii 
 
 Explanatory Summary. 
 
 Apportion- 
 ments. 
 
 regulations to be made by theui as in the Act mentioned 
 {ib., sub-s. (6) ).* 
 
 Where any agreement for a transfer or agreement for 
 a lease is stamped in accordance with the Act, it is not 
 to be necessary to stamp any conveyance, assignment, or 
 lease made subsequently to and in conformity with the 
 agreement, but the Commissioners are, if requested, to 
 denote on the conveyance, assignment, or lease the amount 
 of duty paid {ih. , sub-s. (7) ). This will render it unnecessary 
 that the agreement should be produced for the sole purpose 
 of proving payment of the duty. 
 
 The increment value tax is expected to be most produc- 
 tive as applied to building land on the margin of populous 
 and growing places. In many cases it may be desired to 
 complete, without delay, a contract for the purchase of a 
 portion of an estate in the course of development. Diffi- 
 culties may first arise in the matter of apportioning or 
 re-apportioning the original site value placed on the land 
 in question. Owing to the development of other estates, 
 or to public improvements, or deterioration in a neighbour- 
 hood, even if the site value were originally carefully and 
 accurately apportioned over the various parts of the estate, 
 re-apportionment may have become necessary. 
 Expenditure. The Original site value difficulty having been got over, 
 there may arise an even greater difficulty in the apportion- 
 ment to the land sold of the value added to that land by the 
 expenditure not only on that land itself but on the estate 
 generally. This added value is to be deducted from the pur- 
 chase price in order to ascertain the site value on the occasion 
 of the sale (sects. 2 (2), 25 (4)). The added value is not to 
 be measured solely by the cost of the improvements, though 
 doubtless the cost of the improvements is one of the elements 
 in ascertaining the added value. The added value may 
 
 * See Eegulation 17 (p. 491). 
 
Inceement Value Duty. Ixxiii 
 
 certainly be less than the cost of the improvement ; but may it 
 be more ? Is skill and taste and ingenuity in planning and 
 laying out a building estate to count, and to what extent ? 
 It is submitted that as a matter of construction of the Act 
 the answer to this question should be in the affirmative. 
 It is thought that the discernment of the man who by 
 making a road and sewers, by laying out gardens, open 
 spaces, and the like, has added four times their cost to the 
 value of the land, is a fact recognised in the deductions 
 allowed by sect. 25 (4) (b) and (c). 
 
 It should be specially noted by vendors and lessors Form i. v. d. 
 that the form of the abstract suggested by the Commis- 
 sioners, I. V. D. (B) (see Appendix, p. 496), in which 
 application for an increment value duty stamp may be made 
 (apparently the form is not compulsory, see Kegulation 3, 
 p. 488), affords no facilities for the making of claims for 
 deductions arising under sect. 25 (4) in order to ascertain 
 the site value on the particular occasion. If use is made of 
 this form, it should be accompanied by a statement of any 
 claim for deductions, which statement might also be referred 
 to by a note on the filled-in form. 
 
 The Commissioners have to be satisfied that the proposed 
 apportionment or re-apportionment, if one is necessary, 
 of original site value, and the proposed deductions for 
 expenditure, are fair and reasonable. The determination of 
 these questions must often be difficult, and take time. Even 
 if the stamp referred to in alternative (6) of sect. 4 (3) 
 (see p. Ixviii) is proposed to be placed on the deed, it may not 
 be easy, within a short time, to satisfy the Commissioners 
 that '' all the particulars which are necessary for the purpose 
 of enabling them to assess the duty " have been furnished.* 
 
 * It should, however, be added that this stamp is in practice freely placed on 
 conveyances, and that the Commissioners appear to be relying almost entirely 
 on their personal remedies against the vendor for the duty. It cannot be said 
 that the duty is often a cause of delay in the completion of purchases. 
 
Ixxiv 
 
 Explanatory Summary. 
 
 Uncertainty 
 as to pro- 
 visions 
 applicable. 
 
 COLLECTION AND RECOVEEY OF DUTY 
 IN CASE OF DEATH. 
 
 Section 5 of the Act provides that the provisions as to the 
 assessment, collection, and recovery of estate duty under the 
 Finance Act, 1894, are to apply as if increment value duty 
 were estate dutv. A difficulty arises as to what sections 
 of the Finance Act, 1894, actually are included in this 
 provision. Sections 6 to 9 inclusive of that Act are 
 headed " Collection and Recovery of Duty and Value of Pro- 
 perty," but there is no section or group of sections in that 
 Act headed with the title or marginal note " Assessment." 
 The sections of the Finance Act, 1894, and of the subse- 
 quent Acts amending it, which are thought by the writer 
 to be incorporated in the Act of 1910, will be found in the 
 body of the work (see notes to sect. 5, p. 90), where they 
 are discussed, and also in the Appendix (see pp. 589 
 to 604). It is sufficient to point out in this place that 
 there are interests in land which either pass, or are 
 deemed to pass, on a death within the meaning of sects. 1 
 and 2 of the Finance Act, 1 894, so that they give rise to a 
 claim for estate duty under that Act, but which do not at 
 the same time give rise to a claim for increment value duty. 
 Only when the " fee simple of the land or any interest in the 
 land," as fee simple and interest are defined or explained 
 by sect. 41 of the Act of 1910, is comprised in the property 
 so passing, or deemed to pass, does a claim for increment 
 value duty arise under the joint effect of the Finance 
 Act, 1894, sects. 1, 2 (1) {a), (b), and (c), and (3), and the 
 Finance Act, 1910, sect. 1 (b). Neither an interest in 
 remainder expectant on a freehold or a term of years, nor an 
 interest in reversion expectant on a freehold, is the fee 
 simple of or an interest in the land within the meaning of 
 the Finance Act, 1910 (sect. 41). It is further to be noted 
 
Increment Value Duty. Ixxv 
 
 that the provisions thus made applicable to increment value 
 duty are not only those contained in the Act of 1894, but 
 include those contained in subsequent Acts relating to 
 the assessment, collection, and recovery of the estate duty 
 imposed by the 1894 Act. 
 
 It is to be noted also that personal representatives need i- ^- ^■ 
 
 ^ ^ _ _ _ accounts not 
 
 not, unless specially required by the Commissioners, furnish usually re- 
 to them any account for the particular purpose of increment 
 value duty payable on death. In a circular to solicitors 
 issued by the Commissioners and dated July, 1910 (see 
 Appendix, p. 538), it is stated that the necessary valuations 
 for increment value duty will be made by reference to the 
 affidavit and accounts furnished for estate duty purposes, 
 and that a further account for the purpose of increment 
 value duty will only be called for in cases where there is a 
 prima facie liability to that duty. 
 
 Purchasers from personal representatives, heirs-at-law, or 
 devisees will not, it is thought, incur any responsibility for 
 increment value duty payable on the death of the testator 
 or intestate, provided that one of the three stamps referred 
 to in sect. 4 (3) (ante, p. Ixviii), is impressed on their 
 conveyance. 
 
 BODIES COEPOEATE AND UNINCOEPOEATE. 
 
 Where the fee simple of any land or any interest in land The periodical 
 
 1111 11 1 11' occasion. 
 
 IS held by any body corporate or by any body unincorporate, 
 as defined by sect. 12* of the Customs and Inland Eevenue 
 Act, 1885, the occasions on which increment value duty is 
 collected are the 5th of April in the year 1914, and in 
 every subsequent fifteenth year (sect. 6 (1) ). 
 
 A body corporate never dies, and a body unincorporate, Position of 
 as defined by sect. 12* of the Customs, etc., Act, 1885, porate, etc. 
 
 * The term "body unincorporate " includes every unincorporated company, 
 fellowship, society, association, and trustee, or number of trustees, to or in whom 
 
Ixxvi Explanatory Summary. 
 
 is treated as analogous to a body corporate. The Act, there- 
 fore, provides for a periodical collection of increment value 
 duty in the case of such bodies, counterbalancing the 
 collection at death in the case of individuals. The duty is 
 to be accounted for in the annual account which such bodies 
 have to furnish under sect. 15 of the Customs, etc., Act, 1885, 
 on or before the 1st October in every year (sect. 6 (2)); 
 but of course increment value duty is to be accounted for 
 only in the year 1914, and every subsequent fifteenth year. 
 Under the Customs, etc., Act, 1885, with many other 
 exceptions, most of which find their analogues in the 
 Finance Act, 1910, the 51. per cent, income duty thereby 
 imposed on bodies corporate and unincorporate is not to be 
 charged in respect of any property being or constituting the 
 capital of such a body established for any trade or business 
 (48 & 49 Vict. c. 51, s. 11 (o)). The reason is, of course, 
 that such a body pays income tax and its members pay legacy 
 and succession duties. Under the Act of 1910 such bodies 
 are chargeable with increment value duty on land employed 
 in trade or business, whether they are chargeable with the 
 5/. per cent, income duty under the 1885 Act or not 
 (sect. 1 (c) ). The method and incidents of accounting for 
 the 51. per cent, duty contained in sects. 13 to 18, sub-s. (1) 
 of sect. 19, and sect. 20 of the 1885 Act (with the exception 
 of the provision relating to appeals) are by the Act of 1910 
 applied to increment value duty (sect. 6 (3) ). These 
 sections are fully set out in the notes to sect. 6 (pp. 121 to 
 130), and the Appendix, p. 610. 
 Charge of It must be notcd that by virtue of sect. 14 of the Customs 
 
 duty. -^ 
 
 and Inland Revenue Act, 1885, applied to increment value 
 duty by sect. 6 (3) of the Finance Act, 1910, this periodical 
 
 respectively any real or personal property shall belong in sucli manner, or be 
 vested upon such permanent trusts, that the same shall not be liable to legacy 
 duty or succession duty (48 & 49 Vict. c. 51, s. 12 (1) )• 
 
Increment Value Duty. Ixxvii 
 
 duty is made a first charge on all the property in respect ) 
 whereof the same is payable while such property remains in \ 
 the possession or under the control of the body chargeable, 
 or of any person acquiring the same with notice of an}'' such 
 duty being in arrear. For reasons explained in the text (see 
 p. 126) it is not thought that this incorporated provision 
 materially affects the position of a purchaser from such a body. 
 
 The ordinary trading company, whether specially a Landcom- 
 "land" company or not, which is liable to pay income payincre- 
 
 "„ - - , , . ment value 
 
 tax on its profits and does not pay the corporation duty, 
 duty under sect. 11 of the Customs, etc.. Act, 1885, will 
 nevertheless account for and pay increment value duty 
 accruing on the dates above mentioned, under the Finance 
 Act, 1910. All other corporations and companies, clubs, 
 committees, and associations, however constituted, holding 
 the fee simple of land or an interest in land in such a 
 manner or on such permanent trusts that the land or 
 interest is not liable to death duties will, subject to the 
 numerous and important exceptions laid down in the Act of 
 1910, pay this periodical increment value duty. Of course 
 if the body in question is simply a trustee for an individual, 
 so that when the latter dies a claim for increment value 
 duty may arise, the periodical duty is not payable. The 
 death of the Public Trustee (6 Edw. 7, c. 55, s. 1) will not 
 cause increment duty to be payable in respect of the trust 
 property vested in him. Increment value dut\' may, if the 
 body corporate or unincorporate chargeable therewith so 
 desire, be paid by fifteen equal yearly instalments, and the 
 first instalment is to be due immediately after the assess- 
 ment of the duty (sect. 6 (3) ). Any part of any duty so 
 payable by instalments may be paid up at any time. A 
 body corporate or unincorporate is, notwithstanding the 
 periodical assessment for increment value duty to which it is 
 subject, bound to pay that duty, just as an individual is, on 
 
Ixxviii Explanatory Summary. 
 
 the grant of any lease, or the transfer on sale of any land oj* 
 interest m land {ih,, sub-s. (5) ). Periodical occasions stand 
 in the place of death occasions. 
 
 • EXEMPTIONS FROM INCEEMENT VALUE 
 
 DUTY. 
 
 (a) Agricultural Land. 
 
 Increment value duty is not to be charged in respect of 
 agricultural land while that land has no higher A'alue than 
 its market value at the time for agricultural purposes only 
 (sect. 7). The privilege thus conferred does not at first sight 
 seem to be a complete exemption of agricultural land from 
 increment duty. If the agricultural value on the 30th April, 
 1909, was 701. per acre, and that was the highest price which 
 the land at that date would have fetched, and the original 
 site value on the same day was 60L per acre, while on the 
 30th April, 1912, the first occasion on which a claim for 
 increment value duty had arisen, the site value for building 
 ot trade purposes had risen to 90/. per acre, the value for 
 agricultural purposes having also risen to 80/i per acre, it 
 is clear that the increment value is the sum of 30/., and, 
 subject to the 10 per cent* deduction under sect. 3 (5), 
 that will be the sum on which increment value duty will be 
 ^^^aid. It is said in support of this provision that this is not 
 then a duty payable on agricultural land, but on building 
 land employed in agriculture. The land has, it is said, 
 entered into a different class or category. It is probable that 
 if the increment were exempted from taxation up to the 
 highest limit of the value for " agricultural purposes only," 
 as was strongly urged in Parliament, a large part of the 
 proceeds of the tax, which will to a great extent fall on 
 land in the neighbourhood of towns passing at the moment 
 from the class of agricultural into that of building land, 
 would be lost to the Treasury. 
 
Increment Value Duty. Ixxix 
 
 It is thought that by agricultural land is meant land really 
 employed or used in agriculture (which has a very wide 
 meaning given to it by sect. 41) for the purpose either of 
 profit or of something akin to profit, such as experimental or 
 model farming, or even of pleasure. It is clear from sect. 7 
 that a use for "sporting purposes" is not an agricultural 
 use. Probably either directly or by analogy the same 
 provision would prevent land used as golf links, as a cricket 
 field, and so forth, being considered agricultural land. 
 Park land might no doubt often give rise to a difficult ques- 
 tion, to be determined on a nice balance of considerations. 
 
 The rather important question as to whether the value 
 of the farm buildings on agricultural land is to be taken 
 into account in estimating its value is discussed at some 
 length in the notes (see p. 131). 
 
 (b) Small Ownei^s* 
 
 Houses. — Increment value duty is not to be charged on 
 the increment value of the site of a dwelling-house which, 
 immediately before the occasion on which the duty is to 
 be collected, was, and had been for twelve months pre- 
 viously, used by the owner as his residence (sect. 8). But this 
 exemption is only secured if the annual value of the house 
 as adopted for the purpose of income tax, under Schedule A, 
 does not exceed in London 40/., in boroughs and urban 
 districts with a population of 50,000 26/., and elsewhere 
 16/. {ih., sub-s. (1)). 
 
 {c) Small Holdings.^ 
 
 Agricultural Land. — Nor is increment value duty to 
 be charged on the increment value of any agricultural land, 
 
 * Owner under this exemption includes a person who holds land under a 
 lease which was originally granted for a term of 50 years or more. He may 
 therefore be in fact a lessee with a term of the shortest duration ; but of course 
 in that event the increment value duty payable in respect of his interest is 
 equally small in amount. 
 
Ixxx Explanatory Summary. 
 
 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 50 acres, 
 and the average total value of the land does not exceed 75/. 
 per acre (sect. 8 (2) ). As has just been seen, when agri- 
 cultural land attains a building or trade value, and incre- 
 ment value duty becomes payable thereon, it is payable on 
 the total amount of increase over the original site value. 
 In other words, the datum line is the original agricultural site 
 value of the land.* But this provision as to small holdings 
 is intended entirely to exempt the land in question from 
 increment value duty, notwithstanding that it may in fact 
 be saleable for building purposes. The limitation of the 
 average total value to 751. per acre will, however, prevent 
 the exemption seriously affecting the amount raised by the 
 tax. It is, however, to be noted that the exemption does 
 not apply to any land occupied with a dwelling-house the 
 annual value of which dwelling-house apart from the land 
 under Schedule A exceeds 30/. (ihid.). This exception 
 will, to a great extent, deprive the owners of small country 
 properties kept more for pleasure than for profit of the 
 benefit of the section. 
 
 (c^) Land Used for Games and Recreation. 
 
 Bcxiycorpo- Increment value duty is not to be collected on any 
 
 corporate periodical occasion {i.e. the year 1914, and every subsequent 
 
 land!" fifteenth year) in respect of land held by any body, 
 
 corporate or unincorporate, without any view to the payment 
 
 of any dividend or profit out of the revenue of such land, 
 
 for tlie purpose of games or other recreation (sect. 9). A 
 
 * The expression "agricultural site value" is rather a descriptive than 
 accurate expression. It is not authorised by the Act. 
 
Increment Value Duty. Ixxxi 
 
 necessary condition for the benefit of this exemption is that 
 the Commissioners should be satisfied that the land is used 
 for such games or recreation 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 circum- 
 stances which render it probable that the land will con- 
 tinue to be so used (ibid.). Nevertheless, on any sale, or lease 
 for over fourteen years, of the land by the body corporate 
 or unincorporate, increment value duty will be payable in 
 the usual way. In reality, therefore, this exemption is rather / 
 a postponement of the payment of increment value duty 1 
 than an exemption from payment. On sale or lease by the ^ 
 body the increment value duty will be increased by the 
 amount which would have been paid on any periodical 
 occasion or occasions if the exemption had not been created. 
 But a site value may recede between a periodical assessment 
 and an actual sale, and then the exemption would prove to 
 be of value. The provision does not give any exemption to 
 land held by private individuals and let by them for the 
 purpose of games or recreation, even although it has been 
 so let on a permanent tenancy and at a rental much below 
 its real value. On the death of such individuals incre- 
 ment value duty must be paid under sect. 1 (h). But 
 the exemption will no doubt apply to most of the great 
 cricket and similar games and sports grounds of the country. 
 It will be remembered that the periodical occasion under 
 sect. 1 (c) is in relation to bodies corporate and unincor- 
 porate the counterpart of the death occasion under 
 sect. 1 {h) in relation to individuals. 
 
 (c) Croivii Lands. 
 Any increment value duty in respect of land held by or in The position 
 
 ■^ J I ■^. of Crown 
 
 trust for the Crown or any department of Government is not lands. 
 to be collected on any occasion under sect. 1, but is to be 
 
Ixxxii Explanatory Summary. 
 
 deemed to have been paid (sect. 10(1)). It appears, there- 
 fore, and the point should receive the attention of purchasers 
 from the Crown, that on a sale by the Crown or a department 
 of Government a calculation should be made by the Com- 
 missioners as to the amount of increment value which 
 has accrued, and duty on this amount should be credited 
 to the increment value duty account of the property 
 in question. This section is really a provision for the 
 benefit of the purchaser, who would otherwise be liable to 
 pay on a future occasion the duty which had accrued during 
 the Crown's ownership. The Crown, of course, is not 
 bound by the taxing provisions of the clauses unless 
 such provisions are evidently intended to extend to the 
 Crown. On sales or leases to or for the benefit of the Crown 
 . or any Government department it is specially provided 
 that nothing contained in certain Acts referred to is to 
 prevent increment value duty being collected in the 
 ordinary way (sect. 10 (2)). 
 
 (/) Flats. 
 Flats and Increment value duty does not become payable on the 
 
 other separate > n i j i j p i 
 
 tenements in grant oi a lease, or the transfer on sale or passing on 
 death of a lease, of a separate tenement, flat, or dwelhng 
 forming part of a building divided into separate tene- 
 ments, flats, or dwellings, and such duty is not charged 
 on a periodical occasion against a body corporate or 
 unincorporate which is the owner of a leasehold interest 
 in any such separate tenement, flat, or dwelling (sect. 11). 
 This provision does not exempt the owner of the fee simple 
 or a leasehold interest in such a building from increment 
 value duty, either on transfer on sale of the freehold or 
 leasehold of the whole building, or on the grant of a lease 
 of the whole building ; nor does it exempt his estate on 
 his death from payment of increment value duty in 
 
 one building 
 
Increment Value Duty. Ixxxiii 
 
 respect of either the freehold or leasehold of the building as 
 a whole. Similarly a body corporate or unincorporate the 
 owners of the freehold or leasehold interest in the whole 
 building are liable to increment value duty on a periodical 
 occasion. The provision is one which is almost essential 
 from the nature of the case in question, since to apportion 
 the site value of, say, Queen Anne's Mansions, a building 
 with about fourteen stories, amongst the various separate 
 sets of chambers composing it, would be a task of difficulty 
 even for the experienced valuers employed by the Treasury, 
 
 (g) Land held hy Rating Authorities. 
 No increment value duty is chargeable in respect of Complete ex- 
 
 • 1 1 1 1 1 1 • 1 • • emption from 
 
 any land, or interest m land, held by a rating authority, in increment 
 
 -."^ . ^ ■, ••111 i'- 1 value duty 
 
 which phrase is included any statutory combination, such of rating 
 as the Metropolitan Water Board, representative of two 
 or more local or rating authorities, Increraent value duty 
 which would have been collected from such an authority 
 is, as in the case of purchases from Government, for the pur- 
 poses of the Act to be deemed to have been paid (sect. 35). 
 On a purchase or lease from such an authority the purchaser 
 or lessee should therefore see that the usual calculation is 
 made as to increment value, and that the duty thereon is 
 credited to the account of the property. The exemption 
 under this head extends to duty payable either on sale ov 
 lease, or on a periodical occasion. 
 
 {h) Land held for Charitable Purposes, 
 AVhile land is held by or on behalf of any sovernins; Awidecias? 
 
 •^ . . of exemp. 
 
 body constituted for charitable purposes increment value tions, 
 duty is not to be collected on any periodical occasion 
 in respect of such land, whether it is occupied or used 
 by the governing body or not. But on sale, or lease, by 
 that body, the duty will be collected in the usual wav. 
 
Ixxxiv Explanatory Summary. 
 
 The expression " governing body constituted for charitable 
 purposes " has a very wide signification. It includes any 
 person or body of persons who have the right of holding, 
 or any power of government of, or management over, any 
 property appropriated for charitable purposes (including 
 property appropriated for the purpose of any of the naval 
 or military forces of the Crown), and also any corporation 
 sole, and all universities, colleges, schools, and other 
 institutions for the promotion of literature, science, and art 
 (sect. 37 (1)). "Corporation sole" will doubtless include 
 rectors and vicars in relation to glebe lands. 
 
 ({) Company formed not for Profit. 
 
 Exemption The last-mentioned exemption applies to land held by 
 
 various Clubs a Company within the meaning of the Companies (Con- 
 solidation) Act, 1908, or any body of persons incorporated 
 by special Act, if such company or body are by their 
 memorandum, or Act, precluded from dividing any profit 
 amongst their members, as if the purposes of that society, 
 company, or body, were charitable purposes. This provision 
 secures to such institutions, being duly constituted, as 
 political and other clubs, professional and scientific societies, 
 and similar associations, exemption from increment value 
 duty on periodical occasions (ih., sub-s. (2) ). It does not 
 apply to companies incorporated only by Royal Charter 
 without a special Act. 
 
 (j) RegistC7'ed Friendly and Similar Societies. 
 Friendly The abovo exemption as to land held for charitable 
 
 Societies, p-n •• i •• 
 
 Trade Unions, pui'poses applies also to irieiidly societies and any societies 
 which are registered, such as trade unions, or whose rules are 
 certified or registered, by a registrar of friendly societies, 
 and who by their rules make provision for the benefits set 
 out in sect. 8, sub-s. (1), of the Friendly Societies Act, 1896, 
 
 etc 
 
Increment Value Duty. Ixxxv 
 
 where the coiitriict l)etween tlie society and the member is 
 of a permanent character (sect. 37, sub-s. (2) ). 
 
 (k) Statutory Companies. 
 Increment value duty is not charged in respect of any Limited 
 
 1 1 1 -T • . 1 1 1 1 PI exemption of 
 
 land whilst it is held by a statutory company lor the statutory 
 purposes of its undertaking, and which cannot be appro- 
 priated by the company except for those purposes. It 
 is, however, payable when any such land is sold or ceases 
 to be held by the company for the purposes of its under- 
 taking. Under this section, statutory companies, which 
 include railway, canal, dock, water, and similar companies 
 authorised to carry out works under special Acts and 
 Provisional Orders, are exempt from paying increment value 
 duty on periodical occasions in respect of lands acquired by 
 them for the purposes of their undertaking (sect. 38). 
 
Ixxxvi Explanatory Summary. 
 
 III. REVERSION DUTY. 
 
 The theory of Beversion Duty (R. U. ), like increment value duty, is 
 an entirely novel form of taxation. The theory upon which 
 it rests appears to be the following : It usually happens 
 that on the expiration of a building lease the owner of the 
 fee simple expectant upon the lease comes into a property 
 worth much more than the fee simple of the property 
 at the time when his predecessor in title made the lease. 
 The predecessor owned a plot of land worth, say, 200/., and 
 leased it for eighty years, on a ground rent of 10/. a year, 
 to a builder who had already, in pursuance of a building 
 agreement, erected, or who was under covenant, duly 
 fulfilled, with the predecessor to erect, a house on the land 
 worth at least (house and land) 1,000/. It is argued that 
 the freeholder has received a safe interest for eighty years 
 on the original value of his property, and that now at the 
 end of that period he gets back not only the site which he 
 leased, but a house the capital value of which (with the 
 site) may be worth five, six, or seven hundred pounds. The 
 falling in of the reversion, the so-called windfall to the 
 freeholder, is considered to be a legitimate occasion upon 
 which the State may demand from him for its necessities 
 a small share of his good foi'tune, 
 
 THE AMOUNT OF THE REVERSION DUTY, 
 
 Its amount. The amount of the duty is One Pound for every com- 
 
 plete Ten Pounds of the value of the benefit accruing to 
 the lessor by reason of the determination of the lease 
 (sect. 13 (1)). 
 
Reversion Duty. Ixxxvii 
 
 VALUE OF THE BENEFIT ACCRUING TO 
 THE LESSOR. 
 
 That value is. deemed to be the amount (if any) by Value of 
 which the total value of the property at the determination lessor, 
 of the lease exceeds the total value of the land at the time 
 of the original grant of the lease (sect. 13 (2) ). The total 
 value of the land at the time of the original grant is to be 
 ascertained, not under the valuation clause (sect. 25, ante, 
 p. Iv) of the Act of 1910, but on the basis of the rent reserved, 
 and payments made in consideration of the lease {ibid.). 
 In other words, the problem before the valuer is, assuming 
 the rent, fixed many years ago at the commencement of the 
 lease, to be, say, 50/. a year, and taking into account any 
 premium paid to the lessor, what was the value of the fee 
 at the time of the original grant. No directions are given 
 to the valuer as to the rate of interest he should assume as 
 the basis of his calculation ; nor is it clear whether he is 
 entitled to take into consideration in respect to a lease, say, 
 for twenty-two years the fact that the buildings would not 
 last much longer. The total value at the determination 
 of the lease is, subject to the deductions to be presently 
 mentioned, the total value, as defined by the general 
 provisions of the Act contained in sect. 25 (3) ; that is 
 the amount which the fee simple of the property with its 
 buildings and all things growing thereon might be expected 
 to realise, if sold in the open market, by a willing seller, in 
 its then condition, free from incumbrances, but subject to 
 fixed charges (as defined by sect. 41), to public rights, and 
 to easements, and, with some reservation, to all covenants 
 and agreements restricting its user. The deductions to be 
 made from the gross total value* at the determination of the 
 lease in order to obtain the net total value at that period 
 are (1) any part of the total value which is attributable to 
 
 * Not to be confused with gross value in s. 25 (1). 
 
Ixxxviii Explanatory Summary, 
 
 any works executed or expenditure of a capital nature 
 incurred by the lessor during the term of the lease ; and 
 (2) all compensation payable by such lessor at the 
 determination of the lease. 
 
 The questions therefore as to whether reversion duty is 
 due on the determination of a lease, and as to its amount, 
 will resolve itself into some such calculation as follows : — 
 
 Illustration of GrOSS total value of land*, build- 
 incidence of . , 
 
 fluty. iiigs, fixtures, etc., at deter- 
 mination of lease, under 
 sect. 25 (3) £2,000 
 
 Less increased value attributable 
 to expenditure b}'' lessor since 
 commencement of lease in 
 building a wing to house ... £300 .0 
 
 Less compensation for fixtures 
 left by lessee, payable by lessor 
 in pursuance of covenant in 
 lease ... £200 
 
 Total deductions £500 
 
 Net total value at determination 
 
 of lease £1,500 
 
 Deduct total value at time of 
 original grant of lease, i.e., 
 
 Premium paid by lessee ... £30000 
 Yearly rent of 20/. capital- 
 ised at 25 years' purchase 
 (under sect. 32 (1) ) ... £500 
 
 Total value at time of original grant of lease £800 , 
 Benefit accruing to lessor, liable to duty at 
 
 10 per cent £700 
 
 Duty = 70/. 
 * See footnote on last page. 
 
Reveksion Duty. Ixxxix 
 
 The "total value" at the time of the original grant is Different 
 thus seen to be ascertained by the special method pointed " total value." 
 out by sect. 13 ; the "total value" at the determination 
 of the lease by the general method adopted for all valua- 
 tions under the Act, subject to the special deductions 
 mentioned in sect. 13. 
 
 COVENANT IN LEASE FOE EXPENDITURE BY 
 
 LESSEE. 
 
 When a lessee covenants in a lease to erect buildings, Covenant to 
 or to expend any sums upon the property, it is probably a buildings, 
 
 pto in I0RS6 
 
 justifiable assumption that the covenant in question was a 
 part of the consideration given by him. Probably he got 
 the land at a somewhat lower rent, because he entered into 
 the covenant. To exclude, as is enacted by sect. 13 (2), the 
 value of that covenant as part of the consideration for the 
 lease, except where only a nominal rent is reserved, seems 
 hardly fair to the lessor. In the cases where a substantial 
 but not a full rent is reserved, and such a covenant is entered 
 into, no doubt the value of the covenant at the date of the 
 lease, which may be for ninety-nine years, may not be great. * 
 But for what it is worth, it might well have been taken 
 into account in fixing the total value of the land at the 
 time of the original grant of the lease. In the not 
 uncommon case of a lease from twenty to forty years in 
 duration, where a large part of the consideration for the 
 lease is the creation of improvements by the lessee, the 
 matter is of importance. 
 
 MODIFICATIONS OF AND EXEMPTIONS FROM 
 REVERSION DUTY. 
 
 If the lease which has determined is an underlease, so Determina- 
 that the lessor who is to be taxed is not the freeholder, underlease. 
 
 * As the erection of buildings adds to the secui'ity of the rent, it is not easy 
 to suggest the measure of damages for the breach of such a covenant. 
 
xc Explanatory Summary. 
 
 the value of the benefit, as so ascertained, is to be reduced 
 in proportion to the amount by which the value of the 
 lessor's interest is less than the value of the fee simple 
 (sect. 13 (2) ). The exact meaning of the words "value of 
 the lessor's interest" is not dear (see p. 160) ; and accord- 
 ingly it will be wise for lessee reversioners called upon to 
 pay this duty to give attention to the calculations on which 
 their liability is based by the authorities. If indeed the 
 lessor's interest is a leasehold interest not exceeding 
 twenty.-one years, no reversion duty is chargeable in 
 respect thereof (sect. 14 (2) ). 
 Purchase Revfersi^ji dutv is not payable in respect of a reversion 
 
 before 30th i i i p " i i * •, i 11 
 
 April, 1909, of purchased beiore the 30th April, 1909, when the lease is 
 
 I'GVGrsioQs or 
 
 less than forty determined (otherwise than by agreement between the lessor 
 ^^^' and the lessee) within forty years of the date of the purchase 
 
 (sect. 14(1)). But if the lease would naturally have deter- 
 mined within the forty years, an agreement for earlier 
 determination will not cause duty to be payable. The theory 
 of this exemption, as gathered from the discussions in the 
 House of Commons during the passage of the Bill, is that 
 when a man buys a reversion upon a lease with forty years or 
 more to run he buys rather for immediate return, or invest- 
 ment, than for a future capital benefit, and that in such a case 
 the reversion duty will not bear heavily upon him, but that 
 if he buys a reversion on a lease with not more than forty 
 years to run he has the accrued benefit at the end of the 
 lease in his contemplation, that is he has bought not 
 only for investment, but for return of an increased capital, 
 and that therefore it would be hard upon him to take away 
 10 per cent, of that return. It is understood that in 
 valuing freehold ground rents, after the leasehold interests 
 are within fifty years of determination, some substantial 
 addition is usually made by valuers to the purchase-money, 
 calculated on an interest-producing basis, for the future 
 
Reversion Duty. xci 
 
 benefit to be derived from the rack rent at the end of the 
 term. It is not clear from the Act whether this exemption 
 from taxation is personal to the actual purchaser of the 
 reversion before the 30th April, 1909, or whether the 
 personal representatives, heirs, 'devisees, voluntary grantees 
 of, or purchasers for value from, that purchaser are also 
 entitled to the exemption (see p. 165). 
 
 No reversion duty is chargeable on the determination of a other exemp- 
 lease (1) the original term of which did not exceed twenty-one reversion 
 years ; (2) where the lessor's interest ex})ectant on its deter- 
 mination does not exceed twenty-one years ; (3) of land 
 which is at the time of the determination agricultural land 
 (sect. 14 (2) ) ; (4) being a mining lease of minerals other 
 than the substances exempted from mineral rights duty by 
 sect. 20 (5) (sect. 22 (1) ) ; (5) where the reversioner is a 
 rating authority (sect. 35) ; (6) where the reversion is 
 held for charitable purposes within the wide definition and 
 extension of those purposes in sect. 37 (see ante, p. Ixxxiv), 
 and the land is occupied and used for those purposes ; 
 (7) where the reversion is held by a statutory company for 
 the purposes of its undertaking, and cannot be appropriated 
 except to those purposes (sect. 38). 
 
 Provision is made for a reduction of the duty in cases Premature 
 
 , T •ij 'Tin ,1 • .• p,i determinatiou 
 
 where a lease is determmed beiore the expnmion oi the of lease. 
 term of the lease by the vesting of the lessor's interest and 
 the lessee's interest in the same person. In such a case the 
 amount of the reversion duty is not to be the full duty, but 
 such an amount as would, with compound interest at 4 per 
 cent, per annum for the residue of the term for which the 
 lease was granted, produce the amount of the full duty 
 (Revenue Act, 1911 (1 Geo. 5, c. 2), s. 3 (2), (5), repealing 
 sub-s. (3) of sect. 14 of the Finance Act, 1910). 
 
 The Act contains a provision intended to exempt the same Overlapping 
 benefit accruing to a lessor from being the subject both of new^uties! ^ 
 
XCll 
 
 Explanatory Summary. 
 
 Protection of 
 mortgagee 
 who has 
 foreclosed. 
 
 increment value duty and of reversion duty. For example, 
 suppose that the benefit accruing to a lessor on the deter- 
 mination of a lease is 1,000?., but that some time before that 
 determination the lessor, on succeeding to the reversion, 
 either under a will or an intestacy, had paid increment 
 value duty on the reversion to the site value up to the date 
 of his predecessor's death, it is clear that the latter duty may 
 have been paid in respect of something which formed an 
 element in the value of the benefit accruing to the lessor on 
 the determination of the lease. The Act, therefore, properly 
 enacts that in assessing either duty the Commissioners shall 
 take into practical consideration what has been already paid 
 on account of the other duty (sect. 14 (4) ). But the 
 difficulty of determining, say on a death in 1930, how 
 much increment value had been included in the taxation in 
 1920 of the benefit accruing by reason of the determination 
 of a lease is a little appalling. 
 
 In a certain limited way a mortgagee receives protection 
 against this duty. If the mortgage is executed before the 
 30th of April, 1909, and the mortgagee has foreclosed 
 before the lease determines, he is not liable bo pay 
 reversion duty except to the extent by which the total 
 value of the land at the time of the determination of the 
 lease exceeds the amount payable under the mortgage at 
 the date of the foreclosure (sect. 14 (5) ). For comments 
 on this difficult sub-section see the notes thereto (p. 173). 
 
 Reversion 
 duty not a 
 charge. 
 
 EECOVERY OF KEVEESION DUTY. 
 
 Reversion duty is not a charge on the property, but is 
 recoverable by the Crown from the lessor to whom the 
 benefit accrues. A section (sect. 3 (1) ) of the He venue 
 Act, 1911, makes it clear that, in cases where a lease is 
 determined by merger, by the term " lessor '•' as used in the 
 
Eeversion Duty. xciii 
 
 Land Clauses is intended the person who was in common 
 parlance the former landlord, so that where a lessee buys 
 the reversion, thereby merging the term, the landlord and 
 not the purchasing tenant is liable to the duty. The Crown 
 has no priority in respect of the duty (sect. 15 (1) ). 
 
 It is the duty of a lessor, within three months after the Obligation of 
 determination of a lease, on the determination of which close the 
 reversion duty is payable, to deliver an account to the tion of kase. 
 Commissioners, setting forth the particulars of the property 
 and the estimated value of the accruing benefit (ih., 
 sub-s. (2) ). A heavy penalty is affixed to the non-delivery 
 of this account. The Commissioners possess under sect. 17 
 of the Customs and Inland Revenue Act, 1885, which is 
 applied to this duty by sect. 15 (4) of the Act of 1910, 
 very wide powers of enforcing accounts from lessors, and, 
 if dissatisfied with those accounts, of themselves causing 
 accounts to be taken in respect of reversion duty by their 
 own nominees (ib., sub-s. (3) and (4) ). 
 
 Apparently, unless reversion duty is actually payable, i.e., 
 there is something due on taking the account, no account need 
 be delivered (sect. 15 (2) ). But this is not absolutely clear. 
 It seems advisable, therefore, for a lessor whose only objection 
 to pay duty is that there is no benefit accruing to him, and 
 who does not rely on one of the express statutory exemp- 
 tions from duty set out on pp. xci and 155, to send in an 
 account on the Commissioners' form (see Appendix, p. 523), 
 so filling it in as to make the true position clear. If the 
 exemption claimed is one of the statutory exemptions 
 referred to, it seems clear that an account cannot be 
 demanded under the section. At the same time there are 
 cases, as for example those numbered 3 and 6, on p. xci, 
 where the evidence as to the actual state of things conferring 
 exemption might not be so clear in the future as immediately 
 upon the determination of the lease, and where therefore it 
 
 N. a 
 
xciv Explanatory Summary. 
 
 might be prudent to tell the Commissioners that the lease 
 had determined, claim exemption, and leave them to take 
 their own course. 
 
 The actual form referred to (see p. 523) is not thought 
 to be obligatory on the lessor ; but it seems to be a con- 
 venient vehicle by which he can fulfil his statutory obliga- 
 tion under sect. 15 (2) above referred to. 
 
Undeveloped Land Duty. xcv 
 
 IV. DUTY ON UNDEVELOPED LAND. 
 
 This is the third new duty placed upon land by the Nature of 
 Finance Act, 1909, The theoretical or economic basis of 
 the tax appears to be that it is the duty of every one to be 
 willing to sell his land for building or trade purposes as 
 soon as it attains a value for those purposes. If he does 
 not do so, but holds for a greater rise in value, the land 
 pays rates only on its agricultural value, while its capital 
 value is being increased by the general growth of the ^ 
 community, and by improvements made at the public 
 expense. Hence it is said to be a fitting subject for 
 moderate taxation on that excess of capital value over the 
 agricultural value of the land. The duty is not confined to 
 one year, but is to be levied and paid for the financial year 
 ending the 31st March, 1910, and every subsequent financial 
 year until it is removed or altered (sect. 16(1)). It is levied 
 in respect of the site value, that is the assessable site value 
 of undeveloped land, as defined by the Act (sect. 25 (4) ), 
 and is at the rate of one halfpenny for every twenty shillings 
 of that site value (sect. 16(1)). It is a duty payable by the 
 owner of the land, and he cannot agree with the tenant [? or 
 any other person] to pay the duty in lieu of himself. It 
 is not a charge on the land, but a personal debt to the 
 Crown from the owner for the time being (sect. 19). It 
 is called undeveloped land duty (U. L. D.). 
 
 -UNDEVELOPED" LAND. 
 
 That land is deemed to be undeveloped which has not been Description of 
 developed either (a) by the erection of dwelling-houses, or knd.^^ °^^ 
 
 9^ 
 
 J 
 
xcvi Explanatory Summary. 
 
 (h) of buildings for the purposes of any business, trade, or 
 
 industry other than agriculture (but including glasshouses 
 
 or greenhouses), or (c) is not otherwise used bond Jide for 
 
 any business, trade, or industry other than agriculture 
 
 (sect. 16 (2) ). Where land having been once so developed 
 
 or used reverts to the condition of undeveloped land, and 
 
 remains undeveloped for one year, it is again liable to 
 
 undeveloped land duty until it is once more developed (ib., 
 
 Expenditure sub-s. (2) (a) ). If an ownor of land, included in any- 
 freeing from \ / \ / / ^ J 
 
 duty. scheme of land development, is able to prove that he or his 
 
 predecessors in title have, with a view to developing his 
 land, incurred expenditure on or in connection with roads 
 or sewers, that land is to the extent of one acre for every 
 complete 100/. of that expenditure to be treated as 
 developed land, although it is not actually so developed. 
 But no expenditure can be taken into account under this 
 head if twenty years have elapsed since the date of that 
 expenditure (Revenue Act, 1911, sect. 4). Where the 
 amount of such expenditure does not cover the whole of the 
 land included in the owner's scheme of development, the part 
 to be franked by the expenditure is to be determined by 
 the Commissioners (ib., sub-s. (2) (b) ). It seems that this 
 expenditure on roads and sewers may serve the double 
 purpose of exempting completely land to the extent stated, 
 and of reducing proportionately the site value of that and 
 other land which it has benefited. 
 
 THE EXEMPTIONS FROM THE DUTY. 
 
 These may be summarised as foUows : — 
 (a) Exemptions arising from the nature of the property — 
 Site value not (l) Land the site value of which does not exceed 501. 
 
 over 501. per / \ \ mi • 
 
 acre. per acre (sect. 17 (1) )• This exemption exists even 
 
Undeveloped Land Duty. xcvii 
 
 if the agricultural value of the land is less than 
 the site value of the land for building or trade 
 purposes, and even if the land be lying waste and 
 unused. 
 
 (2) Where the site value of land employed in agri- Limited 
 
 , T r r\j Till! exemption of 
 
 culture exceeds 50/. per acre, undeveloped land agricultural 
 
 duty is charged only on the amount by which the 
 
 site value of the land exceeds the value of the land 
 
 for agricultural purposes {ih., sub-s. (2) ). Thus if 
 
 the agricultural value of Blackacre is 5001. whilst , 
 . . . \/ 
 
 its site value is 1,000/., duty is charged on 500/. 
 
 only. If owing to the growth of a neighbouring 
 
 town and the consequent demand for market gardens 
 
 and nursery grounds the agricultural value goes up 
 
 to 700/., whilst owing to the same growth and the 
 
 consequent demand for building land the site value 
 
 goes up to 1,500/., undeveloped land duty is charged 
 
 on 800/., the difference between the two values at the 
 
 time in question. It will be remembered that in 
 
 contrast with this arrangement increment value duty 
 
 on Blackacre will be paid on the rise from the 
 
 original agricultural value, whether 500/. or less 
 
 than that amount (sect. 7, ante, p. Ixxviii). 
 
 (3) The site value of any parks, gardens, or open Spaces opea 
 
 spaces which are open to the public as of right of rrght?^^ 
 (ib., sub-s. 3 (<^) ). These for the most part are 
 exempted under other provisions of the Act (sects. 35 
 and 37). 
 
 (4) The site value of any woodlands, parks, gardens, or Spaces to 
 
 11 , 1 • 1 • . T which the 
 
 open spaces, reasonable access to which is enjoyed public have 
 by the public or by the inhabitants of the locality ^'^^^^^' 
 (including the Forces of the Crown for regular 
 training or exercise), where in the opinion of the 
 Commissioners that access is of public benefit (ib., 
 
XCVlll 
 
 Explanatory Summary. 
 
 Garden city, 
 etc., exemp- 
 tion. 
 
 Land used for 
 games and 
 recreation. 
 
 sub-s. 2 (b) ). The extent of the access which is to 
 give exemption under this provision is uncertain 
 (see p. 198). 
 
 (5) 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 the 
 Act, for the development of the area of which the 
 land forms part, and in the opinion of the Commissioners 
 it is reasonably necessary in the interests of the 
 public, or in view of the character of the sur- 
 roundings or neighbourhood, that the land should 
 be so kept free from buildings [ih., sub-s. 3 (c) ). 
 This is an exemption inserted at the instance of 
 persons interested in garden cities. 
 
 (6) The site value of any land which is 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 
 (ih., sub-s. 3 (d)). This provision is intended to 
 exempt from undeveloped land duty the various 
 playing fields in, or in the neighbourhood of, towns 
 and large villages. It applies to land belonging 
 to individuals as well as to bodies corporate and 
 unincorporate. The corresponding exemption relating 
 to increment value duty (see p. Ixxx) exempts bodies 
 corporate and unincorporate only, and exempts them 
 only in respect of the increment value duty 
 collectable on the periodical collections in the year 
 1914 and every subsequent fifteenth year. This 
 
Undeveloped Land Duty. xcix 
 
 exemption will apply as well to land owned by the 
 club or association which plays or organises the 
 games as Lord's and county grounds owned by 
 county cricketing clubs as to land rented by clubs or 
 associations for the purposes of games. It would 
 appear also to apply to the private cricket, football, 
 and golf, etc., grounds of individuals " where in the 
 opinion of the Commissioners circumstances render 
 it probable that the land will continue to be so 
 used " ; but perhaps this is not certain. 
 
 As to the exemptions above mentioned, being Nos. 4, 5, 
 and 6, it must be noted that the opinion of the Com- 
 missioners in respect to the matters left to their opinion is 
 final, and not subject to any appeal. 
 
 (7) Any land not exceeding an acre in extent occupied Land occu- 
 
 tiogether with a dweUing-house (ib., sub-s. (4) ). house not 
 The land need not, it seems, be used as a garden or one acre, 
 pleasure ground, but may be a paddock, or a fowl 
 run, or waste land. 
 
 (8) The site value of any land, being gardens or ^^'^^^^^^g' 
 
 pleasure oji^ounds, occupied with a dwelling-house, land occupied 
 
 i^ & ' r- ^ c ^j^l^ house 
 
 which do not exceed five acres in extent, when not exceeding 
 
 ^ , live acres. 
 
 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 (ib.). This exemption will protect the 
 owners of most large suburban houses from liability to 
 the duty, though it will not do so when the land 
 attached to them is of a very high capital value com- 
 pared with the letting value of the premises. If 
 the lands, gardens, or pleasure grounds exceed five 
 
Explanatory Summary. 
 
 Agricultural 
 land in lease 
 at passing of 
 Act. 
 
 Small 
 holdings. 
 
 acres in extent, those five acres are to be exempted 
 which are determined by the Commissioners to be 
 most adapted for use as gardens or pleasure grounds 
 in connection with the house. 
 
 (9) Agricultural land at the time of the passing of the 
 
 Finance Act, 1910, held under a tenancy originally 
 created by a lease or agreement made before the 
 30th day of April, 1909, is not during the original 
 term of the lease or agreement while the tenancy 
 continues thereunder liable to the duty, but the 
 exemption under this provision does not apply after 
 the earliest date after the commencement of the Act 
 at which the tenancy of the land can be discontinued 
 at the option of the landlord (ib., sect. 3 (5) ). In 
 other words, if a landlord, not being obliged under 
 the existing lease or agreement to do so, renews a 
 lease, or tenancy, or if he has not given notice to 
 quit to a yearly tenant to take effect as soon as is 
 legally possible after the 30th April, 1910, then the 
 landlord becomes liable to undeveloped land duty as 
 soon as the existing lease or tenancy determines, or, 
 in the case of a tenancy from year to year, from the 
 date when the landlord might have got possession, 
 if he had given the tenant notice to quit the day 
 after the commencement of the Act, i.e., 30th April, 
 1910. Of course, when the land in question does 
 become liable to the duty, it is only liable to the extent 
 to which the site value of the land exceeds its value 
 for agricultural purposes (ib., sub-s. (2)).* 
 
 (10) 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 
 
 * This sub-section is mainly responsible for the small assessment of the 
 undeveloped land duty {10,3'SOL) for the financial year ending March 31, 1911. 
 
Undeveloped Land Duty. ci 
 
 belonging to the same owner, does not exceed 500/. 
 It does not appear clear whether the value of any 
 buildings is to be reckoned as part of the 500/. 
 value, but it is thought that it must be reckoned. 
 " Owner " in this regard includes a person who 
 holds land under a lease which was originally granted 
 for a term of fifty years or more (sect. 18). Under 
 the general definition of owner in sect. 41 a lessee 
 is not " owner " unless more than fifty years of his 
 lease are unexpired. For the corresponding exemp- 
 tions in relation to increment value duty see ante, 
 p. Ixxix. 
 (b) Exemptions arising from the special character of the 
 owners — 
 
 (11) Land held bv rating authorities (sect. 35). Rating 
 
 ^ ^ ^ o \ / ^ authorities. 
 
 (12) Land held by or on behalf of a governing body charities, 
 constituted for charitable purposes while used and 
 occupied by such body for the purposes of that body. 
 
 This exemption includes a corporation sole and all 
 universities, colleges, schools, and other institutions 
 for the promotion of literature, science, or art 
 (sect. 37 (1)). 
 
 (13) Land held by a "registered society," i.e., any society Registered 
 or body of persons who are registered (such as trade 
 unions) or whose rules are certified or registered by 
 
 a Begistrar of Friendly Societies in pursuance of an 
 Act of Parliament, and who by their rules make 
 provision for the benefits set out in sect. 8, sub-s. (1), 
 of the Friendly Societies Act, 1896, and where the 
 contract between the society and the member is of 
 a permanent character [ib. , sub-s. (2) ). 
 
 (14) Land held by a company within the meaning of the companies 
 Companies (Consolidation) Act, 1908, or any body SnsTjr''" 
 of persons incorporated by special Act, if that piofits"^ 
 
cii Explanatory Summary. 
 
 company or body are by their memorandum or Act 
 precluded from dividing any profit amongst their 
 members (ih.). This exception will cover the 
 numerous trade, professional, scientific, and artistic 
 societies and political clubs registered under the 
 Companies Acts or incorporated by a special Act of 
 Parliament, but it will apparently not include those 
 bodies which have only a Royal Charter and are not 
 registered and have no special Act. 
 statutory (15) Land held by a statutory company for the purposes 
 
 companies. ^^ their Undertaking and which cannot be appro- 
 
 priated except to those purposes. This will include 
 land which such a company has acquired, but 
 pending the carrying out of the works for which it 
 was so acquired is using for other purposes. Statutory 
 companies mean railway, canal, dock, water, and 
 other companies authorised under special Acts or 
 Provisional Orders having the force of Acts to carry 
 out their respective works (sect. 38). 
 
 THE SITE VALUE OF UNDEVELOPED LAND. 
 
 The original The site value of undeveloped land is the value adopted 
 as the original site value by the process before explained 
 in the section on increment value duty {ante, p. liii), 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 
 (sect. 16 (3) ). Provisions are contained in the Act for a 
 quinquennial valuation of all undeveloped land, whether (it 
 seems) that land is or is not exempted from the undeveloped 
 land tax. This in effect means that all the agricultural 
 V land of the country is to be valued every five years (sect. 28). 
 If increment value duty has been paid in respect of the 
 increment value of any undeveloped land, the site value of 
 
Undeveloped Land Duty. ciii 
 
 that land, for the purposes of the assessment and collection 
 
 of undeveloped duty, is to be reduced by a sum equal to i|eductionof 
 
 L J ' J X sihft value. 
 
 five times the amount paid as increment value duty 
 (sect. 16 (3) ). This provision is intended to avoid the im- 
 position of a double tax on the increment value of land. 
 
 For the purposes of undeveloped land duty, undeveloped 
 land does not include the minerals (sect. 16 (4) ). By this 
 it is understood is meant that the site value of land con- 
 taining minerals is to be valued as if the land did not 
 contain those minerals. It is clear that, if the minerals are 
 valued at all, they are to be valued as a separate parcel of 
 land (sect. 23 (2) ), with the liabilities of such a parcel to 
 payment of increment value duty. 
 
 TIME OF PAYMENT. 
 
 The duty is payable at any time after the 1st January When the 
 for the year for which it is charged (sect. 19). It will be able. 
 payable for the year ending 31st March, 1910 and 1911, as 
 soon as an assessment is made. It may be assessed and 
 demanded on the original provisional valuation, an adjust- 
 ment being made after the valuation has been finally 
 settled (sect. 27 (6) ). If at any time the duty is not 
 assessed within the year for which it is charged, owin^ to 
 there being no value either shown in the provisional valua- 
 tion or finally settled on which the duty can be assessed, 
 or for any other reason, the duty may be assessed at any 
 time, and is payable at any time after the expiration of 
 two months from the date of the assessment, so, however, 
 that no such duty is to be assessed more than three years 
 after the expiration of the year for which it is payable 
 (sect. 19). Practically, therefore, it is possible for four 
 years' arrears to be recovered" by the Crown. 
 
Ciy EXPLANATOEY SUMMAEY. 
 
 It is recoverable from the owner of the land " for the 
 time being," a phrase which is ambiguous, but may possibly 
 mean the time at which process is commenced by the 
 Crown for the purpose of recovering the duty (see a note 
 on p. 206). Purchasers of undeveloped land are therefore 
 interested in ascertaining that all duty assessed to date has 
 been paid. There is no express and probably no implied 
 provision in the Act for apportionment of duty according 
 to the periods of ownership of vendor and purchaser. 
 
Mineral Eights Duty. cv 
 
 V. MINERALS AND MINERAL RIGHTS DUTY. 
 
 "Land" within the meaning of the Finance Act, 1910, 
 undoubtedly includes minerals. If minerals are sold out and 
 out, apart or separately from the surface, they are subject, 
 like all other land, to a claim for increment value duty. 
 That duty is assessed upon the increment of their capital 
 value as a separate parcel of land (sect. 23 (4)). If minerals 
 are sold incidentally, as it were, that is as simply part of the 
 property included in the description of the land, and no 
 increment value duty is paid specially in respect of them, 
 no original capital value having been placed on them 
 (sect. 23 (2) ), then when they are sold for the first time 
 apart from the surface, or become the subject of a mining 
 lease, duty will be payable, and their original capital value 
 will apparently be considered to have Jbeen nothing. This 
 subject is later discussed at length (p. cxi). 
 
 Apart from the liability of minerals to increment value Special duty 
 duty as ordinary parcels of land, a special scheme of taxation and way- 
 is made for minerals and mineral wayleaves. There is to 
 be levied for the financial year ending the 31st March, 1910, 
 and every subsequent financial year, on the rental value of 
 all rights to work minerals and of all mineral wayleaves, 
 a " mineral rights duty " at the rate of Is. for every 205. 
 of that rental value (sect. 20 (1) ). The duty is to be paid 
 by the proprietor of the minerals. The term "proprietor" 
 is apparently applied by the Act of 1910 to the owner of 
 the minerals when he is being considered in relation to the 
 special scheme of taxation of minerals contained in sects. 20 
 to 24 inclusive. Where minerals are treated as an ordinary 
 parcel of land for the purpose of original valuation under y 
 sect. 26, it is the owner and not the proprietor who must 
 
CVl 
 
 Explanatory Summary. 
 
 Special ex- 
 penditure by 
 proprietor. 
 
 Incidence of 
 duty. 
 
 make the statutory return (see the form of such return, 
 Appendix, p. 533). The distinction in the Act between 
 owner and proprietor seems more confusing than important 
 (see p. 265). The rental value on which the Is. in the pound 
 duty is to be paid is, where the minerals are in lease, the 
 amount of rent paid by the working lessee in the last 
 working year (sect. 20 (2) ). The " last working year" is 
 the year ending on the 30th September immediately before 
 the 1st day of January in any financial year for which 
 the duty is paid (sect. 24).* Where the minerals are 
 not in lease but are being worked by the proprietor, the 
 rental value is the sum which the Commissioners determine 
 would have been the rent if a lease customary in the 
 district had been made, and the minerals had been worked 
 by the lessee to the same extent and in the same manner 
 as they had in fact been worked by the proprietor (sect. 20, 
 sub-s, (2) (&) ). In the case of a mineral wayleave the 
 rental value on which the duty is to be levied is the 
 amount of rent paid by the working lessee in the last 
 working year in respect of such wayleave (ib. (c) ). There 
 is a provision under which, if in any special case the pro- 
 prietor of the minerals has expended on development sums 
 usually spent by a lessee and the rent is thereby increased, 
 the Commissioners may reduce such rental value for the 
 purpose of the duty (sect. 20 (2) ). The proprietor is in 
 such a case really getting in an increased rent a return for 
 capital spent in developing the minerals. Proprietors and 
 persons receiving mineral rents must under penalties furnish 
 particulars to the Commissioners on request (sect. 20 (3) ). 
 As between the immediate lessor — i.e., the lessor of the 
 working lessee — and that lessee the duty is to be borne 
 by the immediate lessor notwithstanding any contract to the 
 
 * But it may be the year ending on such other day as may iu any case be 
 approved by the Commissioners {ib.). 
 
Mineral Eights Duty. cvii 
 
 contrary whether made before or after the passing of the 
 Act {ih. (4.)).* 
 
 The duty is not to be charged in respect of common clay, Exemptions. 
 common brick clay, common brick earth or sand, chalk, lime- 
 stone, or gravel [ib., sub-s. (5) ), which, or some of which, 
 nevertheless may be minerals within the Act (see p. 212). 
 Immediate lessors paying the duty who are themselves Deduction by 
 
 underlessor. 
 
 lessees may deduct a proportionate amount tnereoi irom 
 the rent they pay (sect. 21). Reversion duty is not to No reversion 
 be charged on the determination of a mining lease termination 
 (sect. 22 (1) ). \esZ. 
 
 INCEEMENT VALUE DUTY ON MINERALS. 
 
 The provisions relating to increment value duty on 
 minerals are somewhat complicated. It has already been 
 stated (p. cv) that when minerals are sold apart from the 
 land, as a separate parcel of land, they will be liable to 
 increment value dirEyOTi their original capital* value, just as y 
 land is liable to increment value duty on its original site 
 value. So when minerals pass on death a claim for incre- 
 ment value duty may arise on that capital value if they 
 are not then being worked, in which case the duty appears 
 to be the annual duty hereafter explained. We have now 
 to consider (a) what is the liability to increment value duty 
 of minerals which were on the 30th April, 1909, actually in 
 lease or being worked, and (b) what is the liability to that 
 duty of minerals neither in lease nor being worked at that "^ 
 date, but which subsequently to that date are either leased 
 or worked. 
 
 (a) If on the 30 th April, 1909, minerals are either comprised When incre- 
 
 . . 1 1 . 1 1 1 i 1 • 1 • ment value 
 
 m a mmmg lease or are bemg worked by the proprietor, mere- duty not 
 ment value duty will not be charged as long as the minerals ^ ^^^^ ' 
 are for the time being either comprised in such a lease or are 
 
 * For explanation of the total and capital values of minerals, Beepost, p. cxiii. 
 
CVlll 
 
 Explanatory Summary. 
 
 If tempo- 
 rarily un- 
 worked or not 
 on lease. 
 
 If worked or 
 leased after 
 30th April, 
 1909, incre- 
 ment value 
 duty is 
 
 How 
 calculated. 
 
 being so worked (sect. 22 (2) ). The meaning of this appears 
 to be that if comprised in a mining lease on the day in 
 question, they will not be subject to increment value duty 
 so long as they are either comprised in a lease, whether 
 that lease or another lease, or, if not comprised in a lease, are 
 being worked by the proprietor ; and if being worked by the 
 proprietor on the date in question, then that they will not 
 be liable to increment value duty so long as they are 
 either worked by that proprietor, or are comprised in a 
 mining lease. Even if they cease for a temporary period 
 to be comprised in a mining lease or to be worked, so long 
 as that period does not exceed two years, the exemption 
 will continue to apply (ib.). In other words, if either 
 owner or lessee dies, or sells his reversion or leasehold 
 interest, as the case may be, no claim for increment value 
 duty arises under sect. 1 so long as the lease or working in 
 question endures. Nor in case either owner or lessee is a 
 body corporate or unincorporate is the periodical collection of 
 increment value duty every fifteenth year under sect. 1 (c) to 
 be made so long as lease or working endures . The owner of 
 the minerals by having begun to work or leased them before 
 30th April, 1909, is considered to have realised his minerals 
 just as where he has sold land out and out before that date. 
 
 (b) If, however, on the 30th April, 1909, the minerals are 
 neither comprised in a mining lease nor are being worked 
 by the proprietor, but they are subsequently leased [*for 
 over fourteen years] or commenced to be worked [*and an 
 occasion for payment of increment value duty arises under 
 sect. 1], then increment va:lue duty, in respect, of course, 
 of increment value only which has accrued since 30th April, 
 1909, will be payable. It is not, however, in this 
 case payable either as a lump sum, or as a sum payable 
 
 * It is doubtful whether the words in square brackets are conditions of 
 liability to duty. 
 
Increment Value Duty on Minerals. cix 
 
 by instalments, as in the ordinary case of a lease of 
 lands (sect. 4). It is charged as a duty payable annually ^ 
 (sect. 22 (3) ). In this case the increment value is to be taken 
 to be the sum (if any) by which in each year the rental value 
 on which mineral rights duty is charged to the lessor (see 
 p. cvi) 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 ; and Annual 
 the annual equivalent of any such capital value of the capital value, 
 minerals is to be taken to be two twenty-fifth parts of 
 that capital value (ib., sub-s. (3) ). The effect of this 
 provision appears to be that in a case where the rent is a 
 varying rent, dependent upon the amount gotten in each 
 year, and a large proportion of the minerals are, in fact, 
 gotten in any single year, the increment value and the 
 corresponding duty will for that year be very high. As is 
 attempted to be indicated by the brackets in the first 
 sentence of this paragraph, it is not quite clear whether to 
 give rise to the liability to increment value duty (1) the 
 lease must be for more than fourteen years, and (2) the 
 working must be accompanied by the happening of one of 
 the occasions referred to in sect. 1 as being occasions for 
 payment of increment value duty (sect. 22 (3) ). 
 
 Increment value duty payable annually under the increment 
 before-mentioned provisions is payable by the proprietor of S^'cai^of a° 
 the minerals, where he is working them, and in any other profit^^^ ^* * 
 case by the immediate lessor of the working lessee (ib., 
 sub-s. (5) ; sect, 20 (4) ). It may, like mineral rights duty, be 
 deducted from the rent paid by the immediate lessor to his 
 lessor, so far as it falls upon the latter (sect. 22 (5) ; 
 sect. 20 (4) ; sect. 21(1)). It is thought that each lessor and 
 sub-lessor will pay the duty in proportion to the amount of 
 
 * For the definition of capital value of minerals see p. cxiii. 
 
ex 
 
 EXPLANATOEY SuMMARY. 
 
 Set-off of 
 increment 
 value duty 
 against 
 mineral 
 rights duty. 
 
 When 
 minerals 
 being 
 
 worked or in 
 lease on 30th 
 April, 1909, 
 are to be 
 valued. 
 
 Original 
 capital 
 value of 
 minerals not 
 beine worked 
 or in lease on 
 30th April, 
 1909. 
 
 the increment which he retains (sect. 23 (5)), but it must be 
 confessed that difficult questions may arise in cases where 
 minerals are sub-leased at a profit, and too complicated for 
 full treatment in this place. 
 
 Any proprietor or lessor of any minerals who pays incre- 
 ment value duty by means of an annual sum is 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 
 (sect. 22 (6) ). Practically, therefore, in respect of any 
 given year he pays either mineral rights duty or increment 
 value duty, whichever is the greater. But a payment of 
 increment value duty in one year will not relieve him 
 from any mineral rights duty in a succeeding year. He 
 had, therefore, from this point of view, better realise his 
 increment gradually. 
 
 When minerals cease to be comprised in a mining lease, or 
 to be worked within the meaning of section twenty-two, the 
 capital value of the minerals at the time is to be specially 
 ascertained in accordance with the provisions of the Act, 
 and the capital value as so ascertained is treated as the 
 original capital value of the minerals [ib., sub-s. (7)). This 
 provision appears to refer only to minerals which were on the 
 30th April, 1909, either comprised in a mining lease or were 
 being worked by the proprietor. It can hardly apply to 
 minerals which were not so comprised or being worked but 
 are leased or commenced to be worked after that date, since 
 the original capital value of such minerals must necessarily 
 have been ascertained on the original valuation under sect. 26. 
 
 Under sect. 23 (2), minerals not comprised in a mining 
 lease, and not being'worked [on 30th April, 1909], are to be 
 treated as having no value as minerals, unless the owner in 
 his return* to the Commissioners specifies their nature, and 
 
 * For the form of return (Form 4), see Appendix, p. 508. 
 
Increment Value Duty oN' Minerals. cxi 
 
 his estimate of their capital value. The original capital value 
 therefore of the minerals not comprised in a mining lease or 
 being worked on the 30th April, 1909, is, apparently, either 
 nothing or the sum estimated as their value by the owner 
 of the land, but qua-re whether that estimate must be 
 accepted as their original capital value by the Com- 
 missioners. If it must be accepted, of course by putting a 
 high original capital value on minerals, an owner could 
 minimise any future claims for increment value duty, but 
 he would have to consider the death duties. It is, however, 
 possible that the placing an estimate upon the minerals in 
 the original return opens out the whole question, and enables 
 the Commissioners to determine their value under sect. 26. 
 
 Assuming that minerals are sold outright, whether as increment 
 part of the land or separately from the land, then it would sale of / 
 
 appear that increment value duty is payable as a lump sum, 
 that is, provided they are not at the time of sale being 
 worked or included in a mining lease. Minerals are, it is 
 assumed, "land" within the meaning of sect. 1, which 
 creates the charge of the duty on increment value. Kefer- 
 ences in the Act to the site value of land are to be 
 construed, so far as respects minerals, as references to the 
 capital value of the minerals (sect. 23 (4) ). Sect. 2 (1) 
 will, therefore, it is submitted, cause the increment value 
 of minerals to be the amount by which the capital value of . 
 the minerals on the occasion on which increment value duty 
 is to be collected exceeds the original capital value of the 
 minerals. The last words in sect. 2 (1) "as ascertained in 
 accordance with the general provisions of this part of this Act 
 as to valuation " seem at first sight inappropriate to a valua- 
 tion of minerals, since by sect. 25 (5), the section apparently 
 referred to under the words " general pro\^isions as to valua- 
 tion," it is enacted that " the provisions of this section are 
 not applicable for the purpose of the valuation of minerals. " 
 
 h 2 
 
CXll 
 
 EXPLANATOEY SuMMAUY. 
 
 General pro- 
 visions as to 
 valuation not 
 to apply to 
 minerals. 
 
 The special 
 provision for 
 valuation of 
 minerals. 
 
 Minerals to 
 be valued 
 apart from 
 land. 
 
 But nevertheless it is submitted they cannot countervail the 
 other indications in the Act, that minerals sold in fee are 
 to pay increment value duty, and it may well be that the 
 general provisions as to valuation of minerals may be 
 considered to be comprised in sect. 23 (1) and (2), and not 
 in sect. 25. If this view is correct, minerals will pay incre- 
 ment value duty as a lump sum calculated on their capital 
 value in the event of their transfer on sale and passing on 
 death respectively, assuming in each case that they are not 
 being worked by the proprietor or conlprised in a mining 
 lease. For definition of the " capital value of minerals " 
 see the next sub-division. 
 
 GENEKAL PEOVISIONS AS TO MINEEALS. 
 
 The provisions of Part I.* of the Act with respect to 
 valuation are not to apply to minerals which were on the 
 30th of April, 1909, 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 (sect. 23 (3) ). This provision 
 is apparently simply intended to carry out the exemption 
 from increment value duty of the minerals in the cases 
 mentioned. We have already seen [ante, p. cviii) that when 
 such minerals cease to be comprised in a mining lease or 
 to be worked, then their capital value is to be ascertained 
 in accordance with the provisions of the Act, and that 
 capital value is to be treated as the original capital value 
 of the minerals (sect. 22 (7) ) ; so that when again leased 
 or sold the terminus a quo increment value is calculated as 
 that valuation, and not a valuation as on 30th April, 1909. 
 
 For the purposes of valuation under Part I. of the Act, 
 all minerals are to be treated as a separate parcel of land, 
 and as above stated (p. ex), where the minerals are not 
 
 * Part I. is the part of the Finance (1909-10) Act, 1910, comprising the land 
 clauoffl. 
 
Valuation of Minerals. cxiii 
 
 comprised in a mining lease or being worked, they are to be when treated 
 
 treated as having no value as minerals, unless the owner of yaiue. 
 
 the land in which they are comprised, in his return to the 
 
 Commissioners, specifies the nature of the minerals and his 
 
 estimate of their capital value (sect. 23 (2)). Practically 
 
 the effect of this section appears to be that in valuing 
 
 either the total value or the site value of his land, for 
 
 the purposes of his original return under sect. 26 (2), an 
 
 owner must in all cases leave out of account the minerals. 
 
 If these minerals are not comprised in a mining lease or 
 
 being worked at the date of the original valuation the 
 
 owner may estimate their capital value as minerals, but 
 
 as a separate parcel of land. Whether this estimate is 
 
 binding on the Commissioners or not does not appear clear. 
 
 Nor is it distinctly stated that any estimate or sum which 
 
 may be substituted therefor by the Commissioners is to be 
 
 considered the original total or capital value of the minerals, 
 
 though it seems that this is the case. Minerals which are To be 
 
 comprised in a mining lease or are being worked are to be assessed. 
 
 treated as a separate parcel of land not only for the purpose 
 
 of valuation but also for the purpose of the assessment of 
 
 duty under Part I. of the Act (sect. 23 (2) ). In other words, 
 
 increment value duty must be levied on sale, or on death, on 
 
 minerals comprised in a mining lease, or on minerals being 
 
 worked, not as being part of the land with the surface, but as 
 
 a separate parcel of land altogether. This, indeed, would 
 
 seem to be a necessary consequence of the fact that the duty 
 
 on the land, not comprising the minerals, is payable as a lump 
 
 sum, whilst the duty on the minerals is an annual payment. 
 
 The total value of minerals means the amount which the The total and 
 fee simple of the minerals, if sold in the open market by a of mineral"*^ 
 willing seller in their then condition, might be expected to 
 
 * Sect. 25, def n'ng or explaining the total and site values of land, does not 
 apply to nainerals (sub-sect. 5). 
 
cxiv Explanatory Summary. 
 
 realise, and the capital value of minerals means the total 
 value, after allowing such deduction (if any) as the Com- 
 missioners may allow for any works executed or expendi- 
 ture 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 (sect. 23 (1) ). It 
 is this capital value of minerals which, as will appear from a 
 later paragraph, is the subject of the increment value duty 
 payable in respect of minerals when such duty is paid as a 
 lump sum under sect. 1. Capital value is, in short, the site 
 value of minerals. Increment value as to minerals means 
 increment in capital value. When increment value duty is 
 1/ payable as an annual sum for minerals leased or commenced 
 to be worked after 30th April, 1909, it has been pointed 
 out (see p. cix) that capital value is one of the factors in 
 fixing the amount of such duty. Having regard to incre- 
 ment value duty the owner of minerals should aim at a high 
 original capital value. It would seem, therefore, that he 
 need not be anxious to claim for deductions on account of 
 " works executed or expenditure incurred . . . for the 
 purpose of bringing the minerals into working," since the 
 lower the original capital or site value the greater the 
 probable amount of increment value, whether the same be 
 collected as a capital or an annual sum in the future. The 
 claim or non-claim for deductions on the original site valua- 
 tion is, however, a matter requiring most careful considera- 
 tion. If a deduction could be but is not claimed on the 
 original site valuation, it cannot be claimed on any occasion 
 for the payment of increment value duty (sect. 12, see notes 
 on pp. 149 to 151). If a deduction is claimed and allowed on 
 the original valuation, it can be claimed and will doubtless 
 
Valuation of Minerals. cxv 
 
 be allowed to the same extent, having regard to any change 
 in its effectiveness, on occasions for payment of increment 
 value duty as a capital sum. But where increment duty is 
 paid as an annual duty, the higher the original capital value 
 the less the annual duty. The rental value is not subject to 
 deductions. From the estate duty point of view deductions 
 seem immaterial. Estate duty is paid on the total or selling 
 (principal) and not on the capital (or site) value (sect. 23 (1)). 
 
 Quite different considerations apply to the later mineral 
 valuations on occasions for payment of increment value 
 duty as a capital sum under sect. 1. In these cases it is 
 the interest of the seller, or the representatives of the 
 deceased owner, to make the deductions from the con- 
 sideration money, or from the principal value under the 
 Finance Act, 1894, as heavy as possible. The less the 
 capital value at the date, the less the increment value. 
 
 Except where the context otherwise requires, any refer- site value 
 ence to the site value of land is, in cases where the land value. 
 consists solely of minerals, or comprises minerals, to be 
 construed, so far as respects the minerals, as a reference to 
 the capital value of the minerals (sect. 23 (4) ). 
 
 The definitions in sect. 24 relating to minerals are of Definitions 
 considerable importance and must be carefully studied in reiTtTng^to 
 considering the working of the Act. mmeia s. 
 
 PRACTICAL SUGGESTIONS AS TO MINERALS. 
 
 The case of the proprietor of minerals actually being where 
 worked by himself or let on a mining lease at the date of being worked 
 the commencement of the Act presents no difficulties. 
 He must pay his mineral rights duty, and until the 
 minerals cease to be either worked or comprised in a 
 mineral lease he is not liable to increment value dutv. 
 When the minerals cease for a period exceeding two 
 years to be either worked or comprised in such a lease 
 
 commence- 
 ment of Act. 
 
CXVl 
 
 Explanatory Summary. 
 
 "Where 
 minerals un- 
 worked and 
 unleased at 
 commence- 
 ment of Act. 
 
 they must be valued in accordance with the rules laid 
 down in the Act (sect. 22 (7) ). The value so ascertained will 
 be their original capital value. If afterwards the minerals 
 are sold out and out and it is found that increment value 
 exists, duty must be paid under sect. 2 (2) (a). If they are 
 so sold together with the surface and soil, the considera- 
 tion may be apportioned between the minerals and the 
 surface and soil (sect. 32 (3) ). If they are not sold, but 
 leased or worked, then increment value duty is payable, 
 if increment value exists, as an annual duty in manner 
 before described (p. cix). Possibly the lease must be for 
 over fourteen years, and in the case of working possibly an 
 occasion must have arisen under sect. 1 to make the increment 
 value duty payable. But these are doubtful points. 
 
 The case of the proprietor who has minerals on his 
 land unworked and unleased at the date of the commence- 
 ment of the Act presents more difficulties. If valued at 
 all on the original valuation, they are to be valued as a 
 separate parcel of land (sect. 23 (2) ). But they need 
 not be valued unless the proprietor chooses to put a value 
 on them in his return to the Commissioners on the occasion 
 of the original valuation (ib.). If he puts no value on them 
 he pays, as is thought, increment value duty on the full 
 amount of the purchase-moneys, or rent subsequently 
 obtained by him, as if all that purchase-money or rent were 
 increment value. Therefore it seems that, so far at least 
 as increment value duty is concerned, he would be wise to 
 put the highest value upon his minerals which he honestly 
 could put. Nevertheless he must remember that this 
 valuation will confront his representatives on his death, 
 when a claim for estate duty will arise. Further, the Com- 
 missioners are, it appears, not bound to accept the pro- 
 prietor's valuation, but may put their own valuation on the 
 mines. 
 
Valuation of Minerals. cxvii 
 
 No attempt has, from want of space, been made in this 
 summary to define or discuss the anomalous position of the 
 substances exempted by sect. 20 (5) from mineral rights 
 duty, i.e., common clay, common brick clay, common brick 
 earth, or sand, chalk, limestone, or gravel. Some of such 
 substances are doubtless in some circumstances minerals. 
 Possibly in other circumstances the same sorts of substances 
 are not minerals. So far as space would allow, questions 
 relating to these substances are full}'' discussed in the text 
 (see especially pp. 212 to 215). 
 
cxviii Explanatory Summary. 
 
 VI. VALUATION. 
 
 Immediate Perhaps the most striking of the Land Clauses is the 
 
 valuation of provlsion, ah'eadj to some extent explained or discussed (see 
 ante, p. li), for the immediate compulsory valuation of the 
 site values as on the 30th April, 1909, of all the land in the 
 United Kingdom (sect. 26 (1) ). The total value of such 
 land, as before explained, is also to be ascertained by the 
 Commissioners (ih.), but the ascertainment of total value 
 has long been an ordinary incident of imperial finance.* If 
 the land is employed in agriculture, and its value for agri- 
 / cultural purposes differs from its site value, the agricultural 
 \ value is also to be found (ib.). It would seem that this 
 ^provision renders necessary the finding of both site and agri- 
 cultural value, even in the case of land which, to use the 
 wording of the Act, " has no higher value than its value for 
 Site value not agricultural purposes only." Site value may be more than 
 agricultural agricultural value, or it may be less. It is seldom that the 
 site value is in fact exactly the same as agricultural value, 
 though the wording of sect. 26 (l) rather indicates that this 
 view may not be in accordance with that of the legislature. 
 The land employed in a dairy farm near a large town may 
 have an agricultural value of 80/., and a value as a cleared 
 site for building of SOOl. an acre. The land used as a 
 Kentish hop garden may have an agricultural value of 
 130/. an acre, and a site or building value of 100/. an acre. 
 Site valuation involves the hypothetical removal of all things 
 
 * No attempt has been made in this place to explain the mysteries of the 
 ■gross and full site valuations of sect. 25 (1) and (2) (both steps in the ascertain- 
 ment of site value). To have made such an attempt would have been to have 
 unduly incumbered this summary with obscure technicalities. Every effort 
 has been made in the text (see pp. 305 to 309) to bring out the real object 
 and meaning of the two valuations referred to. 
 
Valuation. cxix 
 
 placed or fixed on in or under the surface or growing upon 
 the land (sect. 25 (2)). This site valuation in the case of Why all land 
 land which to-day has no higher value than its value for under the 
 agricultural purposes is necessary under the scheme of the the Act, 
 Act, for the purpose of taxing the same land, in case, in the 
 future, it comes to possess a higher value than its value for 
 agricultural purposes. In the case of such land the incre- 
 ment value to be taxed is the increment to the original site 
 value, although the land itself may at the date of such 
 original valuation, i.e., 30th April, 1909, have had no 
 higher value than its value for agricultural purposes 
 (sect. 7). The undeveloped land duty, on the other hand, 
 is levied only on the excess of the site value of the land ^ 
 over its value for agricultural purposes (sect. 17 (2) ). 
 
 The oriejinal site valuation is for all time to be the The datum 
 starting point or datum line of the increment value which increment 
 is liable to duty. On that original value, undeveloped land 
 duty will be assessed and paid until after the end of the 
 -year 1914. In that year, and in every subsequent fifth The 
 year, a valuation is to be made of undeveloped land (for valuation?'^ 
 explanation of undeveloped land see the section on Unde- 
 veloped Land Duty, ante, p. xcv), showing the site value as 
 on the 30th April in that year (sect. 28). If site value is in 
 practice arrived at according to the methods prescribed in 
 sect. 25, this ascertainment of site value will also neces- 
 sarily entail the quinquennial ascertainment of total value 
 as well as gross and full site values. 
 
 Each piece of land which is under separate occupation separate 
 
 I 1 ,1 1 111 valuations. 
 
 IS to be separately assessed, and the owner may 
 require any part of any land to be separately assessed 
 (sect. 26 (1)), but he cannot require land in different 
 occupations to be aggregated for the purpose of valuation, 
 except in the case provided for by sect. 5 of the Kevenue 
 Act, 1911 (1 Geo. 5, c. 2) ; i.e., where the pieces of land 
 
cxx 
 
 Explanatory Summary. 
 
 Information 
 to be fur- 
 nished by 
 ownera, 
 persons, etc. 
 
 Commis- 
 sioners may 
 have inspec- 
 tion. 
 
 The 
 
 provisional 
 
 valuation. 
 
 being contiguous do not in the aggregate exceed 100 acres, 
 and in the opinion of the Commissioners a joint valuation 
 is in the special circumstances equitable. The request for 
 such joint valuation must be made before the valuation of 
 the separate pieces or before the 1st July, 1911. It is 
 doubtful if this provision extends to any valuation other 
 than the original valuation under sect. 26. 
 
 Owners and persons receiving rent must, when required 
 by the Commissioners, and under penalty for default, fur- 
 nish them with such information as is in their power 
 and as bears on the question of the value of the land 
 (sect. 26, sub-s. (2)) (see Dyson v. Attorney-General, [1911] 
 1 K. B. 410, C. A. ; W. N., p. 232, and note thereon in the 
 Appendix, p. 510). 
 
 Persons paying rent in respect of land, and agents 
 receiving rent, must, on request, furnish to the Com- 
 missioners the names and addresses of the persons to 
 whom the rent is paid, or on behalf of whom it is received 
 (sect. 31 (1) ). The Commissioners are thus able to ascer- 
 tain the names of the owners of the land. For a case on 
 Form 8, issued under the powers of this section, see Burghes 
 V. Attorney-General, [1911] 2 Ch. 139 ; W. N., p. 231, a full 
 note of which will be found on p. S4:7,j)0st. In order to carry 
 out their duties as to valuation the Commissioners may give 
 authority to any person to inspect any land and report to 
 them the value thereof, and that person must be allowed, 
 on production of his authority, to inspect the land in 
 question (sect. 31 (2) ). 
 
 The Commissioners are to make a provisional valuation 
 of the land (sect. 27 (1) )• Regulations are contained in 
 the same section for service of this valuation on the owner, 
 and for delivery of copies on request to persons interested in 
 the land who are not owners within the meaning of the Act. 
 For the meaning of the words "persons interested," see 
 
Valuation. cxxi 
 
 p. 326. The Commissioners allow them in practice to include 
 mortgagees. To such persons is given the opportunity of 
 objecting to the provisional valuation. That valuation as 
 finally settled by the Commissioners, whether previously 
 amended by them or not, subject to appeal, fixes the total 
 and site values as stated therein (sect. 27). 
 
 These powers and duties of the Commissioners are, with 
 perhaps the exception under the Revenue Act, 1911, above 
 referred to, applicable both to the original and the sub- 
 sequent quinquennial valuations (sect. 28). 
 
 It has already been pointed out (ante, pp. liii and liv) that 
 the principal valuation clause, namely, sect. 25, is largely 
 utilised under sect. 2 (2) for the purpose of ascertaining the 
 deductions to be made from the value of the consideration and 
 the principal value, etc. , under that section on an occasion 
 for the payment of increment value duty. 
 
 The valuation clauses are utilised in the Act for the How the 
 purposes (1) of fixing original site value, the terminus a quo Viauses are 
 of increment value duty (sect. 2), and upon which unde- 
 veloped land duty is levied till the year 1915 (sect. 16 (3) ) ; ^ 
 (2) of ascertaining the increment value on an occasion under 
 sect. 1 for payment of that duty (sect. 2) ; (3) of fixing the 
 quinquennial site value in the year 1914 and every subse- 
 quent fifth year upon which undeveloped land duty is paid 
 after the year 1914 (sect. 16 (3)); (4) of apportioning 
 original or quinquennial site value (sect. 29 (2), (3), (4) ) ; 
 and (5) of ascertaining the " total value " on the deter- 
 mination of a lease for the purpose of reversion duty 
 (sect. 13 (2)). 
 
 Sect. 25, the clause defining and explaining total 
 and site values, does not apply to minerals, as to which 
 the corresponding clause is sect. 23 (l) (ante, pp. cxiii 
 to cxvii). 
 
^xxu 
 
 Explanatory Summary. 
 
 The new 
 
 Domesday 
 
 Book. 
 
 The present 
 practice. 
 
 THE EEGISTER. 
 
 The Gommissioners must keep a record of all assessments, 
 valuations, apportionments, and reapportionments made by 
 them, and of all duty paid, and of all deductions allowed 
 by them in determining any value (sect. 30 (1)). This 
 necessarily involves, if the section is put into operation in 
 its widest sense, the establishment of a Land Registry 
 practically comprising the whole land of the country, and 
 containing particulars of all changes of ownership, and most 
 if not all, permanent expenditure on the property. The 
 magnitude of the change thus introduced has perhaps 
 hardly yet been realised. A person interested in the land, 
 or anyone authorised by him, but apparently no one else, is 
 entitled to a copy of the entries in such register, for which 
 lie has to pay a small fee [ih., sub-s. (2) ). It may often be 
 desirable for these entries to be inspected by persons who 
 have agreed to buy the land, and for that purpose a 
 purchaser should require a special stipulation in his contract 
 binding the vendor to give him the necessary written 
 authority to inspect the register. 
 
 The great majority of conveyances and leases are at 
 present stamped by Somerset House with the increment 
 value duty stamp referred to in paragraph (h) of sect. 4 (3), 
 i.e., the stamp denoting that all particulars have been 
 delivered to the Commissioners which are necessary to 
 enable them to assess the duty (ante, p. Ixviii). In most 
 cases it is clear that there has been no increment value since 
 the 29th April, 1909, and there is therefore no assessment of 
 duty, and no allowance of deductions made by them. 
 Mutatis mutandis, this remark is applicable to the passing 
 of much property on death. It may be, though sect. 30 (1) 
 / seems not quite clear, that the Commissioners are not bound 
 by it to record any particulars as to the transactions and 
 
The Eegister. cxxiii 
 
 passings on death in question. They may not be bound to 
 value in order to see that there is no increment value duty 
 to assess. But if they so please, it seems that they miglit 
 value for that purpose, and having valued they must record. 
 Nor is it by any means clear that the present time of 
 receding site values will be indefinitely prolonged. A day 
 of improving values may arrive, and the powers of the Act 
 may then be rigidly enforced. The result would be that a 
 real history of urban properties would be recorded on 
 the register. 
 
cxxiv 
 
 Explanatory Summary. 
 
 VII. APPEALS. 
 
 An extensive 
 right of 
 appeal. 
 
 The excep- 
 tions : 
 (I) Certain 
 exemptions 
 from un- 
 developed 
 land duty. 
 
 (2) Provi- 
 sional valua- 
 tion of total 
 or site value. 
 
 (3) Original 
 total or site 
 value or an 
 assessment of 
 duty. 
 
 The right of appealing from decisions of the Commis- 
 sioners is a very wide one. An appeal to a referee, and 
 from the referee to the Court, is given against every decision 
 within the time and in the manner provided by rules laid 
 down under the Act (sect. 33). The exceptions from this 
 right are appeals — 
 
 (1) As to certain matters which by sect. 17 (3), 
 
 creating exemptions from undeveloped land duty, are 
 expressed to be matters for the opinion of the Coni' 
 missioners. These are (a) whether access under the 
 circumstances to woodlands, parks, etc., is of public 
 benefit ; (h) whether the keeping land free from 
 buildings in pursuance of a definite scheme is 
 reasonably necessary in the interests of the public, 
 or in view of the character of the surroundings or 
 neighbourhood ; and [c) whether it is probable that 
 land will continue to be used for the purposes of 
 games or recreation (see ante, pp. xcviii and xcix). 
 
 (2) Against the provisional valuation of the total or site 
 
 value of any land unless the appellant has given 
 to the Commissioners, in accordance with the Act, 
 notice of objection to the provisional valuation 
 (sect. 33 (1) (a) ). 
 
 (3) As to the original total and site value, and the site 
 
 value as ascertained under any subsequent valuation, 
 which can be questioned only by means of an appeal 
 against the determination by the Commissioners of 
 
Appeals. cxxv 
 
 that value, and cannot be questioned on an appeal 
 against the assessment of duty (sect. 33 (1) (h) ), 
 
 All other decisions of the Commissioners, such as those instances 
 relating to (1) the amount of any assessment of duty ; allowed. 
 
 (2) the allowance, or the amount of any deduction claimed ; 
 
 (3) the apportionment of the value of the land or the duty ; 
 
 (4) the assessment or apportioimient of the consideration 
 on any transfer or lease ; (5) any other of the numerous 
 matters which may arise in the working of the clauses, are 
 subject to an appeal, grounded on either law or fact, under 
 the Act (sect. 33 (1)). 
 
 It will be observed that the effect of the exemption num- 
 bered 3 on p. cxxiv is to emphasise the importance of a correct 
 original site value and to a lesser extent of a correct site 
 value on a quinquennial valuation. The original site value 
 is the starting point of all future claims for increment value 
 duty, and fixes the undeveloped land duty up to January, 
 1915. The site value fixed on a quinquennial valuation 
 determines the latter duty for the period during which it 
 is in force. Neither valuation can be questioned on an 
 occasion for payment of duty. It can only be questioned 
 by appeal from the decision of the Commissioners in the 
 performance of their duty of making a general valuation 
 under sect. 26 or sect. 28, as the case may be. This rule 
 is analogous to that afiecting local rates established by 
 the Union Assessment Committee Amendment Act, 1864 
 (27 & 28 Vict. c. 39), s. 1, and is clearly a matter of 
 administrative convenience. 
 
 The appeal in the first instance is to a referee (ih., Appeal in 
 
 i_ /r>\ \ A i» • f> 1 /> 1 first instance 
 
 sub-s. (2) ). A reieree is one or a number oi persons who to a referee, 
 have either been admitted Fellows of the Surveyors' Insti- 
 tution or have had experience in the valuation of land, and 
 have been appointed for England, Scotland, and Ireland, 
 respectively, by the Reference Committee under the Act, to 
 N. i 
 
CXXVl 
 
 Explanatory Summary. 
 
 This is of an 
 
 informal 
 
 nature. 
 
 Appeal from 
 referee 
 to High 
 Court. 
 
 form a panel of persons to act as referees in the three 
 countries respectively (sect. 34 (1)). The appeal to the 
 referee is of a somewhat informal nature. He has to 
 determine any matter referred to him in consultation with 
 the Commissioners and the appellant, or any persons nomi- 
 nated by the Commissioners and the appellant respectively 
 (sect. 33 (3) ). Apparently it is intended that this appeal 
 should be rather of the nature of a round-table conference 
 than the hearing of a dispute, but there appears to be nothing 
 to prevent a formal hearing of the matter if a consultation 
 is not excluded. It is not thought that the provisions of 
 the Arbitration Act, 1888, are applicable to a reference under 
 the Act, and it would seem that the referee has no power to 
 administer an oath. The referee may order the expenses of 
 either party to be paid by the other, and this order may be 
 enforced by the High Court (ib.). Any person, who need 
 not necessarily be counsel or a solicitor, may represent either 
 the Commissioners or the appellant (ih.). If a point of 
 law has been raised on the appeal, the referee may, if he 
 pleases, state his award in the form of a special case for 
 the opinion of the Court (rule 9a, p. 378). Referees are 
 to be paid such fees or remuneration as the Treasury 
 directs (sect. 34). The rules regulating appeals to a referee 
 will be found on p. 376. 
 
 From the decision of the referee there is an appeal 
 either by the Commissioners (see He venue Act, 1911, 
 s. 7), or by the subject, to the High Court upon the 
 conditions and within the times laid down by rules of 
 that Court (sect. 33 (4) ). For these rules see p. 383. An 
 appeal by the Commissioners is not provided for in the 
 rules, which will, however, no doubt be amended in this 
 respect,* but in one case, i.e., on the question whether a 
 
 * The rules were made before the Revenue Act, 1911, giving an appeal to the 
 Commissioners, was passed, 
 
Appeals. cxxvii 
 
 restrictive covenant or agreement shall be taken into 
 account as lessening " total value," on the ground that 
 it was " desirable in the interests of the public, or in view 
 of the character or surroundings of the neighbourhood," 
 there is under sect. 25 (3) no appeal from a referee. From 
 the High Court, by leave either of that Court or of the 
 Court of Appeal, an appeal lies to the Court of Appeal, and 
 from the Court of Appeal an appeal lies of right to the 
 House of Lords. If the total or site value, as alleged by To County 
 the Commissioners, of the property in respect of which a 
 dispute has arisen does not exceed 500/., the appeal 
 may be — though it is not said that it must be — to the 
 County Court within the jurisdiction of which either 
 the appellant resides or the property is situated, and from 
 the County Court either party may appeal to the Court of 
 Appeal {ih., sect. 33 (4) ). 
 
 There are separate Reference Committees appointed for The Reference 
 England, Scotland, and Ireland respectively ; that for 
 England consisting of the Lord Chief Justice, the 
 Master of the Rolls, and the President of the Surveyors' 
 Institution. The duties of these committees are to establish 
 a panel of referees and to make rules, subject to the 
 approval of the Treasury, regulating appeals from the 
 Commissioners to the referees (sect. 33 (2) and (5) ). 
 
CXXVUl 
 
 Explanatory Summary. 
 
 Apportion- 
 ments. 
 
 Overlapping 
 duties. 
 
 VIII. MISCELLANEOUS PROVISIONS 
 LAND CLAUSES. 
 
 OF 
 
 It is evident that when pieces of land originally valued 
 as a whole are divided on the occasion of sales, leases, 
 or devises by the owners, it is necessary, for the pur- 
 pose of estimating the amount of increment value and 
 undeveloped land duties, that the original site value 
 of the whole piece should be apportioned amongst its 
 divided parts. If increment value duty has already been 
 paid on the aggregate piece on any former occasion, it 
 is also clearly necessary that that payment should be 
 allocated amongst the divided pieces. When property 
 held under two or more original site valuations is pur- 
 chased for an aggregate sum, it is necessary that that sum 
 should, for the purpose of ascertaining the duty then due 
 in respect of each portion, be divided amongst the several 
 portions of the property so separately valued. It is believed 
 that sufficient powers are vested in the Commissioners under 
 sects. 3(1), 29, and 30, for enabling them to carry out these 
 necessary apportionments as occasion may arise. 
 
 It further appears to be the intention of the Act that the 
 same piece of land, or the same interest in land, should not 
 at one and the same time be subject to more than one of 
 the new duties. The increment value of minerals is not 
 to be charged with both mineral rights duty and incre- 
 ment value duty, which in the case of minerals in lease or 
 being worked is a yearly duty (sect. 22 (6) ). Reversion 
 duty is not to be paid in respect of a benefit which has 
 already paid increment value duty, and vice versd 
 (sect. 14 (4) ). If increment value duty has been paid in 
 
Miscellaneous Matters. cxxix 
 
 respect of land liable to undeveloped land duty, the latter 
 duty is proportionably reduced (sect. 16 (3) ). A succession 
 of payments of increment value duty may have the effect of 
 considerably reducing the site value upon which undeveloped 
 land duty is charged. Payments on account of undeveloped 
 land duty, which is an annual charge, are not, however, 
 allowed in reduction of the increment value of the land. 
 
 Capital sums paid to local or rating authorities in Capital 
 
 . , , . , , . betterment 
 
 respect of increased value of land due to any improvements charges. 
 made or other action taken by the authority may be 
 deducted («) from the increment value of the land for the 
 purposes of the calculation of increment value duty, (b) from 
 the site value of the land for the purposes of the calculation 
 of undeveloped land duty, and (c) from the value of the 
 benefit accruing to the lessor for the purposes of reversion 
 duty. Under this provision capital sums paid in respect of 
 betterment charges, and also possibly sums paid to a local 
 authority under sect. 257 of the Public Health Act, 1875 
 (" Recovery of expenses by local authorities from owners "), 
 may be deducted from the respective values mentioned. 
 The sums so paid are analogous to the ordinary expenditure 
 in the improvement of a site for which deductions may be 
 made in arriving at site value under sect. 25 (4) (sect. 36). 
 
 Provision is made in the Act by which trustees or tenants Payments of 
 for life who have paid increment value duty or reversion value duty 
 duty are enabled to charge their payments upon the land duty by ^ '^ 
 or interest in land in respect of which they were made. A ^""^^^'^ ^• 
 mortgagee is also entitled to add to his security any sum 
 which he may himself be liable to pay as increment value 
 duty or reversion duty in respect of the mortgaged property 
 (sect. 39 (1) and (4) ). 
 
 In the application of the Land Clauses to the class of Copyholds 
 copyholds in which the tenant has an interest analogous freehold's! 
 to the ownership of freehold land — that is in the case of 
 
cxxx Explanatory Summary. 
 
 copyholds of inheritance and those held for a life or lives or 
 for years where the tenant has a right of renewal, and in 
 the case of customary freeholds — 
 
 (a) The total or site values of the land are to be ascer- 
 
 tained as if that land were freehold land subject to 
 a deduction of such an amount as it would cost to 
 enfranchise the land. 
 
 (b) References to the fee simple of the land are to be 
 
 treated as references to the whole copyhold or 
 customary interest or estate. 
 
 (c) " The owner " is considered to be the person entitled 
 
 to the rents and profits as tenant by copy of court 
 roll or customary tenure instead of the person 
 " entitled to the rents and profits of the land in 
 virtue of an estate of freehold," as is the case with 
 regard to freeholds. 
 
 Copyholds In the case of copyholds held for a life or lives or for 
 
 oV renewaif years where the tenant has not a right of renewal the Land 
 Clauses of the Finance Act, 1910, are to apply as if the land 
 itself were freehold land of which the lord M^as the owner 
 and the copyhold were a leasehold interest (sect. 40). 
 Differences of As to the former class of copyholds it is clear that the 
 copyholder in fee or with a perpetual right of renewal who 
 can compel enfranchisement are really the owners of the 
 property, subject to the rights of the lord to be paid the 
 proper sums for enfranchisement under the Act. The 
 copyholder is accordingly so treated under the Act, the 
 value of the lord's interest being deducted as if it were in 
 fact a fixed charge. 
 
 In the latter class of copyholds, few examples of which 
 probably now remain, the position of the copyholder is 
 clearly analogous to that of an ordinary lessee, and he is so 
 treated bv the Act. 
 
Construction and Evasion. cxxxi 
 
 IX. THE CONSTRUCTION AND EVASION OF 
 STATUTES IMPOSING TAXATION. 
 
 It is thousjht that a short section dealing with the two Alleged 
 
 ^ •11 • r ®P^^'*^ canons 
 
 important matters of the construction and the evasion of ofconstruc- 
 
 p 1 T • r *^^"' 
 
 statutes imposing taxation may be useiul, it is, oi course, 
 clear that most of the accepted rules of interpretation are 
 applicable to Revenue as to other statutes ; and for these 
 the well-known authorities, such as Craies' Statute Law 
 and Maxwell on the Interpretation of Statutes, may be 
 consulted. 
 
 But it is sometimes said, and often implied, that there 
 are special rules for the interpretation of Revenue statutes 
 more favourable to the subject than the rules for the 
 interpretation of ordinary Acts. These special rules are 
 said to be, in eifect, (1) that Revenue statutes are construed 
 strictly against the Crown and in favour of the subject ; 
 and (2) that revenue statutes may legally be the subject of 
 successful evasion more readily than other statutes. It is 
 hardly possible to test these propositions by decided cases, 
 since the ratio decidendi of any given case can rarely be 
 exclusively attributed to the direct application of, or the 
 refusal to apply, either of these so-called rules or principles 
 of interpretation. The following dicta may, however, be 
 useful to the subject seeking to avoid some of the incon- 
 veniences of the Land Clauses, and will also draw attention 
 to the principal cases in which the questions have been 
 discussed. 
 
 L CONSTRUCTION. 
 
 The weight of authority is in favour of the view that 
 statutes imposing taxation or taking away rights are 
 construed more strictly than most other legislation. There is 
 
cxxxii Explanatory Summary. 
 
 perhaps no direct statement that this is the case, but it 
 seems to be a legitimate impUcation from some of the dicta 
 given below. 
 
 " The party who seeks to bring an instrument within the Stamp Act 
 must show clearly that it falls within it. He must so to speak liit 
 the bird in the very eye. We can make no intendments in favour of 
 the liability." 
 
 PhiUijJS V. Mon-ison, 13 L. J. Ex. 212. 
 
 " It is a well-established rule that the subject is not to be taxed 
 without clear words for that puiijose." 
 
 In re Micl'lcthiraitc (1855), 11 Ex. 452, per Lord 
 
 Wensleydale, at p. 456. 
 
 " The intention to impose a charge on the subject must be shown 
 by clear and unambiguous language." 
 
 Spoken of as a rule in the judgment of the Privy Council 
 
 in Oriental Bank Corporation v. Wright, 5 App. Cas. 482. See 
 
 also to the same effect Coltness Iron Co. v. Blaeh (1881), 6 
 
 A. C, p. 315, per Lord Blackburn, at p. 330. Approved 
 
 by Lord Herschell in Colquhoun v. Brooks, [1889] 14 A. C. 
 
 493, at p. 505. 
 
 lennant v " '^^^^^ i^ ^^ Income Tax Act, and what is intended to be taxed is 
 
 Smith, [1892 J income. And when I say ' what is intended to be taxed,' I mean what 
 
 is the intention of the Act as expressed in its provisions, because in a 
 taxing Act it is impossible, I believe, to assume any intention, any 
 governing pui-pose in the Act, to do more than take such tax as the 
 statiite imposes. In various cases the principle of construction of a 
 taxing Act has been referred to in various forms, but I believe they 
 may be all reduced to this, that inasmuch as you have no right to 
 assume that there is any governing object which a taxing Act is 
 intended to attain other than that which it has expressed by making 
 such and such objects the intended subject for taxation, you must see 
 whether a tax is expressly imposed. 
 
 " Cases, therefore, under the Taxing Acts always resolve themselves 
 into a question whether or not the words of the Act have reached the 
 alleged subject of taxation/' 
 
 Tennant v. Smith, [1892] A, C. 150, per Halsbury, L-C, at 
 
 p. 154. 
 
 A. C. 150. 
 
Construction. cxxxiii 
 
 In Attorney -General v. Beech, [1898], 2 K. B. 147, the Aftome!/. 
 dictum of Lord Halsburj in the last-mentioned case formed Beech, [i898] 
 the basis of the judgment of the Court of Appeal (see 
 pp. 150 — 155). Lord Justice Chitty says at p. 155 : — 
 
 " It is incumbent on the Ci'own when claiming the tax to make out 
 affirmatively that the case falls within the statute. The principles 
 applicable to the interpretation of a taxing Act are laid down by the 
 Lord Chancellor in the passage already cited. You must see that the 
 tax is expressly imposed ; the subject is not to be taxed without clear 
 words, and the Act, like every other Act, must be read according to 
 the natural construction of the words." 
 
 At p. 157 the same learned judge, after giving examples 
 
 of cases which would not fall within the taxing section 
 
 (sect. 2 (1)) of the Finance Act, 1894, adds :— 
 
 " Much was said upon opening the door to evasion. Woiild these 
 be cases of evasion 1 Certainly not. Indeed the whole argument on 
 evasion of the Act is fallacious. The case either falls within the Act 
 or it does not. If it does not, there is no such thing as an evasion. 
 If a tax is imposed on using a crest or coat of arms and a man who 
 has previously used them ceases to \ise them in order to be free from 
 the tax, there is no evasion of the Act in any sense of the term 
 legitimately used." 
 
 Bee jwst, p. cxxxiv, as to " evasion." 
 
 " As I understand the principle of all fiscal legislation it is this : Partington v. 
 If the person sought to be taxed comes within the letter of the law he Attorney- 
 must be taxed, however great the hardship may appear to the judicial- (i869), 4H. L. 
 mind to be. On the other hand, if the Crown, seeking to recover the 100. 
 tax, cannot bring the subject within the letter of the law, the subject 
 is free, however apparently within the spirit of the law the case might 
 otherwise appear to be. In other words, if there be admissible, in any 
 statute, what is called an equitable construction, certainly such a con- 
 struction is not admissible in a taxing statute, where you can simply 
 adhere to the words of the statute." 
 
 See also to the same effect, Lord Cairns in Partington v. 
 Attorney-General (1869), 4 H. L. 100, at p. 122 ; andFarwell, 
 L.J., in Dyson v. Attorneij- General, [1912] 1 K. B. D.* 
 
 The judicial dicta are not, however, all in the same inconsistent 
 
 T ,• dicta. 
 
 direction. 
 
 * Volume not issued at date of going to press. 
 
cxxxiv Explanatory Summary. 
 
 In an income tax case {Clerical, Medical and General Life 
 Assurance Society v. Carter (1889), L. R. 22 Q. B. D. 444, 
 Lord Esher, M.R., said at p. 448 : — 
 
 " After all we must construe the words of Schedule D according to 
 the ordinary canon of construction, that is to say, by giving them 
 their ordinary meaning in the English language as applied to such a 
 subject-matter, unless some gross and manifest absurdity would be 
 thereby produced." 
 
 Attorney- See also per Lord Russell of Killowen, C.J., in Attorney- 
 
 General V. 
 CaritonBank, General V. Carlton Bank, [18991 2 Q. B. 158, at p. 164, as 
 
 [1899] 2 Q.B ' L J -% > r ' 
 
 158. lollows : — 
 
 " In the course of argument reference was made on both sides to 
 supposed special canons of construction applicable to Revenue Acts. 
 For my part I do not accept that suggestion. I see no reason why 
 special canons of construction should be applied to any Act of Parlia- 
 ment, and I know of no authority for saying that a taxing act is to be 
 construed differently from any other Act. The duty of the Court is, 
 in my opinion, in all cases the same, whether the Act to be construed 
 relates to taxation or to any other subject, namely, to give effect to 
 the intention of the Legislature as that intention is to be gathered 
 from the language employed having regard to the context in con- 
 nection with which it is employed. The Court must no doubt 
 ascertain the subject-matter to which the particular tax is by the 
 statute intended to be applied, but when once that is ascex'tained, it is 
 not open to the Court to narrow or whittle down the operation of the 
 Act by seeming considerations of hardship or of business convenience 
 or the like. Courts have to give effect to what the Legislature has 
 said." 
 
 If the subject is claiming special exemption from a general 
 rule or liability, it is for him to establish the exemption 
 (Pu'x V. Skcjfington, 3 B. & A. 382 ; Chanter v. Dickenson, 12 
 
 L. J. c. pfur). 
 
 II. EVASION. 
 
 Akin to the question of the construction of a Revenue 
 statute is that of its " evasion." The expression " evasion " 
 is obviously an ambiguous expression. In a case turning 
 on the meaning of the word " evade " in a Revenue statute 
 of Victoria, which made conveyances " with intent to 
 
Evasion. cxxxv 
 
 evade the payment " of certain death duties ineffectual to do 
 so, Lord Liudley said : — 
 
 " The discussion and the decision which took place in the Privy BulUvant v. 
 Council in the case of Siimns v. Registrar of Probate, L, R., [1900] -^tornen- 
 A. C. 323, show the ambiguity of the expression. ... As I have [1901] A. C. 
 said, there are two ways of construing the word ' evade ' : one is that a ^^'^• 
 person may go to a solicitor and ask him how to keep out of an Act 
 of Parliament — how to do something which does not bring him within 
 the scope of it. That is evading in one sense, but there is nothing 
 illegal in it. The other is when he goes to his solicitor and says, 
 ' Tell me how to escape from the consequences of the Act of Parlia- 
 ment although I am brought within it.' That is an act of quite a 
 different character." 
 
 BulUvant v. Attorneij- General, [1901] A. C. 196, at p. 207. 
 
 It Is evasion in the first of the two senses referred to in 
 the speech of Lord Lindley, which is relevant to the subject- 
 matter of this work. This is quite permissible. Smale v. Evasion in 
 Burr (L. R. 8 C. P. 64), and Bamsden v. Lupton (L. R. 9 cases? ^^ 
 Q. B. 17), were cases in which the statutory requirement of 
 registration within twenty-one days of a bill of sale (required 
 by the 17 & 18 Vict. c. 36) was successfully evaded by the 
 substitution of second and further bills, each executed in 
 substitution for the immediately preceding bill and within 
 the period of twenty-one days of the execution of that bill. 
 In the Exchequer Chamber, 9 Q. B. at p. 28, Bramwell, B., 
 is reported as saying : — 
 
 " It is manifest that there was nothing illegal in the agreement made Ramsden v. 
 between the plaintiff, on behalf of Mr. Englebach, and Whvte, the Lupton, L. R, 
 borrower of the money. There is nothing in the Bills of Sale Act 
 which prohibits what was done and agreed between these parties. 
 There is nothing in the statute that prohibits or enjoins anything. 
 It only says imless certain things happen certain consequexices shall 
 follow. That being the case, it is impossible to make out this 
 transaction to be illegal. Then the suggestion is, 'Well, but it is 
 contrary to the policy and spirit of the Act.' But if there are no 
 enjoining or prohibitory clauses in the Act, I do not see how it can be 
 said that one must examine whether it is contrary to the policy and 
 spirit of the Act. No doubt, to a certain extent, the Act may be 
 evaded ; but, as it has been observed, an Act evaded is an Act not 
 
cxxxvi Explanatory Summary. 
 
 broken. I am clearly of opinion that there is nothing in any sense 
 illegal ill this transaction, and that it was not within the Act of Par- 
 liament in snch sense that the non-registration of the first bill of sale 
 and the agreement, taken altogether, rendered the parties to it subject 
 to the consequences which, as pointed out in the Act of Parliament, 
 are to take place where a bill of sale is not registered when it ought 
 to be registered." 
 
 Keating, J., said at p. 30 : — 
 
 "That being so, I am at a loss to discover how in this case it is at 
 all an illegal agreement. I can perceive that it is undoubtedly a mode 
 of escaping from revenue burdens. As such it is not at all to be 
 commended ; and, as my brother Bramwell has pointed out, the 
 parties who do enter upon such arrangements must look out for 
 difficulties which may arise." 
 
 Grove, J,, said at p. 33 : — 
 
 "As I thought in the case of Smale v. Burr, L. R. 8 C. P. 64, I 
 cannot help thinking that in that sense the statute has been evaded ; 
 the mischief the statute intended to remedy has been produced, or was 
 capable of being produced, while the words of the statute are complied 
 with, and there is no actual disobedience to it. That is saying in 
 effect, that the statute has not provided a full and adequate remedy 
 for the mischief it intended to remedy. That, of coiirse, is a matter 
 for the Legislature, not for us ; and therefore I am confirmed in the 
 opinion which I was reluctant in coming to, that the judgment we 
 were giving in Smale x. Bu7-r was right." 
 
 Hiring agree- In Yorksltu'e Eailwaij Company v. Machur, 21 Ch. D. 309, 
 
 ment and bill , . ,, , . . i • i i i i • i 
 
 of sale. speaking oi a hiring agreement which was held not void 
 
 as a bill of sale, Lindley, L.J., at p. 318 said : — 
 
 "It is said to be an evasion of the Act of Parliament really to 
 borrow the money. There is always an ambiguity about the 
 expression ' evading an Act of Parliament.' In one sense you cannot 
 evade an Act of Parliament ; that is to say, the Court is bound so to 
 construe every Act of Parliament as to take care that that which 
 is really prohibited may be held void. On the other hand, you may 
 avoid doing that which is prohibited by the Act of Parliament, and 
 you may do something else equally advantageous to you which is not 
 prohibited by the Act of Parliament. It appears to me that the 
 transaction falls under the last of these two classes, it is a transaction 
 as useful for the railway company as the other, but it is a real 
 transaction, and is not struck at by the Act of Parliament at all. 
 
 " I never understand what is meant by an evasion of an Act of 
 Parliament ; either you are within the Act, or you are not within it ; 
 
Evasion. cxxxvii 
 
 if you are not within it you have a right to avoid it, to keep out of the 
 prohibition." 
 
 See Edwardes v. Hall, 25 L. J, Ch. 84, per Lord Hatherley, 
 also at p. 84. The case was on the Mortmain Act. For a 
 case of successful evasion of sect. 1 of the Finance Act, 
 1894, see Attorney-General v. Bichmond ([1909] A. C. 466). 
 The gap in the Act was at once stopped by the Finance 
 (1909—10) Act, 1910, s. 57. 
 
 For cases with a contrary tendency, see Fox v. Bishop of 
 Chester, 2 B. & C. 635 ; Wright v. Davies, 1 €. P. I). 638. 
 
 Problems which may arise on the construction of the 
 Finance Act, 1910, to which the above dicta may be 
 applicable, might be as follows : — 
 
 (1) Would a series of separate leases, the one in possession, 
 and the others in reversion, executed contemporaneously, 
 each for not more than fourteen years together, constitute 
 a lease for a term exceeding ' fourteen years, so as to' cause 
 increment value duty to become payable under sect. 1 ? 
 
 (2) Would the surrender of a lease to a trustee for the 
 lessor or to the lessor himself with a declaration against 
 merger bring al)out a determination of the lease so as to 
 cause reversion duty to become payable ? 
 
 (3) Would the employment in his business of an 
 unnecessary amount of land, although the same was actually 
 employed in the business, exempt the owner from unde- 
 veloped land duty, that being the real object of the 
 employment ? 
 
 Illustrations might be multiplied, and doubtless much 
 ingenuity will be legitimately expended in trying to evade 
 in the commendable sense of that word the taxing provisions 
 of the Act. 
 
CXXXVlll 
 
 Explanatory Summary. 
 
 X. PROCEDURE IN RELATION TO DUTIES 
 AND PENALTIES. 
 
 The first step. 
 
 Appeal to 
 referee. 
 
 From referee 
 to Court. 
 
 Court of 
 Appeal and 
 House of 
 Lords. 
 
 How the sub- 
 ject's liability 
 is enforced. 
 
 In all cases the Comniissioners in the first instance 
 determine (1) the liabiKty to duty, and (2) the amount of 
 the duty. If the taxpayer disputes that determination on 
 either of these points he may, subject to the exceptions 
 contained in the last paragraph of sect. 17 (3), and para- 
 graph (h) of the proviso in sect. 33 (1), appeal to a referee 
 within the time laid down by the rules regulating such 
 appeals (see p. 376). The appeal may be either based on 
 law or as to the facts. If it is based on law the referee may 
 either decide it himself, or state his award in the form of a 
 special case for the opinion of the Court (see rule 9a, p. 378). 
 It appears that the decision of the Court on the case would 
 then be treated as that of the referee : and rule 12 (see p. 379) 
 would come into operation. But qncere as to who should 
 give notice to the Commissioners of the decision of the 
 Court (see rule 9, p. 378). From the decision of the referee 
 there is an appeal either by subject or Commissioners to the 
 High Court, that is to a single Judge of the King's Bench 
 Division, though by special order the petition of appeal may 
 be heard by a Judge of the Chancerv Division or at Assizes 
 (rule 6, p. 384). By leave of the High Court or the Court of 
 Appeal there is a further appeal by either Crown or taxpayer 
 to the Court of Appeal (see p. 368) ; and yet a further 
 appeal, as of right, by either to the House of Lords. 
 
 But the result of these proceedings is not, it seems, an 
 operative judgment or order for payment of duty. It is 
 simply a determination of the liability of the subject either 
 by the Commissioners or one of the four Appeal Courts. It 
 establishes or creates a debt due to the Crown. To get 
 their money, unless voluntarily paid, the Commissioners must 
 
Duties and Penalties. cxxxix 
 
 either have got the duty paid or secured under rule 14 of 
 the rules regulating appeals to the High Court (see p. 383), 
 or they must sue by information filed by the Attorney- 
 General for the amount determined to be due to them on 
 the appeal. Informations are either at law, that is, are 
 "Latin informations," or in equity, that is, are "English 
 informations." Both were formerly brought on the Revenue The two 
 side of the old Oourt of Exchequer, and are now brought on information, 
 the Revenue side of the King's Bench Division. There is 
 a special and different procedure for each. The English or 
 equitable information is perhaps most used by the Crown in 
 claims for duties where accounts have to be taken (see 
 Attorney-General v. Diilie of Richmond {No, 2), [1907] 2 K. B. 
 940). Where a sum of duty not involving accounts, or a 
 penalty is sued for the Latin information as the simplest 
 appears to be used by the Crown. (For a full account of 
 the procedure in respect to informations consult Robertson's 
 "Civil Proceedings by and against the Crown," 1908, a 
 most useful and luminous treatise.) The precise effect on information 
 the information proceedings of the previous determination asseslmSit. 
 of the Commissioners or the referee under the Act of 1910 
 that duty was due or that a particular sum was due seems 
 not to be quite clear. Would that determination on 
 some point of law, as, for example, that a lease exceeded 
 twenty-one years, which was not appealed against and 
 which was clearly wrong, be binding on the taxpayer in an 
 information of debt for payment of reversion duty ? It is 
 thought not, and that it is open to the subject on such an 
 information to raise all the points not actually adjudicated 
 upon by the Court in the proceedings under the 1910 Act. 
 So far as any decision on law had been given by a Court ouare as to 
 (not including the referee) under the Act, it would of course p^^^^'^^^ ^^ 
 be binding on the Court hearing the information, and it may feedings. 
 be that the subject is actually estopped by the former 
 
cxl 
 
 Explanatory Summary. 
 
 Recovery of 
 increment 
 value duty 
 payable on 
 death. 
 
 The Crown 
 and costs. 
 
 Writ of 
 
 immediate 
 
 extent. 
 
 decision, though it is thought he would not be estopped by 
 the decision of the Commissioners (or ? of the referee). If 
 there had been an appeal under the Act of 1910 on matters 
 of fact from the Commissioners, it may be that the appellant 
 is estopped in any proceedings by information to enforce 
 payment of duty from denying the facts so found by the 
 Court (quare as to the referee), but not it is thought by 
 the Commissioners. The question is, however, of some 
 difficulty, but, having regard to rule 14 (1) (p. 385), perhaps 
 not of great importance. It is referred to here, since its 
 consideration may be important in determining what course 
 should be taken by the subject on assessments which are 
 objected to. It may well be that the subject may prefer 
 not to utilise the appeals from the Commissioners or the 
 referee provided by the Act of 1910, but to await a claim 
 for duty brought by information m the usual way. 
 
 If the Crown sues bv equitable or English information for 
 any duty, it must waive the right to sue for penalties (see 
 Robertson, p. 145). 
 
 Increment value duty arising on the occasion of a death 
 may, it is thought, by reason of sect. 5 of the Act of 1910 
 incorporating sect. 8 (1) of the Finance Act, 1894, be 
 recovered by the Commissioners, suing in their own names, 
 by writ of summons issued out of the King's Bench 
 Division under either section, sect. 55 or sect. 56, of 
 The Crown Suits Act, 1865 (28 & 29 Vict. c. 104) (seep. 99). 
 
 The rule or practice that the Crown does not usually 
 either receive or pay costs does not now apply to Revenue 
 or Stamp Cases (22 & 23 Vict. c. 21, s. 21 ; 16 & 17 Vict, 
 c. 51, s. 50; 54&55 Vict. c. 39, s. 13), and costs are given 
 to and against the Crown as in ordinary actions between 
 subjects. 
 
 In addition to the remedy by information the Crown has 
 another remedy, not often used in modern times, for the 
 
Duties and Penalties. cxli 
 
 recovery of its debts, namely, that known as "a writ of 
 immediate extent." An ordinary writ of extent is simply 
 the Crown's method of levying execution on a judgment or 
 record against the body, and all the property, lands, goods, 
 and choses in action of the debtor. A "writ of immediate 
 extent " is exactly the same thing except that the writ may 
 be issued before any judgment is obtained, or even an action 
 commenced ; but it can only be issued under the fiat of a 
 judge, obtained on an affidavit that the Crown's debt is in 
 danger of being lost, unless some more speedy course than 
 the ordinary method of procedure be taken to recover it. 
 It is the practice that the application for the writ should be 
 authorised by the Attorney- General. Under the writ the 
 sheriff may take the alleged debtor into custody, but in 
 modern times this is usually not required by the Crown. 
 The sheriff summons a jury, who inquire and find what 
 property the debtor possesses, and this finding is it seems 
 equivalent to a delivery in execution. The alleged debtor 
 may of course dispute the debt, and in that case must 
 enter an appearance and if required by the Crown must 
 deliver a pleading (see rule 49 of the Exchequer Rules, 
 Revenue Side, 1860). The procedure might doubtless be 
 applied to the duties established by the Act of 1910. 
 
 The writ of diem clausit extremum is shortly described as a Writ of diem 
 
 cliizzt/Sit SOS" 
 
 writ of immediate extent, so far as regards lands, chattels, tremum. 
 and choses in action issued after the death of the alleged 
 debtor. The practice in relation to it is similar to that in 
 relation to the immediate extent. It is thought to be 
 seldom employed in modern times. 
 
 The writ of scire facias is a summary process by which the Scire facia* 
 Crown is enabled to recover by execution its debts of record. 
 As the duties arising under the Finance (1909 — 10) Act, 
 1910, are not such debts, it is not necessary to discuss this 
 writ. 
 
 N. k 
 
cxlii 
 
 Explanatory Summary. 
 
 Subject jmay 
 sometimes 
 attack Com- 
 missioners. 
 
 But only in 
 special cases 
 
 The foregoing processes have been briefly referred to in 
 order that the position of the subject may be fully realised. 
 For detailed information as to the practice, consult Robert- 
 son's Civil Proceedings, and The Annual Practice, 1912, 
 Vol. II., pp. 1097 to 1264. 
 
 It is clear that in some cases the subject need not wait 
 for the attack of the Commissioners, but may himself take 
 the ofiensive, and by proceedings in the High Court ask 
 for a declaration that the Commissioners are exceedinp- 
 
 o 
 
 their powers. (See the cases of Dijson v. Attorney-General, 
 [1911] IK. B. 410; W. N. 232, and note thereon on p. 510, 
 post; and Burghes v. Attorney -General, [1911] 2 Ch. 139; 
 W. N. 231, and note on p. 347, post. Such a declaration is not, 
 however, made as a matter of course. It is " discretionary, 
 and the jurisdiction should be exercised with great care and 
 after due regard to all the circumstances of the case " (per 
 Warrington, J., at p. 156 of the decision last cited). Both 
 in Dyson v. Attorney-General and in Burghes v. Attorney- 
 General the point at issue was one which aflected not only 
 the individual plaintiff", but numbers of other people. In 
 each case there was a question whether the requirement of 
 certain information in a return to be made to the Commis- 
 sioners under a penalty in default was authorised by the 
 statute. It does not follow, therefore, that because the two 
 actions in question were entertained, the Courts will enter- 
 tain other claims galore, as, for example, a claim that a 
 series of leases for fourteen years, one in possession and the 
 others in reversion immediately expectant upon one another 
 do not together constitute an occasion under sect. 1 {a) for 
 payment of increment value duty (see p. 13) ; or that the 
 working of his minerals by a proprietor, apart from any other 
 act or event, does not give rise to an occasion for payment of 
 annual increment value duty under sect. 22 (3) (see p. 235) ; 
 or that a purchaser is not liable for the undeveloped land 
 
Duties and Penalties. cxliii 
 
 duty under sect. 19 for the two previous years left unpaid 
 by his vendor (see p. 204), notwithstanding that demands 
 or threats for payment or penalties have been made by the 
 Commissioners. The Courts may well say, "After all the 
 Act has provided a special tribunal for the settlement of 
 these matters, and unless you show the Court that the 
 matter necessarily affects in a material manner a large 
 number of people, or that your rights will be prejudiced 
 before you can get a decision under the procedure estab- 
 lished by the Act we shall not exercise our discretion in 
 your favour." This reasoning, it is however thought, would 
 not apply to cases where the Commissioners were attempting 
 to do something not authorised by the Act, as, for example, 
 to utilise their powers of inspection under sect. 31 (2) for 
 purposes " other than the exercise of their powers in the 
 performance of their duties under" the land clauses. 
 
 It is to be noted that there seems to be no power in such Costs in such 
 
 cases. 
 
 an action to give costs against the Attorney-General to the 
 Crown (see Burghes v. Attorney-General, [1911] 2 Ch. 139, at 
 p. 157), so that it may be treated as a litigant's luxury. 
 
 Under various sections of the land clauses penalties are The diverse 
 enactedfor various defaults by owners and others : sect. 4 (2), clauses^ 
 sect. 8 (6) and (14) of the Finance Act, 1894 (probably 
 incorporated by sect. 5) (see pp. 101, 102), sect. 18 (1) and 
 (2) of the Customs and Inland Revenue Act, 1885 (incor- 
 porated by sect. 6) (see p. 127), sect. 15 (3), sect. 20 (3), 
 sect. 21 (3), sect. 26 (2), sect. 31 (3), and sect. 94. As to 
 all these penalties, proceedings for the recovery thereof 
 must be commenced in the High Court unless the section 
 imposing the penalty allows it also to be proceeded for 
 summarily (Inland Revenue Regulation Act (53 & 54 
 Vict. c. 21), s. 22). Such proceedings cannot be commenced 
 unless ordered by the Commissioners, and must be in the 
 name of an officer, or in England and Ireland of the 
 
 k 2 
 
cxliv 
 
 Explanatory Summary. 
 
 Their diverse 
 
 operative 
 
 vFords. 
 
 Limitation 
 increment 
 value duty. 
 
 Attorney-General of the country in question, and in Scot- 
 land in the name of the Lord Advocate (ibid., sect. 21 (1) ). 
 Proceedings for the recovery of any fines relating to Inland 
 Revenue must he commenced within two years after the . 
 fine is incurred {ibid., sect. 22 (2) ). Such proceedings if 
 not summary will usually be by information in the name of 
 the Attorney-General. The only case in which summary 
 proceedings may be taken under the land clauses is for the 
 penalty enacted by sect. 4 (2), 
 
 The penalty clauses above referred to widely differ from 
 each other in the words which impose the liability, and 
 will of course be carefully examined by the subject. In 
 sect. 4 (2) the operative words are, " fails to comply." In 
 sect. 8 (6) and (14) of the Finance Act, 1894 (incorporated 
 by sect. 5), the operative words are in each sub-section, 
 " wilfully fails to comply." Insect. 18 (1) and (2) of the 
 Customs, etc.. Act, 1885, the operative words are, "wilfully 
 neglecting." In sect. 15 (3) of the Act of 1910 the words 
 are, "knowingly fails " ; in sect. 20 the words are, " and in 
 default " of making the required return, etc. Sect. 21 (3) 
 runs, " if any person refuses to allow " a certain deduction 
 of duty. In sect. 26 (2) the operative words are, " fails to 
 make such a return," etc. In sect. 31 (3) the words are, 
 " wilfully fails to comply." In sect. 94 they are, " know- 
 ingly makes any false statement," etc. Of course in every 
 case the nature of the act or omission upon which the 
 penalty is imposed must be considered. There is, it is 
 hardly necessary to add, a substantial amount of case law 
 on penalty clauses, which, if necessary, must be consulted. 
 
 In relation to the duties themselves as distinguished from 
 the penalties it will be noted that the Crown is not bound 
 by any Statutes of Limitations which do not clearly and 
 expressly include it (R. v. Bayly (1841), 1 Dr. & War. 
 213). Turning to the land duties imposed by the Finance 
 
Duties and Penalties. cxlv 
 
 (1909 — 10) Act, 1910, it appears that there is as a rule no 
 limit of time placed on the Crown's claim to increment value 
 duty. But sect. 5 probably imports sect. 8 (2) of the 
 Finance Act, 1894, into the Act of 1910 so far as regards 
 increment value duty payable on death, and sect. 8 (2) 
 carries with it sects. 13 and 14 of the Customs and Inland 
 Kevenue Act, 1889 (see p. 615), under which claims for 
 death duties are in certain cases barred after six years from 
 the date of notice to the Commissioners of the fact, which 
 gives rise to an immediate claim to such duty. Sect. 12(1) 
 of the same Act of 1889 relates only to the exemption by 
 lapse of time from duty of purchasers and mortgagees ; but 
 it is thought that increment value duty is not in any 
 case a charge on the lands in the hands of a purchaser or 
 mortgagee. 
 
 So it seems that the reversion duty could be recovered Reversion 
 from the person originally liable to pay the same at any ^'^*^" 
 length of time. It is not charged on the land, and the 
 liability to pay does not run with the land after the lease 
 has determined. 
 
 It is thought that undeveloped land duty can be recovered undeveloped 
 at any length of time from the person liable, provided that ^^°^ ^'^^^* 
 it has been assessed, but it can only be assessed within three 
 years after the expiration of the year for which it is charged 
 (sect. 19). 
 
 It is thought that arrears of mineral rights duty can be 
 recovered by the Crown at any length of time. 
 
 Eepayment of over-paid duty must in general be sought Repayment, 
 by petition of right {Re Nathan (1884), 12 Q. B. D. 461; 
 JVinans v. B. (1907), 23 T. L. E. 705). 
 
 Under the joint effect of sect. 33 (4) of the Act of 1910, 
 sect. 10 (4) of the Finance Act, 1904, and rule 14 of the 
 rules regulating appeals to the High Court under the 
 former Act (see p. 383), the amount of the duty claimed by 
 
cxlvi 
 
 Explanatory Summary. 
 
 Mandamus 
 
 Would lie 
 against Com- 
 missioners. 
 
 But not if 
 other ade- 
 quate remedy. 
 
 Unlikely to 
 be applied to 
 Land Clauses. 
 
 the Commissioners may have been paid into Court, or 
 security may have been given for its payment in case the 
 appellant fails. It is presumed that the order for payment 
 or for security (see rule 14 (3) ) will make provision for 
 repayment or vacation of the security as the case may be. 
 No doubt the Commissioners will give a proper undertaking. 
 The object of this provision is to obviate a decision in favour 
 of the Crown which still left it to recover the duty by 
 information or action. There is no power under the Finance 
 (1909 — 10) Act, 1910, to order payment of the duty. 
 
 Where there is a duty to the public, or a member of the 
 public, cast on public officials, and there is no other adequate 
 remedy for the breach of that duty, the high prerogative 
 writ of mandamus will be issued by the King's Bench Division 
 commanding the performance of the duty. It has often 
 been issued against Departments of Government, as the 
 Local Government Board {B. v. Local Government Board, 
 L. R. 9 Q. B. 148), the Woods and Forests [R. v. Commis- 
 sioners of JVoods and Forests, 17 L. J. Q. B. 341). There 
 seems to be no doubt that in a proper case the writ would 
 be issued against the Commissioners of Inland Revenue (see 
 the cases collected at p. 117, Robertson's Civil Proceedings 
 by and against the Crown). Usually formal objection has 
 been taken by counsel for the Crown that a mandamus will 
 not lie against the Commissioners, and is then waived. It 
 is of course clear that a mandamus will not lie against the 
 Commissioners if the subject has any other sufficient remedy. 
 Thus the return of overpaid probate duty must not be 
 sought by application for a mandamus but by petition of 
 right (Re Nathan (188^), 12 Q. B. D. 461). 
 
 It is a little difficult to see how the subject's remedy by 
 mandamus could practically be required under the Act of 
 1910. If the Commissioners were, for example, to refuse to 
 make a separate valuation of a portion of land required by 
 
Duties and Penalties. cxlvii 
 
 thte owner under sect. 26 (1), or to make any apportionment 
 required by him under sect. 29 (2), or to record or furnish 
 copies of particulars of any deductions allowed by them 
 under sect. 30 (1), they will so refuse on the ground that on 
 the interpretation of the statute they were not obliged to 
 do the specific act required, and they would express their 
 willingness, which probably would be assumed by the Court, 
 to do the act if their view of the statute was mistaken. 
 In these circumstances it might well appear to the Court 
 that the procedure on appeals contained in sect. 33 was an 
 adequate remedy, and that there was no need for mandamus. 
 There is, however, no provision in the Act of 1910 for com- 
 pelling the Commissioners to fulfil their duties, and if, after 
 a declaration on appeal as to the law, the Commissioners 
 were not to act in accordance with that decision, a wholly 
 inconceivable supposition, a mandamus would probably then 
 be issued. 
 
 Two recent cases may be briefly referred to, showing Two cases on 
 views as to granting a mandamus taken by the Court in mandamus. 
 respect to statutes, in which, as under the Finance Act, 
 1910, a special method of appeal is conferred against the 
 authority sought to be mandamussed. 
 
 In R. V. Assessment Committee of the City of London 
 Union, [1907] 2 K. B, 764, C. A., a mandamus directed to 
 the defendants to compel them to insert in the quinquennial 
 valuation list the rateable values of certain properties was 
 refused by the Court of Appeal (reversing the Divisional 
 Court) on the double ground, (1) that the Corporation of 
 the City of London (who were the applicants), as a rating 
 authority, might have appealed to quarter sessions under 
 sect. 32 of the Valuation (Metropolis) Act, 1869, against the 
 omission, which remedy would have been an effective one, 
 and (2) that even if that view were mistaken and the 
 Corporation had no right of appeal, the safeguards provided 
 
Cxlviii EXPLANATOBY SUMMAEY. 
 
 by that Act as a whole were amply sufficient to protect the 
 interests of all parties interested, and the Court ought not 
 by granting a mandamus to insert further safeguards in 
 the Act. The latter ground practically assumed that the 
 interests collectively represented by the City Corporation 
 could have appealed in their own right separately. B. 
 V. Stepney Corporation, [1902] 1 K. B. 317, before Alverstone, 
 C.J., and Darling and Channell, JJ., was a case in which a 
 mandamus was granted ordering the defendants to take 
 into consideration and apply their discretion to the facts of 
 the case, which they had not done, or at least done properly, 
 notwithstanding that there was an appeal from the defen- 
 dants to the Treasury. The real ground of the decision 
 appears to have been (see the C. J., pp. 322, 323, Channell, J., 
 p. 325), that the defendants, the local tribunal, were the 
 best fitted to investigate the case. The appeal to the 
 Treasury was a remedy but not a remedy " equally con- 
 venient and adequate," see p. 324, per Channell J. (see also 
 Pasmore v. Osioaldtwistle Urban Council, [1898] A. C. 387 ; 
 and consult cases cited in Kobertson's Civil Proceedings by 
 and against the Crown, pp. 109 — 122). Whether any 
 special case arising under the Act of 1910 will aiford 
 ground for an application for a mandamus against the 
 Commissioners can only be decided after its most careful 
 consideration. The presumption will doubtless be that the 
 appeal clauses will afibrd an adequate and equally con- 
 venient remedy. But consider the cases of Dyson v. 
 Attorney-General, [1911] 1 K. B. 410; W. N. 232 ; and 
 Burghes v. Attorney. General, [1911] 2 Ch. 139 ; W. N. 231, 
 ante, p. cxlii, which, however, only indirectly affect the 
 question discussed. It must further be noted that the 
 issue of the writ is discretionary and will not be granted 
 to persons who do not apply bond fide, or are themselves 
 in fault (it. v. Wilts and Berks Canal Navigation, 3 Ad. & E. 
 
Duties and Penalties. cxlix 
 
 477; R. V. Great Western Bailway Co., 62 L. J. Q. B. 572; 
 R. V. Wimbledon Urban Council, Hatton, Ex parte, 77 L. T. 
 599; 62 J. P. 84). 
 
 When the Crown appears to oppose an application for the Cost of 
 
 . „ -. •, •l^ ' mandamxcs. 
 
 prerogative writ oi mandamus, it neither pays nor receives 
 costs (R. V. Archbishop of Canterhunj, [1902] 2 K. B. 503). 
 But in the case cited the Divisional Court distinctly stated 
 that they expressed no opinion as to the cases in which the 
 writ was " applied for by or against the officers of execu- 
 tive departments of the public service in relation to their 
 statutory or other duties." 
 
 If the Commissioners in purporting to act under judicial Prohibition, 
 or quasi -judicial powers exceed their statutory jurisdiction, 
 a writ of Prohibition will be issued againt them. But it is 
 otten difficult to distinguish between an excess of jurisdic- 
 tion and a mistaken exercise of admitted jurisdiction 
 {R. V. Commissioners of Taxes for Clerkemvell, [1901] 2 K. B. 
 879). 
 
cl Official Instructions to Valuers. 
 
 LAND VALUATION.* 
 
 See footnotes CoPY OF INSTRUCTIONS ISSUED BY THE InLAND ReVENUE 
 306^?nd 308. ' DEPARTMENT TO VaLUERS, DATED THE 21ST DaY OF 
 
 January, 1911. 
 
 FINANCE (1909-10) ACT, 1910. 
 Ascertainment of Site Value on " Occasions." 
 
 Firstly — Ascertain the value of the fee simple on the basis 
 of the value of the consideration in accordance with section 2 
 of the Act. 
 
 Secondly — By an independent calculation and without 
 necessarily being bound by the actual consideration paid, 
 ascertain the gross value at the time, i.e., on the occasion, in 
 accordance with the definition contained in sub-section (1) 
 section 25. 
 
 Thirdly — As an independent calculation and without 
 necessarily being bound by the actual consideration ascertain 
 the full site value at the time as defined in sub-section (2) 
 section 25. 
 
 The difference between these two fio-ures ascertained 
 
 o 
 
 under sub-sections (1) and (2) of section 25 respectively will 
 then give the amount of the first deduction to be made 
 in accordance with the provisions of sub-section (4) of 
 section 25. 
 
 Any other site value deductions must of course also be 
 made. 
 
 ♦ These Instructions were only made public after this work was partly 
 through the press. They are referred to on the pages mentioned in the margin. 
 
Official Instructions to Valuers. cli 
 
 By this method the following results should be 
 achieved : — 
 
 (1) The transferor will not be called upon to pay incre- 
 
 ment value duty in respect of any recovery in the 
 value of buildings. 
 
 (2) Increment value duty would be collectible in all cases 
 
 where there has been either — 
 
 (a) an increase in the value of the site as compared 
 
 with the original site value ; or 
 (h) the unit of valuation (or an interest therein) 
 has actually been sold for more than it is 
 worth at the time. 
 21st January, 1911. 
 
 Note on Above. 
 
 The first instruction is obvious and requires no comment, though no 
 doubt it will sometimes be difficult to apply in practice (see pp. 31 to 34) 
 
 The second and third instructions are intended to elicit the non-site 
 element of the property (sect. 25 (4) (a) ), which has to be deducted from 
 the value of the fee simple as ascertained under instruction 1. The sum 
 then remaining is not necessarily the site value on the occasion, but 
 represents or occupies the place of full site value on a valuation wholly under 
 sect. 25, such as the original or the quinquennial site valuation. From this 
 sum must be deducted any further deductions falling under sect. 25 (4) 
 {b) (c) (d) or (e) which are appropriate to the site in question. The result 
 is the site value on the occasion. 
 
 The second and third instructions recognise the fact that the considera- 
 tion for the sale is an element which the valuer will naturally take into 
 account in arriving at gross value (see notes on pp. 305 to 309). In 
 doing so it is, of course, understood that where the property is subject to 
 any of the various elements mentioned in sect. 25 (3), i.e., fixed charges, 
 easements, profits, etc., which depress the value and are taken account of 
 in the total value, and no doubt also were taken account of in the value 
 of the consideration, the gross value will be increased by the sum by which 
 those elements depress the real value of the property. But the important 
 point is that the valuer is not to ascertain gross value by rule of thumb 
 merely, that is, by taking the value of the fee simple as ascertained under 
 instruction 1 and adding to it the sum by which the real value of the 
 property is lessened owing to the existence of the depressing elements 
 referred to. He may use that method of valuing as one of the tests he 
 employs to arrive at gross value, but he is to use other tests. If the 
 property has been slaekly sold, he is to put gross value at a higher figure 
 
clii Official Instructions to Valuers. 
 
 than that represented by the value of the consideration plus the sum 
 representing the depressing elements. If it has been sold at more than 
 its real value, he is to put gross value at less than the aggregate of the 
 two sums based on consideration and the depressing elements respectively. 
 Thus he is to find the real gross value. On the same lines he is to find 
 real full site value. He then can arrive at the real non-site value element 
 in the property. This is, of course, under sect. 2 (2) deducted (with any 
 other applicable deductions) from the value of the consideration, etc., and 
 the balance is the site value on the occasion. 
 
 The effect of this, however, as pointed out by the Instructions, is that 
 the subject pays duty not only on realised increases in site value, but also 
 on the difference between the real value of the total hereditament and the 
 higher price he has obtained. The same conclusion had been reached in 
 this work before the Instructions were published (see p. £08). 
 
 It also appears from the Instructions, as is of course evident from a careful 
 study of sects. 2 and 25, that neither an increase nor decrease in the value 
 added by the buildings (owing to variations in the cost of building) affects 
 the value of the site. The bigger the gross value, the full site value 
 remaining constant, the greater the non-site element to be deducted under 
 sect. 25 (4) (a). So that, as has been pointed out (p. 305), it does not 
 often really matter for purposes of ascertaining site value wholly under 
 s. 25 whether the gross value is £1,000, £10,000, or £10,000,000. 
 
 Tlie result No. 1 referred to in the Instructions would it seems be more 
 accurately expressed if the words " increase or " were placed before the 
 word " recovery." There may be an increase in the value added by the 
 buildings without any antecedent fall in that value. 
 
 The Instructions, though not in terms so expressed, are clearly limited 
 to cases falling within sect. 1 (a). 
 
LAND CLAUSES OF THE 
 FINANCE (1909-10) ACT, 1910 
 
 (10 Edw. 7, c. 8), 
 
 WITH WHICH IS INCORPORATED SECTIONS 1 7 OF 
 
 THE EEVENUE ACT, 1911 (1 Geo. 5, c. 2), 
 
 AND THE KuLES AND EeGULATIONS ISSUED THEREUNDER. 
 
 An Act to grant certain Duties of Customs and Inland Revenue a.d. 1910; 
 
 (including Excise), to alter other Duties, and to amend the 
 
 Law relating to Customs and Inland Revenue {including 
 
 Excise), and to make other financial provisions. 
 
 [29 April, 1910.] 
 
 Most Gracious Sovereign, 
 We, Your Majesty's most dutiful and loyal subjects 
 the Commons of the United Kingdom of Great Britain 
 and Ireland in Parliament assembled, towards raising 
 the necessary supplies to defray Your Majesty's public 
 expenses, and making an addition to the public revenue, 
 have freely and voluntarily resolved to give and grant 
 unto Your Majesty the several duties herein-after men- 
 tioned ; and do therefore most humbly beseech Your 
 Majesty that it may be enacted, and be it enacted by the 
 King's most Excellent Majesty, by and with the advice 
 and consent of the Lords Spiritual and Temporal, and 
 Commons, in this present Parliament assembled, and by 
 the authority of the same, as follows : — 
 
 Part I. 
 Duties on Land Values. 
 
 Increment Value Dutg. 
 
 SUMMARY OF CONTENTS OF SECTIONS 1—12 OF THE 
 FINANCE ACT, 1910. 
 
 Sects. 1 — 12 deal entirely with Increment Value Duty. 
 Sect. 1 establishes the duty, fixes its rate, and declares the occasions 
 on which it is to be paid. 
 
 N. 1 
 
2 Land Clauses of the Finance Act. 
 
 ■ § 1 Sect. 2 defines or describes the increment value (of the site) which is 
 
 the subject-matter of the tax, and explains the manner in which site 
 value is to be ascertained for the purpose of arriving at increment value 
 on the various occasions t n which under s. 1 it is payable. 
 
 Sect. 3 contains powers and directions relating to all occasions on 
 which duty is payable, for enabling the Commissior.ers to apportion the 
 duty amongst the various interests in the land, and to make such 
 apportionments as to duty paid on previous occasions as are necessary. 
 It further enacts a general exemption from duty on each occasion 
 to the extent of 10 per cent, of the last site value. 
 
 Sects. 4, 5, and 6 respectively relate to the collection of duty under 
 the three heads of 
 
 (a) Transfers on sales and leases (s. 4) ; 
 
 (b) death (s. 5) ; 
 
 (c) the payment of duty on periodical occasions by bodies corporate 
 
 and unincorporate (s. 6). 
 
 In each case the method of payment is pointed out directly or by 
 reference to existing statutes. 
 
 Sects. 7 to 1 1 inclusive contain exemptions from the payment of duty. 
 
 Sect. 12 is an important provision as to deductions from site value 
 vitally aifecting the original site valuation. 
 
 Sects. 1 and 2 of the Revenue Act, 1911, also affect this duty. 
 
 Section 1. 
 
 Duty on 1. Subject to the provisions of this Part of this Act, 
 
 value. there shall be charged, levied, and paid on the increment 
 
 value of any land a duty, called increment value duty, at 
 the rate of one pound for every complete five pounds of 
 that value accruing after the thirtieth day of April, 
 nineteen hundred and nine, and — 
 
 {a) on the occasion of any transfer on sale of the fee 
 simple of the land or of any interest in the land, 
 in pursuance of any contract made after the com- 
 mencement of this Act, or the grant, in pursuance 
 of any contract made after the commencement of 
 this Act, of any lease (not being a lease for a 
 term of years not exceeding fourteen years) of 
 the land ; and 
 
 (h) on the occasion of the death of any person dying 
 after the commencement of this Act, where the 
 fee simple of the land or any interest in the land 
 
Increment Value Duty. 3 
 
 is comprised in the property passing on the death § 1. 
 of the deceased within the meaning of sections 57 & 58 vict 
 one and two, subsection one (1) (a), {h), and (c), 
 and subsection three, of the Finance Act, 1894, 
 as amended by any subsequent enactment ; and 
 (c) where the fee simple of the land or any interest in 
 the land is held by any body corporate or by any 
 body unincorporate as defined by section twelve 
 of the Customs and Inland Revenue Act, 1885, 48 & 49 vict. 
 in such a manner or on such permanent trusts 
 that the land or interest is not liable to death 
 duties, on such periodical occasions as are 
 provided in this Act, 
 the duty, or proportionate part of the duty, so far as it 
 has not been paid on any previous occasion, shall be 
 collected in accordance with the provisions of this Act. 
 
 Increment Value Duty is a new tax, charged on the increase in site Introductory 
 value of land, calculated according to the provisions of the Act. It is "° ^' 
 charged only on site value, and not on buildings, produce, or improvements. 
 It is in theory a tax on the value which has been added to land not by the 
 expenditure, the fckill, or the foresight of the owner, but through the 
 general growth and industry of the community. This added value is 
 due not only to the progress of the community in the immediate 
 neighbourhood of the land in question, but to progress generally 
 throughout the country and even throughout the world. In a sense it 
 is correct to say that an owner of land is taxed, not on his own, but on 
 his neighbour's improvements. 
 
 Subject to the provisions of this Part of this Act, i.e., ss. 1 — 42 
 inclusive — 
 
 Charged, Levied, and Paid. — "Charged " does not necessarily mean 
 charged in the sense of being secured on or by the thing charged. 
 Increment Value Duty is sometimes charged in the sense of secured on 
 the land the subject of the tax, as where the occasion on which it is 
 payable is death (s. 5) ; and possibly where it is payable in respect of land 
 held by a body corporate or unincorporate (s. 6, incorporating s. 14 of 
 the Customs and Inland Revenue Act, 1885: see the note on p. 125). 
 But the eflfect of sub-s. 4 of s. 6 of the Act of 1910 as to the latter case 
 must not be overlooked. Whei'e Increment Value Duty is payable on 
 the occasion of a transfer on sale or a lease it is apparently not charged in 
 the sense of secured on the land (see note on p. 84) (s. 4) ; but the 
 point might certainly have been made clearer. 
 
 1—2 
 
4 Land Clauses of the Finance Act. 
 
 § 1. " Levied." — The enforcing by the proper authority of the amount of 
 
 duty to be paid in respect of any particular increment. In relation to 
 a rate it has always been understood that to "levy" merely means to 
 take all necessary steps to enforce payment {R. v. Southampton, etc., 
 30 L. J. Q. B. 244, per Blackburn J., at p. 251). 
 
 "Paid." — Increment value duty is a stamp duty collected and 
 recovered as pointed out by the Act (s. 3 (6)), but quaere as to the 
 annual increment value duty in respect of minerals (s. 22 (1) (3) ). 
 Sect, 3 apparently does not apply to it. When due on the occa- 
 sion of a transfer on sale or lease, the conveyance or lease or the 
 agreement for the conveyance or lease must be stamped with a stamp 
 denoting (1) either that the duty is paid; (2) or that all necessary parti- 
 culars have been delivered to the Commissioners and security (if required) 
 given for the duty ; (3) or that no increment duty is payable (s. 4 (3) ). 
 When the increment value duty becomes due on death, it is to be 
 treated as if it were estate duty. By the Finance Act, 1894, s. 6 (1) and 
 8. 8 (16), the estate duty is made a stamp duty, and may be collected 
 by means of stamps or such other means as the Commissioners prescribe. 
 When the increment value duty is due on a periodical occasion in 
 respect of the property of a body corporate or unincorporate, then the 
 duty is a stamp duty (s. 6 (3) ; Customs, etc.. Act, 1885, s. 13). 
 
 Hence it is probable that the Inland Revenue Regulation Act, 1890 
 (53 & 54 Vict. c. 21), Stamp Duties Management Act, 1891 (54 <k 55 
 Vict. c. 38), and the Stamp Act, 1891 (54 & 55 Vict, c, 39) (see 
 Appendix, pp. 617 to 620), aj)ply to the duty; see also a discussion 
 on the subject, p. 351. 
 
 "Increment Value." — For definition of increment value, see s. 2 (1), 
 p. 26. It is shortly an increase in site value between the date of the 
 original valuation and the date on which the duty is payable. 
 Interpreta- ^^ Land. — Under the Interpretation Act, 1889 (52 &, 53 Vict. c. 63, 
 
 tion Act. s. 3), and unless the contrary intention appears, "land includes messuages, 
 
 tenements, and hereditaments, houses and buildings of any tenure," but 
 does not in this Part (Part I.) of the Finance Act relating to the 
 new taxes include "any incorporeal hereditament issuing or gi-anted 
 out of the land" (s. 41) (see note on p. 435). Land, therefore, prinid 
 facie includes mines and minerals, but the provisions of the Act relating 
 to them are of much complexity, and in any case where minerals are or 
 may be an element in a valuation, careful consideration must be given 
 to the mineral clauses, ss. 20 — 24 and to s. 25 (5). Especially must 
 8. 23 (2), under which for the purposes of valuation " all minerals shall be 
 treated as a separate parcel of land," be borne in mind. The further point 
 must not be overlooked that though common clay, common brick clay, 
 common brick earth, or sand, chalk, limestone, or gravel are under s. 20 (5) 
 exempted from mineral rights duty, some of these substances may in the 
 special circumstances of the particular land be minerals. There is no defini- 
 tion of minerals in the Act. In Midland Railway Co v Ilaunchwood, etc. 
 
Inckement Value Duty. 6 
 
 Co., 20 Ch. D. 552, brick and fire clay were held by Kay J. to be § 1. 
 minerals under the Railways Clauses Act, 1845 (8 Vict, c. 20), s. 77, 
 and in The Earl of Jersey v. Neath Union Sanitary Authority, 22 
 Q. B. D, 555, brick earth and clay were held by the Court of Appeal 
 under the reservations in a deed of all " minerals whatsoever except 
 stone quarries," there being nothing in the context to show that the 
 reservation should have a more limited meaning, to be minerals (see, 
 further, notes to s. 20, pp. 210 to 217 and Tables). The point is specially 
 mentioned in this place because it would seem that the site value of the 
 land may sometimes be affected by the question as to whether the 
 exempted substances are oV are not " treated as a separate parcel of 
 land." (See pp. 259 and 260.) 
 
 The land to be taxed, under s. 1 (a) is the land transferred or leased, The unit of 
 under {b) the land passing oa death, under (c) all the land held by taxation. 
 the body in question. An important point for consideration is the 
 unit of taxation. If the unit is large there is more chance of a decre- 
 ment in one part neutralising an increment in another part. Under 
 s. 29 (1) "Any duty may be assessed on or in respect of any such 
 pieces of land whether under separate occupation or not as the Com- 
 missioners think fit." Under s. 32 (3) the Commissioners may appor- 
 tion a consideration. Primd facie this would give the Commissioners 
 power to split up land included in one transfer or lease for a single 
 consideration, part of which has incremented, whilst the rest has 
 decremented, and to charge full duty on the former part withoiit any 
 set off of decrement. This might seem to be an unfair exercise of their 
 taxing powers. But suppose two portions of laud agreed to be so sold 
 or leased are in separate occupations'? The normal unit of taxation is 
 apparently intended to be "separate occupation" (s. 26 (1)), though 
 this provision is not in terms extended to increment value duty payable 
 on the occasions mentioned in s. 1. Supposing the two portions, though 
 in the same occupation and adjoining, were acquired at different times ? 
 Supposing the two portions in the same occupation were near to each 
 other, but not adjoining? Supposing they were two widely separated ^^ 
 
 estates 1 Would it or would it not in each of these cases, either on a sale y^^ 
 
 or death, be fair to split the land up for purposes of calculating occasion 
 duty % These queries serve to indicate the questions which may arise as 
 to the unit of taxation. It is impossible to discuss them here at length. 
 
 Is the unit of taxation in case (c), i.e., that of the body corporate 
 
 or unincorporate, " separate occixpation " ; subject of coiirse to the 
 
 power of the Commissioners under s. 29 (1) to assess the duty on such 
 
 pieces of land as they think fit 1 It would seem so, for (a) " separate 
 
 occupation " is a sort of natural unit of taxation, so far as English law 
 
 is concerned, and {h) s. 26 (1) requiring, on the original site valuation, 
 
 valuation of each separate occupation points to assessment of the same 
 
 unit. (See, further, notes to s. 29 (1), p. 336.) 
 
 The definitions or explanations of the expressions "fee simple" and Fee simple, 
 
 and interest. 
 
Land Clauses of the Finance Act. 
 
 § 1 
 
 The exemp- 
 tions from 
 increment 
 value duty. 
 
 " interest in relation to land " (see s. 41, pp. 446, 457) are relevant to the 
 meaning of the term ''land" where it occurs in the Act. "Land' 
 used without qualification in some places clearly means the fee simple 
 of the land, e.g., s. 1 Pr., s. 2 (1), "the increment value of any land"; 
 d* 7, " while that land has no higher value than its market value," etc. ; 
 s. 16, "the site value of undeveloped land"; s. 25 (2), "the full site 
 value of land." On the other hand, " 'interest' in relation to land " 
 appea'-s sometimes to include the " fee simple " of land, though usually 
 it is used in contradistinction to that expression ; s. 25 (4) (6) (c), " any 
 person interested in the land"; s. 30 (2), the Commissioners shall 
 furnish to any person "interested" in any laud, etc ; s. 41, par. "the 
 exp-ession fixed charge " see the words "otherwise than by a person 
 interested in the land," etc. ; but as the definition of " interest in relation 
 to land " is not in form exclusive, there is no violence of construction 
 in interpreting "a person interested " as including the owner of the fee 
 simple in the conventional sense of that term created by s. 4 1 . 
 
 These remarks are made at^. the outset of this commentary in order 
 that attention inay be directed in each case, where in the Act the term 
 " land " or " interest in land " is used, to its exact meaning. 
 
 Exceptions to "land" subject to increment value duty are (1) agri 
 cultural land, while that land has no higher value than its market 
 value at the time for agricultural purposes only (s. 7). 
 
 (2) Small houses in owners' occupation (s. 8 (1)). 
 
 (3) Small holdings in owners' occupation (s. 8 (2)). 
 
 (4) Land held by bodies corporate or unincorporate not with a view 
 of profit, for games, are exempt from duty under (c) (s. 9). 
 
 (5) State land (s. 10). 
 
 (6) Separate tenement or flats (s. 11). 
 
 (7) Land belonging to a rating authority (s. 35). 
 
 (8) Land held for charitable (including educational) purposes has a 
 limited exemption (s. 37 (1) ). 
 
 (9) Land held by a registered society or a company precluded from 
 dividing profits amongst its members has a limited exemption. Regis- 
 tered societies are those registered or whose rules are certified or regis- 
 tered by a registrar of friendly societies in pursuance of any Act of 
 Parliament, and which make provision by their I'ules for specified friendly 
 society benefits (s. 37 (2) ). 
 
 (10) Land held by statutory companies has also a limited exemption 
 (s. 38). 
 
 Accruing after the 30tli day of April, 1909. — The datum line from 
 which increment value is to be reckoned is the day mentioned — the day 
 after the Budget Speech of 1909, in which Mr. Lloyd George, the 
 Chancellor of the Exchequer, announced the proposed taxation. The 
 intention seems to be that none of the site value existing before the pro- 
 posals were known should be taxed. But if that were the case April 29 
 should have been fixed as the datum. It is open to the Crown to 
 
Increment Value Duty. 
 
 contend that the announcement of the tax on the 29th caused an § 1. 
 
 immediate depreciation in site values, so that they were worth less on 
 the 30th than on the 29th. 
 
 It may be anticipated, however, that the Crown will consent to 
 estimate original site value on the basis that the Budget proposals had 
 not affected values up to the close of April 30, 1909. Some depreciation 
 in site values may conceivably have been brought about earlier by the 
 usual rumours as to the intentions of the Government ; but it may 
 be expected that if such were the case (the writer has no knowledge 
 at all on the subject), the Crown would not press its right to an increased 
 increment value duty arising from such a fall in values. 
 
 The point must be firmly grasped, that the lower the site value on 
 April 30, 1909, the greater the increment value on the occasion when 
 increment value duty is chargeable. In respect of this tax, therefore, a 
 high original site value should be aimed at by the owner. But a high site 
 value may be disadvantageous otherwise, since it may increase the amount 
 upon which undeveloped land duty will be charged under s. 16 (p. 191), 
 and may have an influence upon estate duty. 
 
 (a) On the Occasion of any Transfer on Sale. — There is no defini- When the 
 tion or explanation of "transfer on sale." The duty is apparently !j!J^i^ig 
 not due until the transfer is made. But it may be paid by means 
 of a stamp on the agreement for sale (s. 4 (2)). It is submitted that the 
 meaning of the words commented upon, read in the light of s. 4 {post, 
 p. 72), is that increment value duty cannot be claimed by the Crown, 
 though it may be voluntarily paid, before actual transfer in the sense 
 that the property (whether a legal or equitable interest in land) 
 intended or agreed to be sold has actually vested in the transferee. 
 Suppose, however, that after a written contract for the sale of land, 
 where a conveyance is necessary to complete the legal title of the 
 purchaser, the title is accepted, but no conveyance is made, the vendor 
 in equity being thereupon constituted a trustee for the purchaser. 
 It is suggested that nevertheless there has been a " transfer on sale." 
 Chesterfield Brewery Co. v. Inland Revenue Commissioners ([1899] 2 
 Q. B. 7) is an authority to the effect that a transaction whereby what 
 was virtually a sale of shares in a company in consideration of other 
 shares carried out by means of a declaration of trust by the vendor for 
 the purchaser of the shares purchased was a conveyance on sale within 
 the meaning of s. 54 of the Stamp Act, 1891. Sect, 54 no doubt says 
 that " the expression conveyance c-n sale includes every instrument 
 whereby . . . any property, or any estate or interest in any property, 
 upon the sale thereof is transferred to or vested in a purchaser, or any 
 other person on his behalf, or by his direction"; and the Act of 1910 con- 
 tains no corresponding clause ; but the reason of Wills J., upon which his 
 judgment was partly based, that " the real intention of the parties was 
 that this agreement should be the new company's only document of 
 
Land Clauses of the Finance Act. 
 
 §1- 
 
 Equitable 
 estates. 
 
 Compulsory 
 sales. 
 
 What are 
 transfers on 
 sale. 
 
 title, and that it should not be followed by a legal transfer of the 
 shares in the old company" (see p. 13), appears equally applicable to 
 any ti*ansaction whereby land is in fact and substance equitably trans- 
 ferred on sale, whether the original intention was or was not that there 
 should be a conveyance of the legal estate. There does not in this Act 
 appear to be any necessity to construe the words " transfer on sale " as 
 meaning a transfer whereby the legal estate in the land is conveyed. 
 Note that in the Stamp Act, 1870 (s. 70), conveyance on sale " includes 
 every instrument . . . whereby any property ui)on the sale thereof is 
 legally or equitably transferred to or vested in the purchaser." In the 
 corresponding section 54 of the Stamp Act, 1891, the words "legally 
 or equitably " are dropped. Neither are those words in the relevant 
 sections of the Act of 1910. As equitable interests in land are 
 admittedly subject to the ad valorem duties imposed on conveyances 
 on sale by the Stamp Act, 1891 (quite apart from s. 59 of that Act), it 
 seems that the Legislature since the Judicature Acts looks upon equitable 
 conveyances as being real conveyances in the eye of the law. 
 
 An equitable estate in land may be conveyed by writing not 
 under seal. It therefore appears, if the above view is correct, that 
 increment value duty may be payable on such a w.riting trans- 
 ferring on sale an equitable estate, or interest in lands in cases where 
 if the estate or interest were legal, and conveyed by deed, increment, 
 value duty would be payable. 
 
 A sale carried out by means of a declaration of trust would therefore 
 doubtless be a transfer on sale within the meaning of s. 1 {Chesterfield 
 Breicery Co. v. Commissioners of Inland Revenue, [1899] 2 Q. B. 7). 
 
 Compulsory sales under the Lands Clauses Acts are clearly transfers 
 on sale within s. 1 (a) not only because the point is probably covered 
 by Commissioners of Inland Revenue v. Glasgow and South Western 
 Raihoay Co. (12 A. C. 315), but because s. 38 (3) of the 1910 Act (p. 402) 
 implies that such is the case. 
 
 The question whether transactions such as those in Commissioners oj 
 Inland Revenue v. Maple <& Co. ([1908] A. C. 22), where there was a 
 transfer of assets by the old company to the new company, the con- 
 sideration being shares in the new company, together with numerous other 
 transactions decided to be "transfers on sale" within the meaning 
 of the Stamp Act, 1891, are also transfers on sale within the meaning 
 of the 1910 Act must await detei'mination by the Court.* The 
 same remark applies to the question whether the words " transfer on 
 sale " in s. 1 cover " a decree or order for, or having the effect of an 
 order for foreclosure " under the provision of the Finance Act, 1898 
 
 * In the following cases, transactions of the nature referred to were held 
 to he sales within the Stamp Acts requirinj? ad valorem stamps : Oreat Western 
 Railway Co. v. Inland Revenue ([1894] 1 Q. B. 507, C. A.) ; Foster {John) & Sons, 
 Ld. V. Inland Revenue ([1894] 1 Q. B. 516, C. A.); J. tfe B. Coats Ld. v. 
 Inlaud Revenue { [1897] 2 Q. B. 423). See also the Finance Act, 1895, s. 12, 
 for the stamping of Acts of Parliament operating as transfers on sale. 
 
Increment Value Duty. 
 
 (61 & 62 Vict. c. 10), s. 6, whereby the definition of "conveyance on § 1. 
 sale " in the Stamp Act was declared to include such a decree or order. 
 As to this provision, however, it would be a little difficult to determine 
 whether the value of the consideration for the transfer under s. 2 (2) (a) 
 should be arrived at by applying paragraph (a) ofs. 6 of the Act of 1898, 
 or otherwise. 
 
 Increment value duty is not payable on voluntary conveyances, or 
 exchanges, or partitions, or mortgages. As to the meaning of " transfer 
 on sale " see, further, the cases cited in Highmore's Stamp Laws, 2nd 
 edition, pp. 126 — -132, and Alpe's Stamp Duties, 11th edition, pp. 104 
 to 112, which must be referred to in cases of doubt. See, further, notes 
 on s. 3 (6), p. 70, and on s. 32, p. 350. 
 
 The duty must be paid by the vendor and cannot be thrown by 
 contract upon the purchaser. (1 Geo. 5, c. 2, s. 1.) 
 
 (a) Fee Simple of the Land. — Note the highly conventional meaning of 
 the terra " fee simple." "Fee simple means the fee simple in posses- 
 sion not subject to any lease, but does not include an undivided share 
 in a fee simple in possession" (s. 41). It does not therefore include 
 interests in expectancy. 
 
 The increment value of the fee simple must always be ascertained in 
 order to deduce therefrom the duty payable on the lesser interests, as 
 a life estate, or estate for years. (S. 2 (2) (h) and (c).) 
 
 (a) Or of any Interest in the Land. — (See note on " The expression Technical 
 'interest' in relation to land" to s. 41, post, p. 447.) Contrasted with fee meaning of 
 simple,isan "interestin land." " The expression interest in relation toland th^lam^"''^ 
 includes any undivided share in a fee simple in possession and includes a 
 reversion expectant on the determination of a lease, but does not include 
 any other interest in expectancy or an incumbrance as defined 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 
 exceeding fourteen years, or any tenancy which is, or is deemed to be, 
 subject to statutory conditions under the Land Law (Ireland) Acts " (s.41). 
 For a definition of "interest in expectancy," seethe Finance Act, 1894, 
 s. 2? (1) Q),post, p. 600. 
 
 It will be noticed that " interest" in land is expressed not to include 
 a reversion or remainder expectant on a freehold, or a remainder 
 expectant on a leasehold. It seems, therefore, that it is not intended to 
 collect increment value duty either on transfer or on the passing on 
 death of such a reversion or remainder. It is not a fee simple, and it is 
 not an interest in land. But a reversion expectant on the determination 
 of a lease (see definition in s. 41) is an interest in land. Therefore when 
 either an owner in fee, or a tenant for life, or person having the powers 
 of a tenant for life under the Settled Land Acts sells the fee he is trans- 
 ferring either the " fee simple " in the conventional meaning of that 
 term under this Act, or an "interest in the land," according as there 
 
10 
 
 Land Clauses of the Finance Act. 
 
 |1. 
 
 Undivided 
 shares. 
 
 Limit of 
 
 duty 
 
 chargeable. 
 
 is or is not a subsisting lease of the land sold. It must be noted that, 
 although increment value duty is not collected on the sale of a 
 reversion or remainder expectant on a freehold or of a remainder 
 expectant on a leasehold, the liability to increment value duty is not 
 escaped. Its payment is merely postponed. If the tenant for life sells 
 the fee he must pay the increment value duty on the fee, and then may 
 charge it on the subject of the settlement (s. 39 (1) ). If the tenant for life 
 sells only his life interest, that life interest is doubtless an " interest " in 
 land within the meaning of the Act, and the tenant for life must pay 
 increment value duty on that interest only. In such a case increment 
 value duty will, on the tenant for life's death, be payable in respect of 
 the reversion or remainder under s. 1 (b), and will be borne by the 
 reversion or remainder itself (s. 5). A purchaser or mortgagee of a 
 reversion or remainder expectant on an estate of freehold, or of a 
 remainder expectant on a leasehold, must take into account the fact 
 that the property he is buying may be subject to increment value duty, as 
 well as to estate duty. Unlike the purchaser of a fee simple or leasehold 
 in possession liable to the duty, he does not get the property cleared of 
 increment value duty to the date of the transfer under s. 4 (4). 
 
 Increment value duty is payable on the transfer on sale of the fee simple 
 or on the lease of an undivided share of land. Such a share is treated not as 
 " the land," but as " an interest in the land " (s. 41, p. 446). Probably 
 also an undivided share in a life estate is an " interest in land," since 
 the definition of" interest " in relation to land does not purport to exclude 
 matters not specifically mentioned. It is probable that some interesting 
 cases may arise in practice, relating to increment value duty on undivided 
 shares. For example, suppose increment value duty is first paid on one 
 undivided moiety, and then the property recedes in value, but there is 
 still left increment value, and then duty becomes collectable on the other 
 undivided moiety. Is the latter entitled to claim that the overpaid duty on 
 the first moiety franks, so far as it will extend the second moiety 1 The 
 Commissioners will apparently have to determine this and similar questions 
 under s. 3 (1), subject to appeal under s. 33. 
 
 It is submitted, however, that the increment value duty collectable on any 
 occasion, on any interest in the land, can never, with the amounts previously 
 paid, or deemed to be paid, on the same and all other interests in the 
 land exceed in the aggregate one fifth part of the total increment value 
 of the fee simple. It appears that the Rules made by the Commissioners 
 under s. 3 (3), the section empowering them to make rules determining 
 the proportionate part of the duty to be collected (see post, p. 53), 
 recognise, but it is thought that they do not fully meet, the difficulty 
 propounded. Applying rule 3 of those Rules to the illustration of the 
 undivided moieties just given, it seems to the writer (who, however, 
 may be mistaken) that the Commissioners might demand more duty than 
 under the Act they are entitled to claim from the owner of the second 
 moiety, and that (b) of rule 3 does not apply to the case in question. 
 
Increment Value Duty. 11 
 
 Quwre whether a term of years originally exceeding fourteen years, § 1 . 
 but with less than fourteen still to run at the date of transfer, is an 
 interest in land on the sale and transfer of which increment value duty is jess than it 
 payable? It is submitted that it is, but the point is not clear. See years to run. 
 note on p. 451, " or any leasehold interest, (fee." 
 
 (a) In pursuance of any Contract made, — By this it is clearly not 
 intended that a written contract antecedent to the " ti'ansfer on sale " 
 is a condition precedent to the happening of the occasion. The transfer 
 after the commencement of the Act is itself a contract, and the only 
 contract which is necessary, though doubtless it is a contract which 
 merges a pre-existing written contract, which is enforceable, or a pre- 
 existing verbal contract, which is usually not enforceable. 
 
 (a) After the commencement of this Act, i.e., April 29, 1910. — For 
 definition of " commencement " of an Act, see 52 & 53 Vict. c. 63, s. 36. 
 It is " The time at which the Act comes into operation," " If . . . an Act 
 is silent as to the date of its coming into operation, it comes into operation 
 at the date of its passing," see per Lord Alverstone in Rex v. Smith, 
 [1910] 1 K. B. 17, at p. 24. See also 33 Geo. 3, c. 13, as to the 
 indorsement of the date of passing. 
 
 (a) Grant . . . ofany Lease of the Land. — Lease includes an underlease Reversionary 
 and an agreement for a lease or underlease (s. 41). — Is increment value ^^ase. 
 duty payable on the grant of a lease for over fourteen years in reversion 1 
 A reversion in fee expectant on a lease is included in the expression 
 "interest in land" (s. 41). An " interest in the land" seems to be con- " * .., 
 
 trasted with a lease of " the land." In this section increment duty is 
 expressed to be payable on the grant of any lease " of the land," but not 
 of any lease of "an interest in the land," and a reversion is an " interest 
 in the land." On the whole, however, it is thought that the grant of 
 a lease in reversion for over fourteen years is an occasion under s. 1. 
 Lease includes an agreement for a lease, and therefore the fact that a 
 reversionary lease creates only an interesse termini (Letvis v. Baker, 
 [1905] 1 Ch. 46 ; Llangattock v. Watney & Co., [1910] A. C. 394)* and 
 does not give a present interest in the land seems to be not material. 
 The real contrast in s. 1 is not between the land and an interest in the 
 land, but between the " fee simple of the land " and an " interest in 
 the land." Although the expression " land " is doubtless frequently 
 and pei'haps generally used, when not qualified, throughout the Act to 
 signify the fee simple of the land (see especially ss. 2 (1) and (2), 7, 
 12, 16 (1), 17 (1) and (2), 26 (1), 28, 35, 37 (1)), there is no direct 
 statement that it is always to be so interpreted. Apart from the section, 
 an agreement to grant a reversionary lease is clearly an agreement to 
 grant a lease of land. It is therefore thought that there is no necessity to 
 adopt the narrow view which would exclude the grant of a reversionary 
 lease from the dutiable occasions because it is a lease of an " interest in 
 land " within the special meaning of that phrase assigned to it by s. 41 (as 
 distinguished from a lease of land). It must, nevertheless, be remembered 
 * See also Knight v. City of London Brewery Co., [1912] 1 K. B. 10. 
 
12 Land Clauses of the Finance Act. 
 
 § 1. that to avoid an occasion of paying duty is not to escape paying 
 
 it altogether. The original site value stands for ever as a landmark, 
 and with it the comparison of pi'esent site value is to be made on each 
 appointed occasion. In so far as duty has not been previously paid, or 
 is not deemed under the Act to be paid, it must then be paid on the 
 increment value of the site, or of the interest in the site under taxation. 
 But no doubt it may be advisable in some cases to postpone payment 
 of increment value duty as long as possible. Site values, like Stock 
 Exchange securities, may be temporarily inflated. Therefore, if the 
 making of a lease in reversion is not an occasion on which a claim for 
 duty can arise, leases will be renewed, or new leases will be made, during 
 the currency of former leases, where in the usual course of events such 
 former leases would be allowed to expire before the later leases were made. 
 Bub-lease. Again, is increment value duty payable on a sub-lease exceeding four- 
 
 teen years ? The lease in question is a lease of an " interest in land " ; 
 the occasion on which duty becomes due is a lease of " the land," not of 
 " an interest " in the land. But in fact the sub-lease is a lease of land, and 
 it is perhaps not essential that the same meaning should always be placed 
 on the same word in the same clause, if common sense points to a 
 different meaning. Fui-thermore, under s. 41 (see p. 443), " lease " 
 includes an underlease, which perhaps settles the point. 
 Undivided The same point is involved in the lease of an undivided share of the 
 
 share. fgg simple of land. That also is an interest in land. It is submitted 
 
 that the lease of such a share is a lease of the land within s. 1 (a). If 
 this be not the case, a lease, which if made by an owner in fee of the 
 entirety would be an occasion for collection of duty, would not be such 
 an occasion if made by two tenants in common in fee, each seised of an 
 undivided moiety of the premises. 
 
 The duty on the lease must be paid by the lessor and cannot be 
 thrown by contract upon the lessee (1 Geo. 5, c. 2, s. 1). 
 
 (a) Not being a Lease for a Term of Years not exceeding Fourteen 
 Years. — In other words, the grant of a lease for fourteen years or under 
 is not an occasion for the payment of increment value duty. Questions 
 may arise as to what is a lease for a term of years not exceeding 
 fourteen years. In the ordinary case of a formal lease the term is 
 defined by the habendum (Strickland v. Maxwell, 2 Cr. & M. 539). 
 Thus a lease to hold to A. for twenty-one years with a proviso that it 
 may be determined at the end of fourteen years by either the landlord 
 or the tenant as the case may be (but not by both) is a lease for 
 twenty-one years. It seems that even if the lease is determinable by 
 each of the parties at the end of fourteen years it is still a lease for 
 twenty-one years (see the dictum of Lord Campbell C.J. in Bird v. 
 Baker, 1 E. & E. 12 ; 28 L. J. Q. B. 7) ; but it caimot perhaps be said 
 that the last cited case is conclusive on the question whether the grant 
 of a lease for twenty-one years determinable by both parties by a notice 
 expiring at the end of fourteen years is a lease for a term exceeding 
 fourteen years so as to be an occasion on which increment value duty 
 
Increment Value Duty. 13 
 
 is payable. On the whole it seems probable that increment value duty § 1. 
 is payable iu the case of such a lease, especially having regard to the 
 definition of the " term of a lease " next referred to. 
 
 Under s. 41 (see p. 444) " the term of a lease shall, where the lease Calculation 
 contains an obligation to renew the lease, be deemed to include the °t term, 
 period for which the lease may be renewed." It seems, therefore, that a 
 lease for fourteen years with a covenant by the landlord for renewal for 
 a further period would be a lease for a term exceeding fourteen years, 
 even if in fact the lease is not so renewed. 
 
 There seems to be no doubt that the length of the term " not exceed- 
 ing fourteen years " is to be calculated from the date fixed for the 
 commencement of the lease (whether before or after the date of the 
 lease) by the habendum, and not from the date of the lease if that 
 diflTers from the date so fixed. If no date is fixed either expressly or 
 impliedly, the term commences from the delivery, which is usually the 
 date of the lease (see Woodfall's Landlord and Tenant, 18th ed., p. 173 ; 
 Foa's Landlord and Tenant, 3rd ed., p. 96). 
 
 The question arises whetlier an occasion for payment of increment Erasion of 
 value duty may be avoided by splitting up the term, being more than ^'^^■ 
 fourteen years intended to be vested in the lessee, into several terms 
 granted by several leases, each of them not exceeding fourteen years 
 and taking effect one after the other. Such an attempt would no 
 doubt, if it succeeded, be an evasion of the Act, But taxing and 
 restricting statutes may doubtless be evaded, using the word " evasion " 
 in the sense of " the intentional avoidance of something disagreeable," 
 and not as suggesting " underhand dealing " (see per Lord Hobhouse in 
 Simms v. Registrar of Probates, [1900J A. C. 323, at p. 334 : and also 
 cases collected in the Explanatory Summary, ante, p. cxxxiv). Refer also 
 to Smale v. Burr ( (1872) L. R. 8 C. P. 64), in which the Bills of Sale 
 Act, 1854, was successfully evaded ; and to Lord Llangattock v. 
 Watney <ft Co., [1910] A. C. 394, as to the strict construction of legal 
 language ; a case not without bearing on the point \inder discussion.''' 
 
 It is not easy to imagine a series of such leases made for any other 
 purpose than to avoid duty ; and it is possible that the Court might hold 
 that the grant of a lease for fourteen years followed by an immediate 
 reversionary lease for seven years to the same person was in substance 
 a lease for a term exceeding fourteen years, although efi"ected by two 
 documents and althovigh the later lease created only an interesse termini 
 (see ante, p. 11). If evasion is to be attempted, it would be wise to allow 
 one day to elapse between the two terms and to make some substantial 
 difference between the covenants of the two documents and perhaps a 
 slight difference in the two rents. To do this would make it somewhat 
 more difficult for the Court to hold the transaction to be a single lease. 
 The gap of one day between the terms appears to the writer to be the 
 most useful of these suggestions. 
 
 Leases for lives are not now very common. It may be that, by Leases for 
 * See also Knight y. City of London Brewery Co., [1912] 1 K. B. 10. 
 
14 
 
 Land Clauses of the Finance Act. 
 
 § 1 
 
 Extent of 
 duty payable 
 in various 
 events («) 
 to (c). 
 
 the joint effect of s. 1 (a) and the paragraph of s. 41 beginning "The 
 term of a lease " {post, p. 444), the question whether increment vahie duty 
 is payable on such a lease is to be determined by the length of the mean 
 expectation of life of the lessee or youngest lessee. It is not, however, 
 clear that the paragraph i-eferred to applies to any leases except those 
 containing covenants for renewal, and if that be the case, a lease for 
 life (not renewable) will be an occasion for the collection of duty 
 irrespective of the length of the lessee's expectation of life ; unless, 
 indeed, the paragraph in question should be applied by analogy to a 
 non-renewable lease. This perhaps might be done, siuce it seems 
 absurd to think that the Legislature could have contemplated two 
 different methods of calculating the length of the leases for lives. 
 
 Lastly, what is the extent of the duty which is payable under (a) to (c) 
 respectively ? This question is answered by s. 3. If the fee simple is 
 the subject of the transfer [on sale ?] or passing on death, the whole 
 unsatisfied duty is to be paid (s. 3 (2)). In other words, the duty on the 
 full difference between the original and the then site value is chargeable 
 except so far as on some previous occasion it has been paid (or it is deemed 
 to have been paid ?). If the grant, or transfer on sale, or passing on death 
 of a lease, or other interest in land, is the occasion on which a claim for 
 increment value duty arises, then under s. 3 (3) a "proportionate " 
 part only of the [unsatisfied] duty is to be collected. If a man makes a 
 lease for fifteen years, he realises only a part of his site value. He 
 therefore paj's only on the part realised. If a lessee sells and transfers 
 his lease for the residue of an original term exceeding fourteen years, 
 he is to pay a " proportionate " part of the duty. In each case 
 the proportionate part is to be determined by the Commissionei*s in 
 accordance with rules to be made by them for the purpose (ib.) It may 
 be assumed that the problem which the Commissioners will answer is — 
 "Given the 'increment value' of the fee simple, what proportion of 
 that value is fairly attributable to the lease or interest created or 
 transferred or passing on death ? " The Regulations made by the 
 Commissioners under s. 3 (2) and (3) will be found together with notes 
 thereon on p. 52. 
 
 (b) Where the Fee Simple of the Land or any Interest in the 
 Land is comprised in the Property passing on Death. — Note that it 
 must be either the fee simple of the land as defined by s. 41, that 
 is the fee simple in possession, not subject to any lease, or an interest 
 in land as explained by the same section, which is comprised in the 
 property passing on death, in order to create an occasion for pay- 
 ment of increment value duty. Therefore if A. is entitled to the fee 
 simple of Blackacre in remainder expectant on the determination of B.'s 
 life estate in the same property, and A. dies, whether testate or intestate, 
 in the lifetime of B., increment value duty is not payable in respect of 
 Blackacre on A.'s death. A remainder in fee simple is neither " the 
 fee simple of the land," nor an " interest in the land," within the 
 meaning of s. 1 (ft) (see s. 41). Of course when B. dies the fee simple 
 
Increment Value Duty. 15» 
 
 would be property passing on the death of B. within the meaning of the § 1. 
 
 Finance Act, 1894, and increment value duty might be claimed in 
 
 respect of the fee simple of Blackacre, 
 
 (b) Property passing on the Death of the Deceased within the 
 
 meaning of ss. 1 and 2 (1) (a), (b), and (c) and (3) of the Finance 
 
 Act, 1894. 
 
 The sections of the Finance Act referred to read as follows : — 
 
 s. 1. In the case of every person dying after the commencement of Grant of 
 this Part of this Act, there shall, save as herein-after expressly provided , esuite duty, 
 be levied and paid, upon the principal value ascertained as herein-after 
 provided of all property, real or personal, settled or not settled, which 
 passes on the death of such person a duty, called "estate duty," at the 
 graduated rates herein-after mentioned, and the existing duties men- 
 tioned in the First Schedule to this Act shall not be levied in respect of 
 property chargeable with such estate duty. 
 
 s. 2.— (1) Property passing on the death of the deceased shall be What 
 
 deemed to include the property following (that is to say) : — property is 
 
 (a) Property of which the deceased was at the time of his death deemed to 
 
 ^ \ f- r pass. 
 competent to dispose ; 
 
 (6) Property in which the deceased or any other person had an 
 interest ceasing on the death of the deceased, to the extent to which a 
 benefit accrues or arises by the cesser of such interest ; but exclusive of 
 property the interest in which of the deceased or other person was only 
 an interest as holder of an office, or recipient of the benefits of a charity, 
 or as a corporation sole ; 
 
 (c) Property which would be required on the death of the deceased to 
 
 be included in an account under section thirty-eight of the Customs and 44 & 45 Vict. 
 
 Inland Revenue Act, 1881, as amended by section eleven of the Customs c. 12. 
 
 and Inland Revenue Act, 1889, if those sections were herein enacted ^ _ ^^ 
 
 c T 
 and extended to real property, as well as personal property, and the 
 
 words " voluntary " and " voluntarily " and a reference to a " volunteer " 
 
 were omitted therefrom ; and 
 
 (3) Property passing on the death of the deceased shall not be deemed 
 
 to include property held by the deceased as trustee for another person, 
 
 under a disposition not made by the deceased, or under a disposition 
 
 made by the deceased more than twelve months* before his death where 
 
 possession and enjoyment of the property was hond fide assumed by the 
 
 beneficiary immediately upon the creation of the trust and thenceforward 
 
 retained to the entire exclusion of the deceased or of any benefit to him 
 
 by contract or otherwise. 
 
 For full notes on these sections see Austen-Cartmell, 5th edition, 
 
 pp. 5 to 44, and Hanson's Death Duties, 6th edition, pp. 75 to 114. 
 
 The phraseology of s. 1 (6) is peculiar. First, as we have seen, the 
 
 words "fee simple of" and " interest in " the land limit the interests in 
 
 the property the passing of which on death is an occasion for payment 
 
 of duty to property covered by the definitions of those two phrases in 
 
 s. 41 of the 1910 Act. 
 
 ; Secondly, it is to be noted that the fee simple interest must be 
 
 * Under s. 59 of the Finance Act, 1910 (see p. 475), this period is made 
 three years. 
 
16 
 
 Land Clauses of the Finance Act. 
 
 § 1. 
 
 What are 
 
 interestsiin 
 
 land? 
 
 Note on ss. 1 
 and 2 of the 
 Finance Act, 
 1894. 
 
 comprised in the property passiug on death within the meaning of the 
 specified sections of the Act of 1894, as amended by subsequent enact- 
 ments. The sections in question, as a reference to them will prove, are 
 in general or abstract terms. Sect. 1 says estate duty shall be paid on 
 property passing on death, and s. 2 mentions various wide classes of 
 property, which it says shall be deemed to be included in property 
 passing on death. Other sections in the Act of 1894 and in subsequent 
 amending Acts enact that certain other and usually narrower classes 
 of property shall either be, or shall not be, deemed to be included in the 
 property passing on death (Finance Act, 1894, s. 3, s. 15 (1), s. 21 (5); 
 Finance Act, 1896, s. 14, s. 15; Finance Act, 1900, s. 11). It is 
 apprehended that the meaning of clause 1 (b) is that the fee simple of 
 or an interest in any property which is so brought within, or excluded 
 from the charge of estate duty effected by section 1 of the Act of 
 1894, shall correspondingly be liable to or exempt from the collection of 
 increment value duty on death. 
 
 Sect. 22 (1) (/) of the Finance Act, 1894, provides that "the 
 expression * property passing on the death ' includes property passing 
 either immediately on the death or after an interval either certainly or 
 contingently, and either originally or by way of substitution, limitation, 
 and the expression * on the death ' includes at a period ascertainable 
 only by reference to the death." 
 
 There seems to be no doubt that land directed by will to be sold is 
 liable to increment value duty on the death of the testator. The 
 question whether a gift by will of the proceeds of sale of land directed 
 by some previous instrument to be sold, and as to which there is still in 
 existence an effective trust for conversion, gives rise to a claim for 
 increment value duty is part of the larger question as to what are 
 "interests in land " within the meaning of the definition clause in s. 41. 
 If there is a life tenant in existence, clearly no such claim can arise. A 
 remainder or reversion expectant on a life tenancy is not an interest in land 
 (s. 41). But suppose the gift be of an absolute interest in an undivided 
 share of the proceeds of sale of lands, or of an immediate interest in the 
 surplus proceeds of sale of lands which must be sold to pay incumbrances. 
 It is suggested that increment value duty is not payable in such cases, 
 and that so long as there is on foot an effective trust for conversion 
 the fee simple of or the interest in the land, as the case may be, is not 
 " comprised in the property passing on the death of the deceased," etc. 
 s. 1 (6)) (see, further, note to s. 41, par. "the expression 'interest' in 
 relation to land," post, p. 446). 
 
 Perhaps the clearest exposition of the two sections of the Finance 
 Act, 1894, set out above is contained in the judgment of Lord 
 Macnaghten in Cowley v. The Commissioners of Inland Revenue, 
 [1899] A. C. 198, at p. 210: "The principle on which the Finance 
 Act, 1894, was founded is that whenever property changes hands 
 on death the State is entitled to step in and take toll of the pro- 
 perty as it passes without regard to its destination or to the degree 
 
Increment Value Duty. 17 
 
 of relationship, if any, that may have subsisted between the deceased § 1. 
 
 and the person or persons succeeding. Sect. 1 gives effect to that 
 principle. Subject to certain exceptions or savings, it imposes a duty 
 called estate duty upon the principal value of all property ' settled or 
 not settled ' which passes on death. Sect. 2 is merely subsidiary and 
 supplemental. It was intended apparently to sweep in a few cases 
 which were thought perhaps to be within the spirit though not within 
 the letter of the proposed enactment, or else were supposed likely to 
 lead to evasion if not made equally subject to estate duty. Sect. 2 
 therefore declares that the expression ' property passing on the death 
 of the deceased ' shall be ' deemed to include property classified ' under 
 four different heads, to no one of which rightly \inderstood is that 
 expression literally applicable. The rest of the Act deals with matters 
 of detail, valuation, and machinery. The first section contains the pith 
 and substance of the enactment. It is comprehensive, broad, and clear." 
 Althoiigh the passage cited was apparently a dictum only and the case 
 could have been decided without adopting Lord Macnaghten's view as 
 to the mutually exclusive nature of ss. 1 and 2, the dictum has 
 been accepted, in later decisions of the House of Lords, as binding (see 
 Attorney-General v. Montagu, [1904] A. C. 316, at p. 320, per Lord 
 Davey; Inland Revenue v. Priestley, [1901] A. C 208, at p. 215, per 
 Lord Davey). 
 
 Tjand which belonged to the deceased in fee simple in possession and Finance Act, 
 leaseholds to which the deceased was absolutely entitled in possession ^ ' ^' ^' 
 will fall within s. 1 of the Act of 1894 and be liable to a claim for 
 increment value duty. Property will pass under s, 1 although settled. 
 On the death of the tenant for life the land the subject of the 
 settlement passing to the remainderman is liable to duty under this 
 section. 
 
 Land would pass under s. 2 (1) (a) so as to become liable to a claim 75., s. 2(1) (a), 
 for increment value duty where the deceased had a general power of 
 appointment over it (see Inland Revenue v. Priestley, [1901] A. C. 
 208) ; or where he was tenant in tail in possession ; or probably where 
 he was a joint tenant so far as regards his interest ; or where he was 
 competent to dispose of the land only by virtue of s. 33 of the Wills 
 Act {In re Scott, Langton v. Scott, [1901] 1 Q. B. 228). For definition 
 of phrase " competent to dispose," see Finance Act, 1894, s. 22 (2) (a), 
 post, p. 114. So it is thought that land of which he was seised in 
 fee simple but subject to an existing term of years would fall under 
 s. 2 (1) (a) and not under s. 1 {Inland Revenue Commissioners v. 
 Priestley, [1901] A. C. 208, at p. 213). 
 
 With regard to paragraph (6) of s. 2 (1) of the Finance Act, 1894, it 
 is not easy to see how this paragraph applies to claims for increment 
 value duty on the basis of Lord Macnaghten's interpretation of sections 1 
 and 2. Under paragraph {b) estate duty becomes payable on the 
 cesser of life annuities and rent- charges charged on or issuing oiit of 
 
 N. 2 
 
1® Land Clauses of the Finance Act. 
 
 § !• property. It is difficult to see how the cesser of such annuities and 
 rent- charges can give rise to any claim to increment value duty with 
 respect to the property which is augmented by the cesser. 
 
 Rent-charges and annuities charged on land are expressly declared not 
 to be "interests in land" (s. 41, pars, "the expression 'interest' in 
 relation to laud"; "the expression 'fixed charge'"; "the expression 
 ' rent-charge ' "). 
 Amendments In the notes to s. 5 (commencing p. 88) there will be found an 
 At Tfm^^ examination of the various Finance Acts amending the Act of 1894 so 
 far as their provisions bear on increment value duty. The following 
 amendments relate to the classes of property passing on the death of the 
 deceased :— 59 & 60 Vict. c. 28, ss. 14 and 15 (p. 115) ; 61 & 62 Vict. 
 c. 10, s. 13 (p. 117); 63 Vict. c. 7, s. 11 (p. 117); 10 Edw. 7, c. 8, 
 ss. 55, 59 (pp. 474—475). 
 
 The Customs and Inland Revenue Act, 1881, s. 38 (see appendix, 
 p. 609), as amended by s. 11 of the Customs and Inland Revenue Act, 
 1889 (ib., p. 613), and as further amended and applied by the Finance 
 Act, 1894, s. 2 (1) (c) and (3), and the Finance Act, 1900, s. 11 (p. 603), 
 has been summarised as follows : — '•' 
 
 (i.) Any property taken as a donatio mortis causa made by any 
 person dying after August 1st, 1894, or taken under a disposition 
 made by any person so dying purporting to act as an immediate gift 
 inter vivos, whether by way of transfer, delivery, declaration of trust, or 
 otherwise, which shall not have been made bond fide twelve months 
 before the death of the deceased, and also property taken under any 
 gift, whenever made, of which property hona fide possession and enjoy- 
 ment shall not have been assumed by the donee immediately upon the 
 gift, and thenceforward retained to the entire exclusion of the donor, 
 or of any benefit to him by contract or otherwise ; 
 
 (ii.) Any property which a person so dying, having been absolutely 
 entitled thereto, has caused or may cause to be transferred to or vested 
 in himself and any other person, or has purchased or invested by himself 
 alone, or in concert or by arrangement with any other person, so that 
 the beneficial interest therein passes or accrues by survivorship on his 
 death to such person ; 
 
 (iii.) Any property and the proceeds of sale of any propertj', passing 
 under any past or future settlement made by any person so dying by 
 deed or any other instrument not taking effect as a will, and any trast, 
 whether expressed in writing or otherwise, and if contained in a deed or 
 other instrmnent effecting the settlement, whether such deed or other 
 instrument was made for valuable consideration or not as between the 
 settlor and any other person, whereby an interest in such property for 
 life, or any other period determinable by reference to death, is reserved 
 either expressly or by imphcation to the settlor, or whereby the settlor 
 may have reserved to himself the right by the exercise of any power to 
 restore to himself or to reclaim the absolute interest in such property. 
 
 * See the Finance Acts, 1894 to 1907, 5th edition, p. 22, by J. A. Cai-tmell, 
 by whose permission this summary is extracted ; see also Hanson's Death 
 Duties, 6th edition, p. 96, for an excellent summary. 
 
Increment Value Duty. 19 
 
 By s. 59 (1) of the Finance Act, 1910 (see p. 475), the period of twelve § 1. 
 months before the death of the deceased fixed by (1) in the summary is Increment 
 extended to three years. But gifts made before April 30, 1908, and gifts andJolunitar 
 for public Of charitable purposes, are excepted from the extension of gifts, 
 the period of one year to three years enacted by s. 59 (1). {lb. sab-s. (2) ). 
 
 Therefore increment vahie duty may be payable on A.'s death under Examples 
 the various headings (i.), (ii.), and (iii.) of the extract from Mr. Cartmell's illustrating 
 book in the following cases, amongst others. Finance 
 
 (i.) {a) A. conveys by deed of gift to B. within three years before Act, 1894, 
 his (A.'s) death the fee simple of or an interest in freehold land, and amend- 
 or leasehold land, the original lease having exceeded fourteen years, ments. 
 
 (6) Within the same period A. volnntarily declares himself to be 
 a trustee for B. of similar, property. 
 
 (c) A. more than three years before his death voluntarily con- 
 veys to B. a house, reserving to himself the use for his life of two 
 rooms in the house so conveyed. {Attorney-General v. Earl Grey, 
 [1900] A. C. 124).* 
 
 {(J) A. more than three years before his death makes a voluntary 
 declaration of trust of similar property in favour of B. with the 
 same reservations. (lb.).* 
 (ii.) (a) A., being the owner in fee simple of freeholds, and 
 absolutely entitled to leaseholds the original term of which was over 
 fourteen years, conveys the same into the names of himself. A., and 
 his son B. as joint tenants and dies before B. 
 
 (b) A. buys freeholds, or leaseholds the original term of which 
 was over fourteen years and takes a conveyance to himself and his 
 son B. as joint tenants and dies before B. 
 (iii.) (a) A., in consideration of 500^. paid to him by his father, 
 conveys freeholds or leaseholds the original term of which \vas over 
 fourteen years to trustees upon trust for himself (A.) for life and 
 after his death xipon trust for his eldest son in fee and absolutely. 
 In this case increment value dvity would be payable on A.'s death 
 as well under s. 1 of the Finance Act, 1894. 
 
 (b) In the last-mentioned illustration if the settlement were 
 wholly voluntary the result would be the same, and s. 1 of the 
 Finance Act, 1894, would also apply. 
 
 (c) A. conveys freeholds and leaseholds the original term of 
 which was over fourteen years to trustees upon trust for B. for 
 life, and after his death upon trust for C. in fee simple and absolutely, 
 and reserves to himself the power to revoke the trusts of the settle- 
 ment and appoint the property on other trusts on A.'s death. 
 Increment value duty will be payable. 
 
 * See also Crossman v. The Queen, 18 Q. B. D. 256. But duty would 
 not be payable if the reservation were not enforceable. {Attorney -General 
 V. Seccombe, [1911] 2 K. B. 688; Re Weir and Pitt's Contract, (1911) 55 
 S. J. 536.) 
 
 2—2 
 
20 
 
 Land Clauses of the Finance Act. 
 
 § 1 
 
 Increment 
 value duty 
 and gifts iu 
 consideration 
 of marriage. 
 
 Modification 
 of former law 
 by s. 52 (3). 
 
 Evils of 
 incorporation 
 by reference, 
 illustrated by 
 s. 1 {},). 
 
 A branch of 
 l&w of death 
 duties. 
 
 (d) The result would be the same if in lieu of the power of 
 revocation a general power of appointment was reserved to A. 
 overriding the trusts of the settlement. 
 
 The provisions of sub-s. (2) of s. 59 (see p. 476) must be noted in this 
 connection. It had been held in Attorney-General v. Holden, [1903] 
 1 K. B. 832, that a gift in consideration of marriage was subject to the 
 payment of estate duty under the Finance Act, 1894, s. 2 (1) (c) (head 
 No. i. on p. 19), in case the donor died within twelve months of the gift.* 
 
 If the analogy of that case applied, the land comprised in a settlement 
 in consideration of marriage, if given by a third party not one of the 
 consorts, would, in case of the death of the donor within three years 
 (s. 59 (1)) of the settlement, be the subject of a possible claim for 
 increment value duty. But the case in question is uo longer law, since 
 8. 59 (2) of the present Act provides that so nauch of s. 2 (1) (c) of 
 the Finance Act, 1894, as makes gifts inter vivos property which 
 is deemed to pass on death shall not apply to gifts which are made 
 in consideration of marriage. 
 
 Sub-sect. (3) of s. 59 of the Act of 1910 further modifies paragraph (i.) of 
 Mr. Cartmell's siunmary, including s. 2 (1) (c) and (3) of the Finance Act, 
 1894, by providing that where property is deemed to be property passing 
 on the death of the deceased, by reason only that the property was not as 
 from the date of the disposition, surrender, assurance, or divesting retained 
 to the entire exclusion of the deceased, or a person who had any estate 
 or interest limited to cease on the death of the deceased, and of any 
 benefit to him by contract or otherwise, the property shall not be 
 deemed to pass on the death of the deceased if subsequently, by means 
 of the surrender of the benefit reserved or otherwise, it is enjoyed to the 
 entire exclusion of the deceased or such other person as aforesaid, and of 
 any benefit to him by contract or otherwise, for the period of three years 
 preceding the death of the deceased. See notes to s. 59, p. 477. 
 
 The incorporation by reference of one Act of Parliament into 
 another seems almost to have reached the limits of human endurance 
 in the example afforded by this section. Certain duties are 
 enacted by the Customs and Inland Kevenue Act, 1881. In respect 
 thereto such Act is amended by the Customs and Inland Revenue 
 Act, 1889. Both Acts are, as to analogous duties, amended by and 
 incorporated by reference in, the Finance Act, 1 894 ; are again amended 
 by the Finance Act, 1900, s. 11 ; and, finally, the Finance Act, 1894, is, as 
 to another analogous duty, incorporated with all its amended incorpora- 
 tions, in the Finance Act, 1910, and is by that Act further amended. 
 
 When increment value duty is payable on death it really becomes a 
 branch of the law relating to the death duties. Under s. 1 of the 
 Finance Act, 1910, the property in respect of which it can be claimed 
 at death is determined by the Finance Act, 1894, and the amendments 
 
 * See also the recent case of In re Hartland, Banls v. Hartland, [19H] 
 1 Ch. 459. 
 
Inckement Value Duty. 21 
 
 of that Act, subject to the property bemg either the fee simple or an % 1- 
 
 interest in land within the meaning of s. 41 of the Act of 1910. Under 
 s. 2 of the Finance Act, 1910, the site value on the occasion on 
 which a death claim for increment value duty arises is arrived at by, 
 amongst other things, ascertaining the principal value of the land as 
 ascertained for the purposes of the Finance Act, 1894. By s. 5 of the Act 
 of 1910 the provisions as to "assessment, collection and recovery" of 
 estate duty under, the Finance Act, 1894, are to apply as if increment 
 value duty were an addition to the estate duty. 
 
 With reference to the property in respect of which a claim for estate Question as 
 duty may arise, see Cartmell's Finance Acts, 1894, etc. (5th edition), *?^v?. °^ 
 pp. 2 — 44. It is clear that increment value duty is a duty which, like Act, 1894. 
 estate duty, is payable on the passing of land on death from one person 
 to another, irrespective of any power of disposition possessed by the 
 deceased. But it is not quite clear whether s. 3 of the Finance Act, 
 1894, which limits the right of the Crown to estate duty in certain 
 cases, also applies by way of limitation to claims for increment value 
 duty. Sect. 3 runs as follows : — 
 
 *3. — (1) Estate duty shall not be payable in respect of property A. D. 1894, 
 passing on the death of the deceased by reason only of a bo7}d fide Exception 
 purchase from the person under whose disposition the property passes, for trans- 
 nor in respect of the falling into possession of the reversion on actions for 
 any lease for lives, nor in respect of the determination of any annuity g^jeration"' 
 for lives, where such purchase was made, or such lease or annuity 
 granted, for full consideration in money or money's worth paid to the 
 vendor or grantor for his own use or benefit, or in the case of a lease 
 for the use or benefit of any person for whom the grantor was a trustee. 
 
 (2) Where any such purchase was made, or lease or annviitj' granted, 
 for partial consideration in money or money's worth paid to the vendor 
 or grantor for his own use or benefit, or in the case of a lease for the use 
 or benefit of any person for whom the grantor was a trustee, the value 
 of the consideration shall be allowed as a deduction from the value of the 
 property for the purpose of estate duty. 
 
 Land may be not siibj ect to the duty imposed by ss. 1 and 2 of the 
 Act of 1894, simply because it is excluded by s. 3 of that Act. But 
 if it is enacted by a subsequent Act that land which passed under ss. 1 
 and 2 shall be subject to a certain additional duty, and no reference 
 is made to s. 3, which cuts down the classes of land to be included in 
 the former sections, there is at least an ambiguity. 
 
 Up to the present point, the application of ss. 1 to 3 inclusive of the 
 Finance Act, 1894, to increment value duty has been considered. 
 Sect. 4 of that Act relates to the aggregation of property so as to form 
 one estate for the purpose of duty, and is obviously inapplicable to 
 increment value duty. Sect. 5 of that Act, which relates to settlement 
 estate duty as well as to estate duty, is referred to under the notes to 
 
 * For the meaning of and notes on this section, see Cartmell, 5th edition, 
 p. 45 ; and Hanson's Death Duties, 6th edition, p. 115. 
 
22 Land Clauses of the Finance Act. 
 
 § 1. s. 3 (4) of the 1910 Act (see p. 65). The remainmg sections, together 
 
 with the various amendments of the original Act by subsequent legisla- 
 tion, so far as considered to be relevant, are commented on in the notes 
 to s. 5 of the 1910 Act (see pp. 90 to 121). It is to be noted that tliere 
 is no section of this Act which applies generally to increment value duty 
 the whole of the provisions of the Finance Act, 1894. Sect. 1 (b), s. 2 (c), 
 s. 3 (4), and s. 5 of the Act of 1910, each incorporate parts of the 
 earlier Act. 
 
 It is evidently a matter of some little difficulty to determine the 
 extent to which it is desirable in a text-book on the new laud duties to 
 embody the law relating to the death duties. Increment value duty 
 payable on death is but a fringe of the law relating to the estate 
 duties. The plan adopted in this work, so far as possible, is not to 
 cover the same ground in relation to increment value duty as is 
 comprised in the standard text-books on the death duties, but to 
 treat only of special points in connection with increiuent value duty 
 payable on death. 
 
 (b) As amended by any subsequent Enactment, — The subsequent 
 enactments thought to be material to increment value duty are discussed 
 in the notes to s. 1 {b) (see ante, pp. 14 to 22), to s. 3 (4) (see post, 
 pp. 65 to 68), to s. 5 (see post, p. 90 ; see also Appendix of Statutes, 
 pp. 589 to 604). It must be noted that future amendments of the 
 sections referred to in s. 1 (b) are probably covered by these words. 
 
 (c) Body Corporate or by any Body Unincorporate . . . 1885. — 
 
 The term " body corporate " of course includes corporations both aggre- 
 gate and sole, civil and ecclesiastical. Practically every company, 
 whether established by charter, by letters patent, by special Act, or 
 under the general Acts relating to companies which from time to time 
 have been and some of which still are in force, is a body corporate and 
 primd facie liable to duty under this section. Ecclesiastical corporations 
 sole, such as bishops, rectors, and vicars, are doubtless included under 
 the phrase. 
 
 But the scope of paragraph (c) of s. 1 is narrowed by the exceptions 
 to the liability to the duty under the following heads of the exceptions 
 mentioned on p. 12 : 2, 3, 5, 6, 7, and 8. Under heads (3) and (5) 
 state and municipal etc. lands are wholly exempt, that is, are exempt 
 under both paragraphs (a) and (c) of s. 1 . Under the remaining heads 
 exemption is conferred so far as regards paragraph (c) only. That 
 is, of course, no real exemption, but merely a postponement of collection 
 until actual realisation of the increment. 
 
 By s. 12 of the Customs and Inland Revenue Act, 1885, it is provided 
 as follows : — 
 
 The term "body unincorporate" includes every unincorporated 
 companj', fellowship, society, association, and trustee, or number of 
 trustees, to or in whom respectively any real or personal property shall 
 
Increment Value Duty. 23 
 
 belong in such manner, or be vested upon such permanent trusts, that fi 1. 
 
 the same shall not be liable to legacy duty or succession duty. 
 
 The term therefore includes any group of persons not incorporated 
 owning property. A cricket club owning its cricket field, and an 
 unregistered missionary society owning its offices and premises in the 
 names of their respective trustees, are examples of bodies unincorporate, 
 A partnership is not such a body because on the death of a partner his 
 share of the assets is liable to death duties. 
 
 (c) In such a Manner or on such Permanent Trusts that the Land 
 ... is not liable to Death Duties. — Such a body may be a trustee 
 for persons beneficially entitled ; as, for example, the Public Trustee. 
 Where such is the case the property will be liable to estate duty in the 
 ordinary course, and increment value duty may be payable on death. 
 It is, therefore, not collected on the periodical occasions. 
 
 (c) Death Duties. — Under the Finance Act, 1894, s. 13 (3), and First 
 Schedule, the expression " death duties" means the (1) estate duty 
 under that Act ; (2) probate duty under the Customs, etc.. Act, 1881 ; 
 (3) the account stamp duty under the Customs, etc.. Act, 1881, s. 38, as 
 amended by the Customs, etc., Act, 1889, s. 11 ; (4) the temporary estate 
 duties under the Customs, etc., Act, 1889, ss. 5 and 6; (5) the legacy and 
 succession duties (note the alterations in those effected by s. 58 of the 
 Finance Act, 1910); (6) the additional succession duties imposed by 
 s. 21 of the Customs, etc.. Act, 1888 ; (7) duties payable on representa- 
 tions or inventories under any Act in force before the Customs, etc., 
 Act, 1881. 
 
 There is no other definition of death duties in any of the Finance 
 Acts, and no section in this Act embodying in it the above definition. 
 It is not, however, likely that any practical difficulty of construction 
 will arise. 
 
 {c) On such Periodical Occasions as are provided in this Act. — The 
 occasions are April 5, in the year 1914, and in every subsequent fifteenth 
 year (s. 6 (1) ). But if the body so desires, increment value duty may be 
 paid by fifteen equal yearly instalments [ib., sub-s. (3) ), 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 (ib.). 
 
 A body corporate or unincorporate will, of course, pay increment 
 value duty under (a) of s. 1 in exactly the same events as an individual 
 would pay it. 
 
 Exceptions are created to the payment of increment value duty Exemptions 
 under (c) in the cases of — of body 
 
 (1) Agricultural land held by a body corporate or unincorporate, unincor- 
 while that land has no higher value than its value for agricultural porate from 
 purposes only (s. 7). " ^* 
 
24 Land Clauses of the Finance Act. 
 
 § 1. (2) Land, or an interest in land, held by a bodj' corporate or unin- 
 
 corporate without any view to profit for the purpose of games, etc., has a 
 limited exemption under the prescribed conditions (s. 9). 
 
 (3) State land or interests in land (s. 10). 
 
 (4) Leasehold interests in separate tenements, flats, or dwellings, 
 forming part of a building (s. 11). 
 
 (5) Land, or interests in land, belonging to rating authorities (s. 35). 
 
 (6) Land, or an interest in land, held by any governing body, con- 
 stituted for charitable (including educational) purposes has a limited 
 exemption (s. 37 (1) ). 
 
 (7) Land, or an interest in land, held by a registered society or 
 company precluded from dividing profits has the same exemption. 
 Registered societies are those registered or whose rules are certified or 
 registered by a registrar of friendly societies {ib., (2) ). 
 
 (8) Land held by a statutory company for the purposes of its under- 
 taking has a limited exemption (s. 38). 
 
 It will be noted that in ss. 9, 10, 35, and 37 the words " interest in 
 land " are to be found, whilst they are not found in s. 38, probably, per 
 incuriam ; s. 11 relates only to leasehold interests. 
 
 The Duty or Proportionate Part of the Duty . . . shall be Collected. 
 — The Act appears to contemplate the duty as accruing de die in diem 
 with the increment value. The duty is that which is due, but apparently 
 not necessarily immediately payable. Every 51. of increment value sub- 
 ject to exemption allowances under s. 3 (5) consists of 11. of duty and il. of 
 owner's money. This duty is not actually payable till an occasion arises 
 (a), (6), or (c). Even then the Act studiously refrains from saying that it 
 is " due." It is to be "collected." This word is used persistently through- 
 out the operative sections of the Act. Its use suggests that the duty is to 
 be considered " due " as soon as the increment value exists, and is to be 
 collected on the occasions stated in s. 1. But this consti'uction is not in 
 harmony with the fact that increment value having accrued may disappear 
 before an occasion of payment of duty arrives, and having disappeared is 
 not liable to duty. A field worth 1,000/. on April 30, 1909, may be worth 
 1,500/. on April 30, 1919, and 800/. on April 30, 1929, on which day 
 the first " occasion " of payment of increment value duty may arrive. 
 Whether any practical consequences will result from the peculiar use of 
 the words " the duty " and " collected " cannot at present be seen. 
 
 See the exception to this section in s. 22 (3) and (5). 
 
 Proportionate Part of the Duty. — The duty is apparently that 
 which is charged on the fee simple in possession, that is, on the fee not 
 subject to any lease. If this fee simple is sold either by the owner in 
 fee or under the powers of the Settled Land Acts or under powers con- 
 tained in a will or deed, then the " duty," i.e., the whole duty, is collected 
 so far as it has not been paid on any previous occasion (s. 3 (2) ). 
 
 If a life estate or a leasehold interest (the original term of which was 
 
Increment Value Duty. 25 
 
 over fourteen years), or an undivided share of a fee simple, that is to 8 1. 
 
 say, if an " interest " in the land is sold, then a " proportionate part " 
 only of the duty is collected, so far as it has not been paid on any 
 previous occasion (s. 3 (3) ). If, as has already been stated, a reversion 
 expectant on a freehold, a remainder, or any incorporeal hereditament 
 such as a right of shooting, a profit a prendre, or an easement is sold, 
 no duty is payable. The amount of duty to be paid is determined by 
 the Commissioners (s. 3 (1) )• 
 
 It appears that in the case of a lease, whether by the owner in fee or 
 by the owner of a leasehold interest, increment value duty is payable, 
 not on the whole interest of the lessor (whether the fee or a lesser 
 interest), but only on so much as is included in the lease (see s. 3 (3)). 
 The lessor pays on the realised increment. 
 
 Since the first edition of this work was published, rules have been made 
 by the Commissioners under s. 3 (2) and (3) for the purpose of determining 
 the amount of duty unsatisfied, and the amount to be collected on the 
 several occasions on which duty is payable. See post, p. 53. 
 
 So far as it has not been paid on any previous Occasion. — These 
 words appear further to elucidate the meaning of " the duty." The 
 duty appears to be the sum of \L for every complete 5/. of the increment 
 value existing on the occasion when it is collected, quite irrespective of 
 the amount (if any) which has already been paid on account of that 
 duty. The increment value is the amount by which the site value on the 
 occasion on which the duty is claimed exceeds the original site value on 
 April 30, 1909, and this is the case, not only on the first occasion on 
 which a claim for increment value duty arises, but on every later occasion. 
 That which is collected on any occasion is therefore not the duty, 
 but the duty minus previous payments in respect thereof (s. 3 (1) ). 
 Further, in certain circumstances "dut " is "deemed to have been 
 paid" (see s. 3 (5)), s. 4 (4), s. 6 (4), s. 8 (5), s. 10 (1), s. 35 (1), s. 36, 
 when in fact it has not been paid. 
 
 It is thought that the words " so far as it has not been paid," in s. 1, 
 mean " so far as it has not been paid or is not deemed to have been paid." 
 
 There may on any one of the " occasions " [a), [b) or (c) referred to 
 in s. 1 be increment value, i.e., the site value on the occasion may be 
 greater than the original site value, yet no duty may be payable, since 
 it may in fact have been paid on former occasions for payment of duty. 
 
 Collected in accordance with the Provisions of this Act. — For these 
 provisions see ss. 3 — 6 inclusive ; subject of course to the reductions or 
 allowances under ss. 3 (5), 10, 14 (4), and 35. 
 
 Section 2. 
 
 The effect of s. 1 has been (a) to enact a duty to be levied on the Introductory 
 " increment value of any land " ; (b) to fix its rate ; and (c) to declare the °°*'^- 
 occasions on which it is to be collected. Incidentally it has indicated 
 
26 
 
 Land Clauses of the Finance Act. 
 
 § 2 (!)• 
 
 Definition of 
 
 increment 
 
 value. 
 
 in its closing words that the duty is apportionable amongst the various 
 interests in the land, and may be collected on successive occasions. 
 
 Sect. 2 defines or explains the meaning of the " increment value " 
 which is the subject of the duty. It indicates generally how the original 
 site value is to be ascertained, and more specifically how the site value 
 is to be ascertained on each of the occasions (a), (b), and c) referred to 
 in s. 1, being the occasions on which the duty is collectable. 
 
 2. — (1) For the purposes of this Part of this Act the 
 
 increment value of any land shall be deemed to be the 
 
 amount (if any) by which the site value of the land, on 
 
 the occasion on which increment value duty is to be 
 
 collected as ascertained in accordance with this section, 
 
 exceeds the original site value of the land as ascertained 
 
 in accordance with the general provisions of this Part of 
 
 this Act as to valuation. 
 
 For the purposes . . . Act. — The words seem neither to add to nor 
 subtract from the meaning of the sentence. Increment value is not 
 touched upon in the otlier Parts of the Act, except incidentally in s. 62. 
 
 Of any Land. — That is, it is understood, of the fee simple of the land. 
 
 Shall be deemed to be. — This section defines the increment value 
 
 which is the subject of the duty. Increment value is a thing of con- 
 vention, to be ascertained by the rules laid down in the Act, though 
 doubtless a reality lies behind the conception. The w^ay to find the 
 increment value of a site is to deduct the original site value, that is 
 the site value on April 30, 1909 (see s. 26), from the site value 
 on the particular occasion (being one of those referred to in s. 1 (a), 
 (b), or (c) ). The result will be the increment value. If the site value 
 at the later date is less than the original site value there is no increment 
 value and no tax. 
 
 The Site Value of the Land. — Note that this site value on the 
 occasions (a) to (d) in sub-s. (2) is not termed " assessable site 
 value" (s. 25 (4)). "Assessable site value" is the result of a process 
 described in s. 25, first of " full site " valuation, and then of deductions. 
 The site value on the sevei'al occasions (a), (6), (c), and (d) referred to 
 in this section is the result of various processes described or referred to 
 in the section, subject to the like deductions as are made from total 
 value in order to arrive at " assessable site value." The object of every 
 such process is to arrive at the then value of the same thing {i.e., the 
 site) which was valued as on April 30, 1909. 
 
 The Occasion on which Increment Value is to be collected.— See s. 1 
 (a), (b), and (c) for the occasions on which increment value duty is to 
 be collected. If there is a difference between the amount of increment 
 
Increment Value Duty. 27 
 
 at the date of the contract and of the conveyance, it is thought that the § 2 (1). 
 former is the critical date. 
 
 The original Site Value of the Land as ascertained in accordance 
 with the general Provisions of this Part of this Act as to Valuation. — 
 See ss. 25, 26, 27, as to the method in which original site value is arrived 
 at. These sections are certainly amongst the general provisions of this part 
 of this Act as to valuation, but probably in the phrase " general provisions ' ' 
 other sections are comprised. There is no heading of any portion of 
 the Act as " general provisions," and those words are not used in any 
 side-note to any section. Sects. 25 to 32 are, however, headed " Valua- 
 tion for purposes of Duties on Land Values," and the whole of those 
 sections are, it is suggested, " general provisions ... as to valuation," 
 although some of them, such as s. 28, providing for the periodical 
 valuation of undeveloped land, s. 29 (2), (3), and (4), providing for 
 apportionment and reapportionment of site values, and s. 32, pro- 
 viding for the determination of the value, and the apportionment of 
 considerations, are clearly not applicable to the ascertainment of original 
 site value. As to valuation of minerals (see s. 23 (1) ). 
 
 The original site value may be the substituted original site value 
 under subs. (3) of this section, or s. 2 of the Kevenue Act, 1911 (see 
 pp. 43 to 48). 
 
 Note that on an appeal as to the amount of increment value under 
 this section the original site value cannot be questioned, but only the 
 site value on the occasion (s. 33 (1) ). 
 
 (2) The site value of the land on the occasion on 
 which increment value duty is to be collected shall be 
 taken to be — 
 
 (a) where the occasion is a transfer on sale of the fee 
 simple of the land, the value of the consideration 
 for the transfer ; and 
 
 (h) where the occasion is the grant of any lease of the 
 land, or the transfer on sale of any interest in 
 the land, the value of the fee simple of the land, 
 calculated on the basis of the value of the con- 
 sideration for the grant of the lease or the 
 transfer of the interest ; and 
 
 (e) where the occasion is the death of any person, and 
 the fee simple of the land is property passing on 
 that death, the principal value of the land as 
 ascertained for the purposes of Part I. of the 
 Finance Act, 1894, and where any interest in I^^q^^^^^^' 
 
28 Land Clauses of the Finance Act. 
 
 § 2 (2). the land is property passing on that death the 
 
 vakie of the fee simple of the land calculated on 
 the basis of the principal value of the interest as 
 so ascertained ; and 
 (d) where the occasion is a periodical occasion on 
 which the duty is to be collected in respect of the 
 fee simple of any land or of any interest in any 
 land held by a body corporate or unincorporate, 
 the total value of the land on that occasion to be 
 estimated in accordance with the general pro- 
 visions of this Part of this Act as to valuation ; 
 
 subject in each case to the like deductions as are made, 
 
 under the general provisions of this Part of this Act as to 
 
 valuation, for the purpose of arriving at the site value of 
 
 land from the total value. 
 
 The Site Value of the Land on the Occasion on which Increment 
 Value Duty is to be collected. — Whatever may be the occasiou on which 
 
 the inwement value duty is collected, whether on a sale, a lease, a death, 
 or a periodical occasion, the site value at that time of the fee simple of 
 the land and not of any interest on the land is that which is to be ascer- 
 tained in the first instance. If the occasiou on which the duty is collected 
 is that of the sale of an interest in the land, e.g., a lease having more 
 than fourteen yeai-s to run, or, probably, a lease the original term of 
 which was more than fourteen years whatever may be the iin expired 
 residue, a reversion expectant upon a lease, or an undivided share of the 
 fee simple expectant on such a lease, the Commissioners must fix the 
 proportionate part of the duty to be paid in respect of that interest in 
 accordance with rules made by them for that purpose (s. 3 (3)).* This 
 is equivalent to causing the amount of site value apportioned to the 
 lease to be determined by the Commissioners. It is to be noted. that 
 the site value on the occasion has to be ascertained afresh by an entirely 
 new series of valuations on every occasion on which increment value 
 duty becomes collectable. It follows that the amount of the site value 
 on a prior occasion has no effect upon, or relation to the site value on 
 a later occasion, except in so far as it is the determining factor of the 
 amount of duty paid on the first-mentioned occasion, and therefore is 
 also a determining factor of the amount left to be paid on the later 
 occasion, and except so far as the 10 per cent, deduction calculated on 
 the amount of the prior site value under s. 3 (5) has the eflect of 
 diminishing the amount of increment value duty to be paid on the 
 later occasion. It follows also that the site value upon which duty is paid 
 * For these rules see p. 53. 
 
Increment Value Duty. 29 
 
 in respect of one of the interests in the land may be greater or less than § 2 (2). 
 when an occasion arises for the payment of duty in respect to some other 
 interest in the land. But though this is the legal position, the records 
 of previous valuations and deductions preserved under s. 30 (1) will no 
 doubt be before the Government valuers on the later occasions, and will 
 not be ignored. As a matter of practice, the amounts allowed for deduc- 
 tions will, it is thought, often be followed. 
 
 (a) Where the Occasion is a Transfer on Sale of the Fee Simple, 
 the Value of the Consideration for the Transfer. — The case contem- 
 plated is a sale of the fee simple in possession not subject to any lease, 
 and not being the sale of an undivided share in a fee simple in 
 possession (s. 41 ; see p. 457). 
 
 The value of the consideration, not merely for the site value, but for 
 the fee simple of the land, i.e., the total hereditament, is that which is 
 the basis of the calculation. One method of ascertaining the site 
 value is adopted by the Act in the fixing of original site value ; another 
 in the fixing of site value on the occasion of a claim for duty. In the 
 former case — ascertainment of original site value — the plan adopted 
 is, roughly speaking, to value the site as a naked site, without 
 buildings or growth of any kind, and to deduct from the amount of 
 such valuation any value directly attributable to permanent works 
 executed, or expenditure of a capital nature incurred for the purpose 
 of improving the value of the land as building land, or for the purpose 
 of any trade or industry other than agriculture ; and also the estimated 
 cost of clearing the land of buildings and trees and other things of 
 which it is taken to be divested for the purpose of arriving at the full 
 site value, and of which it would be necessary to divest the land for the 
 purpose of realising the full site value, and also various other sums 
 which are stated in s. 25 (4) (see p. 21)4). 
 
 In the latter case, that of ascertainment of site value on an occasion 
 when duty is claimed, it is considered that there is a more certain 
 method of site valuation. 
 
 It is considered that the value of the consideration for a sale or lease 
 affords an adequate test of the value of the whole hereditament, and 
 that the site value is best ascertained by making the proper deductions 
 from that consideration if paid for the fee simple, s. 2 (2) (a), or from 
 the value of the fee simple as ascertained on the basis of that considera- 
 tion, if it is paid for less than the fee simple, s. 2 (2) (6). This method, 
 however, cannot be applied to cases (c) and (d), in which a valuation of 
 the total hereditament is therefore necessary. Further, this method 
 does not do away with the necessity of a bare site valuation at the 
 time under s. 25 (2), as will be evident when the deductions referred to in 
 the last lines of sub-s. (2) are being considered. One of these deductions, 
 namely, (a) in s. 25 (4), necessarily involves a bare site valuation under 
 s. 25 (2), as well as a valuation of gross value imder s. 25 (1), It 
 will further be noticed that the '* value of the consideration for the 
 
30 
 
 Land Clauses of the Finance Act. 
 
 § 2 (2). 
 
 Determina- 
 tion of value 
 of considera- 
 tion. 
 
 transfer " under siib-s. (2) (a), " the value of the fee simple of the land " 
 under sub-s. 2 (b), and the "principal value of the land" and "the 
 value of the fee simple of the land calculated on the basis of the 
 principal value of the interest as sO ascertained " under sub-s. (2) (c) 
 are the equivalents, for the purpose of ascertaining site value on an 
 occasion, of the " total value " defined in s. 25 (3), which is necessarily 
 found on the original site valuation. Where, as in sub-s. (2) (d), there 
 is no dealing with the land as in (a) and {b), affording a test of value, 
 and there is also no valuation as in (c) for the purposes of the Finance 
 Act, 1894, total value is necessarily adopted for the purpose of ascertaining 
 occasional site vahxe. 
 
 Value of the Consideration. — Sect. 32 is material to this section, 
 and runs as follows : — 
 
 (1) Where the value of any consideration for a transfer or lease is to 
 be determined for the purposes of this Part of this Act, that value shall, 
 so far as the consideration consists of the payment of a capital sum, be 
 taken to be the amount of that capital sum, and, so far as the considera- 
 tion consists of a periodical money pajTneut, be taken to be such sum 
 as appears to the Commissioners to be the capital value of that payment. 
 
 (2) If the Commissioners are satisfied that any covenant or under- 
 taking or liability to discharge any incumbrance, or, in cases where a 
 nominal rent only has been reserved, any covenant or undertaking to 
 erect buildings, or to expend any sums upon the property, has formed 
 part of the consideration, the Commissioners shall allow such sum as 
 they think just in respect thereof as an addition to the value of the 
 consideration. 
 
 (3) Where it is necessary to apportion any consideration for the 
 purposes of this Part of this Act as between properties included in any 
 transfer or lease, the consideration shall be apportioned by the Com- 
 missioners in such manner as they determine. 
 
 Is it not possible that there may be a ** transfer on sale " where the 
 consideration is neither the " payment of a capital sum," nor " a 
 periodical money payment," nor one of the covenants refeiTed to in 
 subs. (2) of s. 32 1 This is by no means clear ; but if it is the case, then 
 the decisions on what is a " conveyance or transfer on sale " within the 
 meaning of the Stamp Act, 1891, become relevant (see note on p. 8). 
 If it is not the case, a wide field for postponement of payment of duty 
 is no doubt opened. See, further, notes to s. 32, p. 350. 
 
 (6) Where the Occasion is the Grant of any Lease of the Land, 
 or the Transfer on Sale of any Interest in the Land the Value of 
 the Fee Simple of the Land. — In ascertaining increment value duty 
 on the occasion of the grant or transfer on sale of a lease a somewhat 
 complicated process htis thus to be gone through. First, the value of 
 the consideration for the grant or transfer of the lease must be ascer- 
 tained (see s. 32 above as to this). Next, from and on the basis of this 
 value must be calculated the value of the fee simple of the land (total 
 hereditament). Thirdly, from this sum the deductions referred to later 
 
Increment Value Duty. 31 
 
 in the clause, that is, the like deductions as are made, under s. 25 (4), § 2 (2). 
 
 for the purpose of arriving at the site value from the total value, must 
 
 be made. The result is the site value of the fee simple. The amount 
 
 of the duty is assessed on this value. Then in case of a transfer of a 
 
 lease or the sale of a reversion or any other interest in the land, the 
 
 Commissioners determine a proportionate amount of this duty to be 
 
 the duty payable in respect of the transfer under s. 3 (3) (p. 51) and 
 
 the rules under that section (p. 53). The same is the case if a lease is 
 
 granted under s. 3 (3). Tlie lessor pays not on the increment value of 
 
 the fee which he retains, but on the increment value so far as it passes 
 
 under the lease which he grants, that is, on the realised increment. 
 
 Calculated on the Basis of the Value of the Consideration for the 
 Grant of the Lease or Transfer of the Interest. — The problem is to find 
 the value of the fee simple in possession of the total hereditament (not 
 the site value of the hereditament), on the assumption that the con- 
 sideration for the lease, or the transfer of the lease or interest, is a true 
 index to that value ; in other words, that that consideration represents 
 the true value of the interest dealt with. The governing words are 
 " on the basis." But do these words import a necessity for deducting Meaning of 
 mathematically, where that is possible, the value of the fee from the i^°"„i''^ 
 consideration given for the lease 1 For example, if a house and land are 
 leased for fifteen years at a certain rent, must the valuer assume that 
 that rent, taken at whatever number of years he may consider appro- 
 priate, represents the value of the fee, or may he reduce or increase that 
 value, according to the circumstances of the case, and neighbourhood, 
 as for example, that it is likely that at the end of fifteen years 
 the neighbourhood will have improved, or deteriorated, or that at the 
 end of that period the house will, owing to its present age, be obsolete 
 and will no longer command the same rent 1 It is submitted that the 
 latter is the true construction. " On the basis " does not, it is thought, 
 mean " on that basis only," but on the basis that the granted or trans- 
 ferred interest is in fact worth so much and no more. It is submitted 
 that the valuer is entitled to take all the facts of the case into considera- 
 tion, including the provisions of the lease itself, and is not limited to the 
 single fact of the consideration for the grant or transfer. 
 
 A point certain to arise for early consideration is the matters which are Items 
 to be taken as items in fixing " the valvie of the consideration for the grant "^eluded in 
 of a lease." Premium, and the capitalised value of the rent, under s. 32 (1) of the con- 
 clearly form part of the value of the consideration. But under sub-s. (2) sideration. 
 of s. 32 (p. 30) the value of onerous covenants, as for the erection of 
 buildings or the formation of roads, etc., on the property by the lessee, 
 is, it seems, not to be taken into account as part of the consideration 
 except in cases where a nominal rent only has been reserved, and then 
 only in respect to the particular matters specified in s. 32 (2), i.e., 
 covenants or undertakings to erect' buildings, or to expend any sums 
 
32 
 
 Land Clauses of the Finance Act. 
 
 § 2 (2). 
 
 Considera- 
 tion for 
 transfer 
 of lease. 
 
 upon the property. Difficulties seem likely to arise on this state of the 
 law. A lease for thirty years is made at a substantial rental of 30^. 
 per annum, being a rental of 10^. less than the real value of the property, 
 because the tenant has covenanted to build an addition to the existing 
 house on the land. The value of the consideration on the grant of the 
 lease is therefore calculated only on the 30^. rent without any addition 
 for the value of the covenant (s. 32 (2)). 
 
 The effect of this is that the difference between gross value and full 
 site value is under s. 25 (4) (a) deducted from a sum, being the capitalised 
 rent of 30^., say 600/., which is much less than the real value of the 
 property, which is 800/., or the capitalised value of 40/., i.e., the real 
 rental value. The result of this deduction will be that the site value 
 on the occasion of the lease will probably be nil, because the real 
 value of the consideration for the grant of the lease has been made to 
 appear as 600/. instead of as 800/. On a subsequent sale, or sub-lease at a 
 rack rent, or on the passing on death of the leasehold interest, the site will 
 be found to have jumped back again to its true value. It is clear that 
 this may make the then leaseholder liable to a large amount of increment 
 value duty. A similar result will, however, only happen in case of the 
 reversion gradually — that is, as the leasehold term runs out and the 
 value of the reversion increases. If there is really any increment 
 occurring in the site, the calculation of subsequent duty in relation to 
 reversion and leasehold interest respectively seems likely to be interesting 
 and confusing. At this stage of the working of the Act it is not necessary 
 to pursue the apparent results of s. 32 (2) more fully. 
 
 This note must be taken subject to the remarks in the next paragraph 
 arising out of the consideration of the case of Swayne v. Commissioners of 
 Inland Revenue ( [1900] 1 Q. B. 172, C. A.) in its relation to increment 
 value duty. 
 
 A problem no less difficult arises when the occasion is the transfer on 
 sale of a leasehold interest in the land. What is the consideration for 
 such a transfer? No. 1, Blank Square is held under a lease for 
 twenty-one years, of which fifteen years are unexpired, at a rent of 
 300/. a year. The rent is practically a rack rent, and the premium (50/.) 
 payable on the sale is a nominal premium. It is clear that, so far as 
 regards the ordinary stamp duty on a transfer on sale under the Stamp 
 Act, 1891, the consideration is the 50/. only, and not the 50/. plus the 
 liability undertaken by the purchaser to pay the annual rent of 300/. 
 {Swayne v. Commissioners of Inland Hevenue, [1899] 1 Q. B. 335 ; 
 [1900] 1 Q. B. 172). Is the "value of the consideration" for the 
 sale to be one kind of value for the ordinary ad valorem stamp, and 
 quite another kind of value for the • increment value duty stamp ? It 
 must be so, unless this section is to lead to absurdity. The site value 
 of a house in a London square, the annual value of which is 300/., may 
 fairly be taken to be at least 1,200/. But 50/. is under the Stamp 
 Act the " value of the consideration " for the transfer of the house as well 
 
Inceement Value Duty. 33 
 
 as tlie site for fifteen years. On this basis the value of the fee § 2 (2). 
 
 simple of the whole property, house and site, would be rather over 
 
 100^, This result would of course play havoc with the scheme of 
 
 the Act. The site value of that ho\ise would on that sale go down with 
 
 a bang. It seems, therefore, that " the value of the consideration " for 
 
 the transfer on sale of a leasehold interest is at least intended to include 
 
 the liability assumed by the purchaser to pay the future rent. Then under 
 
 s. 32 (1) (see p. 350) the Commissioners will, it is presumed, estimate 
 
 the capital value of that liability, notwithstanding that that sub-section 
 
 seems to point more directly to a periodical money payment to the 
 
 grantor than to such a payment to a third party by way of indemnity 
 
 to the grantor. The result of the conclusion thus reached, if it be 
 
 correct, points to the exercise of caution in applying decisions founded 
 
 on the Stamp Acts to increment value duty. 
 
 It would seem extremely difficult to calculate the value of the fee Sale of 
 simple on the basis of the value of the consideration for the sale of a ^^^^i^^ion. 
 reversion expectant upon a leasehold interest with say 50 years to run, 
 for the consideration is almost wliolly based on the ground rent, incident 
 to that reversion, which may be no index at all to the then value of the 
 total hereditament. 
 
 The question arises whether the ascertainment of site value on an Fresh valua- 
 
 occasion of the transfer on sale of an interest, for example a leasehold ^^^^ ^^ ^'^^ 
 
 . ■ ^ 1 ■ 11 i-.i 1 , ,1 . occasion, 
 
 interest m land, m any way concludes persons entitled to other interests, 
 
 as, for example, persons entitled to the fee simple in reversion, from 
 
 disputing, when " an occasion " arises in reference to their interests, 
 
 the site value arrived at on the occasion of the former transfer. On 
 
 each '•' occasion " it is thought that a wholly independent valuation 
 
 must be made ; and this it seems is the view accepted by the authorities 
 
 (see the Rules under s. 3 (2) and (3), post, pp. 57, 58). Clearly the 
 
 value of the fee simple as ascertained under this section may often 
 
 be different on different occasions, and the deductions, even that under 
 
 s. 25 (4) (a), may also be different. It is only in the case of a deduction 
 
 which could have been, but was not, claimed on the fixing of the original 
 
 site value that the omission to claim is irrevocable (s. 12). A person 
 
 entitled to one of the different interests in the land may not be aware of 
 
 the outlay of another person so entitled, or of the predecessors in title of 
 
 that other, on the land. 
 
 Moreover, the same effect on value cannot be attributed to the " deduc- Deductions 
 tion " on every occasion. Deductions are mainly expenditure (s. 25 (4) ). 
 As time passes the value added originally to the site by certain expenditure 
 may become less ; the improvement may be exhausted, in whole or in 
 part. Conversely, the value added may be greater. Each year after 
 the building of a sea wall may add to the value of the protected land as a 
 building site. It may be anticipated that the word "deduction" in 
 s. 12 will not be construed so as to mean the actual expenditure 
 claimed as a deduction, but in accordance, as is thought, with s. 25, 
 
 N. 3 
 
8^ Land Clauses of the Finance Act. 
 
 § 2 (2). as the value added by the improvement or transaction in respect of 
 which a pecuniary amount, varying it may be on various "occasions," 
 is claimed as a deduction. 
 
 (c) Where the Occasion is the Death. — In this case a valuation is 
 made of the fee simple of the land under the Finance Act, 1894. There 
 is no actual sale or lease to operate as an assumedly accurate test of value. 
 The section of the Finance Act, 1894, which is referred to is s. 7 (5). 
 For the sections of that Act material to the Finance Act, 1910, see 
 ante, p. 15, post, pp. 89 to 112, and Appendix, pp. 589 to 604. For a 
 discussion of these sections, see notes to s. 5, p. 91. The eflfect of s. 60 
 of the Act of 1910 (see p. 604) upon s. 7 (5) of the Finance Act, 1894, 
 must not be overlooked. The value of the fee simple of the total 
 hereditament is in this case also to be calculated on the basis of the 
 value of the lesser interest, as a lease, passing on the death, and the 
 same process has to be gone through to ascertain the site value appor- 
 tionable to the lease as in the case of a transfer or sale (see note to (6), 
 ante, p. 31, " calculated on the basis," &c.). 
 
 It is difficult, however, to see why in this case, in order to ascertain 
 the principal value of the fee, the principal value of the lesser interest 
 should be first ascertained hj valuation, and the former then deduced 
 from the latter. The natural course would appear to be to ascertain 
 the larger interest by a direct valuation of that interest, for in this case the 
 value of that larger interest cannot be checked or tested, as in the case of 
 an actual sale of a lesser interest, by the amount realised for that lesser 
 interest. There must be a valuation in any event of principal value ; 
 and the only question is whether the more certain test of the value of 
 the fee simple is a direct valuation of the fee or a valuation of a subordi- 
 nate interest, and a calculation based on the amount so ascertained of the 
 value of the fee. It seems to be no real objection that in valuing the 
 fee simple you are valuing some one else's property, because in any 
 event that must be done on the same occasion to ascertain gross and 
 full site values (s. 25 (1) and (2) ). 
 
 The point is, however, probably one of form rather than of substance, 
 for in ascertaining the principal value of a leasehold interest under 
 s. 7 (5) of the Finance Act, 1894, the valuer will, it is thought, usually 
 first ascertain, at all events in his own mind, the value of the fee. 
 
 (c) Fee Simple. — See note on p. 9, ante, and on p. 457, "the expression 
 * fee simple,' " as to the meaning of this term. 
 
 (c) Property passing on that death.— See ante, p. 15. 
 
 (c) " Any Interest in Land " (see notes on " The expression ' interest * 
 in relation to land" and on "the expression 'fee simple,'" s. i\,post, 
 pp. 446 and 457 ; also note on " Land," ante, p. 4). — These words must be 
 construed according to the definition or explanation of " ' interest ' in 
 relation to land " contained in s. 41 of this Act. They are, when applied to 
 
Increment Value Duty. 85 
 
 future interests, not equivalent to the expression "interest in expectancy " § 2 (2). 
 
 as explained by the Finance Act, 1894, s. 22 (j). Under that Act the 
 
 expression " ' interest in expectancy ' includes an estate in remainder or 
 
 reversion and every other future interest, whether vested or contingent, 
 
 but does not include reversions expectant upon the determination of 
 
 leases." But under this Act all remainders and also reversions expectant 
 
 on estates of freehold are not included under the term " interest " in land, 
 
 and reversions expectant on the determination of leases are included. 
 
 Under the Finance Act, 1894 (s. 7 (6) ), estate duty is to be paid on 
 
 interests in expectancy (inter alia, reversions expectant on estates of 
 
 freehold and remainders) at the option of the person accountable for the 
 
 duty, either with the duty in respect of the rest of the estate, or when 
 
 the interest falls into possession. Under the Finance Act, 1910, 
 
 increment value duty is apparently not payable at all at death upon 
 
 such reversions and remainders belonging to the deceased. They are not 
 
 interests in land. Under the Finance Act, 1894, estate duty is payable at 
 
 the death of the owner on reversions expectant on leases for years, and no 
 
 option to postpone is allowed in such a case. They are not interests 
 
 in expectancy. Under the Finance Act, 1910, increment value duty is 
 
 also payable at death on the same reversions. They are interests in 
 
 land. 
 
 (d) Where the Occasion is a Periodical Occasion, i.e., April 5, in the 
 year 1914, and every subsequent fifteenth year. Note that in this case, 
 as under (c), the taxation is on an estimated and not a realised incre- 
 ment. There is, however, no provision for repayment of duty in case 
 of overpayment as under the Finance Act, 1894, s. 8 (12), though qucere 
 whether this sub-section applies to increment value duty payable on 
 death (see post, p. 104). 
 
 (d) Body Corporate or TJnincorporate. — See note to s. 1, ante, p. 22. 
 Note the exceptions to the payment of duty by bodies corporate and 
 unincorporate in ss. 9, 10, 35, 37, and 38 (p. 24). 
 
 (d) Total Value. — For definition of " total value " see s. 25. Total value 
 as ascertained by s. 25 in the case of the periodical assessment under 
 s. 2 (2) (d) represents, or occupies the like position as, (1) the value of the 
 consideration for the transfer under s. 2, 2 (a) ; (2) the value of the fee 
 simple of the land, calculated on the basis of the value of the considera- 
 tion for the grant of the lease or the transfer of the interest under 
 s. 2 (2) (6) ; and (3) either the principal value of the land as ascertained 
 for the purposes of Part I. of the Finance Act, 1894, or the value of the 
 fee simple of the land calculated on the basis of the principal value of 
 the interest as so ascertained under s. 2 (2) (c), according as the fee 
 simple or any interest in the land is the property passing on death. 
 
 The total value must be specially ascertained every fifteenth year, but 
 as the first periodical valuation is to be in the year 1914 (s. 6 (1)), the 
 same year as the first quinquennial valuation under s. 28 of site 
 
 3—2 
 
^^ Land Clauses of the Finance Act. 
 
 § * (2) value (and therefore necessarily of total value), for the purpose of 
 undeveloped land duty, and as each succeeding periodical occasion for 
 the payment of increment value duty by a body corporate or unin- 
 corporate must necessarily fall in a year of quinquennial valuation, it 
 may perhaps be assumed that so far as regards the undeveloped land of 
 a body corporate or unincorporate the quinquennial valuation will be 
 adopted for the purposes of increment value duty payable under 
 s. 2 (2) (d). But of course developed land (s. 16 (2)) which is liable to 
 increment value duty will have to be specially valued in order to 
 ascertain the total value. 
 
 (d) In Accordance with the General Provisions of this Part of this 
 Act as to Valuation.* — The general provisions are contained in ss. 25 
 to 32, inclusive (see note on p. 27) ; as to minerals it is thoxight that 
 s. 23 is a general provision as to valuation. See other references to the 
 general provisions as to valuation (s. 2 (1), s. 13 (2)). Compare with 
 s. 28, "provisions of this Act as to the ascertainment of value," and with 
 s. 29 (3), " the provisions relating to the procedure on the valuation of 
 land." 
 
 There are thus three, or possibly four, different methods of ascertaining 
 site value on the occasion of claims arising for increment value duty. 
 The element common to all three methods is that the value of the 
 fee simple of the whole hereditament, which represents or corresponds with 
 " total value " on the original valuation, is first ascertained, and then the 
 statutory deductions are made from that value. (1) If the fee simple is 
 sold the value of the whole hereditament is the value of the consideration 
 for the sale. (2) If a lesser interest than the fee is sold, or a lease is 
 made, the value of the consideration is to be used as a test or basis for 
 valuing the fee. (3) If the property passes on death, the provisions 
 of the Finance Act, 1894, in relation to valuation for death duties apply. 
 (4) If increment value duty is collected from a body corporate or unin- 
 corporate on a periodical occasion, then the general provisions of this 
 Act as to valuation are to apply, and these (see s. 25 (3) ) involve the 
 determination of the value of the fee simple, that is, the total value. 
 
 The Like Deductions. — These are contained in s. 25, and for detailed 
 comment upon such deductions see the notes to that section (p. 272). But 
 it must be noted that to arrive at one of these deductions, i.e., that involved 
 in s. 25 (2) and directed to be made in sub-s. (4) of the same section, a 
 valuation of the cleared site is necessary. The general scheme of the Act 
 as to ascertaining increment value duty is plain. The problem is to find 
 the difference between the site value on January 30, 1909, and the site 
 value on the one of the "occasions " referred to in ss. 1 and 2, which 
 has actually happened. Site value as on January 30, 1909, is arrived 
 
 * For instructions published after this book was nearly through the press 
 by the Inland Eevenue to its valuers as to the ascertainment of occasional 
 site value, and a note thereon, see ante, p. cl. 
 
Increment Value Duty. 87 
 
 at under ss. 25 and 26, by first ascertaining " the total value " of the § 2 (2). 
 
 land, which, roughly speaking, corresponds to its value in the market with 
 
 all its buildings and improvements, and then deducting from that total 
 
 value the difference between that value and the value of the land as a 
 
 cleared site, and also any portion of that total vahie which has been 
 
 added by the various kinds of expenditure set out in s. 25, and also 
 
 the expenses of clearing the site of the buildings, trees, fruit bushes, 
 
 etc., thereon. These deductions give the original site value.* 
 
 To ascertain the sum which corresponds to "total value" on the 
 " occasion " of a payment of duty, one of the three or four methods 
 pointed out in s. 2 (2) must be adopted according to the nature of the 
 occasion. This being ascertained, the same classes of deductions, in- 
 cluding deductions made on the original site valuation, and all former 
 occasions on which increaient value duty was paid, so far as applicable, 
 are made from that sum, as in the case of the original site valuation are 
 made from total value. The result is the site value on the occasion. 
 From this result is deducted the original site value. The balance is the 
 increment value on which, subject to the 10 per cent, remission under 
 s. 3 (5), and to any deduction under s. 36 (post, p. 389), duty is payable. 
 
 General Note on Sect. 2 (1) and (2). 
 
 The question will no doubt arise in the mind of the reader whether it Complica- 
 would not have been simpler to have avoided the complicated methods t'ons might 
 of arriving at site value on an occasion involved in s. 2 (2), and to avoided, 
 have relied simply on a revaluation under s. 25 (2) of the cleared site 
 as at the date of the occasion in question. Such a revaluation is under 
 the present scheme actually necessary, because the deduction (a) in 
 sub-s. (4) of s. 25, which has to be ascertained on all occasions 
 mentioned in s. 2 (2) under the last lines thereof, necessarily involves a 
 full site valuation under s. 25 (2). Under the scheme of valuation, on 
 an occasion arriving for payment of increment value duty imder s. 1 (a), 
 instead of the total value of the fee simple under s. 25 (3) at the time 
 of the original valuation, there is substituted for the purpose of 
 ascertaining site value the value based upon the consideration for the 
 sale or lease. The effect of this is that if a vendor or lessor has realised 
 more for the property as a whole than its real " total value " he pays 
 increment value duty on that additional realised increment, which is of 
 course fair so far as he is concerned (see p. 308). The whole excess price 
 over real or total value, it will be noticed, is treated as site value and is 
 taxable. On the other hand, if he gets less for his property than its real or 
 total value, he pays only, if there is increment value, on a smaller amount 
 of site value than in reality exists. Thus the burden is eased to the 
 
 * This description of site value was given in a somewhat shorter form in 
 the first edition of this book, but with some sacrifice of accuracy to lucidity. 
 To combine the two in relation to s. 25 is impossible. 
 
88 
 
 Land Clauses op the Finance Act. 
 
 § 2 (2). 
 
 Apportion- 
 ments 
 sometimes 
 necessary. 
 
 Other quali- 
 fications of 
 ■section. 
 
 back at the expense of logical consistency. But the doubt will occur 
 whether the scheme is not too involved and too hypothetical to secure 
 the comprehension, and therefore to gain the confidence, of the man in 
 the street. If total value had been left to be fixed on the occasion of 
 sales and leases, just as on the original valuation, as a matter of fact the 
 consideration for the sale or lease \vould have usually been the principal 
 determining feature in fixing gross and therefore total value. But the 
 uniformity and consequently the simplicity of the valuation clauses 
 would have been preserved. Indeed, if this simpler plan had been 
 followed the cumbrous and complicated addition to s. 25 of gross and 
 full site values might well have been avoided. 
 
 These sections must read subject to the following general observations. 
 Firstly, in either case (a) or (b) of sub-s. 2 the property agreed to be sold 
 or leased may be a portion of a property originally valued as a whole, in 
 which case an apportionment of original site value under s. 29 (2) will 
 be necessary. Further if since the original site valuation increment 
 value duty has been paid on the Avhole original property, that payment 
 must be apportioned under s. 3 (1) between the part retained and the 
 part agreed to be sold. Secondly, in either case (a) or (6) the property 
 agreed to be sold or leased may consist of two or more properties com- 
 prised in entirely separate original site valuations. In this case the 
 Commissioners must apportion the consideration given on the then sale 
 or lease, under s. 32 (3) for the purposes of (a) or (b). Thirdly, both the 
 suppositions firstly and secondly just suggested may be simultaneously 
 realised, and two or more portions of properties separately valued may 
 be the subject of the same sale or lease, in which case there may be 
 necessary (a) apportionment of original site values, (6) apportionment of 
 increment value duty paid on one or more previous occasions, and (c) 
 apportionment of the consideration then paid amongst the various 
 properties, so as to fix the then site value of each. 
 
 Fourthly, the sub-sections must be read subject to the provisions of (a), 
 the next sub-section, s. 2 (3), and s. 2 of the lievenue Act, 1911 (see 
 p. 44), allowing in certain cases a higher original site value to be 
 substituted for the site value on April 30, 1909, (b), s. 3 (5) allowing 
 also in certain cases a 10 per cent, reduction of the duty, (c), s. 14 (4) 
 allowing to be credited as a payment on account of increment value 
 duty payments made in respect of reversion duty paid on the same 
 increment, and (d), s. 36 allowing capital sums paid by way of better- 
 ment charge to be deducted from the amount of increment value as 
 ascertained under this section. 
 
 Illustrations of the Application of Sect. 2. 
 
 (See the note at the end of the illustrations.) 
 
 (1) The original site value of Whiteacre on April 30, 1909, is 500/. 
 It is sold on January 1, 1912, for 1,000/., which, there being no 
 
Increment Value Duty. 89 
 
 deductions, is taken to be the site value. The increment vahie, § 2 (2). 
 therefore, is 500^. (s. 2 (2) (a)). The whole duty, 100^., is collected 
 (s.3(2)). 
 
 (2) The original site value of Blackacre is 500/. It is leased on 
 January 1, 1912, for twenty-one years at 751. a year. On the basis of 
 the value of this rent, the value of the fee simple and the site value is 
 fixed by the Commissioners at 1,250/., subject to deductions. The 
 increment value on January 1, 1912, subject to deductions, is 750/. 
 (s. 2 (2) (6)). The lessor will of course only pay the proportion of duty 
 apportionable to the lease (s. 1, p. 2 ; s. 3 (3), p, 51). 
 
 (3) The lease of Blackacre referred to (No. 2) is on January 1, 1913, 
 sold for 200/. On the basis of the value of this sum and the liability 
 undertaken by the purchaser to pay the rent during the remainder of 
 the lease (the two amounts being the consideration for the transfer of the 
 interest in the land), the Commissioners fix the value of the fee simple, 
 i.e., the site value, of Blackacre at 1,450/., subject to deductions. The 
 increment value on Janviary 1, 1913, subject to deductions, is 950/. 
 (s. 2 (2) (/»)). Again only a pi'oportion of the duty will be paid by the 
 transferor of the lease (s. 1 ; s. 3 (3)). There is, however, in this case 
 a serious question, based on Stvayne v. Commissioners of Inland Revenue, 
 [1900] 1 Q. B. 172, as to whether the agreement to' pay the rent forms 
 part of the consideration {ante, p. 32). 
 
 (4) On January 1, 1914, the owner of the reversion of Blackacre 
 expectant on the twenty-one years lease referred to in illustrations 2 
 and 3 sells his reversion for 1,300/. On the basis of the value of the 
 consideration for the transfer of the interest {i e., the reversion), the 
 Commissioners fix the value of the fee simple (as defined by s. 41), 
 which is the site value subject to deductions, at 1,550/. The incre- 
 ment value on January 1, 1914, subject to deductions, is 1,050/. 
 (s. 2 (2) (b) ). Again only the proportion of the duty apportionable to 
 the reversion is collected (s. 1 ; s. 3 (3) ). 
 
 (5) The original site valvie of Whiteacre on April 30, 1909, is 1,000/. 
 On January 1, 1912, the owner in fee dies, whether testate or intestate is 
 not inaterial. The principal value of Whiteacre as ascertained for the 
 purposes of Part I. of the Finance Act, 1894 (s. 7 (5)), is 1,500/., and 
 that is the site value on the occasion subject to deductions. The 
 increment value on January 1, 1912, subject to deductions, is 500/. 
 (s. 2 (2) (c) ). The whole duty is collected. 
 
 (6) The original site value of Blackacre on April 30, 1909, is 1,000/. 
 At that date it is in lease to A. for twenty-one years unexpired at a rent 
 of 50/. a year, and subject to such lease B. is the owner in fee. On 
 January 1, 1912, A. dies, whether testate or intestate is not material. 
 The principal value of A.'s interest as ascertained for the purposes of 
 Part I. of the Finance Act, 1894, is (say) 600/. ; the value of the fee simple 
 of the land (which, subject to deductions, is the site value) calculated 
 on that basis is 1,200/. The increment value is therefore on January 1, 
 
40 Land Clauses of the Finance Act. 
 
 § 2 (2). 1912, 200^., but subject to deductions. Only the due proportion of the 
 duty apportionable to the term is collected. 
 
 (7) Referring to Blackacre, the subject of illustration 6. B., the 
 reversioner in fee, dies on January 1, 1914, whether testate or intestate 
 is not material. The principal value of B.'s interest as ascertained for 
 the purposes of the Finance Act is (say) 700^., and on the basis of that 
 value the value of the fee simple (as defined by s. 41) of the land is 
 ascertained by the Commissioners to be 1,300/., which, subject to 
 deductions, is the site value. The increment value is 300/., subject to 
 deductions (s. 2 (2) (c) ). Only the duty in respect of the reversion is 
 collectable (s. 3 (3) ). 
 
 (8) The original site value of Whiteacre, which belongs to a body 
 corporate or unincorporate, is 1,000/. On April 5, 1914, being the first 
 periodical occasion for the collection of increment value duty in the case 
 of such a body (s. 6 (1)), the total value under s. 25 (3) is 1,500/. 
 The increment value on April 5, 1914, is therefore, subject to deductions, 
 500/. (s. 2 (2) (c/)). The whole duty is collectable. 
 
 (9) The original site value of Whiteacre is 500/. On January 1, 
 1912, it is leased to the X. Company for twenty-one years at a rental of 
 50/. a year. On the periodical occasion, April 5, 1914, the total value 
 under s. 25 (3) of Whiteacre is ascertained at the sum of 1,200/., which 
 will be the site value on the occasion, but subject to deductions. The 
 increment value on April 5, 1914, is 700/., subject to deductions 
 (s. 2 (2) (d)). But the X. Company will of course only pay its proper 
 proportion of duty on this increment (s. 3 (3) ). 
 
 (10) Exactly the same method of valuation will apply in case the 
 X. Company are the owners in fee of the reversion and not the owners 
 of the lease. The company will of course pay only the duty apportion- 
 able in respect of the reversion. 
 
 Ifote to the above illustrations. — It will be seen that what has been com- 
 pared for the sake of simplicity in the above illustrations is original 
 site value, which is assessable site value ascertained under s. 25 
 {post, p. 272) with the value of the whole hereditament (buildings 
 and improvements included). The last-mentioned value is ascertained 
 in the various methods, according to the nature of the occasion, 
 directed by s. 2. But what has to be specially noted is that in 
 each case from the value so ascertained are to be made exactly the 
 same deductions which are to be made from *' the total value of the land " 
 as ascertained by s. 25 (3) in order to arrive at the original site value. 
 In other words, " total value " vmder s. 25 (3) on the original site valua- 
 tion occupies the place of, in s. 2 (2) (a), the value of the consideration, 
 in 8. 2 (2) (6) the value of the fee simple, in s. 2 (2) (c) the principal 
 value of the land as ascertained for the purposes of the Finance Act, 
 1894, or the value of the fee simple of the land calculated on the basis, 
 etc. In s. 2 (2) {d) there is no sale, or lease, and no death valuation. 
 So there is a " total " valuation under s. 25 (3), and in this case original 
 
Increment Value Duty. • 41 
 
 site value is compared with the site value on the occasion, through an ft 2 (2). 
 exactly identical process of valuation. 
 
 Very often, of course, the deductions are the predominant partners in Deductions 
 the valuation process. A country mansion built on agricultural land "^^7. be pre- 
 may have a total value of 10,000^. and a site value of 100^. Never- partner, 
 theless you must get at the two site values, original and occasional, just 
 as you get at the site of a Cheapside house, the total value of which is 
 11,000^. and the site value 10,000^. 
 
 In each case you take the value of the whole and deduct from it the 
 value of all that is not natural site value, that is, not only buildings but 
 improvements of the site itself (s. 25 (4) ). 
 
 In the above illustrations no account has been taken of the 10 per 
 cent, deduction under s. 3 (5). 
 
 The fact that in all cases increment value is calculated on the fee 
 simple of the land will be duly noted, though duty is only payable in 
 respect of the specific interest as to which the occasion has arisen (s. 1). 
 
 (3) Where it is proved to the Commissioners on an 
 appHcation made for the purpose within the time fixed by 
 this 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 day of April, 
 nineteen hundred and nine, exceeded the original site 
 value of the land as ascertained 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 provisions 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 
 
42 * Land Clauses of the Finance Act. 
 
 § 2 (3). made within three months after the original site value 
 
 of the land has been finally settled under this Part of 
 
 this Act.^' 
 
 Illustration of Sect. 2 (3). 
 
 The original site value of Blackacre is fixed at 500/. But on a sale 
 on May 1, 1889, its site value was 600/. The owner may by application 
 within three months of the final settlement of the original site 
 value get 600/. substituted for 500/. as the original site value. The 
 substituted site value is arrived at by reference to the consideration for 
 the sale just as under s. 2 (2) [a) (see ante, pp. 29 to 33). 
 
 The site value of a property may, within the twenty years prior to 
 April 30, 1909, Iiave been greater than the site value on that day. 
 For the purpose of increment value duty it is the interest of an owner 
 to have a high original site value. The higher the original site value, 
 the less the increment value and the increment value duty. An owner 
 would feel it to be a hardship if he had to pay increment value duty 
 on an increment which was merely a recovery from a fall in site value 
 taking place after he or his ancestor had bought the property. The 
 section within the limitations laid down obviates this hardship. 
 Indeed, as will be seen, the relief under this sub-section, but not under 
 s. 2 of the Eevenue Act, 1911, extends to cases where the higher 
 value existed, in the hands of a pei*son who had sold to the owner being 
 charged, or his predecessor in title. 
 
 Proved to the Commissioners. — Subject to an appeal in the usual 
 way under s. 33. The section does not necessarily mean that strict 
 legal proof will be required. The Commissioners are the Commissioners 
 of Inland Revenue (s. 96 (2) ), who are subject to the control of the 
 Treasury, and whose constitution and duties are regulated by the 
 Inland Revenue Regulation Act, 1890 (53 & 54 Vict. c. 21). 
 
 On an Application. — The application must be specially made. It is 
 obvious that it cannot be made strictly in the owner's return furnished 
 under s. 26 (2), because that is a return antecedent to and for the pur- 
 pose of fixing of the site value, and the sub-section says the applica- 
 tion must be made within three months after the original site value has 
 been finally settled. But it is possible that, to save a multiplicity of 
 applications, the Commissioners may afford facilities for furnishing the 
 information in such return which would enable them to act upon this 
 sub-section. t Apparently the application may be made either by the 
 owner or by a person interested within the meaning of s. 27. 
 
 Any Transfer on Sale of the Fee Simple of the Land or of any Interest 
 in the Land. — The bare fact that the site value at some time within the 
 
 * Sub-8. (3) and the notes thereon must be read with s. 2 of the Eevenue 
 Act, 1911, in mind {post, p. 44). 
 
 t This seems to have been partially done. Form 4 {q) apparently has this 
 object in view. See also Forms 43, 44, and 45 post, p. 543. 
 
Increment Value Duty. 43 
 
 twenty years exceeded the value on April 30, 1909, does not give a right § 2 (3)- 
 
 to the relief given by the sub-section. The higher value must exist at 
 
 the time, which, it is assumed, means the date of execution, of a transfer 
 
 on sale. The property may have fluctuated in value, but unless the 
 
 higher value is proved by the transfer the sub-section does not apply. 
 
 The grant of a lease for over fourteen years within the period of twenty 
 
 years does not apparently bring the sub-section into force, although 
 
 such a grant is an occasion for collection of increment value duty. But 
 
 the transfer of such a lease, even though only a year of the term be 
 
 unexpired, which is an interest in land does bring the section into force, 
 
 which is a remarkable result of the sub-section. The sale of the reversion, 
 
 however long tlie lease may be, woixld bring the section into play. 
 
 The transfer under this sub-section need not have been a transfer to 
 the owner applying for the benefit of the sub-section or to his ancestor. 
 It may have been a transfer to a predecessor in title from whom he or 
 his ancestor may have bought it, or to a donor to himself by deed or will. 
 The transfer of tlie interest in land may apparently have been a transfer 
 of an underlease derived out of a lease granted by a predecessor in title. 
 The consideration for that underlease is evidence of the value of the 
 property. But to obtain the benefit of the extension of this section 
 given by the Revenue ^Act, 1911, s. 2 (post, p. 44), the transfer must 
 have been to the person who is the owner at the time of the application. 
 
 Transfer in this sub-section' does not, it seems clear, include "passing 
 on death." 
 
 If the property has been sold half-a-dozen times within the twenty 
 years, it is apprehended tiiat the taxpayer may select the occasion when 
 the site value was highest. The words of the section are " at the time 
 of any transfer," etc. 
 
 If the property being valued was included with other property in the 
 antecedent sale, the consideration on that sale must be apportioned by 
 the Commissioners under s. 32 (3). 
 
 Original Site Value of the Land as Ascertained under this Act. — 
 
 That is, under ss. 25 to 27 (see pp. 272 to 333). 
 
 For the Purposes of Increment Value Duty. — This provision applies 
 only to increment value duty, and not to undeveloped land duty. In case 
 of the latter tax the owner wishes to keep his site value as low as possible. 
 There may thus be two original site values, one for increment value 
 duty purposes, and one for undeveloped land duty purposes ; but the 
 latter is only in force till after the quinquennial assessment for the 
 year 1914 has been made (s. 28, and s. 16 (3)). 
 
 Site Value shall be Estimated ... by Reference to the Con- 
 sideration on the Transfer, etc.— The test of the former site value 
 is the consideration then given for the property, less, of course, the 
 statutory deductions (see notes on s. 2 (2) (a) and (6)). 
 
44 Land Clauses of the Finance Act. 
 
 § 2 (3). If the application under the section be to increase the original site 
 
 value of a leasehold with, say, twenty-five years to run, on the ground 
 that the site value of the land was on the sale of that leasehold in the 
 year 1900 greater than on April 30, 1909, the same complicated process 
 must be gone through as was described in the note to sub-s. (2) (b) of 
 this section (see p. 30). 
 
 A Mortgage. — The amount lent on mortgage is not a trustworthy 
 test of the value of the property. The owner or person interested as 
 well as the mortgagee may, nevertheless, use the test of mortgage to 
 show that the value was not less at the date of the mortgage than the 
 amount secured by the mortgage. If the property being valued was 
 a portion only of the property mortgaged, could the Commissioners 
 apportion the consideration {i.e., mortgage money) under s. 32 (3) ? 
 Their powers under that sub-section are confined to " properties included 
 in any transfer or lease." If not, is the whole of the mortgage money 
 to be deemed consideration 1 
 
 Amount Secured. — The words would prima facie include interest and 
 other sums covenanted to be paid, and which could be retained out of the 
 proceeds of a sale of the land, or which would form part of the amount 
 found due on an account taken in pursuance of a judgment for fore- 
 closure nisi. They might even include further advances. Must not the 
 words "amount secured," etc., be construed to mean the "principal 
 sum " 1 Supposing the amount advanced, technically spoken of as 
 " secured," vastly exceeds the value of the property, as often is the case 
 where the security is simply collateral. There may clearly be difficulties 
 in the application of the sub-section. 
 
 Finally Settled. — It is thought that the original site value is finally 
 settled either when it is " adopted " under s. 27 (see p. 320, and note 
 on p. 324), or if there is an appeal, after the appeal ; but the precise 
 time in the latter case is not apparent. 
 
 THE EEVENUE ACT, 1911 (1 Geo. 5, c. 2, s. 2). 
 
 Amendment of 2. — Sub-section (3) of section two of the principal Act 
 prfnwpaf Act! (which relates to the definition of increment value) shall 
 apply to the case of any transfer on sale of the fee simple 
 of the land or of any interest in the land which took place 
 twenty years or more before the thirtieth day of April 
 nineteen hundred and nine, and which was a transfer to 
 the person who is the owner of the land or any interest 
 in the land at the time when an application is made 
 under that provision, as it applies to the case of a 
 
Increment Value Duty. 45 
 
 transfer on sale which took place within twenty years § 2 (3). 
 
 before the thirtieth day of April, nineteen hundred and 
 
 nine. 
 
 In the cases where the original site value has been 
 finally settled before the passing of this Act, an application 
 may be made, notwithstanding anything in sub-section (3) 
 of section two of the principal Act, under that sub-sec- 
 tion, for the purpose of giving effect to this provision 
 within three months after the date of the passing of this 
 Act, and the Commissioners shall in such a case alter the 
 original site value as finally settled in such manner (if 
 any) as may be necessary to give effect to the amendment 
 made by this provision, and, in cases where any amount 
 has been paid on account of duty the Commissioners 
 shall make such repayment as may be necessary to 
 adjust the amount paid to any alteration of value made 
 in pursuance of this provision. 
 
 The main points to be noted in this section seem to be as follows : — General note 
 
 (1) The period of twenty years limited by s. 2 (3) of the Finance 
 
 on sub- 
 section. 
 
 (1909-10) Act, 1910, within which the transfer on sale must have been indefinite 
 made is indefinitely extended backwards, provided that such transfer was extension 
 made to the " person who is the owner of the land or any interest in the ^o ("\^ ^ ^ 
 land at the time when an application is made under " s. 2 (3), that is 
 within three months after the original site value has been finally settled. 
 " Owner " seems not used in the sense defined by s. 41, par. " the expres- 
 sion ' owner ' " (see p. 458). 
 
 (2) It seems probable that the privilege is personal, and that neither A personal 
 volunteers under a deed, nor heirs at law, nor devisees under a will ^^^^^ ^^®' 
 deriving title from a person who purchased more than twenty years 
 
 before April 30, 1909, are within the section. In this respect the 
 section differs from s. 2 (3) (see notes on pp. 42 and 43). But probably 
 "person " includes a body corporate (Interpretation Act, 1889, ss. 2, 19). 
 
 (3) It is thought that the extension is limited to a sale beyond the As to a mort- 
 twenty years, and does not include a mortgage, but this perhaps is not ^*S®' 
 quite clear. 
 
 (4) It seems that, if a leasehold or any other interest in the pro- Curious result 
 perty had been transferred on sale more than twenty years before \^i\ ^^t ^ 
 April 30, 1909, and the transferee was the actual person possessed of 
 
 that interest at the time of the application under s. 2 (3) of the Act of 
 1910, and s. 2 of the Revenue Act, 1911, those facts would enable either 
 that person or the owner or any other person interested to avail himself 
 of the provisions of the latter section, notwithstanding that only one 
 
46 
 
 Land Clauses of the Finance Act. 
 
 § 2 (8). 
 
 When appli- 
 cation to be 
 made. 
 
 Increment 
 although the 
 property has 
 depreciated. 
 
 Avoidance of 
 contracts for 
 payment of 
 increment 
 valae duty by 
 transferee or 
 lessee. 
 
 year or even one day of the leasehold interest were unexpired at the time 
 when the application for that purpose was made. Sed qucere. 
 
 (5) If the original site value of a property had not been " finally 
 settled" before March 31, 1911, the application to fix the original 
 site value by reference to the sale beyond the twenty year limit must 
 be or have been made within the time fixed by the last paragraph of 
 s. 2 (3) of the Act of 1910. If the original site value had been finally 
 settled before March 31, 1911, the application must have been made 
 before June 30, 1911. 
 
 (6) It must be noted as to the joint pi-ovisions, and especially as to 
 s. 2 of the Revenue Act, 1911, that it is perfectly possible that there 
 may be increment value on a sale after April 30, 1910, where the 
 property has realised less than the amount for which it was purchased 
 antecedent to that date. For example, a house may have been pur- 
 chased for 1,000/. in the year 1870 by the present owner, at which date 
 the site value may have been 180/. On April 30, 1909, the total 
 value of the house on the original site valuation may be 950/., while 
 the value of the site may then be 230/. The thirty-nine years wear 
 and tear of the buildings may easily have reduced the value added by 
 them to the site from 820/. to 720/. The owner cannot claim the 
 benefit of s. 2 of the Revenue Act, 1911, because the site value on the 
 sale in 1870 did not exceed the original site value on April 30, 1909 
 (Finance Act, 1910, s. 2(3)). If, therefore, he sells the house on 
 January 1, 1912, for 990/., when the site value is fixed at 260/., he 
 will have to pay increment value duty on 30L, less 10 per cent, deduc- 
 tions on 230/., under s. 3 (5), that is, he will have to pay increment 
 value duty on 71. ; but as the duty is 1/. for every complete 5/. of 
 increment value, he will only pay 1/. 
 
 1. Any contract made after the passing of this Act 
 between a transferor and transferee or a lessor and lessee 
 for the payment by the transferee or lessee, as the case 
 maybe, of increment value duty, or any expenses incurred 
 in connection with the payment or assessment of the duty, 
 or for the repayment or reimbursement by the transferee 
 or lessee to the transferor or lessor in any manner of any 
 payments made by the transferor or lessor in respect of 
 that duty or any such expenses, shall be void. 
 
 Compare the above section with s. 19, p. 203, as to undeveloped 
 land duty ; and s. 20 (4), p. 225, and s. 21 (2), p. 228, as to mineral 
 rights duty. 
 
 This section is extremely comprehensive, and it will be difficult to 
 escape it. The amount of increment value duty payable on a sale or 
 lease is a matter the particulars as to which are usually in the vendor's 
 
Increment Value Duty. 47 
 
 or lessor's knowledge, and not usually in the purchaser's or lessee's. Those § 2 (3). 
 particulars may be numerous, complicated and disputable from the point 
 of view either of the Crown or the subject. Hence probably the section. 
 The provision applies to contracts entered into after but not to those 
 entered into before March 31, 1911, the date of the passing of the Act. 
 It probably vitiates only the stipulation for payment of increment value 
 duty andnot the whole contract. 
 
 FINANCE (3909—10) ACT, 1910, Sect. 3. 
 General Note on Sect. 3. 
 
 By ss. 1 and 2 the amount of the duty has been fixed and its nature 
 has been generally described. 
 
 Sect. 3 points out the persons whose duty it is to exercise the taxing 
 powers created by the Act. Under s. 96 (2) the reference in Part I. of 
 the Act to " the Commissioners " is to the Commissioners of Inland 
 Revenue. But the section not only does this ; it also confers substantive 
 powers not elsewhere expressly or impliedly given. Such is the power 
 to apportion or reapportion duty previously paid. This power must be 
 read in connection with s. 29 of the Act relating to apportionments of 
 site value (see p. 338). Again, this section makes it clear by sub-ss. (2) 
 and (3) that the duty which is to be collected on an occasion (a), (b), or 
 (c), referred to in s. 1, is the duty payable in respect of the interest 
 only in reference to which the occasion arises, and not the duty on the 
 whole of the interests in the land. Thus if a leasehold interest (liable 
 to increment value duty) is sold, duty is paid on that interest only, and 
 not on the reversion in fee. 
 
 Further, sub-s. (1) gives the Commissioners power to determine the 
 amount of duty which is to be deemed unsatisfied on any occasion for 
 payment of duty, after giving credit for the amount of duty paid on 
 previous occasions. Apparently the Commissioners interpret this power 
 as enabling them, for the purpose doubtless of doing justice as between 
 the interests in the land, and so far as possible to decline to allow pay- 
 ments in respect of one interest in the land to be credited when an 
 occasion arises in respect to another interest. See the Rules under 
 s. 3 (2) and (3), post, p. 58, rule 3 (1). 
 
 This section is a general section which relates to increment value duty 
 whether paid under paragraph (a), (b), or (c) of s. 1. The following 
 sections 4, 5, and 6 respectively relate to payments of duty under 
 (a), (b), and (c) respectively. 
 
 3. — (1) On each occasion on which increment value General pro- 
 
 , ^ ' _ visions as to 
 
 duty is collected on the increment value of any land, such collection of 
 an amount of duty shall be deemed to be unsatisfied value duty. 
 as the Commissioners determine, after giving credit for 
 
48 Land Clauses of the Finance Act. 
 
 § 3 (1). the amount of duty paid on j^revious 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. 
 
 On each Occasion being one of the occasions set forth in s. 1 
 
 (a), {b), and (c). 
 
 Such an Amount of Duty. — The duty is one-fifth of the increment 
 value subject to the 10 per cent, deduction under s. 3 (5). 
 
 Deemed to be Unsatisfied as the Commissioners Determine. — The 
 
 determination must, of course, be a judicial determination, and is subject 
 to the. appeal under s. 33. In this respect, however, s. 33 (I) (b), which 
 prevents original total value and original site value, and the site value 
 as ascertained under any subsequent periodical valuation, being ques- 
 tioned on an appeal against an assessment of duty, must be noted. See, 
 further, note at head of section. 
 
 After giving Credit for the Amount of Duty paid on Previous 
 Occasions. — On each occasion when a claim arises the same process 
 must be gone through. Deduct the original site value from the 
 then site value. The balance is prima facie increment value. 
 Then it must be considered whether there are any deductions under 
 subs. (5) of this section to be made from that primd facie incre- 
 ment value in order to arrive at the taxable increment value. The 
 taxable increment value being thus arrived at, the Commissioners, 
 it would seem from this sub-section, will determine the amount of 
 duty thereon (not apparently a difficult matter), and so far as such 
 duty has not been already paid on previous occasions, or is not 
 deemed to have been paid under one of the provisions in the Act to 
 that effect (see s. 3 (5), s. 4 (4), s. 8 (5), s. 10 (1), s. 35 (1), s. 36), 
 will claim it from the person liable on the occasion to pay, i.e., the 
 vendor, lessor, personal representative, etc. But it is clear that 
 only the amount apportionable in respect of his interest can be 
 claimed (sub-ss. (2) and (3)). If increment value dutj' has once been 
 paid in respect of the fee on an increment it will never again be payable 
 on the same increment however often the property may change hands. 
 It is a duty payable on the rise in value of each site affected above the 
 1909 line, and once paid, or deemed to be paid, it franks that site up to 
 the value on which it has been so paid, or is so deemed to be paid. The 
 site may fall in value, and rise again to its old level. Till it passes its 
 former high level, increment value duty is not again to be collected. 
 
 The Amount of Duty Paid. — Probably these words cover duty 
 " deemed to be paid " in the various cases in which it is so deemed. 
 See the last note. 
 
Increment Value Duty. 49 
 
 Such Apportionments and Ee- apportionments. — This paragraph § 3 (1). 
 must be read in connection with s. 29. ^^ illustra- 
 
 It will be a comparatively easy matter to fix the original site value of apportion- 
 the fee simple in possession of a particular plot of land, and then at ment, 
 a later date, on the sale in fee in possession of that plot, to fix its 
 incremented value minus 10 per cent, of the original site value. 
 Complications will necessarily arise in three ways. First, the original 
 plots will be divided, and the original and possibly the later site values 
 will have to be apportioned amongst such divided plots. The problem, 
 when in the year 1920 the reversion of a large plot is being split up into 
 four portions on a sale, will be, not what is the site value at the date of 
 division of portions A, B, C, and D of the plot — that will be easily ascer- 
 tained under s. 2 (2) — but what was the original site value on April 30, 
 1909, of each of those portions, and what were their respective site 
 values in the years, say, 1912 and 1915 respectively, when incre- 
 ment value duty was paid on the aggregate of the larger plot. The 
 next problem is the apportionment of the amounts paid in 1912 
 and 1915 as increment value duty amongst the respective portions A, B, 
 C, and D. Apparently each such payment of increment value duty must 
 be divided amongst the portions in proportion to their respective incre- 
 ment values on the occasion on which such payment was made. These 
 respective values may as compared with each other have varied between 
 the years 1912 and 1915, and again since the year 1915, and, in conse- 
 quence, the diff'erent portions (A, B, C, and D) of the original plot 
 are paid up in respect of increment value in different proportions. A 
 third question of difficulty may arise from the division of the original 
 fee simple in possession into a lease for a term of years exceeding four- 
 teen, and a reversion, and in this case also a practical apportionment of the 
 duty to be borne in respect of both interests will arise on an " occasion" 
 in relation to either. It may indeed be necessary to carry back 
 inquiries into former values and payments on many past "occasions" 
 extending over a long series of years, during which the proportionate 
 values of A, B, C, and D may have varied. 
 
 The first matter of difficulty above referred to, that of apportioning Apportioning 
 original or subsequent site value, is met, wholly or partially, by s. 29 (2), annorrionin" 
 which gives the Commissioners power to apportion and re-apportion site value, 
 either original site value or site value fixed on a periodic valuation 
 under s. 28 ; but apparently confers no power to apportion site value 
 fixed on an " occasion " on which increment value duty was collected ; 
 although it would seem to be necessary to apportion site value fixed on 
 an occasional valuation in order to apportion the amount of duty paid on 
 that occasion. It is suggested that the concluding sentence of s. 3 (1) 
 gives an implied power to the Commissioners to apportion occasional 
 site value, since without such apportionment it seems impossible that 
 they should apportion duty paid on previous occasions. The sub-section 
 under consideration (s. 3 (1) ) gives power to apportion duty paid on 
 N. 4 
 
50 
 
 Land Clauses of the Finance Act. 
 
 § 3 (1). 
 
 Complexity 
 of problems 
 to be solved. 
 
 previous occasions (thereby meeting the second difficulty), and doubtless 
 this will be done so as to distribute the former payments proportionably 
 to the increment of the different parts. Sub-sect. (3) of the same 
 section meets the third difficulty by giving power to the Commissioners 
 to make rules which will have the practical effect of apportioning the 
 duty amongst the vai-ious interests in the land. See post, p. 51. 
 
 It is obvious that problems of extraordinary complexity of fact and of 
 difficulty in applying the law to the facts can be imagined as arising out 
 of the imposition of increment value duty. Some of such problems are 
 certain to arise in substantial numbers. But the amounts at stake will 
 usually be so small that it will not often be worth the subject's while to 
 contest the matter with the Crown. 
 
 The provisions of s. 30 (1) are material to the understanding of the 
 working of this sub-section. 
 
 The Commissioners shall record particulars of all valuations, apportion- 
 ments, re -apportionments and assessments made by them under this 
 Part of this Act and of any deductions allowed in determining any 
 value, and of the amount of any duty paid under this Part of this Act 
 in respect of any land. 
 
 Under sub-s. (2) of the same section any person interested in the land 
 is entitled to obtain on a small payment copies of such particulars. 
 
 It seems clear from ss. 1, 2, 3, 4, 5, 25, 28, and 32, and the incidental 
 provisions of the Act, that, if the authorities so desired to work the Act, 
 it would be possible under its provisions to create a tolerably complete 
 record and history from the year 1909 of the title to, and dealings with, 
 capital expenditure on all the land of this country. There seem, how- 
 ever, up to the time of going to press with the second edition, to be no signs 
 that the powers of the Act are being otherwise used than for the purpose 
 of obtaining the actual duties imposed by the Act. 
 
 (2) Where increment value duty is collected on the 
 occasion of the transfer or passing on death of the fee 
 simple of any 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. 
 
 Transfer or Passing on Death of the Fee Simple of any Land. — The 
 
 occasion on which the duty is due is one which affects the whole estate and 
 interest in the land, and therefore the whole increment value. The 
 difficult question of apportioning site value and increment value and 
 
Increment Value Duty. 51 
 
 the duty thereon amongst the varioiis interests does not arise. " Fee . 8 3 (2). 
 simple " means, it will be remembered, " fee simple in possession, not 
 subject to any lease," and does not include an undivided " share in a fee 
 simple in possession" (s. 41), 
 
 By a Body Corporate or TJnincorporate. — But see s. 6 (3), under 
 which the duty payable by such a body may be paid by fifteen equal 
 yearly instalments. 
 
 The whole Amount of the Duty which is determined to be 
 Unsatisfied. — The duty is the difference between original site value 
 and the site value on "the occasion." But portions of that duty may 
 have been paid or be deemed to have been paid on previous occasions. 
 To the extent to which this has been the case the duty is satisfied. The 
 Commissioners determine the amount which has not been so satisfied. 
 
 In accordance with Rules . , . Purpose. — These words form the 
 concluding words of both sub-s. (2) and sub-s. (3). For the rules and 
 comment thereon, see p. 52. 
 
 A wide latitude is apparently left to the Commissioners in framing 
 the rules. They cannot, it is true, increase the aggregate charge on the 
 site considered as a whole. But they can. lay down rules which will 
 distribute it as they think fit amongst the various interests in the site. 
 But these rules (under s. 93) must be laid before Parliament and may 
 be disallowed if an address is presented asking for disallowance by 
 either House. 
 
 (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 
 Commissioners 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. 
 
 Such Proportionate Part of the Duty. — The duty is clearly con- 
 templated by the Act as accruing on the whole value of the site 
 fee simple. Sometimes it is collected in respect of the whole fee, as 
 when the owner sells the fee simple in possession. It is sometimes 
 collected in respect of a portion of that fee, and not of the rest, as when 
 the owner in fee simple in possession makes a lease for over fourteen years. 
 He then pays increment value duty calculated on the number of years 
 for which the lease has to run. He has in fact realised his increment to 
 
 4—2 
 
^2 Land Clauses of the Finance Act. 
 
 § 3 (3). this extent. If he dies during the currency of the lease, increment value 
 duty will be collected in respect of the reversion in fee to the date of his 
 death, but in calculating the amount of such duty prima facie under 
 s. 3 (1) it would seem that credit should be given for what was paid by 
 the deceased when the lease was made. Supposing in this case increment 
 value duty has also been paid on a transfer of that lease by the lessee, 
 then it would also seem under s. 3 (1) that credit must be given for that 
 payment on the occasion of the death of the owner in fee of the reversion. 
 This, however, does not seem to be the view which the Commissioners 
 take of sub-ss. (1) and (3) of s. 3 (see the Rules of the Commis- 
 sioners issued under sub-ss. (2) and (3), post). From rule 3 (1) of those 
 Kules it appears that in fixing the " proportionate part of the duty 
 determined by the Commissioners to be payable in respect of the 
 interest in land created, transferred, etc.," the Commissioners will not 
 give credit for sums paid in respect of any other interests in land, except 
 an interest out of which the interest under taxation was derived (see 
 notes on the Rules (p. 5-9) ). Rule 3 is, however, so difficult to 
 interpret that until it is seen how it is applied in practice by the 
 Commissioners it is hazardous to make conjectures as to its meaning. It 
 seems at all events clear that at no single moment of time is the Crown 
 entitled to claim from any owner or persons interested any sum in respect 
 of duty which will bring the amount paid as increment value duty to 
 more than 20 per cent, on the increment value of the fee simple at 
 the time of demand. If this view is correct it follows that if land is held 
 on lease, either lessee or reversioner in fee may by a payment of duty in 
 respect of his interest, followed by a fall in site value, relieve the person 
 entitled to the other interest from payment of increment value duty. 
 The latter's duty will have been satisfied, or satisfied pro tanto. The 
 following note on the Rules under sub-ss. (2) and (3) will, it is hoped, 
 prove useful. 
 
 KuLES MADE BY THE COMMISSIONERS OF InLAND EeVENUE 
 
 under s. 3 (2) and (3) of the finance (1909 10) 
 
 Act, 1910, and Notes thereon. 
 
 Introductory Note. 
 
 Sect. 3 is the section under which the Commissioners are autho- 
 rised to determine and where necessary to apportion the increment 
 value duty to be paid on an occasion arising under s. 1 for its 
 payment. The occasion may be one affecting the fee simple in the 
 conventional meaning of that term, i.e., *' the fee simple in possession 
 not subject to any lease" and not including "any undivided share in 
 a fee simple in possession " (see s. 41, "the expression 'fee simple ' etc.," 
 p. 457) ; or the occasion may be the grant of a lease, or a transfer on 
 sale, or the passing on death of an interest in land as defined or cut 
 
Increment Value Duty. 63 
 
 down by s. 41 (see p. 446, "the expression 'interest,' etc."); or the § 3 (3). 
 occasion may be the holding either of a fee simple or an interest by a 
 body corporate or unincorporate on a periodical occasion. Where the 
 occasion aflfects the fee simple, the problem of determining the amount 
 of duty to be paid, or, as the Act phrases it, to be collected, is com- 
 paratively simple. Under s. 3 (2) in such case the whole amount of the 
 duty which is determined to be unsatisfied is to be collected by the Com- 
 missioners in accordance with rules made by them for the purpose. When 
 the occasion arises in relation to the grant of a lease or to the transfer or 
 passing on death of an interest {e.g., a reversion) in land, the apportion- 
 ment of the duty amongst the various interests will not always be a simple 
 matter. In siich cases s. 3 (3) provides that " such proportionate part 
 of the duty shall be collected as may be determined by the Commis- 
 sioners 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." It will be observed that most of the following 
 rules are made under sub-s. (3) for the purpose of determining the 
 proportionate part of the unsatisfied duty to be paid on occasions 
 arising in respect of such interests as freehold and leasehold rever- 
 sions and leases and underleases. It will also be recollected (ante) 
 that the Act appears to contemplate the duty as an incident which 
 attaches as it were automatically to the accrued increment value ; and 
 this notwithstanding the fact that owing to a recession of value it may 
 never be collectable. The duty exists and is unsatisfied before it is 
 collectable. On an "occasion" relating to the fee the whole of the 
 unsatisfied duty is to be collected. On an " occasion " relating to an 
 " interest " in land a portion of that unsatisfied duty is paid, the 
 remaining portion or portions being subsequently paid, if the incre- 
 ment lasts, when " occasions " arise in relation to the other interest or 
 interests in the land. The effect of this, of course, is that as the various 
 interests in the site are automatically waxing and waning as time goes 
 on, the interest of a reversioner becoming greater and that of a lessee 
 becoming less, the proportion of the unsatisfied duty to be paid by each 
 on the happening of an occasion for payment is a constantly varying one. 
 Further, a recession of site values after payments have been made on 
 account of increment value duty in respect of one or more of the 
 interests requires special provision. Hence it necessarily follows that 
 there is some complexity in the following rules. 
 
 The Rules and Notes thereon. 
 
 1. For the purposes of these rules, j^ule 1 sub- 
 
 (1) The expression "proper proportion" means the ratio of the 
 present value of an annuity for the term of the interest 
 under review to the present value of the same annuity in 
 perpetuity. 
 
54 
 
 Land Clauses of the Finance Act. 
 
 § 3 (3). 
 
 Illustration 
 of proper 
 proportion. 
 
 When the only estate or interest in the land {i.e., the assessable site 
 value of the land) is a fee simple in the sense in which that term is 
 defined by s. 41 (see p. 457) this sub-clause is inapplicable. No 
 question of " proper proportion " arises. The whole unsatisfied duty 
 (subject, of course, to any deduction \inder s. 3 (5) ) is paid by the one 
 estate or interest, namely, the fee simple. Where there is a leasehold 
 interest in existence, where there is a life estate, where the fee is held 
 in undivided shares, and an occasion for the payment of duty arises in 
 respect of any one of those interests (which are given as ilhistrations 
 only), the question arises (see rule 3 (2), p. 59), what is the " proper 
 proportion" of the unsatisfied duty which should be borne by that 
 interest 1 This rule 1 (1) answers that question. 
 
 Subject to a lease the imexpired term of which is twenty-five years 
 and the present lessee of which is A., Blackacre is vested in B. in fee. 
 A. transfers his interest on sale. How will the amount of duty to be 
 paid by A. be ascertained 1 We must first assume that the site value 
 has been ascertained in manner directed by s. 2 (2) (b). Assume that 
 that value is 1,000^. Assume further that the increment value on the 
 whole land is 200^. In what proportion is the duty on that increment 
 value to be allocated as between A.'s and B.'s respective interests in the 
 land for purposes of determining the amount of increment value duty 
 to be paid on this occasion by A. ? Answering, in the language of 
 rule (1) 1, "In the proportion which the present value of an annuity for 
 the term of A.'s interest (twenty-five years) bears to the present value 
 of the same anniiity in perpetuity," the question at once arises, how 
 do you determine what is the amount of that annuity 1 This is 
 answered by sub-clause (4) of r. 1 (see post, p. 56). The calculation for 
 the " purposes of ascertaining the proper proportion shall be based on 
 the 4 per cent, tables for the purchase of leases, estates or annuities." 
 You are therefore to assume that the site value of 1,000/. produces an 
 annuity of 40/. The next step is to ask what is the present value 
 of an annuity of 40/. for the term of twenty-five years ? This is 
 approximately the sum of 625/.* One of the two factors to be com- 
 pared has thus been ascertained. What is the other ? It is under the 
 sub-clause " the present value of the same annuity in perpetuity." On 
 the 4 per cent, table this is 1,000/. We have now got the two fjictors 
 to be compared. What is the ratio of 625/. to 1,000/. % AVe find it to 
 be as 5 to 8. This is therefore the "proper proportion" of the 
 unsatisfied duty of 200/. to be paid b}^ A. in respect of his unexpired 
 term of twenty-five years. Five-eighths of 200/. is 125/. 
 
 Whatever may be the nature of the "interest" as to which the 
 occasion has arisen, the same question must always be asked, what is 
 the " proper proportion " of the unsatisfied duty which falls to be paid 
 by that interest 1 There is no need, however, in practice, to ascertain 
 the actual amount of the annuity in question. It is sufficient to know 
 * See the 4 per cent. Tables, p. 548, and note appended thereto. 
 
Increment Yalue Duty. 
 
 55 
 
 (a) the amount of the duty unsatisfied (see r. 3 (1)) and {b) the 
 proportion which the value of \l. on the 4 per cent, tables for the 
 " term of the interest " (see r. 1 (2) ) bears to \l. in perpetuity. 
 This is the proportion of the unsatisfied dvity which will be borne by 
 the interest under taxation. 
 
 " Interest under Review " means the interest as to which an 
 occasion for payment of increment value duty has arisen, and which is 
 being taxed. It is not defined expressly by these rules. 
 
 (2) The expression " term of the interest " means — 
 
 (a) where the interest is an interest in possession, a term 
 equal to the residue of the interest for the time being 
 outstanding ; 
 (6) where the interest is a reversion expectant on the deter- 
 mination of a lease, a term equal to the term of the 
 reversion deferred for the period of the outstanding term 
 of the lease. 
 
 To ascertain the proper proportion of duty unsatisfied we must know 
 three things — 
 
 (1) the amount of an anniiity on the 4 per cent, tables calculated 
 on the site value (see sub -rule (4) ) ; 
 
 (2) the present value of that annuity " for the term of the interest 
 under review " (sub-rule (1) ) ; 
 
 (3) the present value of that annuity in perpetuity {ib.). 
 
 We can then calculate the ratio of 2 to 3 which represents this 
 proper proportion. 
 
 But in order to ascertain No. 2 we must know what is meant by " the 
 term of the interest under review." If the interest under review, 
 namely, the interest in respect of which the duty is being paid, is an 
 interest in possession, say a lease originally for ninety years, twenty of 
 which are then unexpired, the " term of the interest " is under sub- 
 rule (2) (a) twenty years. If the term of the interest under review is 
 a life estate, sub-rule (3) of r. 1 {post, p. 56) points out what length 
 of years is to be attributed to that life estate. 
 
 If the " term of the interest " is an interest in reversion expectant on 
 the determination of a lease, as, for example, an unexpired residue of 
 a term then having fifty years to run, immediately expectant on the 
 determination of an existing term with twenty years to run, then it is 
 thought that the term of the interest under {b) practically amounts to 
 the number of years by which the reversionary term exceeds the term of 
 the underlease, but this is perhaps not quite clear. If this is so, the 
 value of the annuity in the case just mentioned will be the present 
 value of an annuity for thirty years, the commencement of which 
 annuity is deferred till after the expiration of the twenty years of 
 the underlease. So if A. is a tenant for life, whilst B. is a lessee in 
 
 § 3 (3). 
 
 Rules for 
 
 calculating 
 
 duty. 
 
 Sub -rule (^). 
 
 Meaning ot 
 term of the 
 interest. 
 
66 
 
 Land Clauses of the Finance Act. 
 
 § 3 (3). 
 
 Rules for 
 
 calculating 
 
 duty. 
 
 Sub-rule (3). 
 Terms for 
 
 life. 
 
 Sub-rule (4). 
 
 Sub-rule (5). 
 
 possession for an unexpired term of fifteen years. Then the term of A.'s 
 interest will be determined under sub-rule (3), and its value will be the 
 present value of an annuity for that number of years (less fifteen years it 
 is thought) deferred till the expiration of the fifteen years unexpired of 
 B.'s lease. 
 
 (3) Where the term of an interest is a term dependent on life, the 
 
 term shall be taken to be a term equal to the mean expectation 
 of life of the person on whose life the interest is dependent or, 
 where the interest is dependent on more than one life, of the 
 youngest of the persons on whose life it is dependent. 
 
 For the purpose of ascertaining the mean expectation of life, 
 the mortality tables, baaed on the Northampton experience, 
 shall be adopted : 
 
 This rule practically adopts the method of calculating the term of a 
 life according to the paragraph of s. 41, "The term of a lease" (post, 
 p. 444). The case contemplated is where lands are held by A. for his life 
 or for the lives of, say. A., B., and C. If in the latter case an occasion 
 for the payment of duty arises in respect of that lease, the term of the 
 interest will be the number of years of the mean expectation of life of 
 the youngest of A., B., or C. (so it is understood) who sJutll be then living. 
 The Northampton Tables on which the mean expectation of life is to be 
 calculated are to be found at p. 62, immediately following these rules. 
 
 (4) The calculations for the purpose of ascertaining the proper pro- 
 
 portion shall be based on the 4 per cent, tables for the purchase 
 of leases, estates, or annuities : * 
 
 Assuming the total increment value of the site to be 1,000Z., on the 
 4 per cent, tables that would produce an annuity of 40^. a year. If the 
 term of the interest under review is, say, a lease for ten years in 
 possession, the present value of an annuity of 40^. a year for ten years, 
 being approximately 324?., would represent the interest of the lessee in 
 the increment value. The same interest in perpetuity would of course 
 be 1,000/., and the proper proportion of the duty to be paid by the lessee 
 would be the ratio of 324?., the present value of the annuity of 40?. a 
 year for ten years, to 1,000?., being the present value of the same 
 annuity in perpetuity (sub-rule (1) ). 
 
 (5) The expressions "duty to be collected" and "duty paid" mean 
 
 the duty which, for the purposes of future calculations, is to be 
 deemed to have been paid : 
 
 The meaning of this clause will be found by referring to sub-r. 2 of 
 rr. 2 and 3. The duty " to be collected " on occasions ai ising for the 
 
 * On the 4 per cent. Tables note appended. See post, p. 548. 
 
Increment Value Duty. 67 
 
 purposes of those rules includes any allowance made under s. 3 (5) and § 3 (3). 
 
 any other duty which is to be deemed to have been paid on former Rules for 
 
 occasions or which is deemed to be paid on the present occasion (see ^^y ^ ^°^ 
 ante, p. 25). 
 
 (6) A lease for a term of which 99 or more years remain unexpired Sub-rule (6). 
 
 shall be treated as a fee simple, and a reversion expectant on 
 the determination of such a lease shall not be treated as an 
 interest in land : 
 
 Under this rule, if the lessee of a term of which at least ninety-nine 
 years remain unexpired dies, or assigns his interest, r. 2, and not r. 3, 
 will apply. It is to be treated as if it were the fee simple.* As a 
 corollary to such rule the conveyance or passing on death of the 
 reversion expectant on such a lease is not considered as giving rise to a 
 claim for duty. It is so remote an interest that it is treated as being 
 valueless. It must be remembered that what is being dealt with is 
 present interest in site value, which is quite another thing to a 
 landlord's right to his rent. 
 
 (7) Where the laud is a cop3?hold of inheritance, or a copyhold held Sub-rule (7). 
 
 for a life or lives or for years where the tenant has a right of 
 renewal, or a customary freehold, references in these rules to 
 the fee simple of the land shall be treated as references to the 
 whole copyhold or customary interest or estate, and in the case 
 of copyhold land held for a life or lives or for years, where the 
 tenant has not a right of renewal, these rules shall have effect 
 as if the land were freehold land and the copyhold interest were 
 a leasehold interest. 
 
 This sub-rule simply applies the provisions of s. 40 of the Act (post, 
 p. 428) to these rules. 
 
 2. — (1) Tlie amount of increment value duty unsatisfied on the Rule 2, 
 occasion of the transfer on sale or passing on death of the 
 fee simple of any land, or on the occasion of the grant of 
 any fee of any land, or the creation of any ground annual 
 thereon, or on any periodical occasion in the case of the 
 fee simple of any land held by a body corporate or 
 unincorporate, shall be one-fifth of the increment value of 
 the land after deducting from that one-fifth the amount 
 of increment value duty which may have been paid on any 
 previous occasion. 
 
 * An annuity for 100 years on the 4 per cent. Tables = -^ of the same 
 annuity in perpetuity. 
 
58 Land Clauses of the Finance Act. 
 
 § 3 (3). This rule is intended to carry out the provisions of sub-s. 2 of s. 3, 
 Bules for which are as follows : — " Where increment value duty is collected on the 
 
 duty. occasion of the transfer or passing on death of the fee simple of any 
 
 land, or on any periodical occasion in the case of land held in fee simple 
 by a body corporate or un incorporate, the whole amount of the duty 
 which is determined to be unsatisfied shall be collected by the Com- 
 missioners in accordance with rules made by them for the purpose." 
 The first thing to do in applying the Act to increment value duty is to 
 find what is the amount of the increment value of the land. That is 
 done by the process pointed out in s. 2 of deducting the original site 
 value of the land from the site value of the land on the occasion on 
 which duty is to be collected. The process is to be again gone through 
 afresh on every successive occasion for the payment of increment value 
 duty. One-fifth of that increment value represents the duty on the 
 increment value. Under r. 2 (1), if duty has never been previously 
 paid on the increment value of the land, or none is deemed under any 
 of the sections referred to on p. 25 to have been paid (see r. 1 (5) ), 
 the whole of that one-fifth must be paid. If duty has been previously 
 .' - paid or is deemed to have been paid (see r. 1 (5) ), the amount of that 
 
 duty, which is in fact one-fifth of the increment value on the occasion 
 on which duty was so paid, is to be deducted from the one-fifth of the 
 increment value so found (s. 3 (1) ). The amount which is to be so 
 paid is the amount of the duty unsatisfied. 
 
 Sub-rule(2). (2) The amount of increment value duty to be collected on any 
 
 such occasion shall be the whole of the amount of the duty 
 which is unsatisfied. 
 
 It is of course obvious that in the case of the fee simple, which means, 
 it will be remembered, the fee simple in possession not subject to any 
 lease and not including an imdivided share in a fee simple in possession, 
 the whole duty unsatisfied is what is to be paid. 
 
 Rule 3, sub- 3. — (1) The amount of increment value duty unsatisfied on the 
 
 occasion of the grant of a lease or transfer on sale 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, shall be one-fifth of the increment value of 
 the land after deducting from that one-fifth one-fifth of the 
 increment value on the last occasion (if any) on which duty 
 was paid in respect of the interest under review. 
 
 This rule deals with the cases in which duty is collectable in respect 
 of interests in land less than the fee simple. In this case again the 
 increment value of the land must first be ascertained. Then the duty 
 is ascertained by taking one-fifth of that increment value. Then the 
 duty unsatisfied is ascertained by deducting from that one-fifth of the 
 
 rule-(l). 
 
Increment Value Duty. 59 
 
 increment value one-fifth of the increment value on the last occasion {if § 3 (3). 
 any) on which duty teas paid in respect of the interest under review. The Rules for 
 italics mark a striking difference between the language of r. 3 (1) and calculating 
 that of r. 2 (1). Thus, suppose A. is the owner in fee of land subject 
 to an unexpired term, then of thirty years, vested in B. Suppose that 
 an occasion for the payment of duty arose in respect of the leasehold 
 interest by reason of the death of B. Assume that the increment 
 value duty on the whole land, i.e., the fee simple, on that occasion is 
 2,000^. Suppose that duty has been paid on various occasions in 
 respect both of A.'s interest and of B.'s interest, but on the last 
 occasion on which duty was paid it was paid in respect of A.'s interest. 
 In calculating the amount of the duty unsatisfied on B.'s death there is 
 to be deducted from the 2,000^. not one-fifth of the increment value 
 payable on the last occasion when it was paid in respect of A.'s rever- 
 sion, but one-fifth of the increment value on the last occasion on which 
 it was paid in respect of the leasehold interest. Whether this is in 
 strict accordance with s. 3 (1), which says that such an amoimt of duty 
 shall be deemed to be unsatisfied as the Commissioners determine " after 
 giving credit for the amount of duty paid on previous occasions," may 
 be a question. Apparently the Commissioners have interpolated after 
 the words " duty paid " in the quotation the words " in respect of the 
 interest under review." Whether that be so or not, the view of the 
 Commissioners seems more in accordance with justice, and prevents 
 payments in respect of one interest enuring for the benefit of another 
 interest in the land. 
 
 (2) The duty to be collected on any such occasion shall be the Sub-rule (2). 
 proper proportion at the date of the occasion of the duty 
 unsatisfied : 
 
 Provided that — 
 
 (a) where duty has been paid on the creation of an inferior interest 
 
 created out of the interest under review, and duty has not 
 subsequently been paid in respect of that interest, and the 
 proper proportion on the occasion under review exceeds the 
 proper proportion immediately after the creation of the inferior 
 interest, the duty to be collected shall be reduced by a propor- 
 tion — equal to such excess — of the increment value duty 
 determined to have been unsatisfied on the creation of the 
 inferior interest ; 
 
 (b) where the amount of duty to be collected on any occasion in 
 
 accordance with this rule is such that if paid the total amount 
 of duty paid in respect of any interest (including all interests 
 created thereout whether still subsisting or not) would exceed 
 the duty which would have been payable on the creation of the 
 interest had the site value of the land on that occasion been the 
 highest site value revealed on any occasion since the creation of 
 
60 Land Clauses of the Finance Act. 
 
 § 3 (3). the interest, the amount to be collected shall be reduced by the 
 
 Rules for amount of such excess, and for the purpose of this proviso any 
 
 calculating interest or interests which existed on the thirtieth day of April 
 
 nineteen hundred and nine shall be deemed to have been created, 
 
 or to have been successively created, immediately after that date ; 
 
 (c) where the amount of duty to be collected in accordance with this 
 rule on any occasion when the interest under review is a free- 
 hold reversion is such that, if paid, the total amount of duty 
 paid in respect of all interests, whether still subsisting or not, 
 would exceed the duty which would have been payable had the 
 fee simple of the land been transferred on sale at the time when 
 the site value of the land was the highest site value revealed on 
 any occasion since the thirtieth day of April nineteen hundred 
 and nine, the amount to be collected shall be reduced by the 
 amount of such excess. 
 
 Where duty is payable in respect of an interest in the property it is 
 clear, of course, that the whole duty is not payable, but only a 
 proportionate part of the duty (see s. 3 (3) ). The proper proportion to 
 be paid is stated in r. 1 (1), explained by the following sub-rules (2) to (7). 
 
 With regard to the provisoes (a), (b), and (c),they all appear intended 
 to prevent injustice in various cases which will arise in course of time. 
 
 (a) The difficulty of interpreting this rule, (1) in the absence of any 
 illustrations showing its possible application, (2) having regard to the 
 uncertain reference of the words " that interest," is so great that 
 the writer, although he could suggest several alternative meanings, 
 respectfully but regretfully declines the attempt. 
 
 (b) is apparently intended to prevent duty being collected on an 
 interest in land, i.e., a lease or a reversion expectant on a lease, to a 
 greater extent than would have been collected if at the date of the 
 creation of such interest the site value of the property had been at 
 the highest point it had touched since the creation of that interest. 
 Thus if at the date of the creation of a lease for eighteen years the 
 " proper proportion " of the increment value duty then payable in 
 respect of that lease was one half the unsatisfied duty then due, 
 increment value duty can never be charged in respect of that lease- 
 hold interest (or any sub-leases created out of it) to a greater aggregate 
 amount than it would have been charged if the whole increment 
 which has accnied since the lease was made had actually existed on the 
 day it was made. 
 
 (c) is apparently intended to guard a reversioner against payment of 
 increment value duty in cases where such payment would make the 
 aggregate of the various payments of duty made in respect of the reversion 
 and the other interests in the land greater than the amount payable on 
 the highest site value which the land has touched since April 30, 1909. 
 
 It is evident that for some time to come these provisoes will not be of 
 
Increment Value Duty. 61 
 
 much practical moment, and detailed comment upon their complex § 3 (3). 
 
 nature is therefore deferred. Rules for 
 
 calculating 
 (3) Any duty paid on the creation of an interest shall, for the duty. 
 
 purpose of this rule, be deemed to have been paid in respect Sub-rule (3). 
 
 of the interest so created, and not in respect of the interest 
 
 out of which it was created. 
 
 An example of this is as follows : — A., the owner in fee simple, in the 
 year 1912 grants a lease for seventeen years. The increment value of 
 the land on the occasion of the grant of such lease is 1,500?. No duty 
 has previously been paid. The amount of the duty unsatisfied on the 
 grant of the lease is therefore 300?. It is assumed that the proper 
 proportion to be paid by A. on the grant of the lease under r. 1 (1) is 
 approximately 146?. In 1917 B., the lessee, dies. The increment 
 value of the land is then 2,500?. The amount of the duty unsatisfied 
 on the death of B. (under r. 3 (1) ) is then one-fifth of the increment 
 value of 2,500?., that is 500?., from which is to be deducted under (3) 
 one-fifth of the increment value (1,500?.) existing at the date of the 
 grant of the lease, that is 300?. ; so that the amount of the unsatisfied 
 duty is 200?. B.'s proper proportion of this duty will be ascertained 
 by the application of r. 1 (1), (2), and (4). 
 
 Suppose in the case of the lease last mentioned A., and not B., 
 dies in 1917. Then the amount of increment duty unsatisfied will 
 not be the same as in the illustration just given. The duty will still 
 be one-fifth of the increment value, but not subject to the deduction of 
 the one-fifth of the increment value paid in 1912. By virtue of r. 3 (3) 
 the duty paid when the lease was made in 1912 was paid in respect of 
 the leasehold interest and not of the reversion. The amount of the 
 unsatisfied duty, therefore, is in this case 500?., and A. will bear his 
 " proper proportion " of this sum. 
 
 Illustrations of Sub-sects. (1) to (3) op Sect. 3 
 
 AND the KuLES relating THERETO. 
 
 (1) The original site value of Whiteacre is 500?. On a sale of the 
 fee on January 1, 1920, its site value is found to be 1,000?. Primd 
 facie the increment value is 500?., and the duty to be paid 100?. But 
 on the last occasion duty was paid on an increment value of 400?. It 
 need only be paid now on 100?., and the Commissioners therefore 
 determine the amount of duty unsatisfied to be 20?., the whole of which 
 is collected (s. 3 (1) and (2) ; r. 2 (2) ). 
 
 (2) Whiteacre, the original site value of which was 500?., is held by 
 
 A. for a term of years of which forty are unexpired, and subject thereto 
 
 B. is the owner in fee. On January 1, 1912, A. transfers his lease on 
 sale. The Commissioners ascertain under s. 2 (2) {b) the value of the 
 fee simple of Whiteacre, and by that means the site value on the 
 
62 
 
 Land Clauses op the Finance Act. 
 
 § 3 (3). 
 
 TABLE OF MORTALITY. 
 
 Showing the mean expectation, or average duration, of 
 
 life based on the northampton experience. 
 
 (Referred to in the Eules (r. 1 (3) ) made by the Commissioners of Inland 
 Revenue under s. 3, sub-ss. (2) and (3), ante, p. 56.) 
 
 Com- 
 pleted 
 age. 
 
 Number of 
 
 yeais 
 
 expectation 
 
 of life. 
 
 Com- 
 pleted 
 age. 
 
 Number of 
 
 years 
 expectation 
 
 of life. 
 
 Com- 
 pleted 
 age. 
 
 Number of 
 
 years 
 expectation 
 
 ofUfe. 
 
 Com- 
 pleted 
 age. 
 
 Number of 
 
 years 
 expectation 
 
 of life. 
 
 
 
 25-18 
 
 31 
 
 27-76 
 
 54 
 
 16-06 
 
 77 
 
 5-83 
 
 5 
 
 40-84 
 
 32 
 
 27-24 
 
 55 
 
 15-58 
 
 78 
 
 5-48 
 
 10 
 
 39-78 
 
 33 
 
 26-72 
 
 56 
 
 15-10 
 
 79 
 
 5-11 
 
 11 
 
 39-14 
 
 34 
 
 26-20 
 
 57 
 
 14-63 
 
 80 
 
 4-75 
 
 12 
 
 38-49 
 
 35 
 
 25-68 
 
 58 
 
 14-15 
 
 81 
 
 4-41 
 
 18 
 
 37-83 
 
 36 
 
 25-16 
 
 59 
 
 13-68 
 
 82 
 
 4-09 
 
 14 
 
 3717 
 
 37 
 
 24-64 
 
 60 
 
 13-21 
 
 83 
 
 3-80 
 
 15 
 
 36-51 
 
 38 
 
 2412 
 
 61 
 
 12-75 
 
 84 
 
 3-58 
 
 16 
 
 35-85 
 
 39 
 
 23-60 
 
 62 
 
 12-28 
 
 85 
 
 3-37 
 
 17 
 
 35-20 
 
 40 
 
 23-08 
 
 63 
 
 11-81 
 
 86 
 
 3-19 
 
 18 
 
 34-58 
 
 41 
 
 22-56 
 
 64 
 
 11-35 
 
 87 
 
 301 
 
 19 
 
 33-99 
 
 42 
 
 22-04 
 
 65 
 
 10-88 
 
 88 
 
 2-86 
 
 20 
 
 33-43 
 
 43 
 
 21-54 
 
 66 
 
 10-42 
 
 89 
 
 2-66 
 
 21 
 
 32-90 
 
 44 
 
 21-03 
 
 67 
 
 9-96 
 
 90 
 
 2-41 
 
 22 
 
 32-39 
 
 45 
 
 20-52 
 
 68 
 
 9-50 
 
 91 
 
 2-09 
 
 28 
 
 31-88 
 
 46 
 
 20-02 
 
 69 
 
 9-Of 
 
 92 
 
 1-75 
 
 24 
 
 31-36 
 
 47 
 
 19-51 
 
 70 
 
 8-60 
 
 93 
 
 1-37 
 
 25 
 
 30-85 
 
 48 
 
 1900 
 
 71 
 
 8-17 
 
 94 
 
 1-05 
 
 26 
 
 30-33 
 
 49 
 
 18-49 
 
 72 
 
 7-74 
 
 95 
 
 •75 
 
 27 
 
 29-82 
 
 50 
 
 17-99 
 
 73 
 
 7-33 
 
 93 
 
 •50 
 
 28 
 
 29 30 
 
 51 
 
 17-50 
 
 74 
 
 6-92 
 
 97 
 
 
 
 29 
 
 28-79 
 
 52 
 
 17-02 
 
 75 
 
 6-54 
 
 98 
 
 
 
 80 
 
 28-27 
 
 53 
 
 16-54 
 
 76 
 
 6-18 
 
 99 
 
 
 
Inckement Value Duty. 63 
 
 occasion, which is found to be 7001. This shows a primd facie incre- § 3 (3). 
 ment vahie on the fee of 200/. and a duty of 40/. It is further Illustrations 
 found that the increment value on the grant of the lease was 100/., of the rules^ 
 which one-fifth (20/.) must be deducted from the 40/., leaving 20/. duty 
 unsatisfied. Such proportionate part of the 20/. is on the sale of the lease 
 to be collected from A. as the Commissioners determine in accordance 
 with the foregoing rules (s. 3 (3) ; rr. 1 and 3), 
 
 (3) On January 1, 1914, B. sells his reversion in Whiteacre referred 
 to in the last illustration to C. for 1,200/., and the same process having 
 been gone through as to valuation, the site value of the fee on such 
 occasion is ascertained to be 900/. The increment value on this 
 occasion is therefore primd facie 400/., of which one-fifth is 80/. From 
 this there is no deduction, since increment value duty has never been 
 paid in respect of the reversion. The two payments on the grant and 
 sale of the lease were in respect of' the leasehold interest (r. 3 (3) ). 
 The duty unsatisfied will therefore be one-fifth of 400/., or 80/., and the 
 Commissioners will determine the proper proportion to be paid by 
 B. under rr. 1 and 3 (s. 3 (3) ). 
 
 (4) The original site value of Whiteacre, which belongs to A. in fee 
 simple, is 500/. On January 1, 1912, A. sells Whiteacre to B. in fee 
 for 1,600/., when the site value is found to be 600/., the increment 
 value being 100/. A. must pay increment value duty on 100/., that 
 is, he must pay 20/. (s. 3 (1) ; r. 2). 
 
 (5) On January 1, 1914, B. sells the same Whiteacre to C. in fee for 
 1,800/., and the site value is then fixed at 800/. The increment value 
 is thus 300/., and the duty is 60/. But 20/., i.e., one-fifth of the 
 increment value as in (4), has previously been paid, and therefore B. 
 must pay 40/. (s. 3 (1) ; r. 2). 
 
 (6) On January 1, 1916, C. leases the same Whiteacre to D. for 
 twenty-one years at a rental of 100/. per year. On the basis of this 
 rental the Commissioners fix the value of the fee simple of Whiteacre on 
 the occasion of the lease at 2,000/. (s. 2 (2) (6) ), and when deductions 
 are made the site value of the fee is ascertained to be 1,000/. This 
 gives an increment value of 500/., or a duty of 100/. But duty has 
 already been paid to the extent of 60/., being one-fifth of the increment 
 value on the last occasion in (5). Therefore only 40/., is to be considered 
 unsatisfied (s. 3 (1) ). The Commissioners under rr. 1 and 3 determine 
 what proportion of this 40/. is to be paid in respect of the twenty-one 
 years lease (s. 3 (3) ). 
 
 (7) On January 1, 1918, D., the lessee of the twenty-one years lease 
 of Whiteacre, sells that lease to E. for 200/. (the latter of course 
 becoming liable for the 100/. rent). The Commissioners determine 
 that the value of the fee simple on this basis (s. 2 (2) (/>)) is 2,200/. 
 After deductions the site vahie on the occasion is found to be 1,200/. 
 The increment value is therefore 700/., of which one-fifth is 140/. 
 From this must be deducted (r. 3 (1) ) one- fifth of the increment 
 
64 Land Clauses of the Finance Act. 
 
 § 3 (3). value on the last occasion on which duty was paid in respect of the 
 
 Illustrations lease, that is one-fifth of 500^. (as appears in (6) ). 100^. must therefore 
 
 the rules ^® deducted from 140^. 40^. is therefore the unsatisfied duty under 
 
 r, 3 (2), and the Commissioners under rr. 1 and 3 determine what 
 
 proportion of this is to be paid by D. 
 
 (8) On January 1, 1920, C, the lessor and reversioner (see No. 6 
 above) dies, whether testate or intestate is not material. The value of 
 the fee simple of Whiteacre is calculated on the basis of the principal 
 value of the reversion as ascertained under the Finance Act, 1894, and 
 is found to be 2,400Z. The site value after deductions is 1,400/. The 
 increment value is therefore 900/., of which one-fifth is 1801. From 
 this must be deducted one-fifth of the increment value on the last 
 occasion on which duty was paid in respect of the reversion (r. 3 (1) ). 
 This occasion was on January 1, 1914 (see No. (5) above), the incre- 
 ment vahie being then 300/., of which one-fifth is 60/. Deducting this 
 60/. from 180/. there results 120/. as the amount of duty unsatisfied 
 on the occasion. The proportionate part of this duty payable by C.'s 
 representatives will be determined by the Commissioners in accordance 
 with rr. 1 and 3.* 
 
 Note on the Foregoing Illustrations. 
 
 In the illustrations numbered (4 ) to (8) it has been assumed for the sake 
 of simplicity that the deductions are constant throughout all changes of 
 ownership at 1,000/, But naturally this would not in real transactions 
 be the case. The value of the buildings must decline with their growing 
 age. Old expenditure, as drainage, may develop increased value, years 
 after it is first made. Advertisements may bring the land into requisition. 
 
 For the same reason of simplicity, no reference has been made to the 
 10 per cent, reduction of duty which is allowed on each occasion under 
 s. 3 (5) ; nor to the question whether that reduction on an occasion 
 arising with reference to one interest, as the reversion, ought to be 
 calculated on the site value as ascertained- on the last previous occasion 
 which has arisen with reference to any interest, i.e., to the leasehold 
 interest as well as to the reversion, or ought to be calculated only on 
 the site value as ascertained on the last previous occasion which has 
 arisen with reference to the interest under taxation, the latter being the 
 doubtful but equitable solution adopted by the rules. 
 
 Nor have any of the difficult questions arising out of the apportion- 
 ment of site value and the consequent apportionment of duty been 
 illustrated. To have added any of these matters to the foregoing 
 hypothetical illustrations would, it is thought, have introduced a com- 
 plexity into the cases given which would have destroyed their practical 
 value, at the moment. The questions arising out of these necessary 
 adjustments will emerge in the future.* 
 
 * The 4 per cent. Tables for calculating the proper proportion wJU be 
 found en p. 548. 
 
Increment Value Duty. ^^ 
 
 (4) Where on the occasion of the death of any person § 3 (4). 
 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. 
 
 Settled Land. — There is no definition in this Act of settled land. Under 
 the Finance Act, 1894, s. 22, "'settled property' means property com- 
 prised in a settlement." "'Settlement' means any instrument whether 
 relating to real property or personal property which is a settlement 
 within the meaning of s. 2 of the Settled Land Act, 1882, or if it 
 related to real property would be a settlement within the meaning of 
 that section, and includes a settlement effected by a parol trust." 
 
 For s. 2 (1)— (7) inclusive of the Settled Land Act, 1882 (45 & 46 
 Vict. c. 38), see Appendix, p. 605. It may probably be assumed that 
 the expression " settled land " would be held in the Act of 1910 to have 
 the same meaning as in the Finance Act, 1894. 
 
 (a) and (b). — The intention of sub-s. (4) (a) is apparently to make it 
 clear that increment value duty is to be charged on the occasion of death 
 on the increment in the fee simple of the site, whatever may be the 
 interest of either predecessor or successor, provided that the fee simple 
 is the subject of the settlement. And on the same principle under 
 sub-sect. (4) (b) it is to be charged on the like occasion on the whole 
 interest (less than the fee simple) comprised in the settlement, notwith- 
 standing that either predecessor or successor may take only a life interest 
 in the settled property. If it were not for this clause it might be con- 
 tended that lender s. 3 (3) on the death of a tenant for life increment 
 value duty was payable only in respect of the life interest. This sub- 
 section renders it payable in respect of the fee simple in analogy to 
 estate duty under s. 1 of the Finance Act, 1894. 
 
 Shall not be Collected. — The duty is not, however, to be collected if 
 N. 5 
 
66 
 
 Land Clauses of the Finance Act. 
 
 3 (4). the property itself is exempt from estate duty under the Finance Act, 
 1894. Sect. 5 of that Act is as follows : — 
 
 5. — (1) Where property in respect of which estate duty is leviable, 
 is settled by the will of the deceased, or having been settled by some 
 other disposition passes under that disposition on the death of the 
 deceased to some person not competent to dispose of the property, — 
 
 (a) a further estate duty (called settlement estate duty) on the 
 principal value of the settled property shall be levied at the rate 
 herein-after specified,* except where the only life interest in the 
 property after the death of the deceased is that of a wife or husband 
 of the deceased ; but 
 
 (b) during the continuance of the settlement the settlement estate 
 duty shall not be payable more than once. 
 
 (2) If estate duty has already been paid in respect of any settled 
 property since the date of the settlement, the estate duty shall not, nor 
 shall any of the duties mentioned in the fifth paragraph of the First 
 Schedule to this Act, be payable in respect thereof, until the death of a 
 person who was at the time of his death or had been at any time during 
 the continuance of the settlement competent to dispose of such property 
 [and who, if on his death subsequent limitations under the settlement 
 take effect in respect of such property, was sui Juris at the time of his 
 death or had been sui juris at any time while so competent to dispose of 
 the property] . 
 
 (3) In the case of settled property, where the interest of any person 
 under the settlement fails or determines by reason of his death before it 
 becomes an interest in possession, and subsequent limitations under the 
 settlement continue to subsist, the property shall not be deemed to pass 
 on his death. 
 
 (4) Any person paying the settlement estate duty payable under this 
 section upon property comprised in a settlement, may deduct the amount 
 of the ad valorem stamp duty (if any) charged on the settlement in 
 respect of that property. 
 
 (5) Where any lands or chattels are so settled, whether by Act of 
 Parliament or royal grant, that no one of the persons successively in 
 possession thereof is capable of alienating the same, whether his interest 
 is in law a tenancy for life or a tenancy in tail, the provisions of this 
 Act with respect to settled property shall not apply, and the property 
 passing on the death of any person in possession of the lands and 
 chattels shall be the interest of his successor in the lands and chattels, 
 and such interest shall be valued, for the purpose of estate duty, in Hke 
 manner as for the purpose of succession duty. 
 
 Words in 
 brackets 
 added by 
 Finance Act, 
 1898, 8. 15, 
 
 Effect of 
 8. 5 of the 
 Finance Act, 
 1894, on 
 increment 
 value duty. 
 
 For comments on this section, see Cartmell, 5th edition, pp. 56 to 58 ; 
 Hanson, 6th edition, pp. 122 to 136. 
 
 The payment of the additional estate duty called settlement estate 
 duty has in the cases mentioned in sub-ss. (2) and (3) of s. 5 of the Act 
 of 1894 the effect of exempting the settled land from certain further 
 payments of estate duty. In these cases, under s. 3 (4) of the Act of 
 
 * The rate was fixed by s. 17 of the Act of 1894 at 1 per cent, and was 
 increased by the Finance (1909—10) Act, 1910, s. 54, to 2 per cent. 
 
Increment Value Duty. 67 
 
 1910 (see ante, p. 65), increment value duty is also not to be collected. § 3 (4). 
 The cases may thus be stated or illustrated : — 
 
 (a) Sub-s. (2). — Where there has been (1) a settlement by deed 
 of the land, (2) the death of a person entitled (say for life) under 
 that settlement, (3) payment of estate duty, and therefore of 
 increment value duty, on that death, then estate duty, and there- 
 fore increment value duty, will not again be payable on the death 
 of another life tenant under that settlement, but will only be pay- 
 able on the death of a person who besides being, or having been, 
 sui juris, was at the time of his death, or had been at some time 
 during the continuance of the settlement, competent to dispose of 
 such property. As to compoiuid settlements, see A.-G. v. Hay, 
 [1899] 2 Q. B. 245. 
 
 ip) Sub-s. (3). — Where (1) there has been a settlement of the land, 
 
 (2) one of the life tenants in remainder under that settlement dies 
 
 during the life of a previous life tenant in possession, and (3) there 
 
 are other persons entitled under the settlement after the death of 
 
 the existing life tenant, estate duty, and therefore increment value 
 
 duty, is not payable on the death of the life tenant in remainder 
 
 {A.-G. V. Wood, [1897] 2 Q. B. 102). 
 
 Sub-s. (5) does not exempt lands settled by Act of Parliament or 
 
 royal grant, and thereby rendered inalienable from estate duty {In re 
 
 Bolton Estates Act, 1863, [1904] 2 Ch. 639), though it does exempt 
 
 them from settlement estate duty. It causes those lands to be valued 
 
 for the purposes of the former duty as lands are valued for the purpose 
 
 of succession duty (see 10 & 17 Vict. c. 51, ss. 21 to 26). In other words, 
 
 their vakie is measured by the interest of the successor, and is not the 
 
 principal value of the property under s. 7 (5) or s. 18 (3) of the 
 
 Finance Act, 1894. This, however, will not, it is thought, exempt them 
 
 from increment value duty, though the point is not quite plain. Such 
 
 estates are clearly under s. 5 (5) of the Finance Act, 1894, above set out, 
 
 "property passing on the death," and therefore it seems property so 
 
 passing within the meaning of s. 1 of the Act of 1894. If that is so, 
 
 then increment value duty is payable under s. 1 {h) of the Act of 1910 ; 
 
 the principal value being ascertained as for succession duty, and not 
 
 under s. 18 of the 1894 Act. 
 
 As Amended by any Subsequent Legislation. — Enactments already 
 passed amending s. 5 of the Finance Act, 1894, are the Finance Act, 
 1898, s. 13, the effect of which is given on p. 63, and s. 55 of the 
 Finance Act, 1910 {post, p. 474), which is as follows : — 
 
 For the purpose of any claim to relief from estate duty under 
 sub-section (2) of section five or sub-section (1) of section twenty-one 
 of the principal Act, [^.e., the Finance Act, 1894], in the case of per- 
 sons dying on or after the thirtieth day of April, nineteen hundred 
 and nine, payment of or liability to duty, whether the payment was 
 made or the liability attached before, on, or after that date, shall 
 
 5—2 
 
68 Land Clauses of the Finance Act. 
 
 § 3 (4). not be deemed to be a payment of or liability to duty in respect of 
 
 settled property if the payment was made or the liability attached 
 in respect of an interest in expectancy in any property on the 
 death of a person other than the settlor. 
 Sub-s. (1) of s. 21 of the Act of 1894 relates exclusively to personal 
 property which has paid the old probate duty in force before the Finance 
 Act, 1894, or the old account stamp duty under the Act of 1881. It 
 has no bearing on increment value duty. 
 Effect of The effect of s. 55 of the Act of 1910 upon sub-s. (2) of s. 5 of the 
 
 ^* ^^* Finance Act, 1894, and through that sub -section upon increment value 
 
 duty, appears to be as follows. Assume that land is settled upon trust 
 for A. for life, and after his death vipon trust for A.'s wife B, for life, with 
 remainder to such uses as B. shall by deed or will appoint, and that B. 
 dies in A.'s lifetime, having exercised the power of appointment by will. 
 On B.'s death estate duty is paid under s. 2 (a) of the Finance Act, 
 1894, on the principal value of the property in respect of the estate in 
 expectancy arising under the exercise of her power of appointment. 
 A, then dies. Under the decision of the House of Lords in Inland 
 Revenue v. Pnestley, [1901] A. C, p. 208), estate duty having once been 
 paid upon the settled property since the date of the settlement, 
 i.e., upon B.'s death, s. 5 (2) of the Finance Act, 1894, exempts 
 the settled property from estate duty until the death of a person who 
 was at the time of his death or had been at some time during the con- 
 tinuance of the settlement competent to dispose of the property. As 
 A. the husband is not such a person, estate duty is not payable on his 
 death. Although in the case cited B. the wife was in fact the settlor, 
 the decision has been applied in practice by the Commissioners to cases 
 in which the property was either settled by A. the husband or a third 
 party. Sect. 55 of the 1910 Act now provides that the payment of 
 estate duty in respect of the interest' in expectancy shall not frank the 
 property under s. 5 (2) of the Act of 1894 from payment of estate duty 
 on the death of A. unless the expectancy on which it was paid was an 
 estate in expectancy passing on the death of the settlor. The decision in 
 Inland Revenue v. Priestley {supra) will therefore still remain good, but 
 its application will be restricted. That is, on A.'s. death (after B.'s 
 death and payment of increment value duty on that death), increment 
 value duty will not again be paid if B. was the settlor of the property, 
 but it will be paid if B. was not the settlor. This explanation is given, 
 not because the point is thought to be more than just material to the 
 subject of increment value duty, but simply in order that the concluding 
 words of s. 3 (4) of the 1910 Act may not be left in obscurity. 
 
 (5) For the purpose of the collection of duty on the 
 increment 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 
 
Increment Value Duty. 69 
 
 by an amount equal to ten per cent, of the original site § 3 (6). 
 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 collection 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. 
 
 For the Purpose of the Collection of Duty on the Increment Value 
 of any Land. — The train of reasoning which has led to this section 
 seems to be somewhat as follows : There has been increment value ; 
 therefore increment value duty is due and payable. But the Legis- 
 lature does not want to make people pay increment vahie dnty 
 unless there has been more than 10 per cent, of increment value, 
 and then only on the excess over 10 per cent. Therefore it does not 
 collect duty on 10 per cent, of the (Increment^Value accruing since the Sl-C^ 
 original valuation or the last occasion, as the case may be. The duty, or 
 rather the collection of the duty, is remitted. The duty appears not to 
 be really remitted, although the sub-section speaks of it as being so, but to 
 be " deemed to have been paid." The increment value on which the duty 
 is remitted will appear in the calculation on each occasion on which 
 increment value duty is payable. On each such occasion the increment 
 value duty is fixed (1) by ascertaining increment value, (2) by cal- 
 culating the duty at one-fifth that value, (3) by deducting from the 
 amount of such duty the amount paid (including amounts deemed to 
 be paid) on previous occasions : s. 24 (1), The remitted 10 per cent, 
 will therefore appear under (1) as increment value actually existing. 
 It is only for the purpose of the collection of the duty that the incre- 
 ment value is deemed to be reduced ; under (2) as part of the duty 
 payable in respect of such increment value, and (3) as deemed to be paid 
 on account of such duty. It is considered by the authorities that this 
 section cannot be applied to minus site values. 
 
"^^ Land Clauses of the Finance Act. 
 
 §- 3 (5)t Illustration. — The original site value of Cecil villa and garden is 
 
 600/. On January 1, 1912, the villa is sold and the site value 
 ascertained to be then 660/. No increment value duty is payable, the 
 increment not exceeding 10 per cent, on the original site value. On 
 January 1, 1914, the villa is again sold and the site value is ascertained 
 to be at that time 726/. Again no increment value duty is payable. 
 The increase in site value (66/.) since the sale of January 1, 1912, is 
 not more than 10 per cent, of the site value on that day. On 
 December 1, 1916, the villa is again sold, the site value being 800/. 
 Increment value duty is payable on the site value above 750/., 
 that sum being the amount of the original site value with 25 per cent, 
 of that value added as being duty free : that is, it is payable on 50/. Any 
 higher remission would make the amount of the increment value on which 
 duty has been remitted exceed 25 per cent, of the original site value of 
 the land. If the proviso did not exist, there would under the earlier para- 
 graph of this sub-section have been another 10 per cent, remission : 
 72/. 12s. In that case the gross increment value before the reduc- 
 tion would have been 200/. From this 200/. would have had to be 
 deducted the three deductions of 60/., 66/., and 72/. 12s., or 198/. 12«. 
 in all, leaving a sum of 1/. 8s. net increment value, on which increment 
 value duty would have been payable. 
 
 The first Occasion. — The sub-section applies to all the various 
 occasions, transfer on sale, lease, death, and periodical assessment of 
 bodies corporate, ttc. 
 
 Any subsequent Occasion. — It appears that the two " occasions " may 
 be in respect of different interests in the property, and apparently each 
 gets the benefit of the other's " occasion " ; but qiicere ? See note on 
 p. 61. The Commissioners do not think so. 
 
 It is thought that this sub-section does not strictly apply to the annual 
 increment value duty payable under s. 22 (3) on a lease of minerals ; 
 but queer e. (See note on p. 239.) 
 
 (6) Increment value duty shall be a stamp duty col- 
 lected and recovered in accordance with the provisions of 
 this Act. 
 
 Consequently, the Stamp Duties Management Act, 1891 (54 <fe 55 
 Vict. c. 38), the Stamp Act, 1891 (54 & 55 Vict. c. 39), and the Inland 
 lievenue Kegulation Act, 1890 (53 k 54 Vict. c. 21), will apply to this 
 duty. Stamp duties are not necessarily collected by means of stamps. 
 
 Compare Finance Act, 1894, s. 6 (1) and s. 8 (16). 
 
 "All stamp duties for the time being chargeable by law upon any 
 instruments are to be paid and denoted according to the regulations in 
 this Act contained ..." (Stamp Act, 1891 (54 k 55 Vict. c. 39), 
 s. 2). Compare this section with the language of sub-s. (6) above. The 
 
Increment Value Duty. 71 
 
 following are some of the problems which seem to arise on the two §3(6). 
 enactments. Does the above s. 2 of the Stamp Act, 1891, apply to the 
 increment value duty stamp 1 Probably ; it is charged upon an instru- 
 ment, though the amount of the duty need not appear from the stamp 
 (s. 4 (3)). Exactly what provisions are thereby applied is the problem 
 to be solved. Sect. 4 (3) of the 1910 Act also recognises the fact that 
 some at least of the provisions of the Stamp Act are applicable to 
 increment value duty. Do the words of s. 2 above quoted, "paid . . . 
 according to the regulations in this Act," import into the Act of 1910 
 such sections of the former Act as sections 55, 56, and 57 (see Appendix, 
 p. 619), all relating to the method of ascertaining the money value of 
 the consideration on which ad valorem duty is payable on conveyances 
 on sale. Under s. 2 (2) (a) and (b) of the Act of 1910 the value of the 
 consideration for the sale or lease is the basis of the process which 
 results in the ascertainment of site value. Sect. 32 of the same Act 
 gives some scanty directions for determining or ascertaining the " value 
 of any consideration." It is difficult to imagine any one drafting that 
 section who thought that the detailed provisions of ss. 55, 56, 57, 76 
 and 77 of the Stamp Act, having the like object in view of ascertaining 
 value of consideration, were applicable or capable of being applied to 
 the new land duties. The critical words of neither Act seem conclusive 
 on the subject. Under the 1910 Act increment value duty is a " stamp 
 duty collected and recovered in accordance with the provisions of this " 
 (1910) "Act" (s. 3 (6)). 
 
 Applying s, 2 of the Stamp Act, 1891, to increment value duty, it is Discrepancies 
 " to be paid and denoted according to the regulations in this Act " between 
 
 rt-i 1 btSiinp Act Ot 
 
 (the 1891 Act) "contauied. Looking at the contents of the compared i89i and this 
 sections as to the value of the consideration, some of the sections of the ■^^^• 
 Stamp Act are consistent with s. 32 (1) and (2) of the Act of 1910, 
 whilst others, i.e., s. 56 (2) and (3), are thought not to be so consistent. 
 Sect. 54 of the Stamp Act, 1891, is as follows : — " For the purposes of 
 this Act the expression ' conveyance on sale ' includes every instru- 
 ment and every decree or order of any Court or of any Commissioners, 
 whereby any property, or any estate or interest in any property, upon 
 the sale thereof is transferred to or vested in a purchaser or any other 
 person in his behalf." Does this section of the Stamp Act either directly, 
 by virtue of s. 2 of the same Act, or by forcible analogy, apply so as to 
 import into the expression " transfer on sale " as used in the 1910 Act 
 (see ss. 1, 2, 3, 4, and elsewhere) the definition attached by it to 
 " conveyance on sale " ? The writer would have thought not, but 
 whether that be so or not, decisions as to what is and what is not a 
 "conveyance on sale " within the meaning of the Act of 1891 may be 
 relevant to what is a transfer on sale within the meaning of the Act of 
 1910. It must nevertheless be considered doubtful for the present 
 whether anything is a transfer on a sale or lease within the meaning of 
 the Act of 1910 so as to give rise to a claim for increment value duty 
 
72 
 
 Lam) Clauses of the Finance Act. 
 
 § 3 (6). where the consideration is not either a capital sum or a periodical 
 payment or one of the matters comprised in s. 32 (2). 
 
 Again, if the general provisions of the Stamp Act, 1891, apply to 
 increment value duty, there appears to be a contradiction between 
 s. 58 (1) of that Act and s. 32 (3) of the 1910 Act. Under the former 
 Act the parties themselves may apportion a single consideration amongst 
 the several properties for which it is given. Under the latter "the 
 consideration shall be apportioned by the Commissioners in such 
 manner as they shall determine." The later Act would no doubt be 
 considered to establish an exception to the rule laid down in the earlier. 
 The remaining sub-sections of s. 58 of the Stamp Act may, or most 
 of them may, be capable of application to increment value duty. See, 
 further, note to s. 32, p. 350. 
 
 Sect. 13 of the Act of 1891, relating to appeal from the Commissioners 
 by way of case stated by them, is not quite in harmony with s. 33 of 
 the Act of 1910, though of course it is possible that there should be 
 two methods of appeal from the same decision. As to s. 15 of the 
 Stamp Act, see post, p. 83. 
 
 § 4 (1). 
 
 Collection 
 and recovery 
 of duty in 
 cases of 
 transfers and 
 
 Section 4. 
 
 General Note on Sect. 4-. 
 
 Sects. 1 and 2 having explained the meaning of the term increment 
 value duty, and stated the occasions on which it is payable, and s. 3 
 having laid down some general rules or principles regulating its 
 collection on all the occasions referred to in s. 1, this section (4) con- 
 tains provisions regulating the collection in cases falling within s, 1 (a). 
 The two succeeding sections 5 and 6 contain corresponding provisions 
 relating to collection in cases (b) and (c) of s. 1, 
 
 Sect. 4 fixes the persons to pay (sub-s. (1) ), the time and method 
 of payment and the penalty for non-payment (sub-s. (2) ), renders docu- 
 ments unstamped inadmissible in evidence (subs. (3) ), protects future 
 owners from a claim for duty assessed in the past (sub s. (4) ), provides 
 for payment of duty by instalments in certain cases (sub-s. (5) ), provides 
 also for a return of duty when transactions have fallen through (sub-s. (6)), 
 and allows duty paid on agreements to be denoted on conveyances or 
 leases made in pursuance thereof (sub-s. (7) ). 
 
 4. — (1) On 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, 
 increment value duty shall be assessed by the Commis- 
 sioners and paid by the transferor or lessor, as the case 
 may be. 
 
Increment Value Duty. 73 
 
 On any Transfer on Sale, etc., see notes on p. 7 as to transfer on § 4 (1). 
 sale. If before conveyance there is a resale by the first purchaser, two 
 doses of duty might be due on the conveyance. 
 
 Increment value duty is payable by tlie transferor or lessor as the 
 case may be. It is (sub-s. (4) ) a debt due to the Crown from him, 
 and is recoverable by information on the Revenue Side of the King's 
 Bench Division as an ordinary Crown debt. There appears to be no 
 provision that increment value duty payable on sale or lease may be 
 recovered by writ on the Revenue Side of the King's Bench Division 
 under 28 & 29 Vict. c. 104, ss. 55 and 56, as well as by information, 
 though possibly this last-mentioned enactment is by virtue of s. 5 of 
 the Finance Act, 1910, incorporating s. 8 of the Finance Act, 1894, 
 applicable to the recovery of increment value duty in the case of death. 
 
 There is no doubt at all that as between vendor and purchaser and as 
 between lessor and lessee the vendor and the lessor are bovmd to discharge 
 the increment value duty ; and that this liability cannot by agreement 
 be thrown upon the purchaser or lessee (see the Revenue Act, 1911, 
 (1 Geo. 5, c. 2), s. 1, ante, p. 46). 
 
 Transferor or Lessor. — By s. 41, the expressions "transferor" and What 
 "lessor" do not include any persons who join in the execution of the ii^cfudes'^^'^ 
 instrument by which the transfer or lease is effected or agreed to be 
 effected, for the purpose only of conveying any estate vested in them as 
 trustees or incumbrancers, or of acknowledging the receipt of the con- 
 sideration money, or giving consent. " Transferor " will therefore 
 under s. 4 include (1) an owner in fee simple or in fee tail, whether in 
 possession, or in reversion expectant upon a lease, conveying on sale the 
 fee or an interest in the land ; or (2) a tenant for life of freehold land 
 whether subject to a lease or not, conveying on sale either — 
 
 (a) his life estate, or 
 
 (b) under the Settled Land Act, the fee simple. 
 
 (3) A leaseholder, whether entitled absolutely or as tenant for life 
 exercising the powers of the Settled Land Acts, and in either case, 
 whether absolutely entitled in possession, or entitled subject to a lease, 
 assigning on sale the whole leasehold interest or reversion, and a tenant 
 for life of leaseholds whether in possession or reversion expectant on a 
 lease, assigning only his life interest therein. 
 
 (4) A tenant in fee or in tail of freeholds, a person absolutely 
 entitled to leaseholds, a tenant for life of either freeholds or leaseholds 
 under the powers of the Settled Land Act, and in all the above cases, 
 whether subject to a lease for years or not^ conveying by way of sale an 
 undivided share of the land. 
 
 (5) A mortgagee of the fee simple in freeholds, and of the absolute 
 interest in leaseholds, or of a life estate or interest in either, whether 
 subject to an outstanding lease or not, transferring, in exercise of his 
 power of sale, the land the subject of the mortgage. 
 
 (6) A trustee selling under a power or trust for sale. 
 
74 Land Clauses of the Finance Act. 
 
 § 4 (1). But it will not include — 
 
 What it does (^) -^ mortgagee who joins in a conveyance by the mortgagor, if he 
 
 not include. does not receive any portion of the purchase-money ; sed quoere, if he 
 both conveys and receives all or part of the purchase-moneys (see below). 
 
 (2) A trustee of the settlement, for the purposes of the Settled Land 
 Acts, if he joins only for the purpose of acknowledging the receipt 
 actually receiving) the purchase-moneys. 
 
 (3) A trustee, or person in whom a bare legal estate is vested, who 
 joins solely to convey such legal estate to a purchaser and does not 
 receive any of the purchase-moneys. 
 
 It is doubtful whether it will include a mortgagee who joins with 
 the mortgagor in conveying the land to a purchaser and receives all or 
 part of the purchase -moneys. 
 
 The classes of persons included in the term "lessor" will be sufficiently 
 evident from the above. 
 
 The above-mentioned paragraph of s. 41 proceeds: "And sections 59, 60, 
 and 62 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 
 powers of an owner under this Act in the same manner as they apply 
 to the exercise of the powers of a tenant for life under that Act." The 
 sections are given in extenso on p. 426. The provisions, however, of 
 s. 4 of the 1910 Act impose duties and do not confer powers. But 
 s. 39 (3) {post, p. 425) assumes that the persons upon whom powers are 
 conferred by ss. 59, 60, and 62 of the Settled Land Act, 1882, and who 
 exercise them will become liable to increment value duty and reversion 
 duty, as if they were owners in fee or tenants for life, since it em- 
 powers them to charge their payments in respect of these duties on the 
 land. It is therefore reasonably clear that persons exercising the powers 
 of the Settled Land Acts under the sections of the Settled Land 
 Act, 1882, referred to will be deemed transferors or lessors, as the case 
 may be, within the meaning of s. 4 of the 1910 Act, and will be subject 
 • to the obligations and fines imposed by that section. 
 
 Under s. 41 lessor includes an underlessor and the person for the 
 time being entitled to the reversion, whether freehold or leasehold 
 expectant, on the determination of the lease. 
 
 (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 regula- 
 tions made by them, the instrument by means of which 
 the transfer or the lease is effected or agreed to be effected 
 or reasonable particulars thereof for the purpose of the 
 
ty. 
 
 Increment Value Duty. 75 
 
 assessment of duty thereon, and, if the transferor or lessor § 4 (2). 
 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 conviction or order of a court of 
 summary jurisdiction under this provision may appeal 
 therefrom to a court of quarter sessions. 
 
 It shall be the Duty of the Transferor or Lessor, etc. — Points to 
 note on the sub-section are: (1) It is obligatory on the transferor or 
 lessor. He cannot get rid of his liability to the Crown for the penalty 
 by agreeing with the transferee or lessee that the latter shall pay 
 the duty; and by the Revenue Act, 1911, s. 1, such a stipulation is Paymenfof 
 made void (a7ite, p. 46). (2) It is immaterial that the land is 'Y^^ue™^,*^*" 
 clearly exempt from increment value duty, as, for example, that it is 
 agricultural land worth not more than 10^. an acre capital value and 
 without a suspicion of building value about it (s. 7), or that it is free from 
 increment value duty under s. 8 or s. 9, exempting small houses and pro- 
 perties in owner's occupation, or under s. 35, exempting land held by 
 rating authorities. But a mining lease or the transfer of such a lease need 
 not be presented (see regulation (1), p. 487). Such a lease or transfer is 
 not an occasion for the payment of the increment value duty as a lump 
 sum, though it is a lease of land. A special form of increment value duty in 
 the shape of an annual duty based on rental value is charged in respect 
 of minerals comprised in such a lease (s. 22). But if mines are leased 
 as part of the ordin >ry soil the lease or transfer must be presented. 
 
 (3) Either the instrument or reasonable particulars thereof must be 
 presented to the Commissioners. The subject has an option which he 
 will present ; but as sooner or later he will wish to have the lease or 
 transfer stamped, since otherwise it cannot be given in evidence (s. 5 (3) ), 
 he is under some inducement to present it in the first instance. 
 
 (4) What is to be presented (except in cases where the alternative of 
 particulars is adopted) is apparently an operative document, one by 
 which the transaction is effected or agreed to be effected ; not a draft or 
 copy of a document by which it is proposed to be effected ; but under 
 regulation 3 of the Commissioners' Regulations under this section (see 
 p. 488) it seems that the Commissioners will not in all cases require the 
 instrument to be actually executed. (5) The deposit of the instrument, 
 or the furnishing of reasonable particulars thereof, will not necessarily 
 disclose the whole of the facts necessary to enable the Commissioners to 
 definitely ascertain the duty. But either will enable the Commissioners 
 to make a claim and apHmd facie assessment. (6) The burden of showing 
 
76 
 
 Land Clauses of the Finance Act. 
 
 § 4 (2). 
 
 Purchasers 
 and incre- 
 ment valu^ 
 duty. 
 
 Costs of com- 
 plying with 
 8. 4 (2). 
 
 the proper deductions under s. 2 (2) from the consideration for the 
 transfer or lease rests with the vendor or lessor. He will naturally 
 make those deductions as heavy as he is able. 
 
 It must be noted that the Commissioners' form of abstract (I. "V. D. (B) ), 
 in which imder their Regulations (see pp. 488 and 496) they suggest 
 that particulars should be given by a transferor or lessor for the pur- 
 pose of the assessment of increment value duty, does not contain any 
 reference to deductions from site value claimable under s. 2 (2) and 
 s. 25 (4) by the transferor or lessor. A claim for such deductions 
 should of course be made at the time the form " Increment value duty 
 (B) " is presented, and might be referred to in that form in a note. 
 
 Regulations have been issued by the Commissioners under this section. 
 See post, p. 487, and the notes on such Regulations. 
 
 It must not be overlooked by purchasers and lessees that they have 
 an interest in a high assessment of increment value at the date of their 
 purchases and leases. When they, in their turn, sell or lease or die, 
 a claim for increment value duty may again arise. The amount of the 
 increment value will then be fixed by deducting the original site value 
 from the then site value as ascertained under s. 2 (2). Increment 
 value duty is then payable on this increment value, less such amount of 
 duty as has been paid on previous occasions. The more duty paid by 
 former owners, the less remains to be paid by later. A purchaser or 
 lessee should therefore ascertain that his vendor or lessor is stating the 
 full site value of the land on the occasion of the sale or lease as 
 ascertained under sections 2 and 32. Since the passing of the Revenue 
 Act, 1911 (1 Geo. 5, c. 2, s. 1, p. 46), it may not be part of the bargain 
 between vendor and purchaser or between lessor and lessee that the 
 purchaser or lessee shall pay the increment value duty. Whether a 
 purchaser may appeal as a " person aggrieved " under s. 33 (1) from an 
 assessment under s. 2 (2) (a) on the ground that the site value on the 
 occasion is fixed too low is a difficult question. The Act provides no 
 machinery for informing the purchaser but only the vendor (see regula- 
 tion 15, p. 491) of the amount of the assessments (see rule 4 of the 
 Rules as to appeals to a referee, post, p. 377). 
 
 It is generally thought that the extra expenses of the vendor caused 
 by presentation of the conveyance, or agreement, for stamping vmder this 
 section, and of assessing the increment value duty, are not covered by 
 the scale fee payable to the vendor's solicitors under the Solicitors 
 Remuneration Act, 1881, and the general order made theretmder (see 
 Order No. 4 of the General Order made in pursuance of the Solicitors 
 Remuneration Act, 1881). Probably a solicitor who has paid duty 
 should not include it in his bill of costs, but in his cash account (see 
 Re Kingdon, etc., [1902J 2 Ch. 242, a case on estate duty). 
 
 The Instrument by means of which the Transfer or Lease is 
 
Increment Value Duty, 77 
 
 effected or agreed to be effected. — The language is not quite plain. § 4 (2). 
 Possible interpretations of it are — 
 
 (1) That both the agreement or particulars thereof and the transfer 
 or particulars thereof must be presented. 
 
 (2) That the subject has an option and may present either the agree- 
 ment or particulars thereof on the one hand, or the transfer or par- 
 ticulars thereof on the other, according as he pleases. 
 
 (3) That the question whether both agreement and transfer are to be 
 presented, or only one of them, and which of them, is to be presented, 
 is a matter to be determined by the Regulations of the Commissioners. 
 Fortunately the Regulations have made it clear that the Commissioners 
 do not adopt No. 1 of the above suggested readings. 
 
 But it is thought to be clear that, unless there is in fact a " transfer " 
 of the property on sale or the grant of a lease, it is not obligatory on a 
 person appearing on the face of a contract to be an intending vendor or 
 lessor to present the agreement for sale or lease. In other words, no 
 claim under s. 4 (2) could be made by the Crown for penalties so long 
 as the contract remains unexecuted. If, however, the parties were to 
 carry out the transaction in fact resting on the contract as the only 
 executed legal document, it is thought that there would in fact have 
 been, as the case may be, a "transfer on sale" or the grant of a lease 
 within the meaning of s. 1 (a) and s. 4 (2), and that the contract 
 ought in that case to be stamped. (See note on p. 7.) 
 
 These views of the effect of the sections in question appear to be Is regula- 
 nearly but not quite those adopted by the Commissioners. By No. 7 ''*^" . . » 
 of the Regulations of the Commissioners issued under this section (see 
 p. 489), it is prescribed that "if . . . an agreement for a transfer is 
 intended to be followed shortly by an actual conveyance the Com- 
 missioners will not require the agreement or particulars thereof to be 
 presented under these Regulations, but will accept the presentation in 
 due course of the actual conveyance or particulars thereof as a com- 
 pliance with the provisions of the Act. But an agreement for a lease, 
 or particulars thereof, should be presented without waiting for the actual 
 lease." This regulation therefore waives in favour of the subject the 
 question whether the Commissioners are entitled to require both agree- 
 ment and conveyance to be presented. But there still remains some 
 doubt whether the requirement that an agreement for a lease intended 
 to be followed shortly by a lease must be presented is authorised by 
 sub-s. (4) ; or whether the subject has not in all cases an option to 
 present either the agreement or the deed (whether lease or conveyance) 
 carrying out the agreement. Lease, it is true, under s. 41 (see p. 443), 
 includes an agreement for a lease, but only " unless the context other- 
 wise requires." It is suggested that s. 1 (a) and s. 4 (1) are a context 
 which requires otherwise. 
 
 The direction of the Commissioners that an agreement for a lease 
 
78 Land Clauses of the Finance Act. 
 
 § 4 (3). should be presented for the increment value duty stamp, without 
 waiting for the actual lease, will undoubtedly prove troublesome in the 
 case of building leases, to which it seems as applicable as to other leases. 
 It is precisely where a building lease is granted that increment value 
 may be expected ; and it frequently happens that agreements for the 
 grant of building leases are not w^holly carried out. This eventuality is 
 partially proA'ided for by sub-s. (6) of s. 4. 
 
 In the case of a transfer on sale of copyholds it would seem that 
 either (1) the agreement, or (2) the covenant to surrender, or (3) the 
 surrender itself might properly carry the increment value duty stamp. 
 
 See regulation 3 of the Regiilations under this section [post, p. 488) 
 for the requirements of the Commissioners with reference to the pre- 
 sentation of instruments. 
 
 Note that the word "instrument" is used, not ''agreement or con- 
 veyance." So that Acts of Parliament, as in Great Western Co. v. 
 Inland Revenue, [1894] 1 Q. B. 507 ; and Attorney -General ^ . Felixstowe 
 Gas Co., [1907] 2 K. B. 984, may have to be stamped with an I. V. D. 
 stamp. See the Finance Act, 1895, s. 12, for Acts of Parliament 
 operating as transfers on sale. 
 
 Or reasonable Particulars thereof for the Purposes of the Assess- 
 ment of Duty. — The subject has the option of presenting either the 
 instrument by means of which the transaction is effected or agreed to 
 be effected or " reasonable particulars." These reasonable particulars 
 are regulated by r. 11 of the rules under the section (p. 490). The 
 particulars are in substance the abstract which is to be furnished under 
 regulation 3 in cases where the " instrument " itself is presented. 
 
 See further note on page 79 as to particulars and penalty. 
 
 If the Transferor or Lessor fails to comply. — It seems clear that a 
 mere omission throvigh inadvertence, ignorance, or negligence to comply 
 with the sections will render the transferor or lessor liable (see the 
 recent case of Attorney-General v. Till, [1910] A. C. 50, on s. 55 of 
 the Income Tax Act, 1842). Compare with the varying language of 
 the other penalty clauses s. 18 (1) and (2) of the Customs, etc., Act, 
 1885 (p. 127), s. 8 (6) of the Finance Act, 1894 (p. 103), s. 15 (3), 
 s. 20 (3), s. 26 (2), s. 31 (3), s. 94. (See a note on p. cxliv., ante.) 
 
 He shall be Liable on Summary Conviction to a Fine, etc. — A 
 
 question may arise whether fines under this sub-section are recoverable 
 only on summary conviction or may be recovered by information in the 
 name of the Attorney-General in England, and in Scotland in the name 
 of the Lord Advocate. Under the Inland Revenue Regulation Act, 1890 
 (53 <fe 54 Vict. c. 21), s. 22 (1), "any fine or penalty incurred under 
 any Act relating to inland revenue may be sued for and recovered . . . 
 in the High Court." It seems, therefore, that although s. 4 (2) of the 
 1910 Act does not first impose the penalty and then confer the right of 
 
Inceement Value Duty. 79 
 
 recovering it on summary procedure, but apparently limits the liability § 4 (2). 
 to a liability on summary conviction, fines under this sub-section can be 
 sued for by information in the ordinary way as debts dvie to the Crown 
 {^Attorney-General v. Bradlaugh, L. R. 14 Q. B. D. 667), sed quaere. Pro- 
 ceedings must be commenced by order of the Commissioners and in the 
 name of an officer, or in England in the name of the Attorney-General for 
 England. Such proceedings must be commenced within two years next 
 after the fine or penalty is incurred (53 k 54 Vict. c. 21, s. 22). 
 
 As from the Date on which the Instrument has been Executed. — 
 
 The date in question may, or may not, be that on which the vendor 
 receives the purchase-money. It is apparently open to a vendor either 
 to present an agreement for sale for stamping, or to wait till the con- 
 veyance is executed, and then present the conveyance (see sub-ss. (1) 
 and (7) of this section). If he does neither, then from what date will 
 interest be payable ? It may perhaps be assumed that when a contract 
 is followed by a conveyance the Crown would only ask for interest from 
 the date of the conveyance when the increment value is actually 
 realised. 
 
 The presentation of particulars in lieu of the instrument itself will Particulars 
 free the transferor or lessor from liability to the fine imposed by ^" penalty, 
 sub-s. (2). Nevertheless that presentation will not make the instru- 
 ment " duly stamped " so as to be admissible in evidence. For this 
 it is essential that one of the stamps referred to in sub-s. (3) under 
 paragraphs {a), (b), or (c) should be placed on the document. If, 
 therefore, the transferor presents particulars only in the first place, 
 either he or the transferee should present the conveyance later for the 
 impressment of one of the stamps referred to under regulation 12 of the 
 Regulations issued under this sub-section (see p. 490). The appropriate 
 stamp will be impressed at any future date if the instrument and the 
 receipt for the particulars are lodged for the requisite length of time 
 at the Head Office for England, Scotland, or Ireland, as the case may be- 
 Any Person Aggrieved. — "Person" includes any body of persons 
 corporate or unincorporate (Interpretation Act, 1889 (52 & 53 Vict, 
 c. 63), ss. 2 and 19). But it seems that the Crown could not appeal 
 against a refusal to convict (Jieg. v. Justices of Loiidon, L. R. 25 Q. B. D. 
 357). 
 
 Court of Summary Jurisdiction. — For definition or explanation, see 
 Interpretation Act, 1889, s. 13 (11). ■ 
 
 (3) Any such instrument shall not, for the purposes of 
 section fourteen of the Stamp Act, 1891, and notwith- 54&55Vict. 
 standing 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 
 
so Land Clauses of the Finance Act. 
 
 § 4 (3). value duty has been assessed by the Commis- 
 
 sioners and paid in accordance with the assess- 
 ment; or 
 (h) 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. 
 
 For the Purposes of Section Fourteen of the Stamp Act, 1891, and 
 notwithstanding anything in Section Twelve. — Sects. 12 and 14 so 
 far as material are as follows : — 
 
 8. 12. — (1) Subject to such regulations as the Commissioners may 
 think fit to make, the Commissioners may be requii'ed by any person to 
 express their opinion with reference to any executed instrument upon 
 the following questions : 
 
 (a) Whether it is chargeable with any duty ; 
 
 {b) "With what amount of duty it is chargeable. 
 
 (2) The Commissioners may require to be furnished with an abstract 
 of the instrument, and also with such evidence as they may deem 
 necessary, in order to show to their satisfaction whether all the facts 
 and circumstances affecting the liability of the instrument to duty, or 
 the amount of the duty chargeable thereon, are fully and truly set 
 forth therein. 
 
 (3) If the Commissioners are of opinion that the instrument is not 
 chargeable with any duty, it may be stamped with a particidar stamp 
 denoting that it is not chargeable with any duty. 
 
 (4) If the Commissioners are of opinion that the instrument is 
 chargeable with duty, they shall assess the duty with which it is in 
 their opinion chargeable, and when the instrument is stamped in 
 accordance with the assessment it may be stamped with a particular 
 stamp denoting that it is duly stamped. 
 
 (5) Every instrument stamped with the particular stamp denoting 
 either that it is not chargeable with any duty, or is duly stamped, shall 
 be admissible in evidence and available for all pvu'poses notwithstanding 
 Ajiy objection relating to duty. 
 
Increment Value Duty. 
 
 81 
 
 (6) Provided as follows : — ,§4 (3). 
 
 (a) An instrument upon which the duty has been assessed by the 
 Commissioners shall not, if. it is unstamped or insufficiently stamped, 
 be stamped otherwise than in accordance with the assessment. 
 
 s. 14. — (1 ) Upon the production of an instrument chargeable with any Existing law 
 duty as evidence in any court of civil judicature in any part of the United ^.s to 
 Kingdom, or before any arbitrator or referee, notice shall be taken by ^qcu^^^ 
 the judge, arbitrator, or referee of any omission or insufficiency of the 
 stamp thereon, and if the instrument is one which may legally be 
 stamped after the execution thereof, it may, on payment to the officer of 
 the court whose duty it is to read the instrument or to the arbitrator or 
 referee, of the amount of the unpaid duty, and the penalty payable on 
 stamping the same, and of a further sum of one pound, be received in 
 evidence saving all just exceptions on other grounds. 
 
 (2) The officer, or arbitrator, or referee receiving the duty and penalty 
 shall give a receipt for the same and make an entry in a book kept for 
 that purpose of the payment and of the amount thereof, and shall com- 
 municate to the Commissioners the name or title of the proceeding in 
 which, and of the party from whom, he received the duty and penalty, 
 and the date and description of the instrument, and shall pay over to 
 such person as the Commissioners may appoint the money received by 
 him for the duty and penalty. 
 
 (3) On production to the Commissioners of any instrument in respect 
 of which any duty or penalty has been paid, together with the receipt, 
 the payment of the duty and penalty shall be denoted on the 
 instrument. 
 
 (4) Save as aforesaid, an instrument executed in any part of the United 
 Kingdom, or relating, wheresoever executed, to any property situate, or 
 to any matter or thing done or to be done in any part of the United 
 Kingdom, shall not, except in criminal proceedings, be given in evidence, 
 or be available for any purpose whatever, unless it is duly stamped 
 in accordance with the law in force at the time when it was first 
 executed. 
 
 It is not quite easy to understand the phraseology of sub-s. (3) 
 in relation to these two sections of -the Stamp Act, 1891. One would 
 have thought the simple course would have been to have said that 
 increment value duty was a duty payable by way of a stamp, within s. 14 
 of the Stamp Act, and that in so far as either section 12 or 14 of that 
 Act is inconsistent with the provisions of this Act as to increment 
 value duty, the latter shall prevail. Apparently there is nothing in 
 s. 12 which is not capable of being harmonised with s. 4 of the 1910 
 Act, and the words "notwithstanding anything in section 12," etc., are 
 possibly inserted simply ex majori cautela. 
 
 It is, however, clear that an additional stamp has become necessary 
 on every — 
 
 (1) Conveyance on sale of the fee simple of lands as defined by this 
 Act (s. 41) ; 
 
 (2) Conveyance on sale of an interest in lands as defined or explained 
 by this Act (s. 41) ; 
 
 N. 6 
 
 Phraseology 
 of sub-s. (3) is 
 difficult. 
 
82 
 
 Land Clauses of the Finance Act. 
 
 § 4 (3). 
 
 Stamping of 
 agreement in 
 specific 
 performance 
 action. 
 
 Can duty be 
 paid in court ? 
 
 (3) Grant of any lease of lands for a term exceeding fourteen years ; 
 lease includes underlease (s. 41), but quoere it would seem that it 
 does not in sub-s. (2) and (3) of s. 4 include " agreement for a lease 
 or underlease," although comprised in the definition in s. 41, "The 
 expression ' lease.' " (See ante, p. 77.) 
 
 The additional stamp must be on the instrument, however clear it 
 may be that increment value duty cannot possibly be payable. The 
 deed may be a conveyance of agricultural land, which shows on its face 
 that the price is less than 10^. per acre, and which by comparison with 
 the last conveyance discloses that the price is a falling one. Neverthe- 
 less, the stamp must be there, or the deed cannot be used in evidence. 
 
 Further, it might at first sight seem, and it has been suggested, that 
 neither an action for specific performance nor for damages for breach of 
 an agreement to sell land can be brought unless the contract is stamped 
 with one of the three stamps specified in sub-s. (3). If this is the case 
 a very serious state of things may arise. A purchaser cannot in many 
 cases supply the necessary information for enabling the Commissioners 
 to assess the duty on either contract or conversance. He has no know- 
 ledge of the deductions which may under s. 25 (4) be claimed by the 
 vendor. Possibly he cannot even send a valuer on to the property so 
 as to ascertain the full site value under s. 25 (2), which is the basis of 
 the principal deduction (a) under sub-s. (4) of the same section. If, 
 however, the action is for damages only, it seems that no occasion of " a 
 transfer on sale " under s. 1 (a) has ever arisen. There has not been, 
 and by hypothesis will not be, any such transfer. But if the action is 
 for specific performance that cannot be said. It is submitted that the 
 reasonable interpretation of sub-s. (3) is that the words "any such 
 instrument" do not mean or include every agreement for the sale of 
 land, but every agreement which ought to be stamped under sub-s. (2), 
 or at all events under that sub-section and the regulations issued there- 
 under, and that under that sub-section the subject has an option of 
 stamping either the agreement or the conveyance. 
 
 It seems probable that s. 14 of the Stamp Act, 1891, cannot be 
 applied in such a way as to enable increment value duty to be paid in 
 the proceeding {i.e., at the hearing of the trial or application) in which 
 the document is rejected on the ground of the want of an increment 
 value duty stamp. The oflBcer of the court has no machinery for 
 assessing the duty. Qucere whether sub-s. (3) does not forbid it to be 
 so applied ? 
 
 The remark may perhaps without impropriety be made in this place 
 that in a judgment for specific performance at the suit of the purchaser 
 it may often be necessary to have special directions with reference to 
 the payment by the vendor of increment value duty. 
 
 Precautions Notwithstanding any Objection relating to the Increment Value 
 
 by purchaser. Duty, etc. — It will be as important for a purchaser in the future to 
 
Increment Value Duty. 83' 
 
 assure himself that the increment value duty stamp is on all assurances § 4 (3). 
 on sale forming a link in the title as to ascertain that such deeds 
 are stamped with the proper ad valorem stamps on sale. But, while as 
 to the latter stamps he has to see that they are of the proper amount, 
 unless an adjudication stamp is also on the document, as to the 
 increment value duty stamps, he has merely to see that a stamp of 
 one of the three categories mentioned in sub-s. (3) is on the deed, and no 
 calculation or research will be necessary on his part. It would be an 
 impossible burden upon a purchaser or lessee to require him to verify 
 the increment value of his vendor or lessor. 
 
 The stamps are not necessary in the case of conveyances or lease* 
 made in pursuance of contracts entered into before the commencement of 
 the Act (s. 1). 
 
 It is clearly necessary for a purchaser or lessee to examine the stamps 
 on the title deeds evidencing former transactions to see whether the 
 requirements of this section have been complied with. Though the 
 unpaid duty is not, it is thought, a charge on the property except perhaps 
 in the case of increment value duty payable on death (s. 5) and payable 
 by a body corporate or unincorporate on a periodical occasion (s. 6, in- 
 corporating ss. 13 to 15 of the Customs and Inland Revenue Act, 1885), 
 the title deed in question cannot under s. 14 of the Stamp Act, 1891, 
 set out above, be given in evidence unless it is stamped with one of the 
 stamps described under (a), (b), and (c). 
 
 If sub-s. (2) has not been complied with on an occasion, and conse- Stamp may 
 quently no stamp under sub-s. (3) is on the instnmient, application f a^^+ime 
 may apparently at any time be made to get the duty assessed, and it 
 is thought that no penalty is attached other than that enacted by 
 sub-s. (2). In other words it is thought that the Commissioners cannot 
 refuse to stamp the document until the 10?. penalty and interest by 
 way of penalty are paid under s. 15 (1) of the Stamp Act, but that if 
 they wish to get interest for non-payment on the occasion of the incre- 
 ment value duty then due, they must get it under sub-s. (2) of s. 4 of the 
 1910 Act. Sect. 15 (1) of the Stamp Act seems to apply only to docu- 
 ments which ought to be stamped before or within a limited period after 
 execution. It is thought that this is not the case with reference to the 
 documents referred to in s. 4 (2) of the 1910 Act. It is not, however, 
 quite clear that this is so. It is possible that s. 15 (1) of the Stamp Act, 
 1891, and the penalties there imposed may apply to applications by the 
 subject to the Commissioners to stamp the document, while the fine 
 enacted by s. 4 (2) of the 1910 Act applies to active proceedings by the 
 Commissioners quite apart from any question of the immediate stamping 
 of the document. 
 
 (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 pur- 
 
 6—2 
 
84 Land Clauses of the Finance Act. 
 
 § 4 (4). pose of calculating the amount of increment value duty 
 to be collected on any subsequent occasion shall be 
 deemed to have been paid. 
 
 Debt due to the Crown. — It seems that the Crown will have priority 
 ill bankruptcy under 51 & 52 Vict. c. 62, s. 1 (1) (a), notwithstanding 
 s, 150 of the Bankruptcy Act, 1883, and under ss. 107 and 209 
 (1) (a) of the Companies (Consolidation) Act, 1908, but it is not 
 quite clear. Those sections give priority only in respect of taxes 
 "assessed ... up to the 5th day of April next before" the date 
 of the receiving order or winding-up, as the case may be, language not 
 very appropriate to increment value duty, and perhaps referable only to 
 annual taxes of the kind specifically referred to in the sub-section, 
 i.e., land tax, property or income tax. In the administration of a deceased's 
 estate by the Chancery Division the Crown's debt arising in the lifetime 
 of the deceased for increment value duty will have priority against all 
 other simple contract debts {In re Henley, (1878) 9 Ch. D. 469 ; 
 In re Galvin, [1897] I. R. 520 ; Attmney-General Jor New South 
 Wales V. Palmer, [1907] A. C. 179) ; but not against specialty debts 
 owing to subjects {In re Bentinck, [1897] 1 Ch. 673). But if the estate 
 is insolvent, so that s. 10 of the Judicature Act, 1875, applies, quaere 
 whether the priority of the Crown is not taken away, except so far as it 
 exists in bankruptcy? {In re Whitaker, [1901] 1 Ch. 9, C. A.; In re 
 Whitaker, [1904] 1 Ch. 299). 
 
 The Crown has priority for increment value duty collectable on death as 
 against the property liable to that duty (s. 5), and has perhaps a charge 
 on that property (see post, p. 117), but has no general priority against 
 the assets of the deceased (s. 5). As the property must be ample to 
 answer increment value duty, the point seems of no importance. See 
 also ss. 5, 15, 19, and 20 (4) of the 1910 Act as to the priority or 
 equality of other revenue debts under this Act. 
 
 The Crown sues by information for debts due to it (see ante, 
 p. cxxxix). 
 
 And for the Purpose of calculating the Amount of Increment 
 Value Duty . . . shall be deemed to have been . . . paid. — The duty 
 is thus not a continuing charge on the site or site increment. If a docu- 
 ment is stamped according to (6) (sub-s. (3) ), an assessment being made, as 
 doubtless it would be, then, notwithstanding that the Crown does not 
 get its increment value duty, neither the purchaser nor any one claiming 
 through him has to pay. But qucere does the latter part of sub-s. (4) 
 apply, in the unlikely event of the document being stamped according 
 to {b), but no assessment of duty being made 1 On the exact language 
 there may be a doubt. The word " assessed " has been interpreted as 
 meaning " reckoned on their value " {In re Floyd, [1897] 1 Ch. 633, per 
 Rigby, L.J.). But perhaps the Commissioners, having all necessary 
 particulars, must be deemed to have done their duty and made an 
 
Increment Value Duty. 86 
 
 assessment ; still the language is not clear. Further, what is the position § 4 (4). 
 of a purchaser if there is no stamp at all and no assessment ; in other 
 words, supposing both vendor and purchaser ignore the increment duty 
 altogether? The purchaser apparently is not personally liable for the 
 duty, nor is the duty directly a charge upon the land. But in case of a 
 sale by the purchaser, or his death, it seems that the duty thus temporarily 
 escaped will have to be paid, and in case of a lease by the purchaser that it 
 will have to be paid in proportion to the interest leased. The usual com- 
 parison of original site value and site value on the occasion on which duty 
 becomes due will disclose the concealed increment value, and there will 
 have been no payment or credit of duty to frank it. But suppose that 
 in the meantime between the date when the payment of increment 
 value duty was avoided and the subsequent occasion on which it became 
 due the site value has receded. Is the then owner of the land bound 
 to pay on the basis of the former increment value, or on the reduced 
 value of the moment? It is submitted that the latter is the true 
 construction of the Act. The Crown has its penalties. 
 
 (5) Kegulations 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 arrange- 
 ments are made for obtaining those particulars through 
 any registry of lands, deeds, or title, or through a Kegister 
 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 consideration is in the form of a periodical 
 payment ; and the Commissioners shall deal with any 
 instrument presented to them and allow payment by 
 instalments in accordance with those regulations. The 
 regulations shall provide that where the duty to be col- 
 lected 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 instalments 
 so remitted. 
 
SQ Land Clauses of the Finance Act. 
 
 § 4 (5). Regulations . . . with respect to, etc. — For regulations under this 
 
 sub-section, see Appendix, p. 487. 
 
 And for dispensing with the Presentation . . . Register of 
 Sasines. — It is lioped that where there are registers of title as in 
 Scotland and London various formal particulars may be obtained from 
 them, and persons thus saved the expense and trouble of supplying them a 
 second time to a State authority. But the provision can only be really 
 useful in perfectly simple cases. The real points of diflBculty relating to 
 increment value duty, such as the valuations, the apportionment of 
 increment value between the fee and the various derivative interests, 
 the deductions to be allowed for expenditure, and for restrictive covenants, 
 must clearly be dealt with by the Commissioners. They are matters 
 which do not arise on the ordinary registration of title. As to the 
 Register of Sasines, see s. 42 (4), p. 473. 
 
 And for the Payment of any Increment Value Duty by Instalments 
 in the Case of any Lease on Transfer on Sale, etc.^The case of a 
 premium or fine, on the grant of a lease, is provided for by the 
 regulations (No. 16, p. 87). The purchaser of a fee simple reversion expec- 
 tant on a lease, the increment value duty in respect of which is being 
 paid by instalments, must consider his position. It is to be hoped and 
 expected that a purchaser will be considered a person interested in the 
 land under s. 30 (2) and able to obtain a copy of the Commissioners' 
 records as to the land and the duty. If this is the case, and if the 
 record shows, as doubtless it will, the particulars of the arrangement as 
 to the payment by instalments of the increment value duty on the lease, 
 the purchaser will then have to consider whether it will fall upon him or 
 his vendor to pay the remaining unpaid instalments of the increment 
 value duty. It would seem that the vendor is bound to pay this part 
 of the increment value duty as well as the portion payable in respect of 
 the reversion (s. 4 (1) ). If the vendor will pay up in full at once, all 
 difficulty is of course at an end, but if he will not do so, and will not 
 allow the purchaser to deduct the amount of the unpaid instalments from 
 the purchase-money, or enter into a covenant to pay them when due, a diffi- 
 cult situation will arise. The legal position might— it is not confidently 
 asserted that it would — be affected by the knowledge of the purchaser, 
 before entering into the contract to buy, of the arrangement as to the 
 payment of increment value duty. It might be argued that, knowing 
 the increment value duty was payable by instalments, the purchaser 
 took the risk of the vendor not paying such instalments. 
 
 Again, it may be that the purchaser runs no risk at all in such a case. 
 If under sub-s. (4) of this section the duty has been assessed, it is, for the 
 purpose of calculating the amount of increment value duty to be 
 collected on any subsequent occasion, to be deemed to have been paid. 
 But this is the only point which appears of importance so far as the 
 purchaser is concerned. The duty is not, it is submitted, charged on 
 
Inceement Value Duty. 87 
 
 the land. The purchaser is not personally liable to pay it until indeed § 4 (6). 
 he becomes a vendor, and then under sub-s. (4) it is deemed to have 
 been paid. 
 
 If, however, the land and the purchaser are not liable and the duty is 
 deemed to have been paid on all future occasions when increment value 
 duty is collected, what is the position of the Crown ] Under sub-s. (5) it 
 appears doubtful whether, if the consideration is in the form of a 
 periodical payment, the Commissioners are not bound to allow payment 
 by instalments. If they are, they must trust for their duty to the 
 solvency of the vendor. Even if they are not, some special regulations 
 will be necessary to protect the Crown, and will doubtless be made. 
 
 The above note was first printed before the regulations under The regula- 
 s. 4 were issued (see Appendix, p. 487), but since it draws attention to ^'^^^ "^ ^^ 
 a matter which is of daily practical moment, it is thought better to leave 
 it, though the points raised by it are to a certain extent met by the 
 regulation numbered 16 (post, p. 491), the most material parts of which 
 are as follows : — 
 
 (16) In the case of any lease or transfer on sale where the considera- 
 tion is in the form of a periodical payment, the Commissioners 
 may, if they think fit, allow payment of the increment value duty 
 assessed to be made by instalments in accordance with the following 
 regulations: — 
 
 (I.) Where the consideration consists wholly of a periodical 
 payment, 
 
 The duty shall be payable by five equal annual instalments, and the 
 first instalment shall fall due one year after the date of the grant 
 of the lease or the transfer of the interest, and the subsequent 
 instalments on the same date in each successive year. 
 
 (III.) In any case in which the person liable to the payment of any 
 increment value duty may and does elect to pay such duty by instal- 
 ments, he shall furnish security to the satisfaction of the Commis- 
 sioners for the payment of the whole amount of the duty payable. 
 
 (IV.) If any person, on beiog required by the Commissioners to 
 furnish such security, fails to do so within two months he shall forfeit 
 his right to pay the duty by instalments, and the whole of the duty 
 shall be deemed to be due on the expiration of two months from the 
 date on which notice was given by the Commissioners of their require- 
 ment. 
 
 (V.) If any instalment remains unpaid for a period of thirty days 
 after it falls due, or if the person liable to the payment dies or becomes 
 bankrupt, the whole balance of the duty unpaid shall forthwith 
 become due and payable. 
 
 The effect of the regulations conceding only five annual instalments, 
 and requiring security for these, is greatly to simplify and lighten the 
 position of purchasers. 
 
 And the Lease is determined before all such Instalments have 
 fallen due, the Instalments which have not fallen due shall be 
 
88 Land Clauses of the Finance Act. 
 
 § 4 (6). remitted. — Where the duty is payable by instalments there is to be, or at 
 least there may be, a remission of unpaid instalments ; but whei'e the duty 
 is paid in a lump sum (as the lessor might wish to pay it) there is no 
 return of any part of the duty. This may not be logical, but as the 
 duty paid in full in respect of the determined lease will serve to frank 
 the land in the future, the irregularity is not so great as at first sight 
 appears. It does not seem that the case of determination of the lease 
 after payment in full of the increment value duty payable on the grant 
 ' of the lease is met by the next sub-section ( (6) ), but if the lease is 
 determined within two years after the payment of the duty, an attempt 
 might be made to recover a proportion of the increment value duty paid 
 from the Commissioners. See regulation 16 (VII.), Appendix, p. 491, 
 as to remission of instalments. 
 
 (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. 
 
 But the Transaction was subsequently not carried into Execution. 
 
 — With this sub-section compare s. 9, paragraph 7, of the Stamp Duties 
 Management Act, 1891 (54 & 55 Vict. c. 38), amended by 61 &, 62 
 Vict. c. 46, s. 13, and s. 59 (6) of the Stamp Act, 1891 (54 & 55 Vict. 
 c. 39). See also " Regxilations " under this section (r. 17), Appendix, 
 p. 491. 
 
 The sections of the Acts referred to provide for the return of stamp 
 duty in case the instrument is void or ineffectual. The exact words 
 of the enactments must be consulted where necessary. If the pro- 
 visions of the Stamp Acts are applied to the increment value duty stamp 
 generally by s. 1 of the Stamp Management Act, 1891, and s. 2 of the 
 Stamp Act, 1891, s. 4 (6) may be superfluous except as to the pro- 
 vision that duty returned shall not be deemed to have been paid. 
 But at all events it places the right of the subject to a return of duty 
 in the circumstances referred to in the sub-section beyond doubt. Com- 
 pare also with s. 27 (6), post, p. 329 ; also with the Finance Act, 1894, 
 s. 8 (12), and s. 10 (3), as to interest on the returned duty. 
 
 Illustrations of the application of sub-s. (6) : — 
 Escrow. (1) Increment value duty on a sale has been paid and the stamp 
 
 under sub-s. (3) (a) impressed on the conveyance. The conveyance is 
 
Increment Value Duty. 89 
 
 held by the vendor's solicitor as an escrow. The transaction is never § 4 (6). 
 completed. The duty paid can be recovered. 
 
 (2) Increment value duty on a sale has been paid on the contract Mutual 
 for sale which has been stamped under sub-s. (3) (a). By mutual consent '^^^'^^'^ • 
 the contract is rescinded. It is assumed that the duty can be recovered. 
 
 It is not apprehended that the omission by the vendor to enforce an 
 agreement which he is able to enforce would prejudice his right to 
 recover increment value duty provided that the application be made 
 within two years after the payment of the duty. 
 
 But is not the limit of two years out of all necessity too short? An 
 action for specific performance, in which there was an appeal, might 
 easily extend to a date later than two years from the contract^ and the 
 ultimate result might be rescission of the contract. However, the 
 vendor might apply before the action was determined. 
 
 Vendors will not often, it may be presumed, pay increment value 
 duty on the contract of sale. They will wait to pay till their profit is 
 realised. 
 
 (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, assign- 
 ment, 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. 
 
 Compare with this sub-section s. 59 (3) of the Stamp Act, 1891 (54 & 
 55 Vict. c. 39). 
 
 But for the last words of the sub-section, if the conveyance, etc., is 
 not stamped witii one of the stamps referred to in s. 3 (3), the agree- 
 ment so stamped would necessarily be a link in the title. 
 
 Section 5. 
 
 This section relates to the collection of increment value duty on 
 death. It is a continuation of the scheme the first portions of which 
 are to be found in s. 1 (b) and s. 2 (2) (c). 
 
 5. The provisions as to the assessment, collection, and collection 
 recovery of estate duty under the Finance Act, 1894, of'duty°ir''^ 
 shall apply as if increment value duty to be collected on ^^^?°!,*^,^i^*^- 
 
 • p 1 1 1 <• 57 & o8 Vict. 
 
 the occasion or the death of any person were estate duty ; c. so. 
 but where any interest in land in respect of which 
 increment value duty is payable is property passing to the 
 
90 Land Clauses of the Finance Act. 
 
 § 6. personal representative as such, the duty shall be payable 
 out of that interest in land in exoneration of the rest of 
 the deceased'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 vi^ith the other creditors of 
 the deceased. 
 
 ESTATE DUTY AND INCREMENT VALUE DUTY.* 
 
 Assessment, Collection and Recovery. — It is not easy to say what 
 are the exact provisions of the Finance Act, 1894, which are intended to 
 be applied to increment value duty. It is clear that many if not most of 
 the provisions relating to the assessment of increment value on death 
 must be found in the Finance Act, 1910. Such are those relating to the 
 ascertainment of taxable increment value (ss. 2, 3, 7, 8, 11, 12, 25, 
 29, 33, 40). Again the Finance Act, 1910, contains general provisions as 
 to the " collection " of increment value duty, which includes increment 
 value duty payable on death (s. 3). On the other hand the property 
 chargeable wdth the duty is to be ascertained by an application of the 
 provisions of the Finance Act, 1894, to s. 1 (b), which creates the charge of 
 the duty. Sect. 2 (2) (c) may be treated perhaps as a specific case of the 
 general rule laid down by s. 5 that the provisions as to the assessment, 
 collection, and recovery of estate duty under the Finance Act, 1894, are 
 to apply as if the increment value duty to be collected on death were 
 estate duty. The problem under s. 5 is to read into the Act of 1910 all 
 the provisions as to the assessment, collection, and recovery of estate 
 duty of the Finance Act, 1894, which are not inconsistent with the 
 provisions of the 1910 Act. But as the duty established by the later 
 Act is in many respects from its nature dissimilar to the duty established 
 by the earlier Act, a large number of the provisions of the earlier Act 
 are either wholly or in part inapplicable to the later duty, or are incon- 
 sistent with the provisions of the Act creating it. When to this is 
 added the further fact that nowhere in the sub-titles or marginal notes 
 to any of the sections of the Act of 1894 is "assessment " mentioned, and 
 that the word " assessment " can hardly be said in English law^ to have 
 obtained a definite technical meaning, it becomes evident that questions 
 of great difficulty must arise in relation to s, 5. It seems important to 
 
 * Pp. 90 to 119 relate to the application under s. 5 of the existing law as 
 to estate duty to increment value duty. 
 
Incbement Value Duty. 91 
 
 approach the section with a full appreciation of the words " shall apply ) § 5. 
 as if increment value duty . . . were estate duty." 
 
 On this section the Solicitor-General, Sir Samuel Evans (now the 
 President of the Probate, Divorce and Admiralty Division), said in the 
 House of Commons, July 14, 1909 : " The clause is really one dealing with 
 machinery, and all the machinery of the Act of 1894, in effect, is incor- 
 porated in this clause. We have incorporated the machinery both as 
 regards the assessment, collection, and recovery of the duty, and amongst 
 these is the provision for payment by instalments " (see the Finance 
 Act, 1894, s. 6 (8), post, p. 95). Of course this utterance has no legal 
 weight, and is merely given that the reader may know what apparently 
 was intended. 
 
 FINANCE ACT, 1894 (67 & 68 Vict. c. 30).* 
 
 Sects. 1 to 5 inclusive of the Finance Act, 1894, do not fall within Finance Act, 
 the title " assessment, collection and recovery " ; they are headed by the ' ^^" 
 
 title " Grant of Estate Duty " (see Appendix, p. 589, for the Act in 
 extenso so far as thought to be material). 
 
 8. 1. Contains the imposition of " estate duty," the then new duty, on 
 ' ' property passing on death, ' ' and the exemption of property paying it from 
 the existing duties mentioned in the First Schedule to the Act. See 
 mite, p. 15, and also post, Appendix, p. 589. This section is of course 
 important as defining the property as to which an occasion arises on 
 death for payment of increment value duty. 
 
 s. 2. Defines or explains what is included in property passing on death. 
 See ante, notes to s. 1, p. 15, and Appendix, p. 589. This section is 
 important for the same reason as s. 1. 
 
 s. 3. Exempts from estate duty certain transactions for valuable con- 
 sideration. It is possible that this section may be incorporated into the 
 Finance Act, 1910. In so far as it can be applied to claims for increment , 
 value duty, see notes to s. 1, p. 21, and Appendix, p. 590. 
 
 s. 4. E elates to the aggregation of property for the purpose of 
 charging estate duty, and is clearly not applicable to increment value 
 duty. 
 
 s. 5. Imposes settlement estate duty, and creates certain exceptions 
 to the payment of estate duty (see ante, p. 66). It seems clear from 
 s. 3 (4), ante, p. 61, that s. 5 of the Act of 1894 is for the purposes of 
 exempting property from increment value duty incorporated in the Act 
 of 1910. Its incorporation is, however, by way of explanation of 
 s. 1 (b), indicating the property liable to increment value duty on death, 
 and not as a provision which relates to " assessment." 
 
 Up to this point the Act of 1894 has been dealing with the creation 
 
 * The notes from this point up to p. 119 are directed mainly to the ques- 
 tion as to what sections of the Acts relating to estate duty are incorporated 
 by s. 5 of the Act of 1910, and not, except where absolutely necessary, to 
 the construction of such incorporated sections. For that question Cartmell 
 or Hanson must be consulted. 
 
92 
 
 Land Clauses of the Finance Act. 
 
 §5. 
 
 Finance Act, 
 1894, s. 6. 
 
 Sub-a. (2). 
 
 Finance Act, 
 1894, s. 6 (2) 
 
 of the estate and settlement estate duties, the property chargeable 
 therewith, and certain exemptions from the duty. Tliese provisions 
 would seem to relate to the assessment of increment value duty, if pro- 
 visions as to assessment include provisions defining the property to be 
 assessed, but not otherwise. 
 
 The group of sections (6 — 10 inclusive) of the Finance Act, 1894, 
 headed " Collection and Recovery of Duty and Value of Property," is 
 now reached, and requires consideration in detail. 
 
 s. 6. — (1.) Estate duty shall be a stamp duty, collected and recovered 
 as herein-after mentioned. 
 
 This sub-section is probably applicable to increment value duty, and 
 is in harmony with s. 3 (6) of the Act of 1910. 
 
 (2) The executor of the deceased shall pay the estate duty in respect 
 of all personal property (wheresoever situate) of which the deceased was 
 competent to dispose at his death, on delivering the Inland Eevenue 
 aflQdavit, and may pay in like manner the estate duty in respect of any 
 other property passing on such death, which hj virtue of any testa- 
 mentary disposition of the deceased is under the control of the executor, 
 or, in the case of property not under his control, if the persons accountable 
 for the duty in respect thereof request him to make such payment. 
 
 This sub-section seems applicable to the increment value duty on 
 
 /leaseholds, and is apparently so considered by the authorities. In a 
 
 / circular letter dated July, 1910 (see Appendix, p. 538), the Commissioners, 
 
 ( after calling attention to s. 5 and expressing their desire to make the 
 
 \ procedure as simple as possible, state that they have decided not to 
 
 \ require executors and others to render in tJie first instance a separate 
 
 account for the purposes of increment value duty. They add that 
 
 the necessary A^aluations will be made by reference to the affidavit and 
 
 accounts furnished for estate duty purposes, and that a further account 
 
 for the purpose of increment value duty will only be called for in cases 
 
 where there is a primd facie liability to that duty.''' Sub-s. (2) of s. 6 
 
 of the Finance Act, 1894, is of course qualified by s. 5 of the Finance 
 
 Act, I9I0, which enacts that " 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 deceased's estate." Estate duty 
 
 on property passing to the executor as such — for example, leaseholds — is, 
 
 under the Finance Act, 1894, payable by the executor according to due 
 
 course of administration, and is not charged on the particular property 
 
 in question (Ee Ctdverhouse, Cook v. Culverhouse, [1896] 2 Ch. 251 ; 
 
 Att.-Gen. V. Dodd, [1894] 2 Q. B. loO). But increment value duty 
 
 chargeable on or payable in respect of leaseholds is, luider s. 5 of the 
 
 Finance Act, 1910, payable out of the particular property out of which 
 
 * The affidavit referred to is that which must be sworn before probate 
 can be obtained (44 Vict. c. 12, s. 39). The account is that referred to either 
 in s. 5 of the 1910 Act, or in s. 8 (4) of the Finance Act, 1894. 
 
Increment Value Duty. 93 
 
 the increment value arises. The result therefore appears to be that § 5. 
 
 the personal representative must pay the increment value duty, and 
 either raise it under an implied power to be deemed to be conferred by 
 s. 5 of the 1910 Act out of the land in question (see also s. 39 (1) ), or 
 possibly recover it under s. 9 (4) of the Finance Act, 1894, from the 
 trustee or owner of the property. It is, however, doubtful whether 
 this latter alternative is open to the personal representative. It seems 
 probable that sub-s. (4) of s. 9 applies only to the recovery of duty 
 payable in respect of the property referred to in sub-s. (1) of the same 
 section, i.e., "property which does not pass to the executor as such" 
 (see joer North, J., In re Webber, Grihhle v. Webber, [1896] 1 Cii. 914, at 
 p. 922). It seems clear, however, (1) that the personal representative 
 must pay the duty; (2) that the duty is not payable primarily out of 
 the general estate, but out of the property itself. It is, of course, 
 under the proviso to s. 5, secondarily payable out of the general estate, 
 but only pari passu with other debts. 
 
 If, as is probable, sub-s. (2) of s. 6 of the Finance Act, 1894, is Property of 
 applicable to the payment of increment value duty, it will render the deceased 
 personal representative liable to pay increment value duty, not only ini' competent to 
 respect of property passing to him as such, i.e., leaseholds, but also juS^^^P^^^- 
 respect of property " of which the deceased was competent to dispose at" 
 his death " (see s. 22 (2) (a) of the Finance Act, 1894 ; for definition of 
 "competent to dispose," post, p. 114). This will, it is apprehended, 
 include leaseholds over which the deceased had a general power of 
 appointment which he has not exercised. Certainly it includes lease- 
 holds over which the testator has by his will exercised a general power 
 of appointment, which are in addition "property passing to the personal 
 representative as such" (see In re Hadley, Johnson v. Hadley, [1909] 
 1 Ch. 20, settling by the decision of the C. A. a much controverted point). 
 
 So under the words of sub-s. (2) of s. 6 of the Finance Act, 1894, "and Property 
 may pay in like manner the estate duty in respect of any other property ^f executor, 
 passing on such death, which by virtue of any testamentary disposition 
 of the deceased is under the control of the executor," it is apprehended 
 that the personal representative may pay increment value duty on real 
 estate devised to him on trust to sell and pay debts, or on real estate 
 vested in him by virtue of the Land Transfer Act, 1897, ss. 1 and 2. 
 It is now settled that the latter does not vest in the personal repre- 
 sentative as such {Re Sharman, Wright v. Sharman, [1901] 2 Ch. 280). 
 
 Lastly, under the words of s. 6, subs. (2), of the Finance Act, 1894, 
 "or in the case of property not under his control, if the persons 
 accountable for the duty in respect thereof request him to make such 
 payment," lie may pay the increment value duty at the request of 
 specific or residuary devisees of freehold property devised by his 
 testator's will, or at the request of the heir-at-law. 
 
 In the interpretation of the Finance Act, 1894, " the expression 
 * executor ' means the executor or administrator of a deceased person, 
 
94L Land Clauses of the Finance Act. 
 
 § 6< and includes an regards any obligation . . . any person who takes 
 
 possession of or intermeddles with the personal property of a deceased 
 person" (s. 32). 
 Finance Act, In the cases where increment value duty is paid by the personal 
 1894, s. 6 (2). representative in respect of land not passing to him as such, but either 
 under his control or as to which he is requested by the persons account- 
 able to pay the increment value duty, he can, it is thought, recover the 
 same from the trustees or ownei"S under sub-s. (4) of s. 9 of the Finance 
 Act, 1894, or under sub-s. (5) of the same section raise the amount of the 
 duty and interest and expenses by sale or mortgage of or terminable 
 charge on the property or any part thereof. 
 
 It has been assumed in the foregoing notes that the proviso to s. 5 of 
 the Finance Act, 1910, " 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," applies only to increment 
 value duty payable in respect of land passing to the personal representa- 
 tive as such. But it is quite possible, notwithstanding the provisions 
 of s. 9 of the Finance Act, 1894, that the proviso may be held to extend 
 to all increment value duty payable on death whether in respect of land 
 passing or not passing to the personal representative as such. If this be 
 the true construction of the proviso, it would appear that the personal 
 representative is not only not entitled, but is bound to pay increment 
 value duty whenever required by the Crown to do so iu respect of all 
 property passing on death within the meaning of s. 1 (b). 
 
 lb., sub-s. (3). (3) Where the executor does not know the amount or value of any 
 
 property which has passed on the death, he may state in the Inland 
 Eevenue affidavit that such property exists but he does not know the 
 amount or value thereof, and that he undertakes, as soon as the amount 
 and value are ascertained, to bring in an account thereof, and to pay 
 both the duty for which he is or may be liable, and any further duty 
 payable by reason thereof for which he is or may be liable in respect 
 of the other property mentioned in the aflBdavit. 
 
 li., sub-s. (4). (4) Estate duty, so far as not paid by the executor, shall be collected 
 
 upon an account setting forth the particidars of the property, and 
 delivered to the Commissioners within six months after the death by the 
 person accountable for the duty, or within such further time as the 
 Commissioners may allow. 
 
 These two sub-sections would, it is thought, mutatis mutandis apply to 
 increment value duty payable on death. 
 
 JJ., sub-s. (5). (5) This sub-section, which relates to accrued income, is thought to 
 
 be obviously inappUcable to increment value duty on death. . . . 
 
 Ih., sub-s. (6). (6) Interest at the rate of three per cait. per annum on the estate duty 
 
 shall be paid from the date of the death up to the date of the deHvery 
 of the Inland Eevenue affidavit, or account, or the expiration of six 
 months after the death, whichever first happens, and shall form part of 
 the estate duty. 
 
Increment Value Duty. 95 
 
 Sect. 40 of the Finance Act, 1896, coupled with Part III. of the § 5. 
 
 Schedule to that Act, repeals the words in italics in sub-s. (6) of s. 6 Finance Act, 
 of the Finance Act, 1894, which provided in effect for compound ^^^ ^g^' 
 interest, and by s. 18 of the Act of 1896 it is provided that " Simple 
 interest at the rate of 3 per cent, per annum without deduction for 
 income tax shall be payable upon all estate duty from the date of the 
 death of the deceased, or where the duty is payable by instalments or 
 becomes due at any date later than six months after the death from the 
 date at which the first instalment on the duty becomes due, and shall be 
 recoverable in the same manner as if it were part of the duty." (See also 
 sub-ss. (2) and (3) of s. 18 of the Finance Act, 1896, post, p. 117.) 
 
 Probably s. 18 is a provision as to the "assessment" and " recovery " 
 of estate duty under the Finance Act, 1894, and, therefore, applicable 
 under s. 5 of the Finance Act, 1910, to increment value duty. 
 
 (7) The duty which is to be collected upon an Inland Revenue Ih., 1894, 
 affidavit or account shall be due on the delivery thereof, or on the *• ^ (^)* 
 expiration of six months from the death, whichever first happens. 
 
 This sub-section may be applicable to increment value duty. 
 
 (8) Provided that the duty due upon an account of real property /J., sub-s. (8) 
 may, at the option of the person delivering the account, be paid by eight 
 
 equal yearly instalments, or sixteen half-yearly instalments, with 
 interest at the rate of three per cent, per annum from the date at which 
 the first instalment is due, leas income tax, and the first instalment shall 
 he due at the expiration of twelve months from the death, and the 
 interest on the unpaid portion of the duty shall be added to each instal- 
 ment and paid accordingly ; but the duty for the time being unpaid, 
 with such interest to the date of payment, may be paid at any time, and 
 in case the property is sold, shall be paid on completion of the sale, and 
 if not so paid shall be duty in arrear. 
 
 This sub-section will also probably be applicable (see per Sir Samuel 
 Evans, then Solicitor-General, in the House of Commons, July 14, 1909. 
 Vol. 7, Hansard, p. 2256). 
 
 Sect. 40 of the Finance Act, 1896, coupled with Part III. of the 
 Schedule to such Act, repeals the words in italics. 
 
 s. 7 (1) to (4) inclusive, which relate to allowances for debts and to I^-, s. 7 (1) — 
 property in a foreign country, do not seem to be applicable to increment ^^^' 
 value dut}% and are not therefore set out. 
 
 (5) The principal value of any property shall be estimated to be the 
 price which, in the opinion of the Commissioners, such property would 
 fetch if sold in the open market at the time of the death of the deceased ; 
 
 [Provided that, in the case of any agricultural property, where no part Repealed by 
 of the principal value is due to the expectation of an increased income ^ ^^ f i qio 
 from such property, the principal value shall not exceed twenty-five 
 times the annual value as assessed under Schedule A of the Income Tax 
 Acts, after making such deductions as have not been allowed in that 
 assessment and are allowed under the Succession Duty Act, 1853, and 
 
96 
 
 Land Clauses of the Finance Act. 
 
 §6- 
 
 Amendment 
 as to value 
 of property 
 by Act of 
 1910. 
 
 making a deduction for expenses of management not exceeding five per 
 cent, of the annual value so assessed.] 
 
 Sub-s. (5) relates apparently to " value of property " (see title of 
 group of sections 6 to 10, referred to on p. 92 ; and see also side-note 
 to s. 7 in the Act of 1894, both of which contain the words "value of 
 property ") and not to " assessment, collection and recovery," but it is 
 material, because under s. 2 (2) (c) the site value on the occasion of death 
 is to be the principal value of the land, or is to be based on the principal 
 value of the interest in the land, as ascertained for the purposes of 
 Part I. of the Finance Act, 1894. In this relation s. 60 (1) (2) of the 
 Finance Act, 1910, must be noted (see notes on p. 478) : — 
 
 s. 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. 
 
 (2) In estimating the principal value of any property under sub- 
 section (5) of section seven of the principal Act, in the case of any person 
 dying on or after the thirtieth day of April, nineteen hundred and nine, 
 the Commissionei's shall fix the price of the property according to the 
 market price at the time of the death of the deceased, and shall not 
 make any reduction in the estimate on account of the estimate being 
 made on the assumption that the whole property is to be placed on the 
 market at one and the same time. 
 
 Provided that where it is proved to the Commissioners that the value 
 of the property has been depreciated by reason of the death of the 
 deceased, the Commissioners in fixing the price shall take such 
 depreciation into account. 
 
 Sect. 61 (1) of the Act of 1910 is as follows, 
 material : — 
 
 It is probably not 
 
 Special pro- 
 visions with 
 respect to 
 certain 
 classes of 
 property. 
 
 Principal 
 value. 
 
 Total value. 
 
 s. 61. — (1) Notwithstanding any thing in the last preceding section, the 
 proviso to subsection (5) of section seven of the principal Act shall con- 
 tinue to apply to the valuation of property consisting of a tenancy from 
 year to year, including any tenancy which is, or is deemed to be, subject 
 to statutory conditions under the Land Law (Ireland) Acts, and for 
 determining the gross value or the net value of property for the purpose 
 of section sixteen of the principal Act. 
 
 The principal value under the Finance Act, 1894, seems to he pi^imii 
 facie the same thing as the total value under s. 25 (3) of the Finance 
 Act, 1910, but it must not be assumed that differences between the 
 two may not emerge m the course of time. The only two cases which 
 appear to have been decided on s. 7 (5) of the Act of 1894 are 
 Attorney-General v. Jameson ( [1905] 2 I. R. 218] ), on the meaning of the 
 words " open market " as applied to shares in a company, and Inland 
 Revenue v. Marr's Trustees (44 Sc. L. R. 647), as to the time of the 
 valuation in relation to cattle, neither of which appears to throw much 
 
Increment Value Duty. 97 
 
 light on the subject of the present work. The deduction under s. 7 (1) § 5- 
 of the Act of 1894 of incumbrances from the value of the land subject 
 thereto, for the purpose of fixing estate duty, as compared with the fact 
 that under s. 25 (3) of the Act of 1910 "total value " is to be ascer- 
 tained as if the land were free from incumbrances, is not, of course, 
 material, since principal value, for the purposes of s. 2 (2) (c), is doubt- 
 less to be ascertained under s. 7 (5) as if the land were free from 
 incumbrances. If this is not the case the scheme of s. 2 (2) for ascer- 
 taining increment value duty on death is unworkable.''' 
 
 Sect. 16 of the principal Act (B'inance Act, 1894) is the section 
 limiting the amount of the estate duty to small fixed sums in the case 
 of estates, the gross value of which is under 500/. See post, p. 112. 
 
 (6) Where an estate includes an interest in expectancy, estate duty in Finance Act, 
 respect of that interest shall be paid, at the option of the person accountable 1894, s. 7 (6). 
 for the duty, either with the duty in respect of the rest of the estate or 
 when the interest falls into possession, and if the duty is not paid with 
 the estate duty in respect of the rest of the estate, then — 
 
 (a) for the purpose of determining the rate of estate duty in respect 
 of the rest of the estate the value of the interest shall be its value at 
 the date of the death of the deceased ; and 
 
 (b) the rate of estate duty in respect of the interest when it falls into 
 possession shall be calculated according to its value when it falls into 
 possession, together with the value of the rest of the estate as previously 
 ascertained. 
 
 The sub-section up to the first "possession" may possibly be material, 
 but the rest of the sub-section relates to aggregation, and is not 
 material. 
 
 The application of the former portion of the sub-section to increment 
 value duty requires consideration. Increment value duty is not 
 payable on reversions expectant on estates of freehold, or on remainders 
 expectant, either on freeholds or on leaseholds passing on death, 
 because they are neither " the fee simple of the land " nor interests in 
 the land within the meaning of s. 1 (6) ; see the definitions of the two 
 expressions in s. 41. A reversion expectant on a lease is "an interest" 
 in land under the Finance Act, 1910, but under the Finance Act, 1894, 
 s. 22 (1) (j), it is not an "interest" in expectancy, while all other 
 reversions and remainders are interests in expectancy. It seems, there- 
 fore, that this sub-section is not applicable to increment value duty on 
 reversions expectant upon freeholds and remainders expectant on free- 
 holds and leaseholds, because they are not subject to increment value 
 duty on death, and is perhaps not applicable to reversions expectant 
 upon leases, because they are not interests in expectancy within the 
 meaning of the section of the Act of 1894, but this latter point is by no 
 
 * "Principal value" is a phrase taken from the Succession Duty Act, 
 1853 (16 & 17 Vict. c. 51). See sections 16, 18, 26, 27. 
 
 N. 7 
 
98 . Land Clauses of the Finance Act. 
 
 § 6- means clear. On the whole it is suggested that no part of the sub- 
 
 section applies to increment value duty. 
 
 Finance Act, (7) The value of the benefit accruing or arising from the cesser of an 
 
 1894, s. 7 (7). interest ceasing on the death of the deceased shall — 
 
 (a) if the interest extended to the whole income of the property, be 
 the principal value of that property ; and 
 
 (b) if the interest extended to less than the whole income of the 
 property, be the principal value of an addition to the property equal to 
 the income to which the interest extended. 
 
 It is difficult to prophesy whether sub-s. (7) is applicable to increment 
 value duty. In so far as it is, the cases intended to be met by it are 
 probably also covered by the provisions of s. 3 (4) of the Act of 1910. 
 Under the Finance Act, 1894, this sub-section applies (1) to cases 
 where pure personal property is held upon trusts for a life or lives, and 
 the life or lives come to an end, and (2) to cases of annuities charged 
 on land or other property and rent-charges issuing out of land (see 
 Austen-Cartniell, p. 113, 5th ed.). In these cases estate duty is payable 
 on the cesser of the " interests " just referred to. But increment value 
 duty is not payable on the cesser of an annuity charged on land, or of a 
 rent-charge, since it is only payable when, on the death of a person, the 
 fee simple of or an interest in the land is property passing on his 
 death (s. 2 (2) (c) ). " The expression ' interest ' does not include an 
 incumbrance as defined by this Act," or "any purely incorporeal 
 hereditament" (s. 41). "The expression 'incumbrance' includes . . . 
 a charge of a portion, annuity, or any capital or annual sum." For 
 these reasons (6) of sub-s. (7) seems to have no application to increment 
 value duty. It is possible that under (a) might be included a case 
 where trustees are seised of land upon trusts for sale and investment 
 and payment of the income to A. for life and upon his death to B. 
 absolutely ; but for reasons already submitted (ante, p. 1 6) it has been 
 suggested that increment value duty is not by virtue of s. 1 (6) payable 
 in respect of land already subject to an effective trust for conversion. 
 
 lb. sub-s. (8). (8) Subject to the provisions of this Act, the value of any property 
 
 for the purpose of estate duty shall be ascertained by the Commissioners 
 in such manner and by such means as they think fit, and, if they 
 authorise a person to inspect any property and report to them the value 
 thereof for the purposes of this Act, the person having the custody or 
 possession of that property shall permit the person so authorised to 
 inspect it at such reasonable times as the Commissioners consider 
 necessary. 
 
 Sub-s. (8) seems applicable to increment value duty, but covers the 
 same ground as s. 31 (2) of the Finance Act, 1910. See p. 348. 
 
 lb., sub-s. (9). (9) Where the Commissioners reqviire a valuation to be made by a 
 
 person named by them, the reasonable costs of such valuation shall be 
 defrayed by the Commissioners. 
 
Increment Value Duty. 99 
 
 Sub-s. (9) may possibly be applicable. § 5- 
 
 (10) Property passing on any death shall not be aggregated more Finance Act, 
 than once, nor shall estate duty in respect thereof be more than once 189't,s. 7(10). 
 levied on the same death. 
 
 Sub-s. (10) does not seem applicable. 
 
 8. — (1) The existing law and practice relating to any of the duties //^., s. 8 (1). 
 now leviable on or with reference to death shall, subject to the pro- 
 visions of this Act and so far as the same are applicable, apply for the 
 purposes of the collection, recovery, and repayment of estate duty, and 
 for the exemption of the property of common seamen, marines or soldiers 
 who are slain or die in the service of Her Majesty, and for the purpose 
 of payment of sums under one hundred pounds without requiring 
 representation, as if such law and practice were in terms made applicable 
 to this Part of this Act. 
 
 This sub-section would seem to be applicable. For the " existing law 
 and practice relating, etc.," the standard authorities must be consulted. 
 The following remarks may, however, be made. 
 
 The sub-section would seem to apply to increment value duty payable Procedure by 
 on death the procedure under the Crown Suits, etc., Act, 1865 (28 ik 29 
 Vict. c. 104), by which duty is recovered by the Crown. For the 
 practice on English information, which is the usual method in which 
 the Crown recovers either a debt or penalty, see ss. 1 — 17 of that 
 Act, and Annual Practice, 1912, Vol. 2, pp. 1097 and 1103. For summary 
 proceedings by the Commissioners for aii account and payment of duty, 
 under s. 55, see Annual Practice, p. 1157, ib. For payment after assess- 
 ment, there being no appeal against the assessment, or dispute as to 
 the liability to assessment, see s. 56. For appeals in fcuch cases, see 
 8. 59, and Orders 58 and 68, r. 2 (2) (e), of the Rules of the Supreme 
 Court. Questions of repayment would, it seems, be determined under 
 s. 8 (12) of the Finance Act, 1894, {post, p. 104; and s. 33 of the 
 Act of 1910, post, p. 358); and if those sections were not applicable any 
 overpaid duty could, it is thought, be recovered by Petition of Right. 
 In re Nathan (1884), 12 Q. B. D. 461 ; Grossman v. Eegina (1886), 
 18 Q. B. D. 256. The exemptions of the property of common seamen, 
 marines, or soldiers from estate duties are by s. 8 made applicable to 
 increment value duty. Under various Acts of Parliament, sufficiently 
 referred to in the text-books on the death duties, exemptions from 
 the necessity of taking out probate are established in' relation to sums 
 not exceeding in some cases 100^., and in others 50^., and in these cases 
 estate duty is understood not to be payable. It would seem also that 
 in such cases, by virtue of this sub-section, increment value duty is 
 also not payable, but the matter is not without doubt. Probably 
 the sections as to provision for legacy and succession duties in administra- 
 tion actions are applied directly or will apply by analogy to increment 
 value duty. (See 36 Geo. 3, c. 52, s. 25 ; 16 & 17 Vict. c. 51, s. 53.) 
 
 7—2 
 
100 
 
 Land Clauses of the Finance Act. 
 
 §5 
 
 Finance Act, 
 1894, s. 8 (2) 
 52 & 53 Vict, 
 c. 7. 
 
 54 & 55 \ ict. 
 c. 66. 
 
 Protection by 
 lipse of time. 
 
 (2) Sections twelve to fourteen of the Customs and Inland Eevenue 
 Act, 1889, and section forty-seven of the Local Registration of Title 
 (Ireland) Act, 1891, shall apply as if estate dutj' were therein mentioned 
 as well as succession duty, and as if an account were not settled within 
 the meaning of any of the above sections until the time for the payment 
 of the duty on such account has arrived. 
 
 The provisions of ss. 12 to 14 of the Customs aud Inland Revenue 
 Act, 1889, relate to the protection by lapse of time of purchasers for 
 value and mortgagees against claims for succession duty, aud of personal 
 representatives against claims for legacy and succession duty. It seems 
 probable that, by virtue of s. 5 of the Act of 1910, they are applied to 
 increment value duty, and they are therefore set out in the Appendix 
 (see p. 614). It must, however, be noted that the protection of a 
 })urchaser from the personal representative or devisee against a claim for 
 increment value duty arising on death seems to be sufficiently secured 
 by the presence on his conveyance of one of the stamps referred to in 
 s. 4 (3). " Where an instrument is so stamped it shall notwithstanding 
 any objection relating to the increment value duty be deemed to be duly 
 stamped as far as respects that duty " (ib.). The duty assessable on the 
 occasion of a sale is 20 per cent, on the difiference between the site value, 
 on the occasion of the sale, and the original site value, after making all 
 proper deductions, including any which may be claimed under s. 3 (5). 
 The duty is clearly not only the amount actually paid on the occasion, 
 but is 11. for every complete 51. of increment value accruing after 
 April 30, 1909, and on the occasion of the sale the duty is to be 
 collected, so far as it has not been paid on any previous occasion (s. 1). 
 When assessed, under s. 4 (relating to increment value duty on sales 
 and leases), for the purpose of calculating the amount of increment value 
 duty to be collected, on any subsequent occasion it is deemed to 
 have been paid (s. 4 (4) ). If, however, this view is mistaken and the 
 stamp in question does not operate as a protection, the position 
 seems to be as follows : The duty payable on death seems clearly 
 charged on the laud, under s. 5 of the Act of 1910, where the land is 
 property passing to the personal representative as such, and probably 
 also under s. 9 (1) of the Finance Act, 1894, where the land does not 
 pass to the personal representative as such, but, for example, to a devisee. 
 There is in the Finance Act, 1910, no provision exempting a bond fide 
 purchaser for value without notice from liability to the duty. But 
 there are such provisions in relation both to property which does and 
 property which does not pass to the executor as such in the Finance Act, 
 1894 (see s. 8 (18) ; s. 9 (1) ). So far as regards the former species of 
 property, as estate duty is not a charge upon it, the provision (s. 8(18)) was 
 perhaps not necessary ; but if applied by s. 5 of the 1910 Act to increment 
 value duty, which it is thought is charged upon such property, it may 
 be useful. " Without notice " must, at all events until the Courts have 
 decided to the contrary, be taken to mean without notice of facts which 
 
Increment Value Duty. 101 
 
 may give rise to a claim for duty, that is without notice of the death, § 5. 
 
 and not merely without notice that the duty has not been paid in 
 respect of an occasion known to have arisen on which duty is due. 
 So far, therefore, as sections 8 (18) and 9 (l),of the Finance Act, 1894, 
 are concerned, a purchaser of land from a personal representative or 
 devisee should impiire whether increment value duty has been paid and 
 inspect the certificate of payment of the Commissioners under s. 9 (2) 
 of the Act of 1894, if the land falls within s. 9. Note that there is no 
 provision as to duty assessed on a death occasion corresponding with 
 s. 4 (4), and s. 6 (4) as to duty assessed under s. 1 (a) and (c). Possibly 
 this sub-section incorporates as to estate or increment value duty the 
 provisions of s. 25 of the Legacy Duty Act, 1796, and s. 53 of the 
 Succession Duty Act, 1853, under which the Court in administration 
 actions must provide for payment of those duties. 
 
 Sect. 47 of the Local Registration of Title (Ireland) Act, 1891 
 (54 & 55 Vict. c. 66), is set out in the Appendix, p. 616. 
 
 (3) The executor of the deceased shall, to the best of his knowledge Finance Act, 
 and belief, specify in appropriate accounts annexed to the Inland l^^^i s. 8 (3). 
 Revenue affidavit all the property in respect of which estate duty is 
 payable upon the death of the deceased, and shall be accountable for the 
 estate duty in respect of all personal property wheresoever situate of 
 which the deceased was competent to dispose at his death, but shall not 
 be liable for any duty in excess of the assets which he has received as 
 executor, or might but for his own neglect or default have received. 
 
 This sub-section seems to be applicable. 
 
 There is no difficulty at all in applying it to increment value duty 
 up to the second " deceased " ; and the rest of the sub-section appears 
 to fit in fairly with s. 5 of the Act of 1910. Under s. 8 (3) of the 
 Act of 1894 the executor is accountable out of the general assets for 
 the estate duty on leaseholds, but under s. 5 of the Act of 1910 
 increment value duty is payable by the executor out of the leaseholds 
 themselves " in exoneration of the rest of the deceased's estate.'' 
 Apparently, "in exoneration of" does not mean "in discharge of," 
 since the second paragraph of s. 5 recognises that there may be a 
 claim by the Crown for incren:ent value duty against the general assets 
 of the deceased. In such case this sub-section — i.e., s. 8 (3) of the 
 Finance Act, 1894 — would be applicable. 
 
 The increment value duty for which the executor is accountable 
 includes that due in respect of personal property " of which the deceased 
 was competent to dispose." This no doubt would include increment 
 value duty on leaseholds over which the deceased had a general power 
 of appointment by deed or will, which he had died without having 
 executed, and over which he had a general power of appointment 
 which he had actually exercised by will. (See ante, p. 93.) 
 
 But if, as is possible, the proviso to s. 5 of the Finance Act, 1910, 
 extends to increment value duty payable in respect of property which 
 
102 Land Glauses of the Finance Act. 
 
 § 5. does not pass to the executor as such, as well as to property which 
 does so pass, the personal representative is made liable in respect of the 
 general assets for all increment value duty payable on the deceased's 
 death. 
 
 As to the duty of the executor to specify in accounts annexed to the 
 Inland Revenue affidavit all the property in respect of which the incre- 
 ment value duty is payable upon the death of the deceased, see the 
 circular of July, 1910, to solicitors, from the Commissioners of Inland 
 Revenue (Appendix, p. 538, ante, p, 92). In that circular the Com- 
 missioners state that they have decided not to require executors and others 
 to render in the first instance a separate account for the purposes of 
 increment value duty ; and that the necessary valuations will be made 
 by reference to the affidavit and accounts furnished for estate duty 
 purposes, and a further account for the purposes of increment value 
 duty will only be called for in cases where there is a primd facie liability 
 for that duty. This circular makes it plain that executors have only to 
 make the affidavit and furnish the accounts in the same manner as they 
 would have done before the Act of 1910, and that the initiative in 
 relation to any increment value duty assessment will rest with the 
 Commissioners. 
 
 Finance Act, (4) Where property passes on the death of the deceased, and his 
 
 1894, s. 8 (4). executor is not accountable for the estate duty in respect of such 
 
 property, every person to whom any property so passes for any beneficial 
 interest in possession, and also, to the extent of the propertj^ actually 
 received or disposed of by him, every trustee, guardian, committee, or 
 other person in whom any interest in the property so passing or the 
 management thereof is at any time vested, and every person in whom 
 the same is vested in possession by alienation or other derivative title, 
 shall be accountable for the estate duty on the property, and shall, 
 within the time required by this Act or such later time as the Commis- 
 sioners allow, deliver to the Commissioners and veiify an account, to 
 the best of his knowledge and belief, of the property : Provided that 
 nothing in this section contained shall render a person accountable for 
 duty who acts merely as agent or bailiff for another person in the 
 management of property. 
 
 Compare this sub-section with section 44 of the Succession Duty Act, 
 1853 (16 & 17 Vict. c. 51). It is, probably, applicable to increment value 
 duty. Under it devisees of legal and equitable estates, including tenants 
 for life and in tail, and parsons with other limited interests, trustees, 
 guardians and committees in whom the legal estate may not be vested, 
 but who have the management of the property, persons to whom the 
 property has been voluntarily transferred by devisee and others, are 
 accountable for increment value duty. As to purchasers for value from 
 devisees, see note to s. 8 (2) Finance Act, 1894, ante, p. 100. Note that 
 mere agents or bailiff's are not accountable. It seems that an executor 
 is under this section accountable for increment value duty on real estate 
 which vests in him by virtue of ss. 1 and 2 of the Land Transfer Act, 
 
Increment Value Duty. 103 
 
 1897 {In re Sharman, Wright v. Sharman, [1901] 2 Ch. 280). Under § 5. 
 
 this sectiou a remainderman would be liable to pay increment value duty 
 on the death of a tenant for life. (See also on this point s. 3 (4), 
 ante, p. 64.) 
 
 (5) Every person accountable for estate duty, and every person Finance Act, 
 whom the Commissioners believe to have taken possession of or ad- jf^ ' ®- v>;— 
 ministered any part of the estate in respect of which duty is leviable 
 
 on the d§ath of the deceased, or of the income of any part of such 
 estate, shall, to the best of his knowledge and belief, if required by the 
 Commissioners, deliver to them and verify a statement of such parti- 
 culars, together with such evidence as they require relating to any 
 property which they have reason to believe to form part of an estate in 
 respect of which estate duty is leviable on the death of the deceased. 
 
 (6) A person who wilfully fails to comply with any of the foregoing 
 provisions of this section shall be liable to pay one hundred pounds, or 
 a sum equal to double the amount of the estate duty, if any, remaining 
 unpaid for which he is accountable, according as the Commissioners 
 elect : Provided that the Commissioners, or in any proceeding for the 
 recovery of such penalty the Court, shall have power to reduce any such 
 penalty. 
 
 (7) Estate duty shall, in the first instance, be calculated at the 
 appropriate rate according to the value of the estate as set forth in the 
 Inland Eevenue affidavit or account delivered, but if afterwards it 
 appears that for any reason too little duty has been paid, the additional 
 duty shall, unless a certificate of discharge has been delivered under 
 this Act, be payable, and be treated as duty in arrear. 
 
 (8) The Commissioners on application from a person accountable for 
 the duty on any property forming part of an estate shall, where they 
 consider that it can conveniently be done, certify the amount of the 
 valuation accepted by them for any class or description of property 
 forming part of such estate. 
 
 (9) Where the Commissioners are satisfied that the estate duty leviable 
 in respect of any property cannot without excessive sacrifice be raised 
 at once, they may allow pajinent to be postponed for such period, to 
 such extent, and on payment of such interest not exceeding four per 
 cent, or any higher interest yielded by the property, and on such terms, 
 as the Commissioners think fit. 
 
 Sub-sects. (5) and (6), and possibly, but not probably, sub-ss. (8) 
 and (9) may apply to increment value duty. It is thought that 
 sub-s. (7) is not applicable. The first sentence in that sub-section down 
 to the word " but " is at all events inappropriate to increment value duty. 
 
 Sub-sect. (10) of s. 8 of the Finance Act, 1894, which is as follows : — jj.^ 
 
 (I) Interest on arrears of estate duty shall he paid as if they luere repealed. 
 arrears of legacy duty 
 
 is repealed by s. 40 of the Finance Act, 1896 (see ante, p. 95), and for 
 it is substituted s. 18 of that Act (ib.). 
 
 (II) If after the expiration of twenty years from a death upon which / j., 
 estate duty became leviable any such duty remains unpaid, the sub-s. (11). 
 
104 
 
 Land Clauses of the Finance Act. 
 
 §6 
 
 Finance Act, 
 1894,8.8(12). 
 
 Jh., 
 
 sub-ss. 
 (18). 
 
 (l.S)- 
 
 44 & 45 Vict, 
 c. 12. 
 
 Commissionei-s may, if they think fit, on the application of any person 
 accountable or liable for such duty or interested in the property, 
 remit the payment of such duty or any part thereof or any interest 
 thereon. 
 
 (12) Where it is proved to the satisfaction of the Commissioners that 
 too much estate duty has been paid, the excess shall be repaid by them, 
 and in cases where the over- payment was due to over- valuation by the 
 Commissioners, with interest at three per cent, per annum. 
 
 Does sub-s. (12) apply to increment value duty? Is a subsequent 
 realisation at a lower value than that placed by the Commissioners on 
 the land evidence " that too much increment value duty has been paid" 
 on the death? It would seem that increment value duty is payable 
 under s. 1 of the Act of 1910, even though the increment is merely 
 temporary and has disappeared on a subseqiient occasion. The real 
 question is therefore what was the value at the death. If duty was 
 paid on the value at the death, it is thought that it was rightly paid 
 and cannot be recovered if that value was not maintained ( Wishart, &c. 
 y. Lord Advocate, 8 S. S. C, 4th S., 74). 
 
 (13) Where any proceeding for the recovery of estate duty in respect 
 of any property is instituted, the High Court shall have jurisdiction to 
 appoint a receiver of the property and the rents and profits thereof, and 
 to order a sale of the property. 
 
 (14) All aflBdavits, accounts, certificates, statements, and forms used 
 for the purpose of this Part of this Act shall be in such form, and con- 
 tain such particulars, as may be prescribed, and if so required by the 
 Commissioners shall be in duplicate, and accounts and statements shall 
 be dehvered and verified on oath and by production of books and docu- 
 ments in the manner prescribed, and any person who wilfully fails to 
 comply with the provisions of this enactment shall be liable to the 
 penalty above in this section mentioned. 
 
 (15) No charge shall be made for any certificate given by the Com- 
 missioners imder this Act. 
 
 (16) The estate duty may be collected by means of stamps or such 
 other means as the Commissioners prescribe. 
 
 (17) The form of certificate required to be given by the proper officer 
 of the coiui; under section thii'ty of the Customs and Inland Eevenue 
 Act, 1881, may be varied by a rule of court in such manner as may 
 appear necessary for carrying into effect this Act. 
 
 (18) Nothing in this section shall render liable to or accountable for 
 duty a bond fide purchaser for valiiable consideration without notice. 
 
 All these sub-sections are or may possibly be applicable to increment 
 value duty. A very useful note will be found on siib-s. (18) in Austen- 
 Cartmell's Finance Act, 5th ed., p. 134. But for reasons already stated 
 (ante, p. 100), it has been submitted that the purchaser of land from an 
 executor, trustee, or devisee who takes care that one of the increment 
 value duty stamps referred to in s. 4 (3) is placed oil his conveyance 
 is practically secure (s. 4 (4)). Still sub-s. (18) of s. 8 of the Act of 
 1894 might be useful in this respect, that it might protect a person who 
 
Increment Value Duty. 105 
 
 was a purchaser in a broader sense than is implied by the words § 6. 
 
 " transfer on sale " in s. 1 (a). As to notice and purchasers, see the 
 Conveyancing Act, 1882, s. 3 (3). 
 
 9. — (1) A i-ateable part of the estate duty on an estate, in proportion Finance Act, 
 to the value of any propertj^ which does not pass to the executor as 1894, s. 9 (1). 
 such, shall be a first charge on the property in respect of which duty is 
 leviable; provided that the property shall not be so chargeable as 
 against a bond fide purchaser thereof for valuable consideration without 
 notice. 
 
 This sub-section is probably applicable to increment value duty. If it 
 is so, that duty is by this sub- section made a first charge on land 
 " which does not pass to the executor as such." By s. 5 of the Finance 
 Act, 1910, increment vahie duty is "payable out of" an interest in 
 land which passes to the personal representative as such, in exoneration 
 of the rest of the " deceased's estate." Is there any material distinction 
 between the two forms of expression ] A sum payable out of an interest 
 appears in effect to be charged on that interest. The word "first" in 
 the Act of 1894 must, of course, not be lost sight of. That word, 
 however, appears not to have the efifect of conferring priority on the 
 Crown's claim for estate duty over incumbrances or charges on the 
 property created by the deceased in his lifetime, since subs. (3) of s. 9 
 of the Finance Act, 1894, gives the person who has properly paid the 
 Crown, and who presumably steps into the shoes of the Crown, a 
 certificate which is " conclusive evidence that the amount of duty named 
 therein is a first charge on the lands . . . after the debts and incum- 
 brances allowed as aforesaid," that is the debts and incumbrances 
 allowed under s. 7 (1) of the Act of 1894. In the case of increment 
 value duty, however, the position is somewhat different. This duty is 
 not created by the death, but death is an occasion for its collection. It 
 would, it is apprehended, be payable by a mortgagee who had sold the 
 property the day before the death of the mortgagor (see p. 452, " Note 
 on the position of mortgagees "), even though the effect of the payment 
 were to cause his security to become deficient. It would of course be 
 payable by the owner if he had sold in his lifetime. Estate duty would 
 not be payable by an owner who had bond fide sold out and out, or by 
 a mortgagee who sold in the lifetime of the mortgagor. There then 
 seems to be no reason why, if s. 9 (1) of the Finance Act of 1894 does, 
 as is thought, apply to increment value duty payable on death, full 
 effect should not be given to the words " first charge " in the case of 
 increment value duty. 
 
 Although s. 9 (1) of the Act of 1894 is important in relation to estate 
 duty, since it shows clearly that that duty is in the case of specific 
 devises of realty and legacies charged on realty to be borne by the 
 estate or legacy and not by the general personalty, it is not so important 
 in relation to increment value duty, which by virtue of s. 5 of the Act 
 
of cases. 
 
 106 Land Clauses of the Finance Act. 
 
 § 6. of 1910 is always a charge on (payable out of) the specific property, 
 
 and never to be borne by the residue in the first instance. 
 
 It cannot, however, be taken to be quite certain that s. 9 (1) applies 
 to increment value duty, since the phraseology is not particularly 
 well adapt(?d to meet the case of this duty. Increment value duty is 
 not, like estate duty, payable in respect of the whole estate, composed 
 of dififerent properties. Each unit pays its own duty separately 
 calculated from the rest of the whole. The question, however, does not, 
 having regard to s. 5, appear to be of great importance ; since the 
 result would probably be the same in any event. 
 
 Three classes of cases must be distinguished in relation to estate duty 
 and increment value duty. 
 Three classes (1) Leaseholds passing to the personal representative as such, 
 (a) Estate duty is payable by the personal representative out of the 
 general assets and is not charged on or payable out of the leaseholds 
 (Finance Act, 1894, s. 6 (2), s. 8 (3) ). (b) Increment value duty is 
 payable out of the leaseholds by the personal representative in exonera- 
 tion of the rest of the deceased's estate, and subject thereto out of the 
 rest of the estate (Finance Act, 1910, s. 5). 
 
 (2) Land not passing to the personal representative as such, as 
 freeholds devised by will or descending on an intestacy or passing 
 under the Land Transfer Act, 1897, ss. 1 and 2. (a) Estate duty is 
 charged on the property itself (Finance Act, 1894, s. 9 (1)) and is 
 payable by the devisees, whether beneficially entitled or entitled in trust 
 or the heir to the extent of the property (ib., s. 8 (4) ), and is not payable 
 out of the general assets. (6) Increment value duty is charged on the 
 land as if it were estate duty, and probably both s. 9 (1) and s. 8 (4) 
 of the Finance Act, 1894, apply. It is doubtful whether under the 
 proviso to s. 5 of the Act of 1910 increment value duty is in this case 
 payable out of the general assets in case it is not paid out of the specific 
 property in respect of which it arises. 
 
 (3) There is, under the provisions of the Finance Act, 1894, yet a 
 third species of property in respect of which there is a charge of the duty 
 on the property itself, and the executor is also liable to pay the duty 
 out of the general assets. Leaseholds over which the deceased had a 
 general power of appointment, which he had died without exercising, 
 are at the same time personal property of which the deceased was 
 " competent to dispose " under s. 6 (2) and s. 8 (3) of the Finance Act, 
 1894 (s. 22 (2) (a) ), and in respect of which the executor is therefore 
 liable to pay the increment duty out of the general assets, and also pro- 
 perty which "does not pass to the executor as such," and in respect of 
 which therefore that duty is, under s. 9 (1) of the Act of 1894, a first 
 charge on the property. As to the proviso at the end of s. 9 (1) of 
 the Act of 1894, see the note on pp. 100 and 105. For the reasons 
 there stated it is submitted that a purchaser from a devisee obtaining 
 a conveyance stamped with one of the three stamps described in s. 4 (3), 
 
Increment Value Duty. 107 
 
 is practically safe from claims arising either on the occasion of the r 5^ 
 
 death or the sale, thovigh it must be admitted that this is not made 
 as plain as could be wished. 
 
 (2) Oil an application submitting in the prescribed form the descrip- Finance Act, 
 tion of the lands or other subjects of property (whether hereditaments, 1^94:, s. 9(2). 
 stocks, funds, shares, or securities), and of the debts and incumbrances 
 
 allowed by the Commissioners in assessing the value of the property for 
 the purposes of estate duty, the Commissioners shall grant a certificate 
 of the estate duty paid in respect of the property, and specify the debts 
 and incumbrances so allowed, as well as the lands or other subjects of 
 property. 
 
 Sub-sect. (2) may be applicable sub modo so far as relates to the 
 increment value duty. It is not possible to speak Avith any certainty 
 on the point. The grant of a certificate that increment value duty has 
 been paid may be a provision relating to its " collection and recovery." 
 Probably the whole of s. 9 of the Finance Act, 1894, is confined to 
 property not passing to the executor as such [In re Webber, Gmbble v. 
 Webber, [1896] 1 Ch. 914). 
 
 (3) Subject to any repayment of estate duty arising from want of ib.^ sub-s. (3). 
 title to the land or other subjects of property, or from the existence of 
 
 any debt or incumbrance thereon for which under this Act an allowance 
 ought to have been but has not been made, or from any other cause, the 
 certificate of the Commissioners shall be conclusive evidence that the 
 amount of duty named therein is a first charge on the lands or other 
 subjects of property after the debts and incumbrances allowed as afore- 
 said : Provided that any such repayment of duty by the Commissioners 
 shall be made to the person producing to them the said certificate. 
 
 Sub-sect. (3) may also be appropriate to increment value duty, but 
 qucere, only in respect of property which does not pass to the executor 
 as such. (See last note ; see also note on sub-s. 1 of this section.) 
 
 (4) If the rateable part of the estate duty in respect of any property /j.^ sub-ss. (4) 
 is paid by the executor, it shall where occasion requires be repaid to — (6). 
 
 him by the trustees or owners of the property, but if the duty is 
 ill respect of real property, it may, unless otherwise agreed upon, be 
 repaid by the same instalments and with the same interests as are in 
 this Act mentioned. 
 
 (5) A person authorised or required to pay the estate duty in respect 
 of any property shall, for the purpose of paying the duty, or raising the 
 amount of the duty when already paid, have power, whether the property 
 is or is not vested in him, to raise the amount of such duty and any 
 interest and expenses properly paid or incurred by him in respect thereof, 
 by the sale or mortgage of or a terminable charge on that property or 
 any part thereof.* 
 
 (6) A person having a limited interest in any property, who pays the 
 estate duty in respect of that property, shall be entitled to the like charge, 
 
 * The tenant for life must keep down the interest on such a mortgage 
 {Be Howe's Estates, [1903] 2 Ch. 69). 
 
108 Land Clauses of the Finance Act. 
 
 S 5. as if the estate duty in respect of that property had been raised by means 
 
 of a mortgage to him. 
 
 These three sub-sections may also be applicable, but it is by no meaus 
 clear tliat they are. They are hardly provisions as to " assessment, 
 collection and recovery under the Finance Act, 1894." The provisions 
 of s. 39 of the Act of 1910 (see p. 412) cover part of the same ground 
 as sub-ss. (5) and (6), and this is some slight argument against the 
 applicability of the latter to increment value duty. But the general 
 title of the block of sections 6 to 10 inclusive of the 1894 Act must not 
 be forgotten, i.e., " Collection and Eecovery of Duty and Value of 
 Property," and conceivably this may conclude the question. 
 
 For payment by instalments referred to in siib-s. (4), see Finance 
 Act, 1894, s. 6 (8), ante, p. 95. 
 
 Finance Act (^) -^"5' money arising from the sale of property comprised in a settle- 
 
 1894, s. 9 (7). ment, or held upon trust to lay out upon the trusts of a settlement, and 
 
 capital money arising under the Settled Land Act, 1 882, may be expended 
 in paying any estate duty in respect of property comprised in the settle- 
 ment and held upon the same trusts. 
 
 Possibly tliis provision also applies to increment value duty, but it 
 seems doubtful. 
 Ib.,s. 10(1). 10. — (1) Sub-sect. (1) gives an appeal from the Commissioners as to 
 estate duty direct to the High Court, and is superseded so far as regards 
 increment duty by s. 33 of the Act of 1910 (post, p. 358), and also as 
 regards the value of real and leasehold propeity in relation to estate 
 duty by s. 60 (3) of the same Act. 
 
 lb. sub-s. (2). (2) No appeal shall be allowed from any order, direction, determina- 
 
 tion, or decision of the High Court in any appeal under this section 
 except with the leave of the High Court or Court of Appeal. 
 
 This and the two following sub-sections are expressly incorporated in 
 the procedure as to appeals under the 1910 Act by s. 33 (4) (pout, p. 367). 
 It may be noted in passing that this special incorporation is an indica- 
 tion, not perhaps decisive, that s. 10 is not applied by s. 5 to increment 
 value as a provision relating to " assessment, collection and recovery of 
 estate duty under the Finance Act, 1894." But s. 10 is one of the 
 group of sections (6 to 10) of the 1894 Act under the title "Collection 
 and Recovery of Duty and Value of Property." This would point to 
 the conclusion that sections 6 to 10 are not therefore applied by s. 5 of 
 the Act of 1910 in the lump to increment value duty, but that 
 discrimination has to be used in their application. 
 
 lb. suhss.(3) (3) ^^® costs of the appeal shall be in the discretion of the Court, and 
 
 (4). the Court, where it appears to the Court just, may order the Com- 
 
 missioners to pay on any excess of duty repaid by them interest at the 
 rate of three per cent, per annum for such period as appears to the 
 Covirt just. 
 
Increment Value Duty. 109 
 
 The Crown is not apart from special contract or statute liable to pay § 6. 
 
 interest on money paid to it in error (Re Gosman, 17 Ch. D. 771). 
 
 (4) Provided that the High Court, if satisfied that it would impose 
 hardship to re juire the apijellant, as a condition of an appeal, to pay the 
 whole or, as the case may be, any part of the duty claimed by the 
 Commissioners or of such portion of it as is then payable by him, may 
 allow an appeal to be brought on payment of no duty, or of such part 
 only of the duty as to the Court seems reasonable, and on security to 
 the satisfaction of the Court being given for the duty, or so much of 
 the duty as is not so paid, but in such case the Court may order 
 interest at the rate of three per cent, per annum to be paid on the 
 unpaid duty so far as it becomes payable under the decision of the Court. 
 
 See the note above on sub-s. (2) of s. 10. 
 
 Sub-sect, (5) gives nn appeal as to estate duty where the value of the Finance Act, 
 property in respect of which the dispute arises is under 10,000^. to the ^^^^' s. 10(5). 
 county court. This provision is clearly superseded as to increment 
 value duty by s. 33 (4) of the present Act, under which the limit of the 
 county court jurisdiction is 500/. total or site value, as alleged by the 
 Commissioners. 
 
 Sub-sect. (6) empowers county and county borough councils to appoint i*., sub-s. (6). 
 county valuers, and to provide for their remuneration, and empowers the 
 Court to refer questions of disputed value to them. It is one of the 
 claiises which primd facie seem to relate to "assessment," but if, as seems 
 probable, the whole of s. 10 is excluded with the exception of ss. 2, 3, 
 and 4, which are expressly incorporated by s. 33, this sub-section is not 
 applicable to increment value duty. 
 
 It is further to be noted that by s. 60 (3) of the Act of 1910 (see 
 p. 479) the appeal under s. 10 of the Finance Act, 1894, where the 
 question in dispute is a question of the value of real or leasehold property, 
 is taken away, and in lieu thereof an appeal is given as to such value in 
 manner prescribed by the Finance Act, 1910. 
 
 There now follows a block of provisions (ss. 11 — 15 inclusive), the 
 title of which is " Discharge from and Apportionment of Duty." They, 
 or some of them, may be incorporated into the 1910 Act by s. 5. Pro- 
 visions relating either to the discharge or to the apportionment of duty 
 may fairly be considered as relating to " collection and recovery " 
 within the meaning of s. 5. An apportionment is often an essential 
 preliminary to, and a discharge is a necessary seqviel of, the collection 
 of duty. For these reasons it is thought that the provisions of ss. 1 1 to 15 
 must be a little more fully considered than was the case in the first 
 edition of this work. 
 
 s. 11. — (1) The Commissioners on being satisfied that the full estate ib., s. 11 (1). 
 duty has been or will be paid in respect of an estate or any part thereof 
 shall, if required by the person accounting for the duty, give a certificate 
 to that effect, which shall discharge from any further claim for estate 
 
110 Land Clauses of the Finance Act. 
 
 § 6. duty the property shown by the certificate to form the estate or part 
 
 thereof as the case may be. 
 
 There seems no reason why this siib-seetion should not apply to 
 increment value duty, but it seems of little practical use. For there is 
 the register (s. 30), of which copies may be obtained for a small fee ; 
 and further, there is the increment value duty stamp which a purchaser 
 would require to have placed on his conveyance xmder s. 4 (2). 
 Finance Act, Sub-sect. (2) relates to the determination of the rate of estate duty 
 • ® ' ^" arising from the aggregation of estates and is clearly not material. 
 
 Ih. sub-s. (3). (3) A certificate of the Commissioners under this section shall not 
 
 discharge any person or property from estate duty in case of fraud or 
 failure to disclose material facts, and shall not affect the rate of duty pay- 
 able in respect of any property afterwards shown to have passed on the 
 death, and the duty in respect of such property shall be at such rate as 
 would be payable if the value thereof were added to the value of the 
 property in respect of which duty has been already accounted for. 
 
 This relates to the certificate referred to in sub-s. (1) and may have 
 a possible application. 
 
 /J., sub-s. (4). (-1) Provided nevertheless that a certificate purporting to be a dis- 
 
 charge of the whole estate duty payable in respect of any property 
 included in the certificate shall exonerate a hond fide purchaser for 
 valuable consideration without notice from the duty notwithstanding 
 , any such fraud or failure. 
 
 This sub-section also relates to the certificate referred to in sub-s. (1). 
 
 See note on that sub-section. 
 Ib.,s. 12. Sect. 12 relates to the commutation of duty on interest in expectancy 
 
 and is almost certainly not applicable to increment value duty. 
 lb., s. 13. Sect. 1 3 gives power to the Commissioners to accept a composition 
 
 for death duties and is probably not applicable to increment value duty. 
 
 lb., s. 14 (1). 8. 14. — (1) In the case of property which does not pass to the executor 
 
 as such, an amount equal to the proper rateable part of the estate duty 
 may be recovered by the person who, being authorised or required to 
 pay the estate duty in respect of any property, has paid such duty, 
 from the person entitled to any sum charged on such property (whether 
 as capital or as an annuity or otherwise), under a disposition not 
 containing any express provision to the contrary. 
 
 This section is given because sooner or later it will have to be decided 
 whether it is applicable. It is of some importance. 
 
 Illustration. 
 
 A. devises the home farm by will to B. and charges it with 
 payment of a legacy of 1,000?. to C. and an annuity of 50?. to D. 
 
 It is clear that B. and C. will have to bear the proper rateable part 
 of the estate duty in respect of their respective gifts {In re Parker- 
 
Increment Value Duty. Ill 
 
 Jervis, [1898] 2 Ch. 643; Berry v. Gmikroger, [1903] 2 Ch. 116); § 5. 
 but will they also have to bear a proportionate part of the increment 
 value duty 1 The question, it is thought, could only be answered after 
 close examination of the nature and incidents of that duty. There is a 
 difference in the natures of the two duties, especially in the fact that 
 increment value duty is payable on land only, while estate duty is pay- 
 able in respect of all property. It may be also noted that s. 14 does 
 not relate to " assessment, collection or recovery," which are acts in which 
 the State is concerned, but simply to adjustment inter se of the rights of 
 parties, the duty on whose joint property has been paid by one of them. 
 On the other hand the words of s. 5 of the 1910 Act are : " 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 he collected 
 on the occasion of the death of any person were estate duty " ; but of covirse 
 the question is whether s. 14 is one of the provisions in question. If it 
 is, there would not seem to be greater difficulty in apportioning the incre- 
 ment value duty amongst the various interests in the land than in 
 apportioning estate duty. It is clear that where land is directed by will 
 to be sold and the proceeds are bequeathed amongst several persons 
 in certain shares, the increment value duty must of necessity be 
 apportioned amongst those shares, there being no special direction in 
 the will for payment otherwise. 
 
 Even if the effect of the proviso to s. 5 is that as to land not passing 
 to the executor as such increment value duty is payable out of the 
 general assets as a subsidiary and secondary source of payment, not 
 much additional light is thrown upon the subject. In case the executor 
 pays duty under that proviso, it may probably be recovered by him from 
 the devisees of the land (i.e., the trustees or owners) under s. 9 (4) of 
 the Act of 1894, and they in turn could recover from the person entitled 
 to the charge or annuity. On the whole it is thought, with some 
 hesitation, that the sub-section is applicable to increment value duty. 
 
 (2) Any dispute as to the proportion of estate duty to be borne by Finance Act, 
 any property or person may be determined upon application by any 1""*' ^- 1* C2)- 
 person interested in manner directed by Rules of Court, either by the 
 
 High Court, or, where the amount in dispute is less than 50/., by a 
 county court for the county or place in which the person recovering the 
 same resides or the property in respect of which the duty is paid is situate. 
 
 For the order regulating proceedings in the High Court, see Order 55, 
 r. 9 (c). 
 
 For the county court procedvire, see Covin ty Court Rules, 1903, 
 Order 42, r. 12. 
 
 Whether this sub-section applies to increment value duty or not 
 involves the question discussed in the note to s. 14 (1). 
 
 (3) Any person from whom a rateable part of estate duty can be /*•, sub-s. (3). 
 recovered under this section shall be bound by the accounts and valua- 
 
112 Land Clauses of the Finance Act. 
 
 § 6» tioiis as settled between the person entitled to recover the same and 
 
 the Commissioners. 
 
 See last note. 
 
 Finance Act, Sect. 15 relates to certain exemptions of property (including an 
 
 1894, s. 15. advowson) from estate duty and is not material. 
 
 lb.,s. Id. Sect. 16 substitutes in the case of small estates not exceeding 500^. 
 
 in value a fixed duty for the ordinary estate duty, and exempts from 
 the provisions as to aggregation for estate duty estates not exceeding 
 1,000/. in value. It seems not material to increment value duty, but 
 the point is obscure, and since it seems unlikely to be of any practical 
 moment is therefore not discussed. 
 Th.. ss. 17 — Sect. 17 fixes the rates of estate duty and settlement estate duty, but 
 
 ^^- has been amended by the Finance Act, 1907, s. 12, and the Finance 
 
 (1909-10) Act, 1910, s. 54, and is not applicable. 
 
 Sect. 18 relates to valuation for the purposes of succession duty and 
 is not material. 
 
 Sect 19 relates to a local taxation grant out of the estate duty 
 derived from personal property and is clearly not material. 
 
 Sect. 20 contains provisions exempting from estate duty property 
 in British possessions, and is not material. 
 
 Sect. 21 (1) (2) (3) and (4) contain certain exemptions from estate 
 duty not mateiial, it is thought, to increment value duty. 
 
 /*., s. 21 (.5). (5) Where a husband or wife is entitled, either solely or jointly 
 
 with the other, to the income of any property settled by the other 
 under a disposition which has taken effect before the commence- 
 ment of this Part of this Act, and on his or her death the sm-vivor 
 becomes entitled to the income of the property settled by such survivor, 
 estate duty shall not be payable in respect of that property until the 
 death of the survivor. 
 
 This is not, it is thought, a provision relating to *' assessment, 
 collection or recovery," but it is believed to be material because it 
 operates by way of exception to or limitation of ss. 1 and 2 of the 
 Finance Act, 1894, and therefore in all probability of s. 1 (6) of the 
 Act of 1910. It seems that what is incorporated in s. 1 (6) is that 
 which is included in sections 1 and 2 (1) (a) (b) and (c) and (3) of the 
 Finance Act, 1894, as cut down or modified by subsequent sections of 
 that Act. It would be almost absurd to think that the Legislature 
 meant those sections to be incorporated, siibject to subsequent enact- 
 ments amending them, which it clearly did by the very words of s. 1 (6) 
 of the Act of 1910, and yet that it did not mean them to be incor- 
 porated with the modifications, provisoes, and exceptions of the original 
 Act itself. 
 
 Illustration of Sect. 21 (5), Finance Acr, 1894. 
 A., the owner in fee of Blackacre, before the Finance Act, 1894, 
 
Increment Value Duty. 113 
 
 conveys it to the use of B. his wife for life, remainder to A. for life, § 5. 
 
 remainder to their children in fee. B. dies in A.'s lifetime, in 1912. 
 Increment value duty is not payable on B.'s death. If the ultimate 
 remainder taking effect were to A. in fee, it seems the sub-section would 
 not apply {Attorney-General v. Strange [1898] 2 Q. B. 39). 
 
 s. 22.— (1) In this Part of this Act, unless the context otherwise Finance Act, 
 requires:- 1894,8.22(1). 
 
 (a) The expressions "deceased person" and "the deceased" mean 
 a person dying after the commencement of this Part of this Act. 
 
 (b) The expression " will " includes any testamentary instrument. 
 
 (c) The expression " representation " means probate of a will or 
 letters of administration. 
 
 {d) The expression "executor " means the executor or administrator 
 of a deceased person, and includes, as regards any obHgation under this 
 Part of this Act, any person who takes possession of or intermeddles 
 with the personal property of a deceased person. 
 
 (e) The expression " estate duty " means estate duty imder this Act. 
 
 This probably does not include the "fixed duty " payable under s. 16 
 of the Finance Act, 1894. See ante, p. 112. 
 
 (/) The expression "property " includes real property and personal 
 property and the proceeds of sale thereof respectively and any money 
 or investment for the time being representing the proceeds of sale. 
 
 {g) The expression " agricultural property " means agricultural land, 
 pasture and woodland, and also includes such cottages, farm buildings, 
 farmhouses, and mansion houses (together with the lands occupied 
 therewith), as are of a character appropriate to the property. 
 
 Compare with this definition the paragraph in s. 41 of the 1910 Act 
 beginning "The expression 'agriculture'" {post, p. 463). The proviso 
 to s. 7 of the 1894 Act is for practical purposes relating to increment 
 value duty repealed by s. 60 (1) of the 1910 Act, but having regard to 
 the context of the various sections in the Act of 1910 specifically 
 referring to agricultural land, agriculture, and agricultural purposes, 
 i.e., s. 7, s. 8 (2), s. 13 (2), s. 16 (2), s. 17 (1), (3), and (5), s. 18, s. 25 (4), 
 s. 26 (1), it is possible that some difficulties may arise from the non- 
 identity of the definition clauses. 
 
 {h) The expression " settled property" means property comprised in 
 a settlement. 
 
 {i) The expression " settlement " means any instrument whether 
 relating to real property or personal property which is a settlement 
 within the meaning of s. 2 of the Settled Land Act, 1882, or if it related 
 to real property would be a settlement within the meaning of that 
 section and includes a settlement effected by a parol trust. 
 
 See the Settled Land Act, 1882 (45 &, 46 Vict. c. 38), s. 2, for the 
 provision referred to (Appendix, p. 599). The doctrine of "compound 
 settlements " must not be overlooked. 
 
 N. 8 
 
114 Land Clauses of the Finance Act. 
 
 8 6- (y) The expression "interest in expectancy" includes an estate in 
 
 remainder or reversion and every other future interest whether vested 
 or contingent, but does not include reversions expectant upon the 
 determination of leases. 
 
 See note on the diflference between " interest " under the Act of 1910 
 and "interest in expectancy" in the above clause {ante, pp. 34 and 97). 
 
 (^") The expression " incumbrances " includes mortgages and 
 terminable charges. 
 
 See note on the definition of "incumbrances" in the 1910 Act 
 {post, p. 451). 
 
 (l) The expression "property passing on the death" includes 
 property passing either immediately on the death or after any interval, 
 either certainly or contingently, and either originally or by way of 
 substitutive limitation, and the expression " on the death " includes 
 " at a period ascertainable only by reference to the death." 
 See notes on s. 1, ante, p. 15. 
 
 (m) The expression " the Commissioners " means the Commissioners 
 of Inland Eevenue. 
 
 (n) The expression "Inland Eevenue affidavit " means an affidavit 
 made under the enactments specified in the Second Schedule to this 
 Act with the account and schedule annexed thereto. 
 
 (o) The expression " prescribed " means prescribed by the 
 Commissioners. 
 
 Finance Act, (2) For the purposes of this Part of this Act — 
 
 1894, s. 22 (2). ^gj ^ person shall be deemed competent to dispose of property if he 
 
 has such an estate or interest therein or such general power as would 
 if he were sui juris enable him to dispose of the property, including a 
 tenant in tail whether in possession or not ; and the expression 
 " general power " includes every power or authority enabling the 
 donee or other holder thereof to appoint or dispose of property as he 
 thinks fit, whether exerciseable by instrument inter vivos or by will or 
 both but exclusive of any power exerciseable in a fiduciary capacity 
 under a disposition not made by himself, or exerciseable as tenant for 
 life under the Settled Land Act, 1882, or as mortgagee. 
 
 (6) A disposition taking effect out of the interest of the deceased 
 person shall be deemed to have been made by him, whether the 
 concurrence of any other person was or was not required. 
 
 (c) Money which a person has a general power to charge on property 
 shall be deemed to be property of which he has power to dispose. 
 
 (a) and {b) and possibly (c) of this sub-section seem clearly to apply 
 to increment value duty as explaining what is included in property 
 passing on the death of the deceased within the meaning of sections 1 
 and 2 (1) (a) (6) (c) and sub-s. 3 of the Finance Act, 1894 (s. 1 (6)). As 
 to (c) see note to s. 14 (1) of the Act of 1894, ante, p. 110. 
 
 7&., sub-8. (3). (3) This Part of this Act shall apply to the property in which the 
 
 wife or husband of the deceased takes an estate in dower or by the 
 
Increment Value Duty. 
 
 115 
 
 curtesy or any other like estate, in like manner as it applies to § 5. 
 
 property settled by the will of the deceased. 
 
 It would seem, therefore, that where on her husband's death his 
 widow is entitled to dower, an occasion for payment of increment value 
 duty would arise in respect of an interest, i.e., an undivided third share 
 for the widow's life, in the lands, and so when the husband becomes 
 entitled as tenant by the curtesy to a life estate in the entirety of his 
 wife's lands an occasion for the payment of increment value duty in 
 respect to that interest would also arise. 
 
 The exact object of the section as applied to estate duty is not quite 
 evident. It would seem that it does not add to the events on which 
 estate duty would be payable under s. 1 of the Finance Act, 1894. An 
 ingenious and probably correct suggestion as to its object will be found 
 in Freeth's Death Duties, 4th ed., p. 240. 
 
 It seems clear that subsequent statutory amendments of the Finance Amendments 
 Act, 1894, are material to the subject of increment value duty on death, ^L^ 
 first, because what is charged by s. 1 is the fee simple of or an interest in 
 land which is comprised in the property passing on the deatli of the 
 deceased within the meaning of ss. 1 and 2, sub-8. (1) (a), (6), and (c), and 
 sub-s. (3) of the Finance Act, 1894, as amended by any subsequetit enact- 
 ment (s. 1) ; and, secondly, because, under s. 5, " the provisions as to the 
 assessment, collection and recovery of estate duty under the Finance Act, 
 1894," are to apply, that is, such provisions as for the time being are in 
 force, whether contained in the Finance Act, 1894, or in subsequent legisla- 
 tion, for the purpose of the assessment, etc., of estate duty which 
 becomes due under the Finance Act, 1894. Turning, therefore, to the 
 subsequent enactments : 
 
 Finance Act, 1896 (59 & 60 Vict. c. 28). 
 
 s. 14. Where property is settled by a person on himself for life, and Finance Act, 
 after his death on any other persons with an ultimate reversion of an l^^'i) s. 14. 
 absolute interest or absolute power of disposition to the settlor, the 
 property shall not be deemed for the purpose of the Principal Act to 
 pass to the settlor on the death of any such other person after the com- 
 mencement of this Part of this Act, by reason only that the settlor, 
 being then in possession of the property as tenant for life, becomes, in 
 consequence of such death, entitled to the immediate reversion, or 
 acquires an absolute power to dispose of the whole property. 
 
 Illustration. 
 A. settles land by deed upon himself for life, with remainder to B. his 
 wife for life, with remainder to himself in fee simple. B. predeceases A. 
 Increment value duty is not payable on B.'s death. If the estate had 
 been settled by A. upon himself for the joint lives of himself and B., 
 the section would not have applied, and duty would have been payable 
 (seeder Cozens -Hardy, (then) L.3 ., in Attorney-General v. Glossop, [1907] 
 1 K. B. 163, at p. 177). 
 
 8—2 
 
116 Land Clauses of the Finance Act. 
 
 § 6. s. 15. — (1) Where by a disposition of any property an interest is 
 
 Finance Act conferred on any person other than the disponer for the life of such 
 
 1896, s. 15 (1). person or determinable on his death, and such person enters into posses- 
 
 sion of the interest and thenceforward retains possession thereof to the 
 entire exclusion of the disponer or of any benefit to him by contract or 
 otherwise, and the only benefit which the disponer retains in the said 
 property, is subject to such life or determinable interest, and no other 
 interest is created by the said disposition, then, on the death of such 
 person after the commencement of this Part of this Act, the property 
 shall not be deemed for the purpose of the Principal Act to pass by 
 reason only of its reverter to the disponer in his lifetime. 
 
 Illustration. 
 
 A. being the owner in fee of a freehold house conveys a life estate 
 therein to B., who enters into possession and thenceforward retains 
 possession thereof, to the entire exclusion of A. or of any benefit to A. 
 by contract or otherwise. B. predeceases A. 
 
 Increment value duty is not payable on B.'s death. But if B. had 
 agreed to let A. live in the house, and A. had done so during B.'s life, 
 the sub-section would not have applied, and increment value duty 
 would have been payable'* {Attorney-General v. Penrhyn, 83 L. T. 103 ; 
 see also on this section Attorney -General v. Glossop, [1907] 1 K, B. 163). 
 
 7&., s. 15 (2) (2) Where by a disposition of any property any such interest as 
 
 — (4)' above in this section mentioned is conferred on two or more persons, 
 
 either severally or jointly, or in succession, this section shall apply in 
 Uke manner as where the interest is conferred on one person. 
 
 (3) Provided that the foregoing sub-sections shall not apply where 
 such person or persons taking the said life or determinable interest had 
 at any time prior to the disposition been himself or themselves competent 
 to dispose of the said property. 
 
 (4) Where the deceased person was entitled by law to the rents and 
 profits of real property (as defined by s. 1 of the Succession Duty Act, 
 1853) of his wife, and has died in her Hfetime, such property shall not 
 be deemed for the piu-pose of the Principal Act to pass on his death by 
 reason of her then becoming entitled to the property in virtue of her 
 former interest. 
 
 Sub-sections (2) and (3) are probably applicable. Sub-section (4) can 
 only be material in the case of a woman married before January 1, 1883, 
 and then entitled to the land otherwise than as separate estate. 
 
 By s. 1 of the Succession Duty Act, 1853, "The term ' real property ' 
 shall include all freehold, copyhold, customary, leasehold and other 
 hereditaments and heritable property whether corporeal or incorporeal, 
 in Great Britain and Ireland, except money secured on heritable 
 property in Scotland, and all estates in any such hereditaments." 
 
 lb., s. 18 (1). 8. 18. — (1) Simple interest at the rate of three per cent, per annum 
 
 * But probably duty would not be payable if the arrangement were not 
 legally enforceable (Attorney -General v. Seccombe, [1911] 2 K. B. 
 
Increment Value Duty. 117 
 
 without deduction for income tax shall be payable upon all estate duty § 5. 
 
 from the date of the death of the deceased, or, where the duty is payable 
 by instalments, or becomes due at any date later than six months after 
 the death, from the date at which the first instalment on the duty 
 becomes due, and shall be recoverable in the same manner as if it were 
 part of the duty. 
 
 See note on s. 6 (6) and (8) of the Finance Act, 1894, ante, p. 95. 
 
 (2) The foregoing provision shall apply to the interest on all death Finance Act, 
 duties as defined by s. 13 of the Principal Act in like manner as if it ]^^^'> ^' ^^ (^^' 
 were herein re-enacted and made applicable to those duties. ^' '' 
 
 (3) The Commissioners of Inland Revenue may remit the interest 
 on any of such death duties where the amount appears to them to be 
 so small as not to repay the expense and trouble of calculation and 
 account. 
 
 Sub-secta. (1) and (3) are probably applicable to increment value duty, 
 but sub-s. (2) does not affect the payment of increment value duty. 
 
 Finance Act, 1898 (61 k 62 Vict. c. 10). 
 
 s. 13. Section 5, sub-section 2, of the Finance Act, 1894, shall be read Finance Act, 
 and have effect as if the following words had been inserted at the end ' ^* 
 
 thereof : " andwho if on his death subsequent limitations under the 
 settlement take effect in respect of such property was sui juris at the 
 time of his death or had been sui juris at any time while so competent 
 to dispose of the property." 
 
 See note on s. 5 (2) of the Finance Act, 1894, ante, pp. 66 — 67. 
 Finance Act, 1900 (63 Vict. c. 7). 
 
 s. 11.— (1) In the case of every person dying after the 31st day of Finance Act, 
 March, 1900, property whether real or personal in which the deceased ^^^^i^- ^^ l^)- 
 person or any other person had an estate or interest limited to cease on 
 the death of the deceased shall, for the purpose of the Finance Act, 
 1894, and the Acts amending that Act, be deemed to pass on the death 
 of the deceased, notwithstanding that that estate or interest has been 
 surrendered, assured, divested, or otherwise disposed of, whether for 
 value or not, to or for the benefit of any person entitled to an estate or 
 interest in remainder or reversion in such property, unless that 
 surrender, assurance, divesting or disposition was hona fide made or 
 effected twelve months before the death of the deceased and lond fide 
 possession and enjoyment of the property was assumed thereunder 
 immediately upon the surrender, assurance, divesting, or disposition, 
 and thenceforward retained to the entire exclusion of the person who 
 had the estate or interest limited to cease as aforesaid, and of any 
 benefit to him by contract or otherwise. 
 
 See pp. 18 to 20, notes on s. 1 {b). 
 
 The period of twelve months before the death of the deceased 
 necessary to prevent the claim for increment value duty arising is 
 extended by s. 59 of the Finance Act, 1910 (see p. 475) to three years. 
 See the notes to that section {post, p. 475). 
 
118 Land Clauses of the Finance Act. 
 
 § 6. Illustration. 
 
 A. is tenant for life and B. is tenant in fee simple in immediate 
 remainder of the Blank estate. A. surrenders his life estate to B. two 
 and a half years before A.'s death. 
 
 Increment value duty is payable on A.'s death. 
 
 Practically the section as amended by s. 59 of the 1910 Act makes 
 every form of conveyance of a life estate in land to or for the benefit of 
 any person entitled to any estate therein in remainder or reversion liable 
 to increment value duty on the death of the life tenant, unless the 
 following conditions take effect. 
 
 (1) The conveyance is bond fide made three years before the death 
 of the life tenant ; and 
 
 (2) possession and enjoyment are assumed immediately upon the 
 execution by the grantee ; and 
 
 (3) are thenceforth retained to the death of the life tenant to the 
 entire exclusion of the transferor, and of any benefit to him by contract 
 or otherwise. 
 
 Sect. 59 (3) of the Act of 1910, post, p. 477, further amends the section 
 by providing in effect that even if conditions 2 and 3 are not observed 
 immediately on the execution of the conveyance, yet if subsequently, by 
 means of the surrender of the benefit reserved or otherwise, the land is 
 enjoyed to the entire exclusion of the transferor and of any benefit to 
 him for three years before his death, then on his death increment value 
 duty will not be payable. 
 
 Finance Act, s. 13.— (2) The Commissioners of Inland Revenue may, if they think 
 
 1900, s. 13 (2). fit, accept a statement by or on behalf of any accountable person as a 
 
 correction of any Inland Eevenue affidavit or account within the 
 meaning of Part I. of the Finance Act, 1894, for the purposes of that 
 Act and the Acts amending that Act without requiring that statement 
 to be verified on oath. 
 
 This is probably a provision as to the assessment, collection, or 
 recovery of estate duty under the Finance Act, 1894, which by virtue 
 of 8. 5 of the Act of 1910 is applied to increment value duty. 
 
 7ft., s. 14 (1), s. 14. — (1) "VMiere any person dies from wounds inflicted, accident 
 
 (2)- occurring, or disease contracted, within twelve months before death, 
 
 while on active service against an enemy, whether on' sea or land, and 
 was, when the wounds were inflicted, the accident occurred, or the 
 disease was contracted, either subject to the Naval Discipline Act or 
 subject to military law whether as an officer, non-commissioned officer, 
 or soldier, under Part V. of the Army Act, the Treasury may, if they 
 think fit, on the recommendation of the Secretary of State or of the 
 Admiralty, as the case requires, remit, or in the case of duty 
 already paid repay, up to an amount not exceeding 150Z. in any one 
 case, the whole or any part of the death duties (within the meaning 
 of sub-s. 3 of s. 13 of the Finance Act, 1894) leviable in respect of 
 property passing upon the death of the deceased to his widow or lineal 
 
Inckement Value Duty. 
 
 119 
 
 descendants if the total value for the purpose of estate duty of the § 6. 
 
 property so passing does not exceed o.OOOZ. 
 
 (2) This section shall take effect in the case of any person dying 
 since the 11th day of October, 1899. 
 
 It seems doubtful whether this section applies to increment value 
 duty. 
 
 Finance Act, 1907 (7 Enw. 7, c. 13). 
 
 s. 14. The Commissioners may, if they think fit, entertain any applica- Finance Act 
 tion made for the purpose of sub-s. (2) of s. 11 of the Principal Act 1907, s. 14. 
 (which relates to discharge from claims for estate duty), at whatever 
 time the application is made ; and, as respects any application so enter- 
 tained, the provisions of that sub-section shall have effect notwithstanding 
 that the application is made before the lapse of the two years mentioned 
 in that sub-section. 
 
 It is thought that this section has no application to increment value 
 duty. See note on s. 11 (2), ante, p. 110. 
 
 Time only can show what provisions of the earlier Finance Acts are 
 by the joint operation of s. 1 (6), s. 2 (2) (c), and s. 5 of the Finance 
 Act, 1910, to be read into or incorporated with the last-mentioned Act. 
 In the meantime the foregoing notes must be taken to be an effort not 
 indeed so much to solve as to open out for discussion the many interest- 
 ing points which arise on the Act. 
 
 To the foregoing must be added the provisions of the Finance Act, 
 1910, affecting estate duty, i.e., s. 55, ante, p. 67 ; and s. 56, which runs 
 as follows : 
 
 s. 56. — (1) The Commissioners may, if they think fit, on the application Finance Act, 
 of any person liable to pay estate duty or settlement estate duty or sue- 1910, s. 56 (1) 
 cession duty in respect of any real (including leasehold) property, accept ^ -'■ 
 in satisfaction of the whole or any part of such duty such part of the 
 property as may be agreed upon between the Commissioners and that 
 person. 
 
 (2) No stamp shall be payable'on any conveyance or transfer of land 
 to the Commissioners under this section. 
 
 (3) The Commissioners may hold any property transferred to them 
 under this section and shall deal with it in such manner as Parliament 
 may hereafter determine. 
 
 It seems probable that section 5 of the Act of 1910 will apply to 
 increment value duty, the provisions of s. 59 {post, p. 475), and s. 60 
 {post, p. 478) of the same Act. 
 
 Section 5 of the Finance (1909 — 10) Act, 1910 
 
 {see p. 90).* 
 
 Property passing to the Personal Representative as such (see ih., s. 5, 
 note on p. 92). — Therefore in every case where an interest in land 
 
 * The commentary on s. 5 is now resumed {see footnote on p. 90). 
 
120 Land Clauses of the Finance Act. 
 
 § 6. passes to the personal representative the increment value duty is 
 payable out of that interest. If the interest passes to the executor as 
 such, as in the case of leaseholds (In re Culverhotise, Cook v. Culverhouse, 
 [1896] 2 Ch. 251), increment value duty is payable out of that interest 
 under s. 5 of the Act of 1909 in exoneration of the rest of the deceased's 
 estate. If the interest does not pass to the executor as such — as, for 
 example, freeholds passing to him under the Land Transfer Act, 1897, 
 (In re Sharman, Wright y. Sharnian, [1901] 2 Ch, 280, or land devised 
 to him on trusts), the increment value duty is under s. 9 (1) of the 
 Finance Act, 1894, a first charge on that property. In this case it 
 appears to be doubtful whether increment value duty is payable out of 
 any other part of the deceased's property except that out of which it 
 arises. See Finance Act, 1894, s. 6 (2), (4) ; s. 8 (3), (4). 
 
 Finance Act, Shall be Payable out of that Interest. — That is, it is assumed in the 
 1910 s 5 
 
 ' ■ ' absence of directions in the will to the contrary. If a testator says in 
 
 so many words, '' increment value duty on the estate passing on my 
 death is to be paid out of my residuary estate," there is, it is thought, 
 nothing in the section which would prevent the executor carrying out 
 such a direction, though of course that direction could not affect the 
 rights of the Crown to a charge. Perhaps, however, this cannot be 
 considered as certain. Under the Finance Act, 1896, s. 19 (2), an 
 analogous provision making settlement estate duty payable out of the 
 settled legacy or property is expressed to take effect "unless the will 
 contains an express provision to the contrary." Assuming, however, an 
 absence of intention in the present statute to interfere with testa- 
 mentary freedom, and that the words just quoted must be read into the 
 present section, the question arises whether the ordinary direction to 
 pay " testamentary expenses " would include a direction to pay 
 increment value duty. The cases on settlement estate duty appear to 
 be in point. The conclusion to be deduced from those cases seems to 
 be that if there is a direction to pay "estate duty " or "duties" out 
 - of general estate, or a particular fund (other than the subject of the 
 duty), this direction will include duties thrown, in the absence of 
 direction, on the specific property ; but that a bare direction to pay 
 " testamentary expenses " includes only those expenses which are by 
 law thrown on the personal representative. In re Lewis, Lewis v. Smith, 
 [1900] 2 Ch. 176 ; In re King, Travers v. Kelly, [1904] 1 Ch. 363 ; Inre 
 Pimm, Sharpe v. Hodgson, [1904] 2 Ch. 345; In re Cayley, Aiodry v. 
 Cayley, [1904] 2 Ch. 781 ; In re Turnbull, Shipper v. Wade, [1905] 
 1 Ch. 726; Porte v. Williams, [1911] 1 Ch. 188; In re Hudson, 
 Spencer v. Turner, [1911] 1 Ch. 206. 
 
 And shall be Collected upon an Account, &c. — See the circular letter 
 of the Commissioners (post, p. 538), and the note on p. 92, ante. The 
 Commissioners are authorised to prescribe a form of account by s. 8 (14) 
 of the Act of 1894 [ante p. 104). 
 
Incbement Value Duty. 121 
 
 The Crown shall . . . rank pari passu with Other Creditors of § 6. 
 the Deceased. — As to the property out of which the increment value 
 duty arises, the Crown has priority and a charge for the duty. But 
 does this proviso mean that the Crown has a claim against the general 
 assets for increment value duty in respect of land which does not pass 
 to the executor as such, as well as in respect of land which does so 
 pass ? It would appear so from this proviso. But the analogy of the 
 Finance Act, 1894, as to property which does not pass to the executor 
 as such is against this construction, and the provisions of that Act as to 
 assessment, collection, and recovery are " to apply as if increment value 
 duty . . . were estate duty." 
 
 Section 6. 
 
 This section regulates the collection of increment value duty under § 6 (1). 
 8. 1 (c), that is from bodies corporate and unincorporate, on periodical 
 occasions. 
 
 6. — (1) Where the fee simple of any land or any collection 
 interest in land is held by any body corporate or by any of duty^r'^^ 
 body unincorporate, as defined by section twelve of the perty°heid' 
 Customs and Inland Revenue Act, 1885, in such a ^^ ^^^^f^ 
 
 ' ' corporate or 
 
 manner or on such permanent trusts that the land or unincor- 
 
 . . porate. 
 
 interest is not liable to death duties, the occasions on 48 & 49 vict. 
 vi^hich 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. 
 
 Fee Simple of any . Land or any Interest in Land. — For definitions 
 of fee simple of land and interest in land, see s. 41 (post, pp. 457 and 446), 
 
 and notes to s. 1 (ante, p. 9). 
 
 By any Body Corporate or by any Body Unincorporate as defined, 
 
 &C. — See the note on "Body Corporate, &c.," p. 22, ante, and on 
 exemption from duty of such, p. 23. Sect. 12 of the Customs and 
 Inland Revenue Act, 1885, is as follows : — 
 
 s. 12. In the construction and for the purposes of this Part of this 
 Act:— 
 
 The term "body unincorporate" includes every unincorporated 
 company, fellowship, society, association, and trustee, or number 
 of trustees, to or in whom respectively any real or personal property 
 shall belong in such manner, or be vested upon such permanent 
 tnist, that the same shall not be liable to legacy duty or succession 
 duty. 
 
 The term "accountable officer" means every chamberlain, treasurer, 
 bursar, receiver, secretary, or other officer, trustee, or member of a 
 body corporate or unincorporate by whom the annual income or 
 
 c. 51. 
 
122 Land Clauses of the Finance Act. 
 
 § 6 (1). profits of property, in respect whereof duty is chargeable under this 
 
 Act, shall be received, or in whose possession, or under whose 
 control, the same shall be. 
 
 In such a Manner . . . not liable to Death Duties. — See notes to s. 1 
 (p. 23). 
 
 Note also the exceptions to the liability of bodies corporate and 
 unincorporate to increment value duty contained in ss. 9, 10, 11, 35, 
 37 and 38 ; see note on p. 23. 
 
 In every subsequent Fifteenth Year. — If the body corporate or 
 unincorporate avails itself of the permission conferred by sub-s. (3) to pay 
 increment value duty by fifteen yearly instalments it practically, and 
 after the system gets into full working order, pays each instalment of 
 increment value duty (assuming that year by year the increment is the 
 same in amount) fifteen years after it has accrued. As changes of owner- 
 ship by death happen on the average about once every thirty years, when 
 the duty is paid in full, each year's increment value duty is in this case also 
 on the average paid fifteen years after it has accrued. This it is under- 
 stood is the theory of the fifteen year periods (see speech of Attorney- 
 General in House of Commons, July 19, 1909, Hansard, p. 48, vol. 8, 
 1909). 
 
 (2) The account to be delivered under section fifteen of 
 the Customs and Inland Kevenue 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 Kevenue 
 Act, 1885, or not. 
 
 An Account of the Increment Value of the Land. — Se(!t. 15 of the 
 Customs, etc.. Act, 1885, runs as follows : — 
 
 8. 15. — (1) Eveiy body corporate or unincorporate chargeable with the 
 duty hereby imposed shall, on or before the first day of October in every 
 year, deliver, or cause to be delivered, to the Commissioners or their 
 officers, a full and true account of all property in respect whereof any 
 such duty shall be payable, and of the gross annual value, income, or 
 profits thereof accrued to the same body in the year ended on the pre- 
 ceding fifth day of April, and of all deductions claimed in respect 
 thereof, whether by relation to any of the before-mentioned exemptions 
 from such duty or as necessary outgoings. 
 
Increment Value Duty. 128 
 
 (2) The account shall be made in such form and shall contain all S Q (Q\ 
 such particulars as the Commissioners shall by any general or special 
 notice reqviire, or as shall be necessary or proper for enabling them fully 
 and correctly to ascertain the duty due, and everj^ accountable officer 
 herein-before made answerable for payment of duty in respect of any 
 property chargeable under this Act, shall be answerable also for the 
 delivery to the Commissioners of such full and true account as aforesaid 
 of and relating to such property. 
 
 The expression " account of the increment value of the land " in 
 s. 6 (2) of this Act may, having regard to s. 15 (2) of the Customs, etc., 
 Act, 1885, it is conceived, be taken to be a comprehensive term 
 which would include all such accounts as are niicessary to enable 
 the Commissioners to arrive at the increment value of the land. 
 For definition of the term increment value of land see s. 2 (1). 
 " Account " must necessarily include " a valuation " or estimation of 
 all claimed deductions as well as all the fo\ir valuations rendered 
 necessary by s. 25, i.e., gross, full site, total and assessable site values, 
 and, it may be, other valuations, unless indeed the Commissioners accept 
 a recent valuation or valuations under one of the other provisions of 
 this Act. The property may recently have been valued on a lease 
 for more than fourteen years under s. 1, or on a periodical valuation 
 under s. 28, and in such cases it may perhaps be assumed that the 
 Commissioners would not require a wholly new valuation. It is not 
 indeed improbable that the quinquennial valuation under s. 28, although 
 in theory for the purposes of undeveloped land duty, will be generally 
 utilised as the basis on which bodies corporate and unincorporate will pay 
 increment value duty on undeveloped land on periodic occasions. It 
 will be noted that both the valuations, i.e, that under s. 6 (2) of the 
 increment value of such a body, and that imder s. 28 of undeveloped 
 land, are to be made as on different days in April of the year 1914, and 
 that succeeding periodical valuations will all fall to be made in the April 
 of the same year in which the quinquennial valuations are to be made 
 for purposes of undeveloped land duty. 
 
 It will also be noted that under s. 6 the account of increment value 
 is to be taken as on April 5, though such account need not be delivered 
 under s. 15 (1) of the Act of 1885 till the following 1st October. 
 
 If the body owns only an interest in the land, it will of covirse pay 
 only the proper proportion of the duty (s. 1). 
 
 Save as in this Act hereafter provided, refers to the exceptions above 
 mentioned, i.e., ss. 9, 10, 11, 35, 37 and 38. 
 
 Whether the Body Corporate or Unincorporate are Chargeable, etc., 
 ... or not. — The exemptions from the land taxes imposed by the Act 
 are not the same as the exemptions contained in the Customs, etc., Act, 
 1885, s. 11, from the duty thereby imposed. For the last mentioned 
 exemptions see s. 11 in the Appendix (p. 610). Perhaps the most 
 important difference between the exemptions from the duty imposed by 
 
124 Land Clauses of the Finance Act. 
 
 § 6 (2). the earlier Act and those imposed by this Act is contained in s. 11 (5) 
 of the Act of 1885, i.e., "property belonging to or constituting the 
 capital of a body corporate or unincorporate established for any trade 
 or business, or being the property of a body whose capital stock is so 
 divided and held as to be liable to be charged to legacy duty or suc- 
 cession duty." This exemption includes all trading companies, syndicates 
 and partnerships; and was intended to cover all such bodies as paid 
 income tax on their trade profits and whose members paid legacy 
 and succession duties on death. The machinery of the Customs, 
 etc.. Act of 1885 has been adopted probably not so much because 
 it is the most convenient machinery but because to apply it ret^uired 
 less of the time of the Legislature than to devise a new course of 
 procedure. 
 
 (3) The provisions of sections thirteen to eighteen, of 
 sub-section (1) of section nineteen, and of section twenty 
 of the Customs and Inland Eevenue 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. 
 
 The sections and sub-section referred to are given below (with the 
 exception of ss. 12 and 15, previously set out on pp. 121 and 122). 
 
 Any Provisions relating to Appeals. — These also are set out (see 
 p. 127, post), since the scope of the exception in relation to them is 
 perhaps not quite clear. It is clear that any appeal as to the amount 
 of the laud taxes from the Commissioners will be under the provisions 
 of the Act of 1910, and not of the Customs, etc.. Act, 1885. 
 
 Customs etc. '^^^ Customs and Inland Revenue Act, 1885 (48 & 49 Vict. c. 51), 
 
 Act, 1885, Part II. is as follows : — 
 
 8. 11. 
 
 s, 11 imposes the bl. per cent, income duty in respect of all real and 
 personal property belonging to bodies corporate or unincorporate and 
 states the exemptions ; No. 5 of such exemptions having been stated 
 
Increment Value Duty. 125 
 
 above (p. 124). The other exemptions axe fully set out at p. 121, § 6 (3). 
 Appendix. 
 
 s. 12 set out above (see p. 121). 
 
 s. 13. The duty hereby imposed shall be considered as a stamp duty, Customs, etc., 
 and shall be under the care and management of the Commissioners of ^^^' 1885, 
 Inland Eevenue, herein-after called the Commissioners, who by them- " 
 selves and their officers shall have the same powers and authorities for 
 the collection, recovery, and management thereof as are vested in them 
 for the collection, recovery, and management of the succession duty, 
 and shall have all other powers and authorities requisite for carrying 
 this Part of this Act into execution. 
 
 Compare s. 3 (6) (see p. 70) of the Finance Act, 1910. The powers 
 and authorities for the collection, recovery, and management of suc- 
 cession duty are contained in the 16 & 17 Vict. c. 51, and especially 
 in sections 45 to 49 inclusive of that Act. Note that under s. 49 
 production of books and documents can be enforced. But note also 
 that under s. 13 of the Act of 1885 the authorities are to "have all 
 other powers and authorities requisite for carrying this Part of this 
 Act into execution." If these words are applied to increment value 
 duty, and if they are interpreted in their primd facie meaning, the 
 Commissioners will not have much difficulty in obtaining their periodical 
 increment value duty from bodies corporate and unincorporate. Legisla- 
 tion in this concise form would then undoubtedly have the merit of 
 saving much time of the Legislature and of the Courts, whatever might 
 be the effect on the persons or bodies alleged to be taxpayers. This 
 precedent is one of 1885 and does not (except for the incorporation in 
 the Act of 1910) appear to have been followed in other statutes. 
 
 s. 14. The duty hereby imposed shall be a first charge on all the lb., s. 14. 
 property in respect whereof the same shall be payable while such property 
 shall remain in the possession or under the control of the body corporate 
 or unincorporate chargeable with such duty, or of any party or parties 
 acquiring the same, with notice of any such duty being in an-ear, and 
 every such body corporate or unincorporate, and every accountable 
 officer, shall, to the full extent thereof, be answerable to Her Majesty 
 for the payment of the duty charged thereon. 
 
 This section of the Customs, etc., Act, 1885, must be carefully considered 
 in reference to the paragraph of s. 6 (3) allowing periodical increment 
 value duty to be paid by a body corporate or unincorporate by fifteen 
 yearly instalments. 
 
 Sub-s. (3) of s. 6 of the Finance Act, 1910, applies s. 14 of the 
 Customs and Inland Revenue Act, 1885, to the "assessment and 
 recovery of increment value duty." For that purpose the last mentioned 
 section is to have the same effect as it has "for the purpose of the duty 
 charged under s. 11 of that Act." Sect. 14 of that Act makes the duty 
 " a first charge on all the property in respect whereof the same shall be 
 
126 Land Clauses of the Finance Act. 
 
 § 6 (3). payable " while such property is in the possession of the body or of any 
 purchaser of the same with notice of the duty being in arrear. It is 
 difficult to reconcile sub-s. (3) of s. 6 of the Act of 1910, incorporating 
 s. 14 of the Customs and Inland Kevenue Act, 1885, with sub-s. (4) of 
 s. 6 (p. 129). Under the latter sub-section when once the Commissioners 
 have assessed the duty on an account delivered in pursuance of the 
 Customs and Inland Revenue Act, 1885, that duty, whether actually 
 paid or not, is on any future collection of increment value duty to have 
 been deemed paid. Up to such a collection under sub-s. (3) of s. 6 of 
 the 1910 Act, and s. 14 of the Act of 1885, it apparently remains a 
 charge on the land capable of being enforced. The mere fact of another 
 occasion for increment value duty arising on a subsequent sale seems 
 thus to cause a former and unpaid increment value duty "to be deemed 
 to have been paid." Conceivably the real construction is this, that for 
 the purpose only of " determining the amount " to be collected on the 
 subsequent occasion, i.e., the sale, the former duty is to be considered to 
 be paid. But not being paid, the remedies for enforcement still remain 
 to the Crown, i.e., the charge on the property remains, the purchaser 
 having notice that the duty has not been paid. When collected it is 
 collected as duty due on a former occasion. But this construction is 
 somewhat forced. 
 
 In any event, it seems improbable that the Commissioners having on 
 a sale by a corporate or unincorporate body stamped the purchase deed 
 under the provisions ofs. 4, sub-s. (3), would assert any claim to unpaid 
 instalments of duty against the property in the hands of a purchaser or 
 lessee. 
 
 On a purchase from such a body the purchaser should nevertheless, 
 till the law or practice is clearly established, consider his position as to 
 any unpaid instalments of increment value duty. It may be, notwith- 
 standing sub-s. (4) of s. 4, that the unpaid instalments still remain a 
 charge on the land itself. For the purpose of assessing the new duty 
 arising on the sale, those instalments are under sub-s. (4) deemed to 
 have been paid. But it may be for that purpose only. 
 
 For definition of accountable officer see s. 12 of the Act of 188o 
 {ante, p. 121), and for a note on his personal liability to pay the duty 
 see note to s. 16 of the Act of 1885, infra. 
 
 For s. 15 of the Customs, etc.. Act, 1885, see supra, p. 122. 
 
 Customs etc, ^" ^®' Every accountable officer shall be at liberty to retain or raise 
 
 Act, 1885, out of any moneys of any body corporate or unincorporate which shall be 
 
 *• l^' held by him, or shall come to his hands, the full amount of all moneys 
 
 which he shall pay or have paid on account of the duty hereby imposed, 
 
 and all reasonable expenses incident to such payments. 
 
 Note that under ss. 12 and 14 of the 1885 Act the accountable 
 officer (for definition of accountable officer see s. 12 of that Act [ante, 
 p. 121) ) is brought face to face with the Crown, and is personally 
 
Increment Value Duty. 127 
 
 answerable to the Crown for the duty to the full extent of the income § " (3). 
 or profits received by him or in his possession or under his control as 
 such officer. Sect. 16 gives him the right to retain or raise out of that 
 income and those profits the amount of duty which he " shall pay or 
 have paid " with his reasonable expenses incident to such payment. 
 
 s. 17.— (1) It shall be lawful for the Oommissioners to assess the duty Customsj^ etc., 
 upon the footing of any account rendered to them, or if dissatisfied with -A^*^*' 188o, 
 such account to cause an account to be taken by any person or persons 
 appointed by themselves for that pmrpose, and to assess the duty on the 
 footing of such last-mentioned account * subject to appeal to a Court in 
 the same maimer as in any case of succession duty as herein-after 
 provided. 
 
 (2) If the duty so assessed shall exceed the duty assessable according 
 to the account rendered to the Commissioners, and with which they 
 shall have been dissatisfied, and if there shall be no appeal against such 
 assessment, then it shall be in the discretion of the Commissioners, 
 having regard to the merits of each case, to charge the whole or any 
 part of the expenses incident to the taking of such last-mentioned account . 
 on any funds liable to such duty as an addition thereto and part thereof, 
 and to recover the same accordingly ; but if there shall be an appeal 
 against such assessment, then the payment of such expenses shall be in 
 the discretion of the Court. 
 
 (3) The duty shall be payable immediately after the assessment, 
 and notwithstanding any appeal therefrom ; provided that in the event 
 of the amount of the assessment being reduced by the order of the 
 Coiu-t, the difference in amount shall be repaid with such interest (if 
 any) as the Court may allow. 
 
 The powers conferred by this section are very great. It must be 
 assumed that they are to be exercised, not arbitrarily, but in accordance 
 with the rules as to valuation and other matters laid down in the Finance 
 Act, 1910. The " account" which may be taken by persons appointed by 
 the Commissioners necessarily involves a power to order valuations to 
 be made. The appeal given by sub-s. (1) is excluded by s. 6 (3) of the 
 Finance Act, 1910, and appeals by bodies corporate and unincorporate 
 will be under s. 33 of the Finance Act, 1910. 
 
 The powers of the section seem to be more appropriate to the case of 
 the bodies corporate or unincorporate, the property of which is subject 
 to the duty known as the corporation duty, charged by the Customs and 
 Inland Revenue Act, 1885, than to the case of the ordinary commercial 
 land and investment company, which, as well as the former kind of 
 body, is liable to pay increment value duty on a periodical occasion. 
 
 s. 18. — (1) Every body corporate or unincorporate, and every account- 7J., s. 18. 
 able officer hereby required to deliver any such account as aforesaid and 
 wilfully neglecting so to do on or before the first day of October in any 
 year, shall be liable to pay to Her Majesty a sum equal to ten pounds 
 
 * Excluded by s. 6 (3) of the 1910 Act. 
 
128 Land Clauses of the Finance Act. 
 
 § 6 (3). per centum upon the amount of duty payable in respect of the 
 
 property required to be comprised in such account, and a like penalty 
 for every month after the first month during which such neglect shall 
 continue. 
 
 (2) Every body corporate or unincorporate, and every accountable 
 officer hereby required to pay any duty, and ■wilfully neglecting so to 
 , do for a space of twenty-one days after the same shall have become 
 
 payable, shall be liable to pay to Her Majesty a penalty equal to ten 
 pounds per centum upon the amount of such unpaid duty, and a like 
 penalty for every month after the expiration of the said period of 
 twenty-one days during which such neglect shall continue. 
 See note as to penalties on pp. 78 and cxliv. 
 
 s. 19. — (1) The Commissioners shall, for the purposes of this Part of 
 this Act, have the same powers in relation to proceedings to enforce the 
 delivery of accounts, and in relation to the verification of accounts, and 
 the production and inspection of books and documents, as they have in 
 relation to succession duty under the law now in force. 
 
 Customs, etc., Sect. 19. "As they have in relation to succession duty under the law 
 Act^l885, ^^Q^ jj^ force." For these powers see 16 & 17 Vict. c. 51, ss. 45, 47, 
 49, and 52 Vict. c. 7, s. 10 (3), They include powers to the Com- 
 missioners to take accounts themselves if dissatisfied with the accounts 
 placed before them (s. 45), to take summary proceedings to compel 
 the furnishing of an account (s. 47),* and to compel the production 
 of books and vouchers (s. 49). See also the Crown Suits Act, 1865 
 (28 & 29 Vict. c. 104), s. 55, under which a writ will issue from the 
 King's Bench Division at the suit of the Commissioners for an account. 
 This provision will probably apply to the recovery of increment value 
 duty from a body in question. 
 
 / &., s. 20. s. 20 . In the case of any proceeding in any Court for the administration 
 
 of any property chargeable with duty under this Act, such Coiui; shall 
 provide out of any such property in its possession or control for the 
 payment of the dut}' to the Commissioners. 
 
 " Pay duty " in the payment schedule of an order of the Court will, 
 therefore, probably now include " pay increment value duty " in all 
 cases where land or an interest in land belonging to a body corporate 
 or unincorporate is being sold under order of the Court. Such cases 
 will include increment value duty payable on sales of a company's 
 land in a winding-up or in a debenture holder's action. The sub- 
 section would, it is also apprehended, require the Court to pay incre- 
 ment value duty in respect of a company's land which fell due on a 
 periodical occasion during the winding-up or the pendency of the action 
 and before sale. 
 
 (4) Any increment value duty assessed by the Com- 
 missioners on an account delivered in accordance with 
 
 * Sect. 47 is replaced by the 28 & 29 Vict. c. 104, s. 55. 
 
Increment Value Duty. 129 
 
 this section shall, for the purpose of determining the § 6 (4). 
 amount of increment value duty to be collected on any 
 subsequent occasion, be deemed to have been paid. 
 
 A doubt has been already raised (see supra,]). 126) as to whether this General note 
 sub-section means, that if once the Commissioners have assessed the g^|.jQjj' 
 duty under s. 6 on one of the periodical occasions there referred to, but 
 such duty has not been paid, or being payable by instalments has 
 not been fully paid, then a subsequent purchaser having notice 
 that it has not been paid takes free from that duty. Clearly, if the 
 deed is stamped under s. 4 (3), he takes free from the increment value 
 duty payable on his purchase, s. 4 (4). Does the above sub-section mean 
 more than that in order to arrive at the amount of the later increment 
 value duty payable on the sale you are to consider the former assessed but 
 unpaid increment value duty as paid, but that, unless that former incre- 
 ment value duty is in fact paid, it remains a charge on the property 
 in the hands of the purchaser with notice, by virtue of s. 14 of the 
 Customs and Inland Revenue Act, 1885. Till the point is decided a 
 purchaser should see that the former increment value duty is paid. If 
 he buys from a body corporate, for example a land company, he has 
 notice that increment value duty may have been payable, assuming that 
 the company has been in possession on April 5 in a year of collection. 
 It appears, therefore, that he should require either evidence of the 
 payment of the duty or should be satisfied that no increment value 
 duty was in fact payable at the date in question. No doubt in some 
 cases to obtain such satisfaction may not be easy. It is therefore to 
 be hoped that the Commissioners will make it known that a purchaser 
 from a company will not be asked to pay any increment value duty 
 assessed but not paid by a body corporate or unincorporate. Many 
 such bodies will doubtless avail themselves of the option to pay by 
 instalments under s. 6 (3), Land near urban centres is uniformly 
 rising in value, and the point will in the year 1914 be one of practical 
 moment. 
 
 (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 unin- 
 corporate, or oblige an account to be delivered of the 
 increment value of any land on any periodical occasion if 
 under the subsequent provisions of this Part of this Act 
 increment value duty in respect thereof is not to be 
 collected on that occasion. 
 
 Nothing . . . shall affect the Collection ... on the Occasion of 
 N. 9 
 
130 Land Clauses of the Finance Act. 
 
 § 6(5). the Grant, etc. — As previously mentioned, bodies corporate and unin- 
 corporate are liable to pay increment value duty on sale or lease of land 
 or interests in land just as private individuals. The periodic collection 
 provided for in this section corresponds with collection at the death 
 in the case of individuals. 
 
 Or oblige an Account to be delivered . . . collected on that 
 Occasion.— This relates to the exceptions to the payment of increment 
 value duty created by ss. 9, 10, 11, 35, 37, and 38 in the case of bodies 
 corporate or unincorporate. It must, however, be noted that the 
 10 per cent, reductions under s. 3 (5) may be lost in some cases by the 
 non-payment on periodical occasions. 
 
 Section 7. 
 
 § 7. This is the first of a group of sections (7 to 11 inclusive) creating 
 
 exemptions from liability to increment value duty. The exemption in 
 s. 7 relates to agricultural land. 
 
 Exemption 7. Increment value duty shall not be charged in 
 
 turaUand. rcspcct 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 pur- 
 poses, 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 pur- 
 pose exceeds the agricultural value of the land. 
 
 Agricultural Land. — For definition of "agriculture" and "agri- 
 cultural land " see s. 41 (p. 463) and note as to the land included in 
 the latter term. 
 
 It is submitted that the reference is to land actually used or employed 
 in agriculture on the occasion when increment value duty is claimed. 
 But supposing that there has been a temporary diversion of land usually 
 employed in agriculture to other than agricultural purposes. It is sub- 
 mitted that it still remains agricultural land. 
 
 While that Land has no Higher Value than its Market Value at the 
 Time for Agricultural Purposes only. — There may be increment value 
 in the land considered as building land, but if the increased value does 
 not, on an occasion when increment value duty is claimable, exceed the 
 then market value of the land as agricultural land, increment value 
 duty is not payable. It is submitted that the contrast in the section 
 is between the value, not the site value of the land, for agricultural 
 purposes, and the higher value, not the higher site value, of the land for 
 other purposes. 
 
Increment Yalue Duty. 131 
 
 No specific directions are contained in the Act for ascertaining " the § 7. 
 
 market value at the time for agricultural purposes only " ; and there is How is value 
 
 no reference in the Act connecting this market value with the scheme of [^^ agricul- 
 
 ° tural purposes 
 
 values comprised in s. 25. Doubtless of the four values referred to in only to be 
 
 that section the "market value at the time for agricultural purposes ascertained. 
 
 only " is most nearly allied to total value (s. 25 (3) ). But total value 
 
 includes value for all purposes, i.e., building, trade, sporting and any 
 
 other possible value, which are, of course, excluded from the market value 
 
 for agricultural purposes only. It cannot be doubted that the land 
 
 must be valued free from incumbrances, but subject to any public rights 
 
 of way or user, and to any rights of common and to any easements 
 
 affecting the land (s. 25 (3) ). Rent obtained is no doubt an element 
 
 of great importance in ascertaining its value, but should not, it is 
 
 thought, be conclusive. 
 
 There may perhaps be a doubt as to whether it is to be sold free 
 from " fixed charges," which are also deductions to be made under 
 s. 25 (3). It does not, however, seem to be very material whether any 
 particular deductions are or are not made in ascertaining agricultural 
 value, since probably the same deductions must be made in ascer- 
 taining the " higher Value " with which the agricultural value is to be 
 compared as in ascertaining the latter value. A high agricultural 
 value is desirable. 
 
 Whether the market value of the agricultural land includes the value Does market 
 of the buildings, i.e., the farmhouse and other buildings, is not quite ao'r^cnltural ^ 
 clear. If it does, the land will of course remain free from increment buildings ? 
 value duty until the higher value resulting from the inclusion of the 
 buildings in the valuation of the land is passed. Thus, if on an occasion 
 for payment of duty the site value is 2,300^., the market value of the 
 land for agricultural purposes without reckoning the value added to 
 the land by the buildings is 2,000^., and the market value of the land 
 together with the value added to the land by the buildings is 2,700^., 
 the question whether increment value duty is or is not payable may 
 depend upon whether 2,000^. or 2,700^. is the market value at the 
 time for agricultural purposes. In support of the view that the added 
 value of the buildings must be included, it may be urged that what is 
 to be valued is the land in its ordinary sense, which would include 
 buildings of all kinds (see Interpretation Act, 1889 (52 & 53 Vict. c. 63), 
 s. 3). The contrast between the two values is, it may be suggested, 
 that in the one case the valuer is to find the price which the land 
 "in its then condition," to use the words of s. 25, with all its buildings 
 and fixtures, would fetch if it were by law made incapable of being used 
 for any purposes, except those of agriculture, whilst in the other he is 
 to find the price which the land in the same sense (with its buildings) 
 would fetch if it were free from any such restriction. Of course the 
 value attributed by a valuer to the buildings under the two valuations 
 may be different. It would seem that the very buildings which increase 
 
 9-2 
 
132 
 
 Land Clauses of the Finance Act. 
 
 §7. 
 
 Difficulties of 
 the subject. 
 
 Same question 
 arises on s. 17 
 (2). 
 
 Glasshouses 
 and green- 
 houses. 
 
 Kelation of 
 s. 29 (1) to 
 the question 
 discussed. 
 
 the value for agricultural purposes only may depress the value for the 
 other purposes giving rise to the higher value. 
 
 But it is not quite clear that this construction is right. Under the 
 Interpretation Act, 1889 (52 & 53 Vict. c. 63), s. 3, it is only "unless 
 the contrary intention appears " that in Acts passed after the year 1850 
 land is to "include messuages, tenements, and hereditaments, houses 
 and buildings of any tenure." Is not the contrast in s. 7 between two 
 hypothetical values of the bare soil in question, the hypothetical value 
 it would possess if uncovered by buildings and under a statutory 
 limitation unable to be used except for agriculture, and the hypothetical 
 value of the same unbuilt upon soil, if legally able to be used for all 
 ordinary purposes'? Somewhat the same question arises on the con- 
 struction of s. 17 (2) (see post, p. 194). "In the case of agricultural 
 land of which the site value exceeds <£50 per acre, undeveloped land 
 duty shall only be charged on the amount by Avhich the site value of the 
 land exceeds the value of the land for agricultural purposes." In this 
 case it seems on first consideration that what is being compared is the 
 real " site value " (which includes the site value for all purposes), but 
 which of course excludes buildings, and the value of the land (without 
 buildings) for agricultural purposes. 
 
 Sect. 17 (2), how^ever, must be read in the light of s. 16 (2), by virtue 
 of which buildings for the purposes of agriculture do not take the land 
 out of the category of undeveloped unless such buildings are glasshouses 
 or greenhouses. In other words, all agricultural land is " undeveloped " 
 for the purposes of undeveloped land duty, whether built on or not, unless 
 the buildings are "dwelling-houses, glasshouses, or greenhouses." It 
 seems difficult to rule out agricultural buildings for the purpose of 
 making land undeveloped and yet not to bring them in for the purpose 
 of increasing the agricultural value of the land as undeveloped and so 
 enabling it to escape wholly or in part the undeveloped land duty. It 
 cannot, however, be said that this argument is conclusive on the question 
 raised in s. 17 (2). It certainly is not on the question in s. 7, and the 
 determination of the point must clearly await judicial decision or further 
 legislation. 
 
 The question as to whether the value of the buildings is to be included 
 in the value for agricultural purposes only assumes its most acute form 
 in relation to glasshouses and greenhouses in market gardens (see note 
 on market gardens, post, p. 467). It is, however, only in relation to 
 increment value duty that the matter is of importance, since the erection 
 of glasshouses and greenhouses causes land to be " developed " and not 
 liable to undeveloped land duty (s. 16 (2) ). 
 
 If the value of buildings is to be included in the market value for 
 agricultural purposes only, the effect of s. 29 (1), which enables the 
 Commissioners to assess duty on any such pieces of land, whether under 
 separate occupation or not, and to make such apportionments of site 
 value as they think fit, must not be lost sight of. Whether in any event 
 
Increment Value Duty. 133 
 
 the authorities would be justified in assessing the land on which the § 7- 
 
 buildings stand, apart from the rest of the farm, so as to reduce the 
 market value of the latter for agricultural purposes only with a view 
 to obtaining increment value duty may be doubted. It is submitted 
 that in fairness the farm should be assessed as a whole, and that the 
 powers of ss. 29 and 32 (3) ought not to be exercised so as to render 
 nugatory the spirit of the direction of s. 26 (1) to value separately 
 each piece of land which is under separate occupation. It is, of course, 
 clear that that direction only applies in form to the original general 
 valuation under s. 26, and possibly to the quinquennial valuation under 
 s. 28.* 
 
 Illustration. — The original total value on April 30, 1909, of Black- 
 acre, which is used as agricultural land, was 150^, Its value for building 
 purposes was the same. In 1912, being still used in agriculture, it is 
 sold for 200^,, which is its value for agricultural purposes, its value for 
 building purposes again being the same amount (200^.). By virtue of 
 this section it is exempt from increment vakie duty. 
 
 Supposing the building value only had increased to 200/. between the 
 original valuation and the sale in 1912, the agricultural value remain- 
 ing at 1501. , then increment value duty would be payable in respect of 
 50/., less 15/., the 10 per cent, reduction under s. 3 (4) — that is in respect 
 of 35/. It is assumed in this illustration that the site value increased 
 proportionately with the total value. But supposing the building value 
 having risen to 200/. the agricultural value had risen to 180/., upon what 
 sum would increment value duty be payable — upon 35/. calculated as 
 above mentioned, or upon 5/., i.e., 20/. — 15/. reduction under s. 3 (4), 
 being the amount upon which increment value duty would be payable, 
 if it is payable, only on the difference between building and agricultural 
 values? It is submitted that it is payable upon 35/. As soon as the 
 building value exceeds the value for agricultural purposes only, the 
 exemption created by s. 7 ceases to apply. The theory apparently is 
 that increment value duty is charged on all increment value, subject to 
 this, that if the building value is not higher than the agricultural 
 value, or, in other words, if it is clear that by being employed in 
 agriculture the land is not being immediately put to a less profitable 
 use in anticipation of a future higher price, then increment value duty 
 is not payable. 
 
 " Building value," as used in this note, is not of course an accurate Building 
 expression. The values contrasted are (a) agricultural • and (6) non- ^^^^^• 
 agricultural values ; but the expression " building value " is convenient, 
 for it draws attention to the real object of the section. 
 
 An interesting question may arise in relation to the person who is 
 
 * The "higher value " with which the market value for agricultural 
 purposes is contrasted, is, it is thought, practically though not nominally 
 the total value of s. 25 (3). 
 
134 Land Clauses of the Finance Act. 
 
 § 7- liable to pay the increment value duty when, for the first time, after 
 
 Curious result several prior sales on other occasions for paying increment value duty 
 for duty ^ ^ ^ ^^ showing a rising site value, but still an agricultural value only, land 
 comes to possess a higher value than its value for agricultural purposes 
 only. For example, Blackacre, a five-acre field, has an original site 
 A'alue of 120^. It is sold in 1910 by A., the owner in fee, to B. for 
 130^,, a moderate agricultural value. In 1914 its agricultural value 
 has risen owing to the growth of a neighbouring town and a consequent 
 demand for dairy produce and the like, and it is sold by B. for 180^, 
 to C, its site value being then 170^. The town continues rapidly to 
 grow and to spread in the direction of Blackacre, and in 1920 it is sold 
 by C, to T>. for 3001., which is 100/. more than its then value for 
 agricultural purposes. Increment value duty is for the first time to be 
 collected ; and it is to be collected on the increment value, which under 
 s. 2 (1) is the amount by which the site value on the occasion of the 
 sale to D., which works out at 290/., exceeds the original site value of 
 120/. It would seem that C. must pay increment value duty on the 
 whole of this increment value, although to the extent of 60/. the incre- 
 ment took place before he became the owner. In particular cases the 
 hardship falling on the vendor who is thus called upon to pay increment 
 value duty for the original site value may be great, since the rise 
 in site value for agricultural purposes antecedent to his ownership and 
 the consequent increment value may be considerable in comparison 
 with the final rise in site value in his own hands, which has brought 
 the land within the scope of the tax. 
 How the 10 It further seems doubtful whether, in the illustration referred to 
 
 under s 3 (3) ^.bove, the 10 per cent, allowance under s. 3 (5) must not be calculated 
 is to be on 120/., the original site value, rather than on 170/., the site value on 
 
 calculated. ^j^^ occasion of the sale to C. 
 
 Special cases, Land belonging to a private person, and laid down to pasture, is 
 gt^^ ' turned into golf links and let by the owner at a rent of 5/. an acre, its 
 
 rental value for agricultural purposes being 21. per acre. Is increment 
 value duty payable by the owner on a sale 1 It would appear that it is, 
 because the fact that it can be let at a higher rent for golf links no 
 doubt increases its capital value, so that it has in fact a higher value 
 than its market value for agricultural purposes only. This may be quite 
 independent of the fact that much of the land in England used as golf 
 links is on the way to being used for building purposes, and for that 
 reason possesses a higher value than its value for agricultural purposes. 
 But the owner might doubtless be able to show that the letting was a 
 short one, not likely to be renewed, since the land had been found not 
 suitable for golf links, and that, as a matter of fact, the permanent 
 capital value of the land as evidenced by the price was not really 
 greater than that of the neighbouring agricultural land. This would be 
 an answer to the claim for increment value duty. 
 
 A second reason why land used as golf links is thought to be liable 
 
Inceement Value Duty. 135 
 
 to this duty is that such land is probably not "agricultural land." § 7- 
 It appears to be the purpose to which the land is put which causes 
 it to be agricultural or not agricultural, and not the external con- 
 dition or surface of the soil (s. 41). It is true that sheep and horses 
 are often grazed on golf links ; but that is a subsidiary use of them, 
 and generally a use intended for the benefit of the links. 
 
 These remarks apply to the case of land used for purposes akin to And similar 
 that of golf links, as for example to land used for racecourses, cricket ' 
 or football fields, bowling greens, tennis courts, athletic grounds, hockey 
 fields, etc. 
 
 It is thought that the time for ascertaining the "market value, tfec. . . . 
 for agricultural purposes only " is the date of the occasion for payment 
 of dvity, and not the date of the original (s. 26) or the last quinquennial 
 (s. 28) valuation. 
 
 Provided that . . . exceeds the Agricultural Value of the Land. — 
 
 The proviso is very difiicult to understand. Perhaps what is intended 
 is that the user, not the "value" of the land for sporting purposes, 
 etc., is to be treated as a user " for agricultural purposes only, except 
 where the value for any such purposes exceeds the agricultural value 
 of the land." But then, if the land is in fact, as is assumed in the 
 proviso, agricultural land, it is, by virtue of the first paragraph of the 
 section, without any aid from the second, not subject to increment 
 value duty, unless its capacity for other or additional uses for sporting, 
 etc., purposes, gives it a higher value than its value for agricultural 
 purposes. Literally construed, the proviso seems to say that if the 
 agricultural value (not including the shooting) of a piece of land is say, 
 100?., then if the shooting would sell in perpetuity for 99^., the land is 
 still agricultural, its agricultural value being 199^., and is exempt from 
 increment value duty, but that if the shooting were worth lOU. in 
 perpetuity then the land is not agricultural, and is liable to increment 
 value duty. Thus it seems clear that a deer forest might have a value 
 in excess of the agricultural value of the land in question and be sub- 
 ject to increment value duty. It would, however, seem to be a 
 question whether a deer forest is not liable to increment value duty 
 because it is not agricultural land, and therefore not within the exemp- 
 tion of s. 7. The answer to that question depends upon whether the 
 use as a deer forest is also the iise as "woodland" within the last 
 paragraph of s. 41 (" the expression ' agriculture ' "). There is no 
 definition of " sporting purposes " in the Act of 1910. For a definition 
 of "right of sporting," see 37 & 38 Vict. c. 54, s. 6 (1); and of 
 "sporting rights," see 3 Edw. 7, c. 37, s. 13 (2). 
 
 Purposes dependent upon its Use as Agricultural Land. — This 
 phrase is difficult to understand, but it seems that light is thrown upon 
 it by the indication that " sporting purposes " are considered to be 
 purposes dependent upon the use of the land as agricultural land. It 
 
136 
 
 Land Clauses of the Finance Act. 
 
 §7. 
 
 Covenant 
 against user 
 otherwise 
 than as 
 agricultural 
 land. 
 
 is of course clear that sporting purposes are inconsistent with the use of 
 the land as building land or (usually) as land employed in a business. 
 But though often consistent with, it would seem that they do not 
 always depend upon the " use " of the land for agriculture. For 
 example a deer forest would seem to be dependent upon the non-user of 
 the land for agricultural purposes, unless indeed the same kind of trees 
 are both planted for profit as woodland (sees. 41, last paragraph) and for 
 the purposes of forming part of a deer forest. Clearly the use of land 
 as a grouse moor or as a rabbit warren is not dependent on its " use " as 
 agricultural land. There may perhaps be more doubt about the use of 
 laud as coverts for pheasants and partridges, since the same kind of 
 " woodlands," the cultivation of which may produce profit and be 
 deemed an agricultural use of the land, may add to its value for shooting 
 purposes. The use of land as golf links or as a racecourse is not 
 dependent on its " use " as agricultural land, though it may be consistent 
 with its use as such. The Avords "dependent, etc.," used in a proviso, 
 evidently intended to lighten the burden of the subject, might possibly be 
 construed as meaning that wherever land is as a fact used in agriculture, 
 and at the same time subserves a further use, as that of a " shoot," or 
 as golf links or a racecourse, then increment value duty shall not be 
 payable except where the value for such further use by itself and of 
 itself exceeds the agricultural value of the land. But it seems doubtful 
 whether this construction of the proviso does really extend the 
 exemption conferred by the first paragraph of s. 7. 
 
 For a note on " sporting purposes " see the notes on s. 41, post, p. 438. 
 
 Further, it would seem that however valuable the land may be as a 
 physical thing if it is prevented by an enforceable covenant, entered 
 into before April 30, 1909 (s. 25 (3)), from being used otherwise than 
 as agricultural land, its value can hardly under this section, whether it is 
 to be valued under s. 25 on a "total value " (s. 25 (3) ) basis or not, be 
 higher than its value for agricultural purposes. If such a covenant 
 has been entered into after April 30, 1909, then some difficult questions 
 will arise, as, for example, is the value under this section (7) to be 
 ascertained as total value under s. 25 (3) (p. 287) ? or is it to be 
 ascertained as if that section did not affect it? If the former, then 
 the Commissioners will have to consider whether a deduction should 
 be allowed from total value on the ground that the restraint imposed 
 by the covenant was, when imposed, desirable in the interests of the 
 public, or in view of the character and surroundings of the neighbour- 
 hood (ib.). The Commissioners, in such event, might decide that the 
 covenant was not desirable and that no deduction should be allowed. 
 This would, in case of a claim for increment value duty on death, or on 
 a periodical occasion, be a serious matter for the owners, for they 
 would be charged increment value duty on an increment which they 
 could not apparently realise. 
 
 If the value under s. 7 is to be ascertained as if s. 25 (3) did not 
 
Increment Value Duty. 187 
 
 affect the matter, then no doubt a difficult question arises. Of course, § 7. 
 if such a covenant were a mere trick for the purpose of escaping duty, 
 and not intended to be enforced, it would probably be rightly neglected 
 in valuing, but it would be difficult to prove this. It must be 
 remembered that sooner or later the land in question may be available 
 as building land by the covenants becoming unenforceable, and then 
 the whole increment from the original site value will be taxable. To 
 escape an occasion for the collection of increment value duty is not to 
 evade it altogether. It may be added, though the remark is not strictly 
 germane to the present section, that a covenant entered into after 
 April 30, 1909, not to use land otherwise than as agricultural land, 
 might under s. 25 (3) be negligible on a valuation under s. 25 (3) 
 and s. 28 for undeveloped land duty, on the ground that it seemed 
 expressly designed to counteract the secondary object of the tax, 
 i.e., to discourage the employment in agriculture of land for which 
 there is a demand for other purposes at a price higher than the 
 agricultural value ; but this is not certain. 
 
 Section 8. 
 
 The second of the exemptions referred to on p. 130 relates to property § 8. 
 held by small owners. 
 
 8. — (1) Increment value duty shall not be charged on Exemption 
 the increment value of any land, being the site of a houses and 
 dwelling-house, where immediately before the occasion owner's'^^ '"^ 
 on which the duty is to be collected the house was, and occupation. 
 had been for twelve months previously, used by the 
 owner thereof as his 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 administra- 
 tive 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. 
 
 The section is for the purpose of exempting the resident owners of 
 small houses from increment value duty. 
 
 Site of a Dwelling-house. — Increment value duty is payable in 
 
138 Land Clauses of the Finance Act. 
 
 § 8 (I)' respect of all sites of buildings subject to the exemptions in the Act. 
 Sub-s. (1) is in form limited to the site of the dwelling-house only; but 
 under sub-s. (4) (b) this site includes any offices, courts and yards 
 and gardens not exceeding one acre in extent occupied together with 
 the dwelling-house. 
 
 Owner. — The definition of " owner " as applied to a lessee in the 
 definition section (41) is extended or varied bj'^ sub-s, (4) (a) of this 
 section, so far as this section is concerned. Exemption is limited to 
 the occupying ow^ner. 
 
 As his Residence. — I.e., probably he must sleep there more or less 
 regularly (see Poicell v. Guest, 34 L. J. C. P. 69, a case on registration 
 law). 
 
 The word " residence " denotes a place where an individual eats, drinks, 
 and sleeps, or where his family and servants eat, drink, and sleep ; see 
 per Bayley, J., in R. v. North Curry (4 B. k C. 959), a rating case. " A 
 man's residence is where he habitually sleeps '' [Barloiv v. Smith, Fox, 
 293). 
 
 Annual Value of the House as adopted for the Purposes of 
 Income Tax under Schedule A. — The Schedule A. or property tax 
 assessment is therefore conclvisive as to value. That value is ascertained 
 in places other than London under 5 & 6 Vict. c. 35, s. 60; 16 &, 17 
 Vict. c. 34, s. 37 (the Income Tax Acts, 1842 and 1853), and the niles 
 appended thereto ; and in London under 32 & 33 Vict. c. 67 (Valuation 
 (Metropolis) Act, 1869). 
 
 (2) Increment value duty shall not be charged on the 
 increment value of any agricultural land where, imme- 
 diately 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. 
 
 This sub-section differs from s. 7, in that the exemption is complete 
 under it. However much the site value may exceed the agricultural 
 value on an occasion, no duty is payable. Under s. 7, as soon as the 
 
Increment Value Duty. 189 
 
 value of the land exceeds the value for agricultural purposes only, § 8 (2). 
 
 increment value duty is payable on the increment to the original site 
 
 value. 
 
 Agricultural Land. — See definition of agriculture and agricultural 
 land in s. 41, and notes thereon, and on s. 7. 
 
 Occupied and Cultivated. — Probably the owner need not reside or 
 sleep on the farm (R. v. Jtistices of West Riding, 2 Q. B. 505 ; 11 L. J. 
 M. C. 80). 
 
 Owner. — The note on this word in sub-s. (1) is repeated. 
 
 Any other Land. — The locality of the " any other " land is immaterial. 
 Probably it must be in Great Britain or Ireland. But does " land " in 
 this context include buildings ? It is thought so. Does it include any 
 land other than land employed in agriculture ? It is thought not ; but 
 it seems very doubtful. Probably the amount of taxation at stake is 
 so small in individual cases under this section that these questions will 
 never be legally decided, and the Commissioners will determine as they 
 think just. 
 
 Average Total Value of the Land. — For definition of total value see 
 s. 25 (1) and (3), pp. 272, 287. It seems that this limit of 75^. per acre 
 refers to the average total value of the land constituting the small 
 holding in respect of which exemption is being claimed, and not of the 
 small holding + the other land, considered as an aggregate ; but this is 
 by no means certain. 
 
 Provided that ... a Dwelling-house the Annual Value of which 
 as adopted, etc., exceeds. — It is understood that it is the fact of the 
 dwelling-house by itself exceeding 30^. annual value which deprives the 
 land of the exemption, and that the sub-section does not mean that 
 when the house and the land occupied therewith jointly exceed that 
 value exemption is not given. See the next sub-section for a provision 
 for apportioning the annual value between the house and the additional 
 land occupied therewith. 
 
 (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 Com- 
 missioners may determine. 
 
 The division may be necessary either under sub-s. (1) or sub-s. (2). 
 
140 Land Clauses of the Finance Act. 
 
 § 8 (4). (4) For the purposes of this section — 
 
 (rt) the expression "owner" includes a person who 
 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. 
 
 The expression ** Owner " includes a Person who holds Land 
 under a Lease which was originally granted for Fifty Years or 
 more. — Under s. 41 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 
 underlease, shall be deemed to be the owner instead of the person 
 entitled to the rents and profits as aforesaid. There may therefore be 
 two owners of land a lease of which to the occupying owner falls under 
 this section, i.e., (1) the owner of the fee or of a lease with a term 
 unexpired of more than fifty years ; (2) the occupying owner whose 
 term was originally more than fifty years and who may only have left 
 unexpired a year or a day of that term. 
 
 Illustrations. 
 
 A. is the occupying lessee of a term originally granted for fifty-one 
 years, but with only one year unexpired. He is an owner within this 
 section. 
 
 A. is the occupying lessee of a term originally granted for forty-nine 
 years, of which forty-eight years are unexpired. He is not an owner 
 within this section. 
 
 The question whether the lessee is owner is mainly important with 
 respect to valuation. See ss. 26 and 27, post, pp. 309 and 320. 
 
 If the original term of the lease was under fifty years, the lessee is 
 not an owner and receives no exemption under either sub-ss. (1) or (2). 
 
 (a) 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. — If 
 
Increment Value Duty. 141 
 
 the site of a house or land falling within sub-s. (1) or sub-s. (2) of this § 8 (4). 
 
 section is held on a lease originally granted for a term of at least fifty 
 
 years, and has so increased in value that but for this section increment 
 
 value duty would be payable, then on the sale of the reversion or the 
 
 death of the reversioner in fee increment value duty will be payable 
 
 on his interest. The interest only of the resident owner in possession 
 
 is exempted. 
 
 (b) The Site of a Dwelling-house shall include, etc. — Does 
 this indicate that sub-s. (1) means that if more than one acre is 
 occupied with the house the exemption cannot be claimed ; or does it 
 mean that an apportionment of the land must in such a case be made 
 by the Commissioners under sub-s. (3) and partial exemption given, 
 the land over one acre being liable to increment value duty ? The 
 latter construction would widen the application of the section ; but it 
 is difficult to see whence the power to apportion is derived. It is 
 thought that the area which may be included in the site of a dwelling- 
 hovxse is house, offices, courts, and yards, + gardens not exceeding 
 one acre " occvipied, etc. " ; and that the meaning is not that the site 
 of house, offices, courts, yards, and gardens must not jointly exceed 
 one acre. 
 
 (5) Any increment value duty which would, but for this 
 section, be charged shall, for the purpose of the provi- 
 sions of this Act as to the collection of the duty, be 
 deemed to have been paid. 
 
 Be deemed to have been Paid. — It is thus necessary on a sale or 
 lease by a small owner, or on his death, that the process of ascertaining 
 increment value should be carried out. Only if that is done can the 
 amount of increment value duty exempted by the section from being 
 charged be ascertained, and so deemed to have been paid. Unless it 
 were so " deemed to have been paid," it would necessarily have to be 
 paid on the next occasion when the increment value duty is arrived at 
 in the usual way, i.e., by deducting the original site value from the 
 then site value, and charging duty on the difference. 
 
 Section 9. 
 
 The third of the exemptions referred to on p. 130 relates to property R 9, 
 held by a body corporate or unincorporate for the purpose of games or 
 other recreation. 
 
 9. Increment value duty shall not be collected on any Special pro- 
 periodical occasion in respect of the fee simple of, or any [ncrement 
 interest in, any land which is held by any body corporate hTthe case 
 
142 Land Clauses of the Finance Act. 
 
 § 9- or un incorporate, without any view to the payment of any 
 for^games^'^ dividend or profit out of the revenue thereof, bona fide 
 t^n^^"^^* for the purpose of games or other recreation, if 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 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. 
 
 For a corresponding section, relating to undeveloped land duty, 
 see s. 17 (3) (d). 
 
 On any Periodical Occasion. — For these occasions see s, 6 (1) 
 {ante, p. 121). Note, however, that iinder s. 6 (5) no account under 
 sub-s. (2) of s. 6 need be delivered of land falling within the exemption 
 created by s. 9. 
 
 It is further to be noted that the absence of collection on periodical 
 occasions deprives the owners of the benefit of a 10 per cent, reduction 
 of site value under s. 3 (5) (ante, p. 68). If land is rising steadily in 
 value, the oftener increment value duty is paid, the less is paid ; but of 
 course not more than 25 per cent, increment value in any period of 
 five years can escape by reason of the proviso to s. 3 (5). 
 
 Body Corporate or TJnincorporate. — For definition see notes to s. 6, 
 p. 121. Note that this section (9) applies only to land held by a body cor- 
 porate or unincorporate, but s. 17 (3) (d) above referred to relates to land 
 held by individuals as well as by such bodies. The section does not exempt 
 from increment value duty all land held for games and recreation. 
 
 For (1) it applies only to laud held by a body corporate or unin- 
 corporate ; 
 
 (2) That body must not take or intend to take dividends or profits 
 out of the revenue derived from it ; though otherwise it may make 
 profits, and it seems it may be holding the land for a rise in capital value. 
 
 (3) The user must be either under (1) the agreement or (2) the 
 circumstances set out in the section. 
 
 It is to be noted that it seems to be the user of the land as on 
 April 5 in the year 1914 and in every subsequent fifteenth year, and 
 not the intermediate user, which decides the question of exemption 
 (s.6(l)). 
 
 (4) There is no exemption from increment value duty in the case 
 of a sale or lease for over fourteen years either to or by the body. 
 
 Without any View to the Paj^nent of any Dividend or Profit. — 
 
 Questions may arise as to the meaning of "profit." It is apprehended 
 
Increment Value Duty. 143 
 
 that the net receipts arising from the great cricket grounds, such as § 9. 
 Lord's and the Oval, and which are mainly devoted to the encourage- 
 ment of the game, are not profits within the meaning of the section. 
 
 The profits contemplated are profits which are to be "paid," it is 
 presumed, to membei's of the body in question. They are coupled with 
 "dividends." 
 
 The fact that members of a club are entitled to valuable privileges as 
 to seats, tables, and stands for matches is not thought to deprive the 
 club of this exemption. Compare the exemption from local rates con- 
 ferred upon scientific, literary, and fine art societies by 6 & 7 Vict. c. 36, 
 s. 1 : Provided that, inter alia, such society " shall not, and by its laws 
 may not, make any dividend, gift, division or bonus in money unto 
 or between any of its members " ; and see thereon Liverpool Library v. 
 Liverpool Corporation (5 H. & N. 526; 29 L. J. M. C. 221); Earl 
 Clarendon v. Rector of St. James (10 C. B. 806 ; 20 L. J. M. C. 213), for 
 the application of the words in inverted commas. 
 
 Bonk fide. — The meaning of bond fide probably is that the games or 
 other recreation must not be merely a cloak or device for avoiding pay- 
 ment of increment value duty. But if the games or recreation are a 
 reality, the fact that one of the reasons which induced the body so to 
 use the land was the knowledge that increment value duty would be 
 thereby avoided on a periodical occasion would not seem to take away 
 the exemption (see ante, p. cxxxi.. Explanatory Summary, section IX., 
 " The Construction of Statvites imposing Taxation "). 
 
 Or Other Recreation. — There is no statement that the recreation 
 must be of an outdoor character. There may, indeed, be cases in which 
 the exemptions conferred by this section and s. 37 (1) may overlap. 
 
 If the Commissioners are satisfied. — It is thought that an appeal 
 could be made from the opinion of the Commissioners on this point. 
 Compare s. 17 (3) (d), post, p. 199, a corresponding provision relating to 
 luideveloped land duty, in which sub-section practically the same words 
 occur, and in which a distinction is apparently drawn (see last paragraph 
 of the sub-section) between these words and the words "in the 
 opinion of the Commissioners," an appeal being expressly denied as to 
 matters which are expressed to be " matters for the opinion of the 
 Commissioners." 
 
 So used under some Agreement with the Owner which as 
 originally made could not be determined for a Period of Five 
 Years. — Does this mean that the agreement must provide that it shall 
 be so used ; or is a simple lease or agreement of tenancy for five 
 years, unaccompanied by stipulations as to user, sufticient to secure 
 exemption 1 The former would appear to be the true construction, 
 but the alternative, "other circumstances," would doubtless in most 
 cases secure the exemption. It is possible that a verbal agreement as 
 
144 Land Clauses of the Finance Act. 
 
 § 9. to user not embodied in the written lease or agreement might be 
 
 sufficient. 
 
 Probable that the Land will continue to be so used. — That is, it 
 is understood, to be so used for the present, not necessarily for any 
 great, or even certain, period. 
 
 Without Prejudice to the Collection of the Duty on any other 
 Occasion. — If the body corporate owners were to lease the land for a 
 term exceeding fourteen years on the express terms that it should be 
 used for games only, it appears that a claim for increment value duty 
 could be raised if in fact increment value existed. 
 
 Section 10. 
 
 § 10 (1). 10. — (1) Any increment value duty in respect of the 
 Provision as fee simplc of, or any interest in, any land held by, or in 
 iands°etc. trust for, His Majcsty 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 provisions of this Act as to the collection of incre- 
 ment value duty be deemed to have been paid. 
 
 Held by or in Trust for His Majesty or any Department of 
 Government. — It would not perhaps have been necessary to exempt the 
 Crown expressly from increment value duty if it were not for s. 119 of 
 the Stamp Act, 1891, which provides that "except where express 
 provision to the contrary is made by . . . Act, an instrument relating to 
 property belonging to the Crown, or being the private property of the 
 Sovereign is to be charged with the same duty as an instrument of the 
 same kind relating to property belonging to a subject." Income value 
 duty is a stamp duty (s. -3 (6)). The Crown is not charged by a 
 tax or rate unless expressly named {Jones and Others v. Mersey Docks, 
 11 H. L. Cases, 443; 35 L. J. N. S. (M, C.) 1, a case on poor rates). 
 The exemption applies also to property occupied by servants of the 
 Crown for public purposes, such as the Post Office {Smith v. Birming- 
 ham Union, 7 El. & Bl. 483 ; 26 L. J. (M. C.) 105) ; the Admiralty 
 {H. V. Stewart, 8 El. & Bl. 360) ; the War Office {Amherst v. Somers, 
 2 T. R. 372) ; a county court {E. v. Manchester Overseas, 3 El. & Bl. 
 336) ; a prison {R. v. Shepherd, 1 Q. B. 170); assize courts and county 
 police station {Coomber v. Justices of Berks, (1883) 9 App. Cas. 61); 
 houses acquired by county associations and used as residences for 
 officers of the Territorial Force {Wixcm, v. Thomas, [1911] 1 K. B. 43). 
 Whether the words "department of Government" in s. 10 cover as 
 wide a class of exemptions as " the government of the country, 
 including under that head the police, and the administration of justice," 
 
Inckement Value Duty. 145 
 
 being the language in which the exemption was described by Black- § 10 (1). 
 burn, J., in Jones and Others v. Mersey Docks (see p. 10 of the report 
 in 35 L. J. N. S. (M, C.) ), may perhaps be doubted. But having 
 regard (1) to the general current of authorities conferring exemptions 
 at common law, apart from express statutory exemption, and to s. 35 
 of this Act, i.e., the section exempting rating authorities from incre- 
 ment value duty, it is thought that practically complete exemption 
 from increment value duty is conferred on all land held for a purpose 
 falling within the language of Lord Blackburn above quoted. Further, 
 xmder s. 35 exemption is given to the sites of buildings used for 
 administrative county purposes, such as were held in Middlesex County 
 Council V. St. Georges Union ([1897] 1 Q. B. 64, C. A.) and Worcester- 
 shire County Council v. Worcestershire Union ([1897J 1 Q. B. 481, C. A.) 
 not to be exempt from poor rate. 
 
 It seems, however, that if the Crown purchases land subject to a Purchase by 
 
 charge, as land tax, attached to the land, it will be liable to the charge prown subject 
 , ^ ^ ^ to charge. 
 
 {Colchester v. Kewney Local Board, 1 Ex. 368, at p. 380). It is not, 
 
 however, conceived that increment value duty is a charge on the land. 
 
 At all events this sub-section makes the question quite clear so far as 
 
 Crown lands, which include lands held for the various branches of the 
 
 Executive Government, are concerned. But does the exemption extend 
 
 to duty payable on periodical occasions under s. 1 (c) as well as to duty 
 
 payable inider s. 1 (a) ? The section speaks of duty " which would 
 
 have been collected on any occasion had it been held by a private 
 
 person:" The words, however, seem to be sufficient to protect a 
 
 purchaser from the Crown, because the duty to be collected on the sale 
 
 in fee simple by a private individual is " the whole amount of the duty 
 
 which is determined to be imsatisfied." But see the notes to s. 4 (4), 
 
 ante, p. 84. See also the definition of " person " in the Interpretation 
 
 Act, 1889, s. 19. 
 
 This sub-section does not entirely exempt a purchaser or lessee of Precautions 
 
 lands from the Crown or a department of Government from the necessity f o^"crown^ 
 
 of considering the question of the increment valtie of the land purchased 
 
 or leased as ascertained at the date of his purchase or lease. When he 
 
 himself sells, or. leases for over fourteen years, or dies, a claim for 
 
 increment value duty may arise. Under s. 2 the increment value is the 
 
 amount by which the site value of the land at the date of the resale, 
 
 lease, or death, as the case may be, exceeds the original site value, and 
 
 the dvity is one-fifth part of this amount, all proper deductions 
 
 luider s. 3 (5) having been made. Prima facie this duty must then be 
 
 paid, except so far as it has already been paid (s. 3 (1) (2)). Assuming 
 
 that there appears on the resale, or lease by the purchaser or lessee 
 
 from the Crown, or on his death, to be an increment value in the land, 
 
 it is obviously the interest of the person then liable for increment value 
 
 duty that this increase should be deemed to have occurred rather 
 
 whilst the Crown was the owner than since the purchase or lease from 
 
 N. 10 
 
146 Land Clauses of the Finance Act. 
 
 § 10 (!)• the Crown, because the duty on the former portion of the increase only 
 is under s. 10 (1) deemed to have been paid. A purchaser or lessee 
 from the Crown should therefore, so far as possible, satisfy himself that 
 on his purchase or lease the full value of the consideration given by 
 l)im is taken into account in fixing, under ss. 2 and 32, the then 
 increment value of the land. The greater the site value when he took 
 his interest from the Crown, the more increment value duty is deemed 
 to have been paid, and the less will have to be paid on the resale, etc. 
 The register under the Act (s. 30) will, no doubt, state the increment 
 value at the date of the purchase or lease, and the amount of the incre- 
 ment value duty deemed to have been then paid, and, in addition, all 
 such details as to expenditure on the property (s. 25 (4) {b) (c) and 
 (d) ) as would be stated, if a private owner were the vendor or lessor, 
 and had, in fact, paid the increment value duty, or been exempted 
 from its payment. It appears, therefore, that even Crown land will 
 have to be valued under s. 26 ; otherwise the original site value could 
 not be ascertained, and increment value duty could never be deemed 
 to be paid on the sale by the Crown, and could never be paid at any 
 time after the sale by the Crown. It is of course clear that increment 
 value diity will be payable on the sale, and passing on death, and 
 on a periodical occasion, in respect of a reversion expectant on a lease 
 which is vested in or in trust for the Crown or a department of Govern- 
 ment. Conversely lessees of the Crown will be liable to increment 
 value duty in respect of their interest in the site. 
 
 10 Geo. 4, (2) Neither section seventy-seven of the Crown Lands 
 
 sEd'w. 7, 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 depart- 
 ment, 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. 
 
 Increment value duty is a tax or duty on the vendor, and there is no 
 reason for exempting a vendor from the obligation to pay the duty 
 when he happens to realise his increment by sale or lease to the Crown. 
 The enactments referred to simply exempt from ordinary stamp duties 
 conveyances to or by the Commissioners of Woods and Forests and the 
 Post Office authorities. 
 
 C.48. 
 
Increment Value Duty. 147 
 
 Section 11. 
 
 This exemption inckides flats, chambers, and the like. § 11. 
 
 11. Where a building is used for the purpose of separate Spedai pro- 
 tenements, fiats, or dwelKngs, the grant of a lease of any flats, 
 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 occa- 
 sion 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. 
 
 Building used for the purpose of Separate Tenements. — It was said Flats or 
 in Parliament by the Attorney-General (see Hansard, September 30, ^^^'^lli^gs. 
 1909 (Cd. 1437)), bnt speaking with diffidence, that (except in 
 Lincoln's Inn) a fee simple cannot be created in a horizontal portion 
 of a building divided into flats, chambers, or other tenements, and 
 the section appears to adopt this view of the law. See, however, 
 Co. Litt. 48b. where the contrary is directly stated : " a man may have 
 an inheritance in an upper chamber, though the lower buildings and 
 soil may be in another, and seeing it is an inheritance corporeall it 
 shall pass by livery." Coke cites in support Keilway, 98, but the 
 reference to Keilway shows that the opinion attributed to two judges 
 of the King's Bench in the reign of Henry the Seventh was not directly 
 on the point in question, though it may have logically involved it. 
 This section exempts leases, and transfers and devolutions on death of 
 leases of separate flats, etc., from increment value duty, but it does not 
 include in its exemption dealings with the building as a whole. Transfers 
 on sale, whether of the fee simple of, or of interests in, the land, accord- 
 ing to the technical meaning of " fee simple " and " interest " under 
 s. 41, leases, and passings on death of the building as a whole will 
 therefore give rise to claims for increment value duty in the ordinary 
 way. Thoii.;h there is nothing directly in the section to render the 
 freeholder liable to pay duty in respect of the leasehold interests in the 
 building, he seems to be often practically so liable. Questions of this 
 kind must necessarily arise in the application of this section : Assume 
 that of a building containing eight sets of chambers, four are in the 
 possession of the freeholder, and the remaining four are let by him for 
 terms of which in each case at least twenty-one years are unexpired. 
 The freeholder sells all his interest in the building as a whole. The site 
 value at the date of the sale is fixed under s. 2 (2) by reference to 
 the consideration. Assume there is increment value. On what does 
 
 10—2 
 
148 Land Clauses of the Finance Act. 
 
 § 11- the freeholder pay 1 Certainly, in respect of the fee simple in possession 
 of four sets of chambers in hand, but not in respect of the leasehold 
 interest in the four sets leased, the increased value of which he may 
 never have enjoyed. But he probably also pays on the freehold 
 reversion to the four sets leased. 
 
 There is no provision in this section that the duty from which 
 exemption is given shall be deemed to be paid, and therefore it seems 
 that the Avhole amount of increment value duty will fall on the 
 
 freeholder the lessee of the whole building, and be paid by 
 
 him or them as the leases or sub-leases of the various flats, etc., run 
 out and the reversion becomes more valuable. Such payment will take 
 place in fact when either the freeholder or leaseholder sells or 
 leases the building as a whole or dies (s. 1 (a) and (b) ). Either free- 
 holder or leaseholder may also by payment of reversion duty under s. 1 3 
 on the expiration of the separate leases relieve it from a payment later 
 of increment value duty (see s. 14 (4), post, p. 169). If as a matter 
 of fact it is a mistake to think that estates in fee simple cannot be 
 created in the various storeys of other buildings than Lincoln's Inn 
 Chambers, increment value duty will be payable on the transfer on sale 
 or passing on death of the fee in such separate storeys in the usual way. 
 If such be the case, perhaps no apology is needed for the absence of any 
 attempt in this work to apply the provisions of s. 25 (2), which is the 
 keystone of the ascertainment of site value, to a flat on the seventh 
 storey of a Victoria Street, Westminster, building. It is to be hoped 
 that the able Treasury valuers will fully explain the principles upon 
 which any valuation of such a seventh storey site is made by them. 
 
 Note that the " use " of the building for the purpose of separate 
 tenements, etc., "and the grant" etc., of a lease of any such separate 
 tenements brings the section into play. No questions of " structural 
 division " can, it is thought, arise as on other Acts, such as the 48 Geo. 3, 
 c. 55, Schedule B., r. 14. 
 
 Nor shall Duty be collected on any Periodical Occasion from a 
 Body Corporate or Unincorporate, etc. — If the body owns either the 
 freehold or the leasehold, and whether either is owned in possession, or 
 in reversion expectant on a lease, of the whole building, it will have to 
 pay increment value duty as on April 5 in the year 1914 and in every 
 subsequent fifteenth year. But, it is thought, if only one of the 
 separate tenements of the building is not owned by the body increment 
 value duty is not payable by the body. 
 
 Section 12. 
 § 12, 12. A person shall not be entitled to claim any deduc- 
 
 tion for the purpose of ascertaining the site value of any 
 
 Provisions asi-, • i-i- , i t , 
 
 to claims for land ou any occasion on wnicn increment value duty 
 
 deductions. 
 
Increment Value Duty. 149 
 
 becomes payable if the deduction is one which could have § 12. 
 been, but was not, claimed for the purpose of ascertaining 
 the original site value of the land. 
 
 This provision which relates to valuation has probably been placed General note 
 here because it applies only to increment value duty. For the deductions ^^ section, 
 wliich may be claimed from total value in order to ascertain site value 
 see s. 25 (4), and to ascertain the capital value of minerals see s. 23 (1). 
 For the direction to ascertain original site value and the procedure 
 thereon see ss. 26 and 27. It is in the course of this procedure that 
 these deductions must be claimed for. Form 4, which is that in which 
 owners are required to make their statutory return under s. 26 (2) (see 
 Appendix, p. 504), requests the owner (see v. iii. in Form 4) to state 
 whether he intends to claim any deductions. If in the return he says he 
 dees, then Form 7 (see Appendix, p. 514) is sent to him. It is on this 
 form that all deductions from site value miist be claimed which can be 
 claimed, under the consequences that, if not so claimed, they will never 
 in future be allowed to depress site values for purposes of increment value 
 duty. All deductions allowed are to be recorded by the Commissioners 
 (s. 30). Were it not for this section deductions would not be claimed on 
 the original site valuation, because so far as increment value duty is 
 concerned a high site value is then wanted ; but they would be claimed 
 on future occasions when increment value duty became collectable, so as 
 to balance or outweigh the natural increment value subject to duty. 
 For the directions as to ascertainment of site value on an occasion on 
 which increment value duty may be payable and the deductions in 
 ascertaining that site value, see s. 2 (2) and s. 25 (4). 
 
 A Person shall not be entitled to claim any Deductions. — 
 
 It is apparently only deductions claimable, but not claimed, on the 
 fixing of original site value that can never afterwards be claimed. 
 Deductions not claimed on an " occasion " arising after the original site 
 value or on a periodical valuation under s. 28 can apparently be claimed 
 on the next " occasion " or valuation. One of the reasons for this may well 
 be that on the fixing of original site value all the interests in the lai^d 
 will, or at all events may, be before the Commissioners at one and the 
 same time (see s. 27 (1), (2), (4), (5) and (7) ). On later "occasions " when 
 claims arise for increment value duty, they may arise in respect of one 
 out of several interests in the land, and the owner of that particular 
 interest may not have a knowledge of expenditure on the property since 
 April 30, 1909, by the owner of another interest. The lessee under a 
 lease for over fourteen years, who is transferring his lease on sale, may 
 not have been aware that before the grant of the lease the freeholder 
 spent a large sum in levelling and draining the land, which the lessee 
 was entitled to deduct under s. 25 (4). On making the lease, it may 
 have been clear that at that date no claim for increment value duty 
 
150 
 
 Land Clauses of the Finance Act. 
 
 § 12. 
 
 Application 
 of section to 
 undeveloped 
 land duty. 
 
 Advertise- 
 ments as a 
 deduction. 
 
 could arise, even without the claim by the lessor of the benefit of that 
 deduction, and hence the lessor did not mention or claim that deduction. 
 There is, therefore, no record of the expenditure in the books of the 
 Commissioners (s. 30 (1)). The lessee transfers his lease, and pays 
 increment value duty, not claiming the benefit of the expenditure in 
 question. The freeholder then sells his reversion, and increment value 
 duty is claimed from him. It is only fair that he should be entitled to 
 a deduction on account of this expenditure. 
 
 This section applies only to claims for increment value duty. It is 
 suggested, therefore, that in respect of the undeveloped land duty for 
 which a low site value is desirable an allowance may be claimed for 
 expenditure at any periodical valuation under s. 28, even though it has 
 not been, but could have been, claimed on the original site valuation. 
 This leads to some curious results. If it is desired to have a high 
 original site value, so as to avoid questions of increment value duty in 
 the future, deductions may not be claimed on the original site A^aluation 
 under s. 26. In such a case there seems to be nothing in the Act to 
 prevent the owner claiming deductions on the first quinquennial 
 valuation in 1914 to an extent which would wipe out the site value of 
 the land altogether. For example, suppose land reclaimed from the sea 
 is worth 300/. an acre as building land, the whole value being due to 
 a sea wall. It seems that if the owner neglected to claim deductions 
 on the original site valuation, thus getting an original site value of 300/. 
 an acre, and then on the valuation for undeveloped land duty in the 
 year 1914 made his claim for the deductions which he had on the 
 original site valuation ignored, that claim must be allowed. As, how- 
 ever, the deduction allowed on the original valuation could be claimed 
 on subsequent occasions for payment of increment value duty, the total 
 result may not be really altered. 
 
 Difficult questions may arise on this section. A land development com- 
 pany has, before the commencement of the Act, spent large sums in adver- 
 tising its property, but up to that date without apparent effect. The land 
 is not selling. It is not the amount spent in advertisements which may 
 be claimed as a deduction under s. 25 (4), but the value proved to be 
 directly attributable to that expenditure. This value is by hypothesis at 
 the time of the original site valuation, little or nothing, and no deduction 
 for it is claimed. Shortly after the original valuation, without additional 
 expenditure in advertisements, the land market improves, and this estate 
 sells specially rapidly and at improved prices. This is to a great extent 
 the result of the former advertising, which has brought the estate well 
 before the public. It is suggested that notwithstanding this section a 
 deduction can be claimed on future sales and leases by the company^ 
 and on periodical occasions under s. 6, for the value added by the 
 advertising. The deduction, which is the added value, not the cost of 
 advertising, could not have been claimed at the fixing of the original 
 site value, because it did not then exist. But it would certainly be 
 
Increment Value Duty. 151 
 
 advisable that in all cases where money has been spent on or in relation § 12. 
 to land which would be the subject-matter of a deduction if thereby 
 value had been added to the land, a claim should be made on the 
 original valuation in respect of such expenditure, even if it be a nominal 
 claim only. Such a claim would obviate a possible construction of s. 12, 
 namely, that the words " any deduction " mean not the value added by 
 the expenditure, but the benefit of the fact that such expenditure has 
 been made. 
 
 The value of expenditure may be an increasing, though oftener, no 
 doubt, it will be a diminishing value. On each " occasion " it will 
 strictly be necessary to consider all prior expenditure in relation to the 
 question of its increased or diminished worth as an element of full site 
 value (s. 25 (2) ). Doubtless in the case of fully developed property 
 there will usually, from "occasion" to "occasion," be no change, or but 
 little change, in the value added by this expenditure. But the centres of 
 large towns, as well as the principal streets of suburbs, are everywhere 
 undergoing a gradual alteration of character, evidenced by replanning of 
 sites and rebuilding of premises. In these cases difficult questions as to 
 the value of expenditure claimable as deductions under s. 25 must 
 constantly arise. 
 
 Eeversion Duty. 
 
 Summary of ss. 13 to 15 of the Finance Act, 1910, and s. 3 of 
 the Revenue Act, 1911. 
 
 Sects. 13, 14, and 15 of the Finance Act, relate to reversion duty, but 
 sub-s. (4) of s. 14 of the Finance Act and incidentally s. 3 of the 
 Revenue Act, are also concerned with increment value duty. 
 
 Sect. 13 establishes the duty, fixes its amount, and defines or describes 
 " the value of the benefit accruing to the lessor " which is the subject- 
 matter of the duty. 
 
 Sect. 3 (1) of the Revenue Act, 1911, explains the meanmg of the 
 term lessor in relation to the duty. 
 
 Sect. 14 enacts certain exemptions from reversion duty ; a provision 
 intended to prevent the charge of both increment value duty and reversion 
 duty on the same increment value ; and a modification of the duty to meet 
 the case of a deficient mortgage security made prior to April 30, 1909. 
 
 Sect. 15 lays down the obligations of lessors in relation to the duty 
 and the methods of enforcing those obligations. 
 
 Sect. 3, sub-ss. (2), (3), (4) of the Revenue Act, 1911, explain or 
 amend the law as to the person liable to pay reversion duty, and as to 
 the amount of duty payable, on the merger of a lease in the reversion. 
 
 Section 13. 
 
 13. — (1) On the determination of any lease of land § 13 (1), 
 there shall be charged, levied, and paid, subject to the Keversioa 
 
 duty. 
 
152 
 
 Land Clauses of the Finance Act. 
 
 § 13 (1). provisions of this Part of this Act, on the value of the 
 benefit accruing to the lessor by reason of the determina- 
 tion of the lease a duty, called reversion duty, at the 
 rate of one pound for every complete ten pounds of that 
 value. 
 
 Effluxion of 
 time. 
 
 Foifeiture. 
 
 Merger. 
 
 Purchase of 
 reversion by 
 lessee. 
 
 On the determination of any lease. 
 
 A lease may be determined in various ways ; — 
 
 (1) By effluxion of time ; that is by the term running out in the 
 ordinary way. In the case of a lease for a life or lives, to which 
 probably s. 13 applies, as w^ell as to a lease for years, the determination 
 of the lease will be the death of the life or the last of the lives for 
 which the lease was made. It is not thought that the paragraph in s. 41 
 "the term of a lease" affects the length of the term in this respect. 
 Under that paragraph, where the lease contains an obligation to renew 
 the lease, the term of the lease is to be deemed to include the period 
 for which the lease may be renewed. A lease, therefore, for twenty-one 
 years, renewable at the option of the lessee for seven years, appears, 
 therefore, to be a lease the original term of which exceeds twenty-one 
 years, whether it is in fact renewed or not, and on the determination of 
 which reversion duty is payable. This is a curious result and perhaps 
 cannot be accepted without question (see also note on p. 12, "Not 
 being a lease, etc." 
 
 (2) By forfeiture to the lessor under the conditions of the lease. Of 
 course the forfeiture must be final. If relief is obtained against the 
 forfeiture under s. 14 (2) of the Conveyancing Act, 1881, that relief is 
 given "in the form that no forfeiture has taken place'' (see Dendy v. 
 Evans, [1910] 1 K. B. 263, per Farwell, L.J., at p. 270; Kind v. 
 Nineteenth Century, etc., Society, [1894] 2 Q. B. 226, per Lord Davey, 
 at p. 233), and therefore no duty becomes payable. 
 
 (3) By merger '•' of the term of years in the freehold. This ma}' 
 happen in several ways. The most usual is the purchase by the lessee of 
 the fee simple reversion immediately expectant on his lease. This 
 almost certainly gives rise to a claim for reversion duty. Under 
 s. 13 (1) of the Act of 1910, in the absence of agreement to the contrary, 
 the purchaser of the reversion, i.e., the lessee, was thoiight to be the 
 person liable to pay the duty, which was payable "on the determination " 
 of the lease (s. 13 (1) ) ; by the lessor (s. 15 (1) ) ; and under s. 41 lessor 
 includes " the person for the time being entitled to the reversion." 
 
 * For definitions and explanations of merger see the ordinary elementary 
 text-books ; noting, however, that since the Judicatiu'e Act there is no 
 merger by operation of law of any estate the beneficial interest in which 
 would not be deemed to be merged or extinguished in equity (Act of 1873, 
 s. 25 (4) ). 
 
Keversion Duty. 153 
 
 But this view of the law has been altered by the provision contained § 13 (1). 
 in the Revenue Act, 1911 (1 Geo. 5, c. 2), s. 3 (1), set out on p. 174, 
 immediately following s. 15 of the 1910 Act. In such a case the former 
 owner of the reversion is made liable to pay the duty. The " person 
 in Avhom the lessor's interest was vested immediately before the expira- 
 tion of the term for which the lease was granted, or if the lease has 
 determined before that event immediately before the transaction or 
 event in consequence of which the lease has determined, is the lessor for 
 the purpose of s. 15 of the " Act of 1910, "and is the person to whom any 
 benefit accrues from or by reason of the determination of the lease for 
 the purpose of the other provisions of that Act relating to reversion 
 duty " (Revenue Act, 1911, s. 3 (1) ). 
 
 It seems, however, that even now there is no prohibition in the Act 
 similar to those in s. 19 {post, p. 203) in relation to undeveloped land 
 duty, and in s. 20 (4) [post, p. 225) in relation to mineral rights duty, 
 and in s. 1 of the Revenue Act, 1911 (p. 46), in relation to increment 
 value duty, against the insertion in leases containing options to purchase 
 the fee, or in other contracts for the purchase of the fee by the lessee, 
 of a clause that the reversion duty payable under the Act of 1911 shall 
 be an addition to the purchase price, or shall otherwise be repaid by the 
 lessee to the lessor. 
 
 If on a purchase by the lessee of a reversion it is desired to avoid How to avoid 
 payment of reversion duty altogether, as well by the lessor as by the ^^version 
 lessee, it is thought that it may be accomplished by taking the con- of reversion 
 veyance of the reversion in the name of a trustee for the purchaser, and *-° lessee. 
 that the vendor might stipulate accordingly. It is not thought that this 
 is anything but a justifiable evasion of the immediate payment of the 
 duty (see ante, p. 13, and cases there cited). It may not be even an 
 evasion of the duty (as to evasion of duty, see Explanatory Summary, 
 p. cxxxiv.), since the purchaser may bond fide desire to have the option of 
 dealing with either the leasehold or the freehold interest apart from 
 the other of those interests. But as by s. 3 (2) of the Revenue Act, 
 1911 (see p. 168), the duty is reduced on the premature determination 
 by merger of the lease, the inducement to plan an escape from duty by 
 troublesome conveyancing devices is lessened. Whether a simple 
 declaration in a conveyance of the fee to the lessee, that there shall be 
 no merger, would prevent merger is not quite plain. On the whole it is 
 thought that it would. Merger was never favoured in Courts of Law, 
 and still less in Courts of Equity (Co, Litt. 338 b, n. (4) ). Since the 
 Judicature Act, 1873 (s. 25 (4)), there is no merger by operation of 
 law only of any estate, the beneficial interest in which would not be 
 deemed to be merged or extinguished in Equity. In Equity, merger of 
 estates as well as of charges, depends upon intention {Ingle v. Vaughan 
 Jenkins, [1900] 2 Ch. 368 ; Thellusson v. Liddard, ib. 635 ; Capital 
 and Counties Bank, Ltd. v. Rhodes, [1903] 1 Ch. 631, C. A., at p. 652, 
 per Cozens-Hardy, L.J.). 
 
154 
 
 Land Clauses of the Finance Act. 
 
 §13(1). 
 
 As to pur- 
 chases of 
 reversions by 
 mortgagors. 
 
 Surrender. 
 
 Merger on 
 death. 
 
 Disclaimer. 
 
 Again, if a leasehold interest is mortgaged by assignment, and the 
 mortgagor buys the freehold reversion, it seems clear that there is not, 
 and was not before the Revenue Act, 1911, any merger on the purchase 
 of the reversion, and equally clear that on the reconveyance of the 
 leasehold interest to the mortgagor there is such a merger as will 
 attract reversion duty. In this case s. 3 (1) of the Revenue Act, 1911 
 (1 Geo. 5, c. 2), would not, it seems, protect the mortgagor against the 
 payment of reversion duty ; but he would have the benefit of sub-s. (2) 
 of the same section, w^hich, if the term, had many years to run, would 
 be almost as protective to him. Of course the reconveyance could be 
 made to a trustee for the mortgagor, which would prevent merger. 
 
 If a mortgage of leaseholds is effected by demise, and during the 
 continuance of the mortgage, the mortgagor purchases the reversion 
 in fee and takes a conveyance direct to himself, it would seem that there 
 is a merger of the head lease, and that reversion duty is (subject to the 
 discount allowed by s. 3 (2) of the Revenue Act, 1911) payable by the 
 lessor under s. 3 (1) of that Act. On the surrender by the mortgagee 
 to the mortgagor, the mortgage money having been paid off, there will 
 be no reversion duty payable, since the sub-lease was " created solely for 
 the purpose of securing money," and is not therefore included in the 
 term " lease " until it has become vested in some person free from any 
 equity of redemption (s. 41). 
 
 Merger of the leasehold interest may take place through the surrender 
 of the term to the lessor. This may either be express, i.e., by deed 
 (8 ife 9 Vict. c. 106, s. 3), or implied, i.e., by conduct, as where a lessee 
 goes out of possession and allows the lessor or a new tenant to occupy 
 the premises (Reeve v. Bird, 1 C. M. ifc R. 31 ; Phene v. Popplcivell, 12 
 C. B. N. S. 334), or where a lessee during the continuance of the lease 
 accepts a new lease from the lessor. There seems to be no doubt 
 where merger of a lease takes place as the result of surrender that 
 reversion duty is payable by the lessor. The case is not affected by 
 the 1 Geo. 5, c. 2, s. 3(1). It is thought that in this case also reversion 
 duty can be avoided by the surrender being made to a trustee for the 
 lessor, and such a surrender could be accompanied by a power of 
 attorney given by the trustee enabling the reversioner to convey the 
 term to himself or his assign. As to a declaration in the surrender that 
 there shall be no merger, see p. 152. 
 
 If the owner of the fee simple reversion appoints the person in whom 
 the term is legally and beneficially vested his executor and gives him 
 the reversion by will, then, when the debts of the testator are paid, it 
 would seem there is a merger of the term (3 Preston on Conveyancing, 
 310, 311). But it would, it is thought, be open to the executor to 
 prevent merger by assigning either the reversion or the term to a 
 trustee for himself at some time before his ownership of the reversion 
 qua executor ceased and his ownership qvxx devisee began. 
 
 (4) Disclaimer under the Bankruptcy Act by the trustee in bank- 
 
Eeversion Duty. 155 
 
 niptcy of the lessee (see Bankruptcy Act, 1883 (46 & 47 Vict. c. 52, § 13 (1). 
 s. 55) ), determines the lease. Disclaimed leases are not often likely to 
 give rise to claims for reversion duty, since the lease is probably 
 disclaimed because the rent is a rack rent. 
 
 Bys. 41 (see p. 443) the expression "lease" includes an underlease and Definitions 
 an agreement for a lease or underlease, but does not include a term jggg^j, ^[^^ 
 of years created solely for the purpose of securing money until the term lessee. 
 becomes vested in some person free from any equity of redemption.* And 
 the expressions "lessor" and "lessee" include an underlessor and under- 
 lessee, and the expression "lessor" includes the person for the time 
 being entitled to the reversion, whether freehold or leasehold, expectant 
 on the determination of the lease, and the expression " lessee " includes 
 executors, administrators, and assigns of the lessee. (/6., p. 461. See 
 also the Revenue Act, 1911 (1 Geo. 5, c. 2), s. 3 (1) (p. 174), as to the 
 lessor and reversion duty. 
 
 By s. 41 (p. 444) also the term of a lease shall, where the lease contains Term of a 
 an obligation to renew the lease, be deemed to include the period for ^^^se. 
 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. 
 
 Subject to the Provisions of this Part of this Act, i.e., subject to 
 ss. 14, 22 (1), 35, 36, 37, and 38, and subject also to s. 3 of the 
 Revenue Act, 1911 (1 Geo. 5, c. 2). I.e. : (1) the original term of the 
 lease must have exceeded twenty-one years (s. 14 (2) ). (2) The reversion 
 must be either a freehold, or a leasehold interest exceeding twenty-one 
 years (ib.). (3) The land must not at the time of the determination 
 of the lease be agricultural land (ib.). (4) The lease must not be a mining 
 lease (s. 22 (1) ), but this probably does not apply to the exempted 
 substances referred to in s. 20 (5) (see s. 22 (8) ). (5) If the reversion 
 has been purchased before the 30th day of April, 1909, and the lease 
 determines within forty years from the date of purchase, reversion 
 duty is not payable (s. 14 (1)). (6) If the lease is prematurely deter- 
 mined by merger the amount of reversion duty is reduced by what is 
 in fact a discount of 4 per" cent, per annum compound interest (s. 3 (2) 
 of the Revenue Act, 1911). (7) A mortgagee before 30 April, 1909, of 
 a reversion who has foreclosed receives some exemption (s. 14 (5) ). 
 (8) Tliere is a provision against paying reversion duty and increment 
 value duty on the same benefits (s. 14 (4)). (9) Rating authorities 
 being reversioners are not liable to reversion dvity (s. 35). (10) Nor 
 are holders of land held for "charitable purposes" within the wide 
 extension of that term given to it by s. 37. (11) Nor are statutory 
 
 * See a note on terms created solely for securing money and reversion duty 
 on p. Hi. 
 
156 Land Clauses of the Finance Act. 
 
 § 13 (2). companies whilst the land is held for the purposes of their undertaking 
 and cannot be otherwise appropriated (s. 38). (12) Under s. 36 capital 
 sums paid to rating authorities in respect of " betterment " and similar 
 charges may be deducted from the value of the benefit accruing to 
 the lessor. 
 
 Value of the Benefit. — See sub-s. (2) for explanation of this. 
 
 (2) For the purposes of this section the vahie 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 
 determines, 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 pay- 
 able 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. 
 
 For the Purposes of this Section the Value of the Benefit, etc. — 
 
 No doubt what is really meant is for the purposes of Part I. of the Act, 
 since the value of the benefit is dealt wuth expressly as well as impliedly 
 not only in this section, but in others {i.e., s. 14 (4), (5), and s. 3 (2) 
 of the Revenue Act, 1911), and in no case is any other meaning 
 attached to the phrase than that given to it by this sub s. (2). 
 
 Accruing to the Lessor. — The term "lessor" in this clause is 
 apparently used in a sliding sense, and means the lessor for the time 
 being (see definition of lessor, ante, p. 155, and s. 41). Thus the lessor 
 at the time the lease determines may not be the same person as the 
 lessor who has increased the total value during the term by works 
 
Eeversion Duty. l^*^ 
 
 executed, or expenditure of a capital nature incurred. The provision of § 13 (2). 
 s. 3 (I) of the Revenue Act, 1911 (1 Geo. 5, c. 2), must not be over- 
 looked. See note on p. 175. 
 
 Total Value as Defined for the Purpose of the General Provisions, 
 etc. — For definition of "total value" here referred to see s. 25 (3). 
 The total value is that of the whole hereditament, buildings as well as 
 site ; probably also the value of any goodwill which may be attached 
 to the premises, as distinguished from mere personal goodwill (see note 
 on goodwill, post, pp. 278, 300). It is the total value of the fee simple 
 of the land. It is the total value at the date the lease determines and 
 not at the date of the original valuation under s. 26. 
 
 Of the Land. — Land here plainly includes the buildings, landlord's 
 fixtures, and all else that is part of the land comprised in the lease. 
 But it does not, it is thought, include minerals (s. 25 (5) ), though 
 s. 23 (1) is probably a general provision of the Act relating to the 
 valuation of minerals. It is not thought that the Crown will contend 
 that land does inclvide minerals in this section, and hence there is no 
 need to enter into a rather complicated argument to show that it does 
 not. Under sub-s. (41) "the expression 'land' does not include 
 any incorporeal hereditaments issuing or granted out of the land." 
 Is the effect of this definition that the total value of the land 
 at the end of the lease does not include the value of any easement 
 attached to the property, i.e., that the valuer must assume that no 
 rights of light, of support, or of way, etc., are attached to the premises, 
 whatever may be the real facts % For reasons stated on p. 282 and 
 in the note to "the expression land" in s. 41 (see p. 436) it is 
 submitted that this is not the effect. 
 
 At the time the Lease determines. — Note the provision of s. 3 (2) 
 of the Kevenue Act, 1911 (1 Geo. 5, c. 2), in this respect {post, p. 168). 
 If a lease is determined by merger before its natural determination by 
 effluxion of time, the total value is, for the purpose of calculating the 
 full duty payable on the value of the benefit accruing to the lessor, to 
 be ascertained at the date of the merger. This would probably have 
 been the case in any event under s. 13 (2) of the 1910 Act. From the 
 duty calculated on the value of the benefit thus ascertained is deducted 
 the discount allowed by s. 3 (2) of the Act of 1911. 
 
 Works Executed or Expenditure of a Capital Nature incurred by 
 the Lessor. — If a landlord has built a motor house or executed any other 
 improvement voluntarily for his tenant during the term, it is clearly equit- 
 able that he should not be charged reversion duty on his own expenditure; 
 but suppose he covenanted in the lease to build the motor house or 
 execute the improvement, and that the rent was based on the assump- 
 tion that he would do so. The original total value, which is based on rent 
 and premium, goes up, and the reversion duty goes down, because of the 
 
168 
 
 Land Clauses of the Finance Act. 
 
 §13 (2) enhanced rent attributable to the agreement to build the motor house. 
 If the landlord had built the motor house before the commencement of 
 the lease he would have got the same rent, and he would not have been 
 allowed to deduct its value at the end of the lease. It will therefore 
 be advisable in the future for landlords to make improvements after 
 and not before the execution of their leases. Sect. 32 (2) (see below) 
 does not seem to affect this point. Note that it is not the expenditure 
 which is the subject of the deduction, but the value added by such 
 expenditure. There seems to be no doubt that there may be a deduc- 
 tion on account of the expenditure of any person who was in the position 
 of the lessor for the time being when the expenditure was made (see 
 definition of lessor, ante, p. 155, and s. 41). Purchasers of reversions 
 therefore should, if possible, ascertain before completion whether any 
 expenditure has been made by their vendor or his predecessors in title. 
 
 The words " expenditure of a capital nature incurred " are found also 
 in s. 25 (4) (6) (see note thereon on p. 297). 
 
 During the Term of the Lease. — For definition of the term of a lease 
 see s. 41, paragraph "The term of a lease shall, etc." 
 
 And of all Compensation payable . . . Lease. — Similar reasoning 
 applies to this deduction as to the deduction for works. The more com- 
 pensation is agreed to be paid by the lessor the higher will the rent 
 tend to be. The higher the rent the less will be the reversion duty. 
 The moral for landlords is, " make your rents very high and your com- 
 pensation very liberal." At the expiration of the lease they will therefore 
 have a high total value at the time of the original grant of the lease to 
 deduct from a total value at the expiration of the lease reduced by the 
 compensation which increased their rent. The " compensation " payable 
 by the lessor is understood to be money payable to the lessee either 
 under the lease itself, or under some agreement with the lessee for acts 
 done or expenditure in relation to the property. Of course compensa- 
 tion under the Agricultural Holdings Act, 1908 (8 Edw. 7, c. 26), ss. 1 
 to 14, or under the Small Holdings Act, 1908 (8 Edw. 7, c. 36), s. 47, 
 is not likely to be the subject of any deduction, since reversion duty 
 is not payable in respect of land which at the time of the determination 
 of the lease is agricultural land (s. 14 (2) ). 
 
 To be Ascertained on the Basis of the Rent reserved and Payments 
 made in consideration of the lease. 
 
 Sect. 32 is as follows, and is material to the understanding of this 
 sub-section : — 
 
 (1.) Where the value of any consideration for a transfer or lease is to 
 be determined for the purposes of this Part of this Act, that value shall, 
 so far as the consideration consists of the payment of a capital sum, be 
 taken to be the amount of that capital sum, and, so far as the considem- 
 tion consists of a periodical money payment, be taken to be such sum as 
 appears to the Commissioners to be the capital value of that payment. 
 (2.) If the Commissioners are satisfied that any covenant or under- 
 
 Determina- 
 tion of value 
 of considera- 
 tion. 
 
Eeversion Duty. 159 
 
 taking to discharge anj' incumbrance, or, in cases where a nominal rent § 13 (S)- 
 only has been reserved, any covenant or undertaking to erect buildings, 
 or to expend any sums upon the property, has formed part of the con- 
 sideration, the Commissioners shall allow such sum as they think just in 
 respect thereof as an addition to the value of the consideration. 
 
 (3.) "Where it is necessary to apportion any consideration for the pur- 
 poses of this Part of this Act as between properties included in any 
 transfer or lease, the consideration shall be apportioned by the 
 Commissioners in such manner as they determine. 
 
 With these Avords "to be ascertained on the basis of the rents 
 reserved or payments made in consideration of the lease " compare the 
 somewhat similar language of s. 2 (2) (b) as to the ascertainment of site 
 value where the "occasion " for payment of increment value duty is the 
 grant or transfer of a lease, i.e., " the value of the fee simple of the land 
 calculated on the basis of the value of the consideration for the grant of 
 the lease or the transfer of the interest," and see note thereon {ante, 
 p. 31). It may perhaps be assumed that the only valuation or 
 calculation which will in the majority of cases be made under these 
 words is " at what rate per cent, should the rent be capitalised." 
 That rate fixed, the value at the time of the original grant is a mere 
 question of arithmetic. Nevertheless it is suggested that the nature of 
 the property when leased, involving the security for and permanence of the 
 rent, is a matter which the valuer should take into consideration. Rents 
 reserved by a lease sometimes represent more than the annual ground 
 value. The lessor buys an improved rent paying the buildhig lessee a 
 capital sum for the amount of the addition to the true ground rent. 
 Nevertheless, "the rent reserved" is the basis of the calculation. 
 Possibly parol evidence can be given explaining the facts if it is obtainable. 
 
 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. — It is difficult to see why such a 
 covenant should not be considered an element increasing the original 
 value in cases where a substantial as well as a nominal rent is reserved. 
 It is perhaps supposed that attempts would be made to elude the duty 
 by taking covenants from lessees at a full ground rent,to expend sums 
 largely in excess of what was in fact intended, and then claiming that 
 the rent plus the value of the covenant was the original value of the 
 land. The curious result is thus arrived at that if a lessor demises for, 
 say, forty-two years, the consideration being a nominal rent and a 
 covenant to erect buildings worth 1,000/., being thus content to realise 
 wholly the value of his land by the deferred enjoyment of an improved 
 property, he will be entitled to have the value of the building covenant 
 estimated and deducted from the value of the property to be taxed ; yet 
 if he demises at an annual rent of, say, 25/., and a covenant to erect 
 buildings worth 500/., thus partly realising at once and partly deferring 
 his enjoyment of the value of his property, he will have to pay 
 
160 Land Clauses of the Finance Act. 
 
 § 13 (2). reversion duty on the full increased value at the end of the lease added 
 to the property by the buildings, without any deduction for the value of 
 the covenant. The value of the covenant to a lessor is not only that he 
 becomes entitled at the end of the term to a building, but that during 
 the continuance of the term he has security, other than the personal 
 covenant of his lessee and the annual value of the bare land, for payment 
 of the rent. It is clear that the value of the rent, that is the number 
 of years' purchase which it would sell for, depends upon the value of the 
 property upon which distress or re-entry can be made. No doubt in 
 the ordinary case of a building lease the house is erected before the lease 
 is granted, and therefore the lessor has a secured rent, which may be 
 valued to-day as having been a well-secured rent " at the time of the 
 original grant " of the lease. Even an ordinary covenant to repair in a 
 new lease of old premises may involve a certain amount of rebuilding 
 and may really form a substantial part of the consideration (see Lurcott 
 V. Wakeley, [1911] 1 K. B. 905, C. A.). 
 
 Where the Lessor is himself entitled only to a Leasehold Interest 
 the Value of the Benefit shall be reduced in proportion to the 
 Amount by which his Interest is less than the Value of the Fee 
 Simple. — These words contemplate a reversion in the lessor of more than 
 twenty-one years (see s. 14 (2) ). When that reversion comes to an end 
 the superior landlord will in his turn be lia])le for the duty. If the 
 leasehold reversion has less than twenty-one years to run, it will not be 
 liable to reversion duty. The duty wull then fall later on the superior 
 landlord, assuming him either to be the immediate reversioner in fee, 
 or to be the revereioner in fee, without the interposition of a leasehold 
 term with more than twenty-one years unexpired between his estate and 
 the determined lease. To determine what proportion of the value of 
 the benefit is to be subject to reversion duty in the case of a leasehold 
 reversion of, say, twenty-five years, some such process as this seems to 
 be contemplated. Take first the total value of the fee simple at the 
 time the lease determines, and assume that to be 1,000^. ; next take the 
 value of the twenty-five years term of the leasehold reversion, allowing, 
 it is thought, for rent and covenants ; assume that to be 200^. The 
 value of the reversioner's interest is one-fifth of the value of the fee 
 simple. Therefore it is thought the benefit on what he paj-s will be 
 one-fifth of the total benefit. The problem of the amount to be paid by 
 the leasehold reversioner may be put in the form of a sum in proportion. 
 As the value of the fee is to the value of the leasehold reversion so is 
 the total value of the benefit to the value of the benefit on which the 
 leasehold reversioner must pay reversion duty. But this construction, 
 though literal, may be open to doubt (see illustration 4 on p. 166 
 and note). 
 
 Illustrations of Section 13. 
 
 1. On January 1, 1820, A., the owner in fee, leased to B. a plot of 
 land and house, No. 1, Blank Terrace, S.W., for ninety-nine years at a 
 
Reversion Duty. 161 
 
 rent of 10^. a year, the house having been previously built by B. under 8 ^"^ i*^/- 
 
 a building agreement. On the determination of the lease on January 1, 
 
 1919, the Commissioners determine the total value of the fee simple of 
 
 the premises under s. 25 of the 1910 Act at that date to be 400/. 
 
 They further determine the total value of the land at the time of the 
 
 original grant of the lease as ascertained on the basis of the 10/. rent 
 
 to have been 200/. They capitalise this rent under s. 32 (1) at twenty 
 
 years' purchase. 200/. is therefore the value of the benefit accruing to 
 
 the lessor, i.e., the person who is the reversioner at the expiration of the 
 
 lease. He must pay a duty of 10 per cent., or 20/. on this sum. 
 
 2. On January 1, 1820, A., then owner in fee of a house, No. 1, 
 Blank Square, S.W., leased it to B. for ninety-nine years at a rent of 
 50/. a year and a premium paid in cash of 1,000/. During the 
 currency of the lease B. or his assignees rebuilt the premises with the 
 assent of the owner for the time being of the reversion. On the 
 determination of the lease on January 1, 1919, the Commissioners 
 determine the total value under s. 25 to be 4,000/. They further 
 determine the total value of the land {i.e., the total hereditament) at 
 the time of the original grant of the lease as ascertained on the basis of 
 the 1,000/. premium and the 50/, rent capitalised under s. 32 (1) 
 at twenty years' purchase to have been 2,000/. 2,000/. is therefore 
 the value of the benefit accruing to the lessor. The duty is 200/. 
 
 3. For a case in which deductions are made from the value of the land 
 at the time the lease determines, on account (a) of works executed or 
 expenditure of a capital nature incurred by the lessor, and (b) compen- 
 sation payable by the lessor at the determination of the lease, thereby 
 diminishing the value of the benefit accruing to the lessor and the 
 consequent duty, see ante, p. Ixxxvii. of the Explanatory Summary. 
 
 4. On January 1, 1860, A., the owner in fee, leased to B. No. 2, 
 Blank Square, S.W., for ninety-nine years at a rental of 100/. a year. 
 On January 1, 1875, B. sub-leased the premises to C. for sixty years 
 from that date in consideration of a premium of 300/. and a rent of 
 120/. On the expiration of the lease to C. on January 1, 1935, the 
 Commissioners determine the total value of the fee simple of the 
 premises on that date to be 3,500/. They further determine the total 
 value of the land at the time of the original grant of the lease to C. to 
 have been 2,700/., i.e., the premium 300/. and twenty years' capitalised 
 value of the rent of 120/. The value of the benefit accruing to B. or his 
 successor in title would therefore, if he were the reversioner immediately 
 entitled in fee simple, be 800/. But B. is only a leaseholder with an 
 unexpired term of twenty-four years, and therefore under the concluding 
 words of sub-s. 2 the value of the benefit so ascertained is to be 
 reduced in proportion to the amount by which the value of B.'s interest 
 is less than the value of the fee simple. The Commissioners determine 
 that B.'s interest in the premises (being subject to a rent of 100/. a 
 year) is worth only one-third of what the fee simple would be worth. 
 
 N 11 
 
162 
 
 Land Glauses of the Finance Act. 
 
 § 13 (2). 
 
 Analysis of 
 increased 
 value at the 
 end of a lease. 
 
 And of 
 
 elements of 
 
 reversion 
 
 duty. 
 
 A probable 
 case in 
 practice of 
 hardship. 
 
 The value of the benefit accruing to B. is therefore 266/. 1 3s. id., or 
 one-third of the benefit, 800/., which would have accrued to an owner 
 in fee. The duty is therefore 261. 13s. id. But there is some doubt 
 about this construction. It is not clear whether the rent paid by B. 
 should be taken into account as diminishing the value of his interest, 
 or whether B. must not be treated as having the enjoyment for 
 twenty-five years of the value of the whole benefit of 800/. This, it is 
 thought, is what was intended, but the last words of the sub-section do 
 not clearly appear to give efifect to that intention. 
 
 5. In the example last given B.'s lease determines on January 1, 
 1959. The Commissioners determine that the total value under s. 25 
 is on that date 3,700/. They further determine that the total value 
 at the time of the original lease of January 1, 1860, was, on the basis of 
 the rent of 100/., the sum of 2,000/. The value of the benefit accruing 
 to the reversioner, the owner of the fee simple, at the expiration of B.'s 
 lease is therefore 1,700/., and the duty 170/. 
 
 Note on fm'egoing Illustrations. — The increased value at the end of 
 the term may arise from divers causes, and the effects will be different 
 in difi'erent cases. 
 
 (1) The increased value may be due to building or other expenditure 
 by the lessee. In that case it pays its full reversion duty of 10/. per 
 cent. 
 
 (2) The increased value may be due to expenditure during the term 
 of the lease by the lessor, and in that case it is exempt from duty under 
 8. 13 (2). 
 
 (3) The increased value may be due simply to an increase in site 
 value. In that case reversion duty is payable subject to the provisions 
 of 8. 14 (4), under which sums already paid as increment value duty 
 may be deducted from, or treated as being also payments on account 
 of, reversion duty in respect of that increment. Conversely, if the 
 revei'sion duty is actually paid, and later on increment value duty 
 becomes payable in respect of the increment on which reversion duty has 
 been so paid, the payment of the latter is to be treated as being also a 
 payment on account of the increment value duty. It therefore appears 
 that a sum of, say, 1,000/. of reversion duty primd facie due on the 
 determination of a lease may be divided into three parts. One of these 
 may have been already satisfied by a prior payment of increment value 
 duty in respect of the reversion. One may be due in respect of expendi- 
 ture by the lessee, and therefore entitled to no benefit of set-off". The 
 third part when paid may be utilised by the reversioner (or his repre- 
 sentatives or assigns) as a payment on account of increment value duty 
 becoming payable after the determination of the lease. 
 
 The following is an illustration of a case the like of which it is 
 thought must sometimes occur in practice. A. leases Whiteacre, a 
 building site, to B. in 1850 for ninety -nine years at a ground rent of 
 20/. a year. B. builds a house costing 1,600/. on Whiteacre, and sub- 
 
Reversion Duty. 163 
 
 leases to C. in 1860 for the residue of the term of ninety-nine years less § 13 (2)i 
 one day at 100^. a year. C, having made no further expenditure, sub- 
 leases to D. in 1890 for 1501. a year for the residue of the term of 
 ninety-nine years less two days. In the year 1913 B., for a sufficient 
 consideration, surrenders his term of ninety-nine years to A., the free- 
 holder. The surrender merges or determines the head lease, but does 
 not, of coiirse, affect the two underleases, which continue to run {Parker 
 V. Jones, [1910] 2 K. B. 32). A. is clearly liable to pay reversion duty 
 both under the Act of 1910 and the Revenue Act, 1911 (1 Geo. 5, c. 2). 
 s. 3 (1). But how is the value of the benefit accruing to A. to be 
 calculated 1 It may, for the sake of illustration, be assumed that " the 
 total value of the land at the time of the original grant of the lease '' 
 is twenty years' purchase of the original rental of 201., that is 400Z. 
 But what is the " total value ... of the land at the time the lease 
 determines," from which latter total value the former total value has 
 under s. 13 (2) to be deducted in order to arrive at the value of the 
 benefit ? Sub-s. (2) says in effect that the total value at the time the 
 lease determines is to be ascertained under s. 25. Assume, for the sake 
 of this illustration, that the rent payable by D. to C, i.e., 1501., 
 represents the real annual value of the property and that twenty years' 
 purchase of this rental, or 3,000^., is the " total value " as ascertained 
 under the process indicated by s. 25. If that be the case, primd facie the 
 value of the benefit accruing to A. would be 3,000^. less 400^. = 2,600^. 
 But as a matter of fact it is clear that 3,000^. is more than the value 
 of the property to A. in the year 1913, for that value is fixed on the 
 basis of a rental of 150^., and A. is only entitled until the determination 
 in the year 1949 of the term of ninety-nine years (less one day) 
 to a rental of 100^. a year. In that year A. will have again to pay 
 reversion duty. The total value of the land to A. in the year 1913, 
 when the original lease has determined, clearly lies somewhere between 
 1,600^. and 3,000^., and probably nearer to the former than the latter 
 figure. The result of thus strictly applying the words of sub-s. (2), i.e., 
 " 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 determines," points to the necessity, if justice is to be done to a 
 lessor in A.'s position, of placing some other construction on those- 
 words. What is doubtless intended is that A. should pay, not on the 
 theoretical total value of the land as determined under s. 25, but on so 
 much of that total value, less the original total value, as on the deter- 
 mination of the lease giving rise to the claim for duty accrues to 
 himself.* 
 
 * The above illustration was in type before the passing of the Revenue Act, 1911. 
 Sect. 3 (2) of that Act has not altered the inequality of the principle upon which 
 A. is taxed, but has greatly mitigated its practical application by the discount 
 allowed by that sub-section. 
 
 11—2 
 
16^ Land Clauses of the Finance Act. 
 
 Section 14. 
 
 § 14 (1). 14. — (1) Where, in the case of a reversion to a lease 
 from™reve°^ piirchascd beforc the thirtieth day of April nineteen 
 andai"ow- hundred and nine, the lease on which the reversion is 
 ancea. expectant determines within forty years of the date of the 
 
 purchase, no reversion duty shall be charged under this 
 Part of this Act on the determination of the lease. Pro- 
 vided 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. 
 
 General note. Under this sub-section any reversion purchased before April 30,1909, 
 expectant on a lease with a term to run of not more than forty years 
 at the date of the purchase, is exempt from reversion duty on the 
 determination of the lease. 
 
 Illustrations. — On January 1, 1869, A. bought a reversion expectant 
 on a lease having then forty-two years to run and which therefore 
 determines in the ordinary course ou January 1, 1911. A. will be liable 
 to pay reversion duty in 1911. 
 
 On January 1, 1909, A. bought a reversion which will in the ordinary 
 course determine on December 31, 1949. A. will not, unless the 
 Finance Act, 1909, is altered, be liable to reversion duty in 1949 on 
 such determination. 
 
 The theory of the sub-section is that a reversion expectant on a lease 
 ■with less than forty years to run is bought with a view to the enhanced 
 value of the reversion, and to tax that enhanced value would be to dis- 
 appoint expectation. If the term is longer than forty years at the time 
 of the purchase it is considered that the purchaser looks rather to 
 present income than to future increment. No doubt the line must be 
 drawn somewhere. 
 
 A Reversion to a Lease purchased. — It is thought that by a 
 reversion purchased is meant a reversion bought out and out, and not a 
 reversion acquired by way of mortgage, or mortgage and foreclosure, or 
 devise, and that "purchase" is not used in the wide sense of all 
 methods of acquisition other than descent. It is thought that the same 
 date, whether it be that of the agreement or the conveyance, must be 
 taken as the date both for deciding the question whether the reversion 
 was purchased before April 30, 1909, and for fixing the terminus a 
 quo the forty years are to be reckoned. It is suggested, but with 
 
Keversion Duty. 165 
 
 diffidence, that if an agreement of purchase, valid on its face and § 14 (1). 
 antecedent to the conveyance, is produced, the date of that agree- 
 ment will be the date of the purchase, but that if no such agreement is 
 produced, the date of the conveyance will be the date of the purchase. 
 If the date of the conveyance be in all cases the date of the purchase, 
 those persons who had agreed to buy reversions before the Act came 
 into force, but had not yet had their conveyances, would be deprived 
 of the benefit of the exemption, though they are thought to be within 
 its equity. Probably the Crown will accept the date of the con- 
 veyance of the reversion as entitling to exemption from duty if that is 
 within forty years of the determination of the lease, and will not inquire 
 into the question as to whether there was an antecedent agreement. 
 
 The scope of the exemption is not quite clear. "Purchased" Scope of 
 by whom? Does a purchase before April 30, 1909, of a reversion exemption, 
 expectant on a lease which at the date of purchase had less than forty 
 years to run exempt the owner for the time being of that reversion, if 
 he be not the same person who purchased before April 30, 1909, but a 
 person who purchased after that date from that purchaser ? Probably 
 the only person intended to be exempted is the original purchaser who 
 bought before April 30, 1909. But are persons deriving title from 
 him otherwise than for value exempt also, as heirs, devisees, voluntary 
 grantees 1 It would seem that their rights cannot well be less than his ; 
 and that, whether their title has accrued either before or after 
 April 30, 1909. 
 
 The alternative to holding that only a person who purchased before 
 April 30, 1909, is exempt, i.e., to hold that purchasers after that date 
 from purchasers who had bought before that date were also exempt, 
 would be equivalent to holding that every existing reversion with less 
 than forty years to run at the date of a purchase before April 30, 1909, 
 is exempt from reversion duty into whosesoever hands the same may 
 come. This may possibly be the real construction of the sub-section. 
 
 If it is not so, and only those persons who themselves pvirchased 
 before April 30, 1909, [and their representatives] are exempted by the 
 sub-section, would a purchaser after April 30, 1 909, of a reversion, who 
 instead of taking a conveyance of the reversion took only a declaration 
 of trust by the vendor, be able to claim the benefit of the exemp- 
 tion under cover of the legal ownership of his vendor 1 It is the lessor 
 (s. 15 (1) ), not the person entitled in equity only to the reversion, who 
 is liable to pay the duty, and the term " lessor " does not include a 
 person only equitably entitled to the reversion. The declaration of 
 trust could of course be accompanied by a power of attorney to assign 
 the legal interest to himself if the purchaser so desired. 
 
 Provided that this Exemption, etc. — The proviso is thus understood. 
 If lessor and lessee agree to determine a lease the reversion on which 
 has been purchased by the former before April 30, 1909, within the 
 
166 Land Clauses of the Finance Act. 
 
 § 14 (1). period of forty years from the purchase, and if the lease were for a 
 period exceeding forty years from the date of the purchase, then, not- 
 withstanding the determination of the lease by surrender or merger, 
 within the period of forty years reversion duty will, with the benefit, of 
 course, of s. 3 (2) of the Revenue Act, 1911, be payable; but if 
 the lease had not more than forty years to run at the date of the 
 purchase, or if having more than forty years to run its determination 
 was under a power in the lease itself, reversion duty is not payable. 
 
 Illustrations. — (1) On January 1, 1909, A. leases land to B. for 
 ninety-nine years on a building lease. B. builds a house. On January 2, 
 1909, A. sells the reversion to C. On January 1, 1920, C. takes a 
 surrender of the lease from B. Reversion duty is payable, but subject 
 to the discount under s. 3 (2) of the Revenue Act, 1911 (see p. 168). 
 
 (2) On January 1, 1909, A. leases a house to B. for sixty years. The 
 lease contains a proviso that at the end of the first thirty years the 
 lessee may determine the lease on notice. On January 2, 1909, A. sells 
 the reversion in fee to C. The lessee gives notice determining the lease 
 on January 1, 1939. Reversion duty is not payable. 
 
 (3) On January 1, 1909, A. leases land to B. for ninety-nine years 
 on a building lease. On January 2, 1909, A. sells the reversion in 
 fee to C. B. builds a house. On January 1, 191 1, B. incurs a forfeiture 
 of the premises by assigning without licence, and C. exercises his power 
 of re-entry. Is reversion duty payable 1 
 
 It is thought not. Either the forfeiture is not incurred in consequence 
 of an agreement, or if it is, the agreement is in the lease. 
 
 (4) If in case No. 1 there had been no express surrender, but C. had 
 gone into possession with B.'s consent, this would have been a deter- 
 mination of the lease by implied agreement, and reversion duty would 
 have been payable, subject as before mentioned. 
 
 (2) No reversion duty shall be charged on the deter- 
 mination of the lease of any land which is at the time of 
 the determination agricultural land, nor on the deter- 
 mination 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 number of years. 
 
 Which is at the Time of the Determination Agricultural Land. — Illus- 
 tration. — Whiteacre is leased on building lease to B. at a rent of 8/. per 
 annum for eighty years from January 1, 1840. B. builds a house which 
 falls into decay. The house is then removed and the site used for a hop 
 
Reversion Duty. 167 
 
 garden. At the expiration of the lease it is worth, as hop land, 10^. per § 14 (2). 
 annum. No reversion duty is payable. 
 
 It is thought that it is immaterial that at the date of the determina- 
 tion of the lease the land has " a higher value than its value for 
 agricultural purposes only " ; and that the sole question is, is it being 
 used as agricultural land 1 And it is thought that a temporary falling 
 out of cultivation would not cause it to cease to be agricultural land. 
 
 It is thought that agricultural land covered with buildings actually used 
 for agricultural purposes would be entitled to the benefit of the exemption. 
 
 The Original Term of which did not exceed Twenty-one Years. — 
 
 See s. 4 : " 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." Therefore a lease for fourteen years, with 
 an option to the lessee to renew it for another fourteen years, will be 
 a lease the original term of which does exceed twenty-one years, and 
 apparently reversion duty will be payable on its determination, even if 
 it be not renewed. But supposing A . leases to B. for twenty-one years, 
 and at the same time grants a second and reversionary lease to B. of the 
 same premises to commence immediately on the expiration of the former 
 lease and for the same term, and so on for a succession of, say, five leases 
 amounting to 105 years in all. Can the Crown insist on treating the 
 original term as 105 years'? It is thought not, and that there must 
 be fresh legislation to stop the gap {Lewis v. Baker, [1905] 1 Ch. 46; 
 Lord Llangattoch v. Watney, Combe & Co., [1910] 1 K. B. 236, C. A.; 
 Knight v. City of London Brewery Co., [1912] 1 K. B. 10). 
 
 If the original term exceeded twenty-one years, it is quite immaterial 
 that it is determined by forfeiture, surrender, merger, or disclaimer 
 within the twenty one years. Reversion duty is payable on its 
 determination, subject to discount under s. 3 (2) of the Revenue Act, 
 1911 (see below), and also subject to sub-s. (1). 
 
 [(3) Where a lease of any land is determined before the Repealed by 
 expiration of the term of the lease by agreement between g.3(5J.^'^/' 
 the lessor and the lessee, whether express or implied, and afresh p- ^''^• 
 lease of the land is then granted to the lessee the term of ivhich 
 extends at least tiventy-one years beyond the date on ivhich the 
 original lease ivoidd have expired, the Commissioners shall 
 malce an allowance in respect of the reversion duty payable of 
 tivo and a half per cent, of the duty for every year of the original 
 term of the lease ivhich is unexpired ivhen 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 tvhole duty payable.'] 
 
108 Land Clauses of the Finance Act. 
 
 § 14. [The Eevenue Act, 1911 (1 George 5, c. 2), 
 
 s. 3 (2), (4). 
 
 Explanation 3. — (2) Where, whether before or after the passing of 
 TentTfTaw t^is Act, a Icaso of any land determines on the vesting of 
 asto reversion ^jjg lessor's interest and the lessee's interest in the same 
 person before the expiration of the term for which the 
 lease was granted, the amount of the reversion duty (if 
 any) payable shall not be the full duty, but such an 
 amount as would, with compound interest at the rate of 
 four per centum per annum for the residue of the term 
 for which the lease was granted, produce the amount of 
 the full duty. 
 
 For the purposes of this provision the full duty means 
 the duty (if any) which would have become payable if 
 the lease had not determined until the expiration of the 
 term for which it was granted, and if the total value of 
 the land were at that time the same as it is when the 
 lease actually determines. 
 
 See p. 167. — (6) Sub-scction (3) of section fourteen of the principal 
 
 Act shall cease to have effect and shall be deemed never 
 
 to have had effect. 
 
 A Lease of any Land. — It is assumed that but for this section 
 reversion duty would be payable in full on the determination of the 
 lease, that is that the lease is not exempt under any of the exempting 
 provisions collected on p. 152. 
 
 Determines on the Vesting of the Lessor's Interest and the Lessee's 
 Interest in the same Person before the Expiration, etc. — The case 
 contemplated is the determination by conveyance, devise or bequest, 
 forfeiture, surrender, or other act or event bringing about a merger or 
 disclaimer, of a leasehold interest before it has expired by effluxion of 
 time. In all such cases the value of the benefit is to be ascertained as 
 provided by s. 13 (2), the "total value at the time of the determination 
 of the lease " within that sub-section being the value at the time of the 
 actual merger. On that "value of the benefit" the full duty of 10 
 per cent, is calculated. The duty actually to be paid is the sum which, 
 with 4Z. per cent, compound interest thereon for the residue of the 
 term for which the lease was granted, would produce the amount of the 
 full duty. Practically this is equivalent to a discount of 4 per cent, 
 per annum for every year of the earlier payment of the duty. 
 
Keversion Duty. 169 
 
 This sub-section is intended to facilitate purchases of the freehold by § 14. 
 lessees, the surrender of old leases for the purpose of the grant of new 
 leases, and so forth. 
 
 The Full Duty. — That is the 11. for every complete 10/. of the value 
 of the benefit (s. 13 (1) ) as ascertained at the date of the merger. 
 
 The Term for which the Lease was granted. — See the definition 
 clause, s. 41, paragraph " The term of a lease," under which 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. It is thought that where the lease is for twenty-one years, 
 with an option to the lessee to renew it for seven years, the term for 
 which the lease was granted under this sub-section is twenty-eight years. 
 
 — (3) "No reversion duty shall be charged on the The Revenue 
 
 Act 1911 
 
 determination of any lease of land where the lease is (i deo. 5, 
 determined in pursuance of an agreement between the '^' ^^' ^' ^ ^^^' 
 lessor and the lessee for the acquisition by the lessee of 
 the lessor's interest, if at the time of the determination 
 of the lease — 
 
 *' (a) the lease has at least fifty years of its termite 
 
 run ; and 
 " (h) the total value of the land does not exceed five 
 hundred pounds." 
 
 In pursuance of an Agreement between the Lessor and Lessee for 
 the Acquisition. — Doubtless the word " agreement " is intended to mean 
 an agreement for sale, which may probably be either in pursuance of an 
 option in the lease or otherwise. The limitations (a) and (b) will be 
 duly noted. The object of the clause is evidently to encourage lessors 
 to sell the reversion to small owners. 
 
 — (4) " Where a lease of any land held upon trust for The Revenue 
 any body of persons is determined before the expiration (i Geo. a, 
 of the term of the lease by the surrender thereof to the ''' ^' 
 lessor upon the terms that he shall grant to those persons 
 severally leases of various plots of land representing in 
 the aggregate the whole of the land comprised in the 
 original lease, for a term in each case equal to the 
 unexpired term of the residue of the original lease, and 
 at rents amounting in the aggregate to but not exceeding 
 
170 
 
 Land Clauses of the Finance Act. 
 
 § 14. the rent reserved by the original lease, no reversion duty 
 shall be payable on the determination of the lease. 
 
 Provided that the lessor shall in any case to which 
 this provision applies deliver an account under s. 15 of 
 the principal Act in the same manner as if reversion 
 duty were payable on the determination of the lease.] 
 
 General note. It is sufficiently evident from the text that this sub-section is 
 intended to meet generally cases of some such nature as the following. 
 A lease of a large plot of land is taken by a society or company, or by 
 trustees, for the purpose of dividing it amongst individuals who are to 
 build houses on the divided portions. By this means the land is 
 obtained at a rather cheaper rate by the builders than if each plot were 
 separately leased. It may be arranged that when the full number 
 of houses is erected the original lease shall be surrendered and a 
 separate lease at a separate rent granted to each builder, thereby 
 relieving him from liability to forfeiture for the acts or defaults of other 
 lessees. Reversion duty is not to be payable in such a case if the 
 conditions of the above section are observed. 
 
 Finance Act, 
 1910, s. 14(4). 
 
 (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 the benefit or 
 part of the benefit shall be treated as being also a pay- 
 ment 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. 
 
 General not«. If a lease expires and the lessor pays reversion duty, part of that 
 duty may be payable in respect of an increased site value of the property 
 
Eeversion Duty. 171 
 
 comprised in the lease (see note on p. 162). If the lessor dies after § 14 (4). 
 paying such reversion duty, his representatives are entitled to set off 
 against a claim of the Crown for increment value duty on the site formerly 
 comprised in the lease the amount so paid as reversion duty in respect 
 of increased site value. The amount set off must, however, it is con- 
 ceived, be a payment of reversion duty in respect of " value of benefit " 
 accruing during the period in respect of which the claim for increment 
 value duty arises. Similarly, if A.'s estate pays increment value duty 
 on the site value of land comprised in a lease on the determination of 
 which A. is entitled in fee, and subsequently the lease determines, A.'s 
 representatives are entitled to set off against the Crown's claim against 
 them for reversion duty the amount of the increment value duty, in 
 respect of the land comprised in the lease, already paid by them, or, it 
 is submitted, by A.'s predecessors in title, the reversioners during the 
 continuance of the lease, and also by the lessees under the lease. The 
 onus of proof as to identity of increment value and of benefit is on the 
 subject. The determination of the Commissioners under the sub-section 
 is subject to appeal. 
 
 Illustrations op Section 14 (4). 
 
 (1) On January 1, 1912, A. buys Blackacre, which is subject to a 
 lease expiring on January 1, 1920. On the expiration of that lease A. 
 pays 200^. reversion duty. On January 1, 1925, A. sells Blackacre. 
 The increment value duty is then assessed at 60^. At the request of 
 A. the Commissioners determine that 201. of the 200^. reversion duty 
 paid by A. in 1920 was paid in respect of a rise in site value occurring 
 between January 1, 1912, and January 1, 1920. A. is entitled to a 
 deduction of 20^. from the increment value duty of 60^. 
 
 (2) On January 1, 1912, A. buys Blackacre, which is subject to a 
 lease expiring on January 1, 1930, On January 1, 1920, A. sells 
 Blackacre to B., on which occasion he pays 60^. increment value duty. 
 When the lease expires on January 1, 1930, the amount of the reversion 
 duty payable by B. is fixed at 2001. On B.'s application the Commis- 
 sioners determine that 30/. of this duty is payable in respect of a rise 
 in site value which occurred between January 1, 1912, and January 1, 
 1920, as to which increment value duty to the extent of GOl. has already 
 been paid. The Commissioners will probably determine that 30/. of the 
 60/. shall be treated as being a payment on account of reversion duty. 
 
 iVoie on Illustrations. — It appears that there is no limit to the period 
 within which a running account between the two duties may be kept 
 up. At the end of a long lease, every payment, either by lessor or lessee, 
 during its currency on account of increment value duty can be set off 
 against the reversion duty on the portion of the value of the benefit 
 which is derived from the increase of site value. But it seems from the 
 nature of the case that after the first payment of increment value duty 
 on the fee simple after a payment of reversion duty there can be no 
 
172 Land Clauses of the Finance Act. 
 
 § 14 (4). further set-off miless a new lease has been made. The whole of the 
 increment value duty has been paid up to date. 
 
 On any Occasion. — See s. 1 (a), (b) and (c) for the occasions. The 
 payment will, it seems, when once proved, be available as a set-off on all 
 future occasions. 
 
 Proved to the Satisfaction of the Commissioners. — It is not thought 
 that these words exclude an appeal on the ground that the Commis- 
 sioners ought to have been satisfied and were not. 
 
 Any Benefit . . . identical with the Increment Value. — The 
 meaning seems plain, though not the phraseology. One of the items 
 which may make up the increased value on the determination of the 
 lease, from which results "the benefit accruing to the lessor," may be a 
 rise during the currency of the lease in site value. This of course is 
 common enough in the centre of towns. But on this rise in site value 
 increment value duty will from time to time be paid by both lessor 'and 
 lessee. When at the end of the term reversion duty comes to be 
 payable, it is conceived that the lessor is entitled to set off against the 
 claim for that duty the whole of the increment value duty paid during 
 the continuance of the term by any one interested in the land, whether 
 as lessor or as lessee. The " benefit " is really " identical with the 
 increment value," because it is the same added value which when 
 viewed from the point of view of increment value duty is " increment 
 value," and from the point of view of reversion duty is "benefit 
 accruing to the lessor." 
 
 Such Sums as the Commissioners shall determine to have been 
 paid. — It would seem, where the order of payment is first reversion duty 
 and secondly increment value duty, that half the increment value 
 duty up to the date of the determination of the lease is primd facie 
 covered by the reversion duty then paid, and that therefore the Com- 
 missioners should estimate the site value at that date, and charge 
 increment value duty accordingly. So where the order of payment is 
 first increment value duty which is paid both by landlord and by tenant 
 during the continuance of the lease, and secondly reversion duty, it is 
 thought that the whole of the payments of increment value duty, 
 whether paid by landlord or by tenant during the continuance of the 
 lease, can be set off against the reversion duty. In this case the value 
 of the benefit must have been increased by the increment on which 
 increment value duty has been paid. 
 
 (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 
 
Reversion Duty. 173 
 
 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 determination of the lease exceeds the amount 
 payable under the mortgage at the date of the foreclosure. 
 
 Where a Reversion has been Mortgaged before the Thirtieth 
 Day of April, 1909, and the Mortgagee has Foreclosed. — The 
 object of the sub-section is apparently to protect a mortgagee who 
 has advanced money on a reversion before the Act came into force 
 against the chance of his security becoming insufficient to answer the 
 mortgage debt by reason of the deduction of the reversion duty. In 
 order to bring the section into force, however, (1) the mortgagee must 
 have foreclosed ; (2) he must have done so before the lease determines. 
 Then he is only liable to pay an amount in respect of reversion 
 duty which is not greater than the amount by which the total value of 
 the land at the time of the determination of the lease (that is, the value 
 of his secui-ity) exceeds the amount due to him on his mortgage at the 
 date of his foreclosure. In other words, his liability to pay reversion 
 duty is limited to the amount of his profit (in addition, it is assumed, to 
 his agreed interest) on the transaction. 
 
 The Mortgagee has Foreclosed. — Suppose the mortgagee does not 
 foreclose but sells the reversion under his power of sale whether 
 statutory or contained in the mortgage. Assume that the security is 
 not sufficient to meet the mortgage debt. The purchaser will, it is 
 assumed, buy subject to reversion duty. There seems to be nothing to 
 give him the benefit of the mortgagee's exemption. He will, therefore, 
 pay a sum for the property, equal in amount to the anticipated rever- 
 sion duty, less than he would pay if reversion duty did not exist. The tax 
 will therefore in such a case fall on the mortgagee, notwithstanding 
 the sub-section. This will induce him to keep his foreclosed property 
 till after the lease has determined. 
 
 Supposing the lease determines before the mortgagee of the reversion 
 has foreclosed, the sub-section suggests by implication that the mort- 
 gagee is not liable to the Crown to pay the reversion duty. But is this 
 sol Under s. 15(1) reversion duty is recoverable from the lessor. 
 Under s. 13 (1) that duty is leviable " on the value of the benefit accru- 
 ing to the lessor." Under s. 41 the expression lessor "includes the 
 person for the time being entitled to the reversion whether freehold or 
 leasehold expectant on the determination of the lease." Certainly in 
 the case of a legal mortgage that person is the mortgagee. Of course, if 
 the mortgagee pays reversion duty he may add it to his security (s. 39 (4)), 
 but the sub-section contemplates a case where the security is by hypothesis 
 deficient. It exempts the mortgagee from reversion duty in such a 
 case where he has foreclosed and is therefore owner. But it apparently 
 does not do so when he has not foreclosed. 
 
174 
 
 Land Clauses of the Finance Act. 
 
 5 14 (6). Amount payable under the Mortgage at the Date, etc. — Lastly, what 
 is meant by " the amount payable under the mortgage"? Presumably 
 it includes all arrears of interest. No penalty is placed on a mortgagee 
 who has allowed interest to become hopelessly in arrear. Further, it 
 would, it is believed, include all such sums as a mortgagee is entitled to 
 add to his security, and his costs, charges, and expenses. Perhaps the 
 Court may take as the " amount payable under the mortgage " the 
 amount found due in the Master's certificate in pursuance of the fore- 
 closure order nisi (see Seton on Decrees, vol. 3, p. 1895, 6th edition) 
 and mentioned in the final order for foreclosure {ib., p. 1990). 
 
 At the Date of the Foreclosure. — I.e., the final order for foreclosure. 
 
 § 15 (1). 
 
 Eecovery of 
 
 reversion 
 
 duty. 
 
 Section 15. 
 
 15. — (1) Eeversion duty shall be recoverable from any 
 lessor to whom any benefit accrues from the determina- 
 tion of a lease as a debt due to His Majesty, but shall 
 rank pari passu with all other debts due from such 
 lessor. 
 
 Explanation 
 and amend- 
 ment of law 
 as to reversion 
 duty. 
 
 10 Edw. 7, 
 c. 8. 
 
 [The Eevenue Act, 1911 (1 Geokge 5, c. 2), s. 3 (1). 
 
 3. — (1) It is hereby declared that in relation to a lease 
 which has determined the person in whom the lessor's 
 interest was vested immediately before the expiration of the 
 term for which the lease was granted, or if the lease has 
 determined before that time, immediately before the 
 transaction or event in consequence of which the lease 
 has determined, is the lessor for the purpose of section 
 fifteen of the Finance (1909-1910) Act, 1910 (in this Act 
 referred to as the principal Act), and is the person to 
 whom any benefit accrues from or by reason of the 
 determination of the lease for the purpose of the other 
 provisions of that Act relating to reversion duty.] 
 
 It is thought advisable to treat the above section of the Revenue Act, 
 1911, concurrently with s. 15 of the original Act, of which it is simply 
 explanatory. 
 
 From any Lessor. — The duty is payable by the lessor, which 
 "includes the person for the time being entitled to the reversion, 
 whether freehold or leasehold, expectant on the determination of the 
 lease " (s. 41). 
 
Reversion Duty. 175 
 
 It will be observed that the wording of s. 15 (1) is a little curious. § 15 (1). 
 Though there could be no doubt that by the term "lessor" in that The reason for 
 sub-section was meant the person who was in the position of the lessor »• 3 (1) of the 
 just before the determination of the lease, yet, strictly speaking, that i^n^ ' 
 
 person had ceased to be lessor the moment the lease determined. The 
 duty becomes due "on the determination of " the lease (s, 13 (1) ), i.e., 
 at the same moment that there ceased .to be a lessor. Probably it 
 would have been considered to be so obvious that the person who was 
 the lessor immediately before the determination of the lease was the 
 person meant by " the lessor " in s. 15 (1), that no new legislation would 
 have been considered necessary, if it had not been also perceived that, when 
 the lessee purchased the reversion with the intention of merging the lease 
 in the reversion and becoming entitled in fee in possession, he became 
 under s. 41 "the person for the time being entitled to the reversion," 
 and must be considered as being, at all events for a moment of time, 
 " the lessor " ; for otherwise there could not have been a merger, which 
 admittedly there was. The purchaser or former lessee being the lessor, 
 within the meaning of s. 41, immediately before the determination of 
 the lease, was therefore under s. 15 (1) liable to pay the reversion duty ; 
 and the vendor of the reversion who was intended to be hit by the duty 
 was not liable. This has now been altered by the above sub-section of 
 8. 3 of the Revenue Act, 1911. Under that sub-section the reversioner 
 who has sold his reversion to the lessee, thereby creating a merger, 
 is liable to reversion duty, and the purchasing lessee is not liable. No 
 such difficulty arose in the ease either of the purchase of the leasehold 
 interest by the reversioner, or of the forfeiture of the lease, or of its 
 disclaimer by a trustee in bankruptcy of the lessee, creating in each 
 case a merger. The lessor in all those cases was liable to duty under 
 the necessary interpretation of the word "lessor" as used in s. 15 (1). 
 See the note to s. 14 (5) as to the position of a legal mortgagee. A 
 mortgagee who has not got the legal estate is probably not liable for 
 reversion duty. 
 
 The question whether a covenant by the lessee in a lease to pay the Covenants by 
 reversion duty is valid, (a) notwithstanding s. 15 (1), and (b) so as to ^^^^^^ *° P^y 
 bind the assign of the lease, is not quite unpractical even at this early duty, 
 stage of the Act's operation, since a lease may determine by surrender, 
 merger, or forfeiture at any time after its grant. There seems to be no 
 reason why the lessee should not be bound by such a covenant. There 
 is no provision in the 1910 Act or in the Revenue Act, 1911, rendering 
 such an agreement void, or unenforceable, comparable with s. 19 as to 
 undeveloped land duty and s. 22 (4) as to mineral rights duty. But 
 as to the assign the case seems to fall within the third rule in SpcTicer's 
 Case (5 Rep. 16), and xiot to bind the assign, since it concerns merely 
 a collateral obligation of the lessor based upon a certain benefit he 
 derives when the lease is at an end. It is not like a covenant to dis- 
 charge the lessor de omnibus oneribus ordinariis et extraordinariis {Dean 
 
176 Land Clauses of the Finance Act. 
 
 § 16 (1) . of Windsor^s Case, 5 Rep. 25), i.e., to pay rates, taxes, and assessments 
 accruing due during the term. Sed quaere. 
 
 Any benefit accrues. — That is a benefit within the meaning of the 
 words "value of the benefit" defined by s. 13 (2). But it must be 
 understood that the benefit does not accrue from an exempted lease. 
 See the cases of exemption from reversion duty collected on p, 155. 
 
 Debt due to His Majesty, but shall rank pari passu. — Recover- 
 able by information. See ante, p. 84. 
 
 The Crown has no priority for the debt arising therefrom. There is 
 apparently no charge on the property for the duty. So that subsequent 
 purchasers of the property need not inquire whether it has been paid. 
 
 As to trustees, mortgagees, and tenants for life who have paid 
 reversion duty, see s. 39, post, p. 412. 
 
 It is hereby declared, etc. — These words do not necessarily import 
 that the section is merely declaratory of the previous law. It may 
 include an amendment of such law (Harding v. Commissioners of Stamps 
 for Queensland, [1898] A. C. 769, at p. 775). 
 
 Transaction or event, i.e., the conveyance of the fee to the lessee, or 
 the surrender of the term to the lessor, or the forfeiture. 
 
 (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 Commis- 
 sioners setting forth the particulars of the land and the 
 estimated value of the benefit accruing to the lessor by 
 the determination of the lease. 
 
 Every lessor. — See notes to last sub-section and Revenue Act, 1911, 
 s. 3 (1). 
 
 On the Determination of which Reversion Duty is payable under 
 this Section. — 'The meaning notwithstanding the words " under this 
 section " is apparently that either (1) if the reversion is wholly exempted 
 from duty by reason of any of the various provisions collected on p. 155, 
 conferring complete exemption, or (2) if the reversioner being liable to 
 duty in case there is any benefit accruing to the lessor within s. 13 (2), 
 there is in fact no such benefit, then in neither of those cases need 
 any account be delivered. Of course in each case the non-delivery 
 of the accovmt is at the risk of incurring the penalty imposed by 
 sub-s. (3). It is therefore suggested that the Commissioners' 
 Form of Account relating to this duty (see p. 523 and notes thereon) 
 should be complied with in all cases where the exemption depends solely 
 on there being no benefit accruing to the lessor. In other clear cases of 
 exemption, as where the lease or the reversion does not exceed twenty- 
 one years, no account need, it is thought, be sent in. In the latter cases 
 
Eeversion Duty. 177 
 
 it is suggested that for the present, and until the practice becomes 'R 15 (q\ 
 settled, an intimation of the determination of the lease should be sent 
 to the Commissioners, accompanied by a statement that exemption is 
 claimed on the ground, for example, " that the land was at the time of 
 the determination of the lease agricultural land," or " that the lessor's 
 interest expectant on the determination of the lease did not exceed 
 twenty-one years." If the lease which has determined did not exceed 
 twenty-one years, it is suggested that no intimation need be sent to 
 the Commissioners, otherwise a heavy burden would be placed upon the 
 subject. For advice as to filling in the Form of Account, see Notes 
 on Practice, ante, p. xxxv. 
 
 If exemption exists because the lessor claims the benefit of s. 37 
 (charitable, etc., purposes), or s. 38 (statutory companies), it is thought 
 that no intimation of the determination of the lease need strictly be 
 given. 
 
 The fact is not overlooked that the Form of Account on p. 523, below 
 referred to (see Requisition, No. 15), indicates that the Commissioners 
 do not take quite this view of the subject's liability. For further dis- 
 cussion on this question, see " Practical Note," ante, p. xxxv. See the 
 next sub-sect, and notes thereon. 
 
 Particulars of the Land and Estimated Value of the Benefit. — This 
 information in itself would not always enable the Commissioners to 
 assess the duty. The pith of this section is in sub-s. (4). The Form 
 of Account asked for by the Commissioners will be found on p. 523 ; 
 but it is not thovight that the vise of this form is obligatory, if such 
 particulars are given as enable the Commissioners fairly to judge how 
 the estimated value or estimated no value of the benefit is arrived at. 
 
 Compare s. 15 (2) with s. 20 (3), under which the return for mineral 
 rights duty must be made " in the form required by the notice." 
 Compare also with s. 26 (2). 
 
 (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 under this section, and 
 
 a like penalty for every three months after the first month 
 
 during which the failure continues. 
 
 If any person. — Person includes body corporate or uncorporate 
 (Interpretation Act, 1889, s. 19). 
 
 Who is under an Obligation to deliver an Account under this 
 Section. — See the notes to the last sub-section " on the determination 
 N. 12 
 
178 Land Clauses of the Finance Act. 
 
 § 16 (3)» of which reversion duty is payable." There is, it is thought, no obliga- 
 tion under this section to deliver an account unless reversion duty is 
 payable, but as that is a question which can only be determined after 
 an account is taken under s. 13 (2), showing the total value of the land 
 at the time the lease determines and at the time of the original grant 
 of the lease respectively, which account may involve certain subsidiary 
 valuations arising out of expenditure by the lessor and compensation 
 payable by him, it is considered to be safer for the subject always to 
 deliver an account, unless he can claim exemption on one of the grounds 
 conferring exemption, whatever may be the value of the benefit accruing. 
 An information will probably lie to enforce the obligation to deliver 
 an account, as in Attorney-General v. Duke of Richmond (No. 2) ( [1907] 
 2 K. B. 940). If in such a case it is found that, though in fact no duty 
 is payable, the subject has unreasonably declined to furnish information 
 to the Commissioners, the result may be unfortunate as to costs. 
 
 "Knowingly fails," etc. — What do these words mean? Do they 
 mean that if the lessor does not know of the section at all, he is 
 not liable in case of default in compliance on the ground that not 
 knowing of the section he does not knowingly fail to comply with it ? 
 Supposing he knows, in a general sort of way, that there is a section 
 of this nature, and takes no trouble to ascertain its terms, does he 
 knowingly fail ? And again, supposing he once knew all about the 
 section and his future liability under it, but forgot about it at the 
 critical time, is he liable to the penalty 1 Is he liable if, knowing all 
 about the section, he deliberately abstained from delivering an account 
 on the ground that he bond fide believed that no duty was payable ? 
 These questions are probably more practical than most of an analogous 
 nature. The dictum of Neville, J., in Burton v. Bevan, [1908] 
 2 Ch. 240, at p. 247, is against the lessor in all these cases ; but that 
 was an action for damages at the suit of a private individual and not 
 for a penalty payable to the Crown. See also Tait v. MacLeay [1904], 
 2 Ch. 631, C. A. The speeches in the recent case in the House of 
 Lords {Attm-ney-General v. Till, [1910] A. C. 50) relating to penalties 
 under the Income Tax Act, 1842, ss. 52 and 55, in which sections, 
 however, the word "knowingly" does not occur, is, however, not an 
 authority in favour of non-liability to penalty, though, as the 
 language of s. 55 of the Act of 1842 is very different from that of 
 B. 15 (3) of the Act of 1910, it is perhaps not to be treated as a direct 
 authority the other way. See notes on p. 78 and p. cxliv. ante. 
 
 Three Months, i.e., calendar months (Interpretation Act, 1889, s. 3). 
 
 He shall be Liable to pay ... a Sum not exceeding ten per cent, 
 npon the Amount of any Duty payable.— This penalty is not recover- 
 able summarily and must therefore be sued for by information. It 
 seems clear from these words, even if it is not so otherwise, that the 
 
Keversion Duty. 179 
 
 Commissioners have power to assess the duty even if no account is § 15 (3). 
 delivered. ?ee note to sub-s. (4). 
 
 (4) Section seventeen of the Customs and Inland is&iovict. 
 Kevenne Act, 1885 (which relates to the power to assess 
 duty according to accounts rendered, and to obtain other 
 accounts), shall apply with respect to any account deli- 
 vered under this section (with the exception of any 
 provisions relating to appeals). 
 
 Section 17 of the Customs . . . Act, 1885. — This section, which is 
 set out in full on p. 127, is thus made applicable to the accounts of 
 private individuals. Under the Customs Act, 1885, and under s. 6 (3) 
 of this Act, it can be used only against bodies corporate and unin- 
 corporate. It enables the Commissioners to cause an account to be 
 taken by their own agents, if dissatisfied with the account furnished by 
 the lessor, and to assess the duty on such account. 
 
 It does not give the right to the Commissioners to compel the pro- 
 duction of books, vouchers and documents for the pui-pose of making 
 their own account : these powers are conferred upon the Com- 
 missioners in relation to the periodical assessment of increment value 
 duty against a body corporate or unincorporate under s. 6, by virtue of 
 s. 19 of the Customs and Inland Revenue Act, 1885, incorporated by 
 s. 6 (3) of the Act of 1910. Sect. 19 of the Act of 1885 applies to the 
 collection of increment value duty from a body corporate or unincorporate 
 on a periodical occasion : the powers of s. 49 of the Succession Duty 
 Act, 1853, which relate to the production and inspection of books and 
 documents (see ante, p. 128) ; buts. 19 of the Act of 1885 is apparently 
 not applied by the Finance Act, 1910, to the collection of reversion duty. 
 Once an account is delivered the Commissioners can assess the duty 
 "upon the footing" thereof (s. 17 of the Customs, etc.. Act, 1885). If 
 the account is knowingly false in any particular it is a summary offence 
 under s. 94 of the Act of 1910. But if the lessor refuses or neglects to 
 deliver any account or to furnish any information the Commissioners may 
 be in some difficulty. But assuming, as is thought to be the case, that 
 they have power to assess the duty even before the account is rendered, 
 on an account drawn by themselves at a venture under s. 17 of the 
 Act of 1885, they will do so, and in any appeal from their assessment 
 they will be able to arrive at the true figures. These must almost 
 necessarily be disclosed by the lessor on appeal to a referee. On appeal 
 to the High Court an order for discovery against the lessor may be 
 made (see rule 9 (2) of the Rules of the Supreme Court under s. 33 (4), 
 post, p. 384). A lessor who obstructed the Commissioners by declining 
 to furnish an account, and who was really liable to reversion duty, 
 would probably not gain in the end by so doing. The duty being fixed 
 
 12—2 
 
180 Land Clauses op the Finance Act. 
 
 § 15 (4). by proceedings under the Act can be recovered by Latin information, and 
 the penalties can also be recovered in the same way. 
 
 It is further probably the case (see ante, p. 178) that an equitable or 
 English information will lie at the suit of the Attorney-General for an 
 account, in which discovery can be obtained ; but quaere in this case, 
 must not the penalties be waived 1 
 
 Undeveloped Land Duty. 
 Summary of Sections 16 to 19. 
 
 Sects. 16 to 19 inclusive relate to undeveloped land duty. 
 
 Sect. 16 establishes the duty, fixes its amount, defines or describes 
 the undeveloped land which is the subject of the tax, fixes the method 
 of ascertaining the site value for the purposes of the duty, creates an 
 important exemption from the duty in relation to the development of 
 building estates, permits payments of increment value duty to be taken 
 into account in charging undeveloped land duty, and excludes minerals 
 from any compvitation in relation to the duty. 
 
 Sects. 17 and 18 establish various exemptions from the duty. 
 
 Sect. 19 relates to the time of payment of the duty, and the liability 
 of the owner in respect thereto. 
 
 Section 16. 
 
 16. — (1) Subject to the provisions of this Part of this 
 ^ ^ ' Act, there shall be charged, levied, and paid for the 
 Duty on financial year ending the thirty-first day of March nineteen 
 undeveloped hundred and 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. 
 
 Subject to the Provisions, etc. — See ss. 16 — 19 inclusive, ss. 35 — 38 
 inclusive, and s. 40. 
 
 Charged, levied, and paid. — Undeveloped land duty is a tax on site 
 value, and is payable by the owner, who may not by contract throw the 
 burden on to the occupier (s. 19). It is not a charge on the land (but see 
 the notes to s. 19, post, p. 205). In addition to the raising of revenue, 
 the duty is supposed, and intended, to present inducements to owners 
 to develop their site values by the erection of buildings, or the use of 
 the land for trade purposes. For the person liable in case of change of 
 ownership see notes to s. 19 (p. 205). 
 
 For the Financial Year ending March 31, 1910. — As the Act did not 
 receive the Royal assent till after the expiration of the financial year 
 referred to, no assessment of site value was made under its provisions 
 
 laud. 
 
Undeveloped Land Duty. 181 
 
 during the currency of such year. Under s. 19, nevertheless, the duty § 16 (1). 
 is payable at any time after the 1st day of January for which it is 
 charged. Under the same section the duty may be assessed at any later 
 time and is payable at the expiration of two months from the date of 
 assessment, but the duty may not be assessed more than three years 
 after the expiration of the year for which it is charged. The effect of 
 this provision seems, therefore, to be that four years of duty can be 
 recovered by the Crown. See further as to assessment on the pro- 
 visional valuation, subject to adjustment on the values being finally 
 settled, s. 27 (6), post, p. 329. The financial year is the year from 
 April 1 to March 31 inclusive (see the Interpretation Act, 1889 (52&53 
 Vict. c. 63), s. 3). 
 
 And every subsequent Financial Year. — The tax is a permanent 
 yearly tax until altered or remitted by Act of Parliament. 
 
 In respect of the Site Value. — For definition of assessable site values, 
 see s. 25 (2), (4). It is to be noted that it is a piece of ground cleared 
 not only of buildings and other structures, but also of timber, fruit 
 trees, and other things growing thereon, which is contemplated as 
 "a site." Apparently even the herbage must be hypothetically 
 stripped off the soil for the purpose of the valuation. The reason 
 is that the valuation is of land which should or might be used for 
 a dwelling-house or a building for the purposes of some business, 
 trade, or industry other than agriculture, or used otherwise for such 
 purposes. The duty is payable on the original site value till the first 
 quinquennial valuation in the year 1914, and afterwards on the site value 
 then ascertained (s. 16 (3) ). If no site value is ascertained in 1914 it 
 will continue to be payable on the original site value (s. 16 (3) ). 
 
 Undeveloped Land. — For definition of this, see next sub-section. The 
 term is purely a conventional one adopted for the purpose of the duty. 
 
 (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 busines's, trade, or 
 industry other than agriculture (but including glasshouses 
 or greenhouses), or 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 
 
182 
 
 Land Clauses of the Finance Act. 
 
 § 16 (2). 
 
 20 substituted 
 by 1 Geo. 5, 
 c. 2, 8. 4, 
 for 10. 
 
 . 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 connexion 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 [tiventy 
 years] have elapsed since the date of the 
 expenditure, or if after the date of the expenditure 
 the land having been 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 afore- 
 said 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. 
 
 1 Geo. 5,0.2, [The Eevenue Act, 1911 (1 Geo. 6, c. 2), s. 4. 
 
 8. 4. ' ' 
 
 Amendment Twcutv vcars shall be substitutcd for ten years as the 
 of the limit of time for taking expenditure into account for 
 
 principal Act. 
 
Undeveloped Land Duty. 183 
 
 the purposes of paragraph (b) of sub-section two of § 16 (2). 
 section sixteen of the principal Act.] 
 
 If it has not been developed. — Some stress, perhaps, should be laid 
 upon the word "developed." The construction of that word does not 
 appear toreceive any light from decided cases. For two cases relating 
 to the development of railway traffic see Clonmel Traders, etc. v. The 
 Waterford and LimericJc Railway Co., 4 Railway and Canal Traffic Cases, 
 92; Midland Great Western Railway of Ireland Co.,ib. 145 (referred to 
 in Stroud's Judicial Dictionary, vol. 1, p. 522, 2nd edition), which, how- 
 ever, are very far afield from the provisions of s. 16 of the Act of 1910. 
 
 Dictionary definitions of " development " may be referred to. 
 Murray's New English Dictionary, Clarendon Press, 1897, includes the 
 following : — 
 
 1. A gradual unfolding, a bringing into fuller view; a fuller dis- 
 closure, or working out of the details of anything, as a plan, or scheme, 
 the plot of a novel. 
 
 3. (c) The bringing out of the latent capabilities (of anything). 
 
 The Imperial Dictionary, edited by John Ogilvie, LL.D., Blackie, 
 includes : 
 
 (3) The exhibition of new features. 
 
 It may, however, be that the development which is necessary in order Qurere if 
 to give exemption from the duty is not something which is or may be ^^"^^^ |^ *^" 
 the result of the erection of dwelling-houses and buildings for the ment." 
 purposes of business, trade, or industry, or the user otherwise for those 
 purposes, but is simply the fact that dwelling-houses or such buildings 
 have been erected, or that the land is so used. If that be the case, 
 "developed by" is simply equivalent to "used for." The matter may 
 be important in relation to the erection of buildings or the user of land 
 for purposes of business, trade, or other industry. For instance, an 
 advertisement hoarding has been held a building in some cases (see 
 post, p. 184), and in others not a building. The latter view is not 
 unlikely to be applied to the construction of s. 16, if the words 
 " developed by " mean something more than simply " used for." On 
 the whole it is suggested that the word does mean something more, and 
 points to a new and useful employment of the land, but exactly what 
 force is to be attributed to it can only be ascertained by judicial decision. 
 
 Two questions appear to be left in great obscurity. First, is land 
 becoming developed between April 1 and January 2 (on which date 
 the duty may be claimed) liable for the whole or any part of the 
 dutyl Secondly, is an inchoate development as the digging of the 
 foundations of a house sufficient to create exemption 1 
 
 By the Erection of Dwelling-houses or of Buildings for the 
 Purposes of any Business, Trade, or Industry other than Agriculture, 
 etc. — The land occupied together with a dwelling-house is dealt with in 
 
184 Land Clauses of the Finance Act. 
 
 §{16 (2). s. 17 (4). Apparently it is only the actual land covered with buildings 
 (not being dwelling-houses) which is exempted. For example, if the 
 owner of a boathouse on the river (there being no attached dwelling- 
 house to bring the case within s. 17 (4) ) has a garden or open space 
 adjacent to his boathouse, this garden or open space would probably not 
 be land " developed " within the meaning of the section. But if he lets 
 out boats for hire and allows his customers to use this open space for 
 sitting or lounging, it would probably be exempted from the tax under 
 the later words of the first paragraph of sub-s. (2) as being used for the 
 purposes of the business of letting out boats. 
 
 The garden attached to a golf club house, not being a dwelling- 
 house, is land not developed and therefore seems prinid facie liable to 
 the tax, unless it could be brought within s. 17 (3) (d), which may depend 
 on circumstances. If the steward lives in the club house it may 
 perhaps be considered a dwelling-house and entitled to the benefit of 
 s. 17 (4). 
 
 It is easy to imagine difficult cases arising on these words. Is the 
 use of land as an advertisement station a bond fide use for a business 1 
 And a use of how much of the land 1 Some advertisements require a 
 large foreground for the suitable display of their merits (see Heard v. 
 Stuart, [1908] 24 T. L. R. 104; Tubbs v. Esser, [1909] 2 T. L. R. 
 145). 
 
 Land is not undeveloped under the sub-section if 
 
 (1) it has been developed by the erection 
 
 (a) of dwelling-houses ; or 
 
 {b) of buildings for the purposes of any business, trade, or 
 industry, etc., or if 
 
 (2) it has been otherwise used bond fide for any business, trade, or 
 
 industry. 
 
 What is a Buildings. — Decisions as to what is or is not a building are of course 
 
 building ? numerous. They occur mainly in connection with covenants and Acts of 
 Parliament, and turn to a very large extent upon the special words and 
 general scope of the document to be construed. They are not, therefore, 
 thought to throw much light upon the use of the term in s. 16 (2). For 
 example, an advertisement hoarding was held to be " a building or 
 erection," within the meaning of a covenant not to erect buildings or 
 erections in Pocock v. Gilham (1 Cab. and Ellis 104), and in Nussey v. 
 Provincial Bill Posting Co. ([1909] 1 Ch. 734 (Moulton, L.J., however, 
 dissenting)), a trellis screen was held a building within the meaning of a 
 similar covenant in Wood v. Cooper ([1894] 2 Ch. 671) ; while on the 
 other hand an advertisement hoarding was held not a building within the 
 meaning of a covenant regulating the character of buildings in Foster v. 
 Fraser ([1893] 3 Ch. 158), and not a "building" within the meaning 
 of s. 157 of the Public Health Act, 1875, in Slaughter v. Mayor of 
 Sunderland (65 L. T. 250). In Boyce v. Paddington Borough Council 
 
Undeveloped Land Duty. 185 
 
 ([1903] 1 Ch. 109), at p. 116, Buckley, J., is reported as saying: § 16(2). 
 " From these cases''' I can derive no principle other than this, that a 
 hoarding may or may not, according to the context, be a building." 
 An arch used as a storehouse has been held to be a building within the 
 Gasworks Clauses Act, 1847 {Thompson v. Sunderland Gas Co., 46 
 L. J. Ex. 710 ; L. R. 2 Ex. D. 429). A cowhouse, it seems, may be a 
 " building " within the meaning of s. 27 of the Representation of the 
 People Act, 1832, the words of which are " house, warehouse, counting- 
 house, shop or other building " (Whitmore v. Wenlock, 13 L. J. C. P. 55), 
 but not a tool shed (Powell v. Boraston, 34 L. J. C. P. 71). 
 
 An unfinished house has been held a building within the statute Further 
 24 and 25 Vict. c. 97 (Malicious Injuries to Property Act, 1861), s. 6 decisions as 
 (R. V. Manning, 1 C. C. R. 338). In Commissioners of Hanley v. Lord 
 Granville (10 Bingham, 69) sheds which protected engines for the 
 convenient working of a mine were held liable to be rated as buildings 
 under a local watching and lighting Act. A greenhouse has been held to 
 be a house or building under s. 92 of the Lands Clauses Act, 1845 
 {Salter v. Metropolitan District Railway Co., 1870, L. R. 9 Eq. 432) ; to 
 be a building under s. 3 of the Prescription Act, 1832 (2 *fe 3 Will. 4, 
 c. 71), and entitled to acquire rights to light thereunder {Clifford v. 
 Holt, [1899] 1 Ch. 698); and to be a building under the Agricultural 
 Rates Act, 1896 {Smith \. Richmond, [1899] A. C. 488), and not exempt 
 from half rates. A covered-in reservoir has been held to be a building 
 or structure under the London Building Act, 1894 (Moran v. Marsland^ 
 [1909] 1 K. B. 744), and a railway embankment a building under a 
 covenant not to erect any building other than private dwellings {Long 
 Eaton Recreation Grounds v. Midland Ry. Co., [1902] 2 K. B. 574; 
 see the remark of Collins, M.R., on p. 581, "a building is not 
 necessarily limited to a structure of bricks and mortar "). 
 
 The above cases are referred to simply as giving some idea of the kind 
 of way in which the term " building " has been construed, and therefore 
 may in future be construed, in English law. Probably the word as used 
 in s. 16 will not often be the subject of decision, since the later words 
 of the sub-section, " or is not otherwise used hond fide for any business, 
 trade, or industry other than agriculture," will often remove any doubt 
 which might exist. 
 
 As to the effect of a covenant not to use land otherwise than as 
 agricultural land, see ante, notes to s. 7 (p. 136). 
 
 For the amount of land other than the actual site of the dwelling- Amount 
 
 house itself, which is exempted, see s. 17 (4), imder which the site value of land 
 
 6X6rnDt)6(i 
 of " any land " not exceeding one acre occupied with the dwelling-house, ^j^^ij dwell- 
 
 and the site value of "gardens or pleasure grounds "up to five acres ing-house 
 
 (subject to an important qualification as to the comparative values of '^^ "' '"^' 
 
 house and land), are exempted from undeveloped land duty. 
 
 * I.e., those cited in the text together with Wilson v. Queen's Gluh ([1891] 
 3 Ch. 522). 
 
186 
 
 Land Clauses of the Finance Act. 
 
 § 16 (2). 
 
 Buildings not 
 
 specially 
 
 exempted. 
 
 Amount 
 of land 
 exempted. 
 
 What is a 
 business 7 
 
 Probably no land other than the site of the building itself is 
 exempted under the words " buildings for the purposes of any trade 
 business, or industry," but the land immediately contiguous to the build- 
 ings in question and occupied therewith, if a necessary or proper adjunct 
 thereto, seems clearly to be land "used bond fide " for a business, etc. 
 
 It seems clear that the site value of buildings which are neither 
 dwelling-houses nor buildings for the purposes of any business, trade, or 
 indiistry other than agriculture is not exempt from undeveloped land 
 duty. In other words the site value of buildings for agricultural 
 purposes (not of course the farmhouse and possibly the buildings 
 occupied therewith, such as stables, but qticere as to cart and cow sheds, 
 etc.) may be liable to undeveloped land duty, but the point appears to 
 be almost negligible as a matter of practical importance. Further, such 
 buildings as an ordinary members' club do not appear to be exempt, 
 unless perhaps the club has bedrooms and is a dwelling-house, or the 
 case falls within s. 37. But it is thought that there is no intention of 
 treating the sites of the Pall Mall, St. James's Street, Piccadilly, and 
 Northumberland Avenue clubs and the halls of the various City Com- 
 panies as undeveloped, or of levying this duty, in cases where the land 
 is built upon permanently and usefully. 
 
 Questions as to the quantities of land which may be considered to be 
 used bond fide for the pui-pose of businesses, trades, or industries do not 
 seem to present any greater difficulties than the majority of questions 
 involving degree and bona fides. It is not thought that the Com- 
 missioners or the Courts would ask the question whether more land was 
 so used than was necessary for or beneficial to the business, but simply 
 whether in fact the land was, however mistakenly, yet honestly, used in or 
 for the promotion of the business, and was not merely being so used as a 
 cloke or device for escaping undeveloped land duty. When the motives 
 are mixed, it is thoiight that exemption should be given. For example, 
 the proprietor of tea gardens may retain a portion of his land unsold 
 and continue to carry on his refreshment business thereon, although the 
 curtailment of his garden would not diminish but would really increase 
 his profits, the reason which finally determines him not to curtail his 
 gardens being the fear of undeveloped land duty. It is submitted that, 
 quite apart from the questions whether s. 17 (3) (d) or s. 17 (4) apply to 
 the case, he is entitled to the benefit of the exemption, on the ground 
 that his land is bond fide used for his business. 
 
 Business, Trade, or Industry other than Agriculture. — Numerous 
 cases might be cited showing what has and what has not been considered 
 to be a business within the meaning of various Acts of Parliament and 
 of divers covenants in deeds and other contracts. It is conceived that 
 such decisions throw but little light on the above words in the present 
 Act, but the following short references may possibly be of service. The 
 word *' business " has a more extensive meaning than trade (see Harris 
 V. Amery, L. R. 1 C. P. 148; 35 L. J. C. P. 89), in which case 
 
Undeveloped Land Duty. 187 
 
 Willes, J., (at p. 154) instanced farming and banking as businesses, but § 16 (2). 
 not trades, a passage cited with approval by Jessel, M.R., in Smith v. 
 Anderson, 15 D. 247, at p. 259. It has, however, been said that 
 " ordinarily speaking business is synonymous with trade, and means, in 
 my opinion, the process of buying and selling or manufacturing or the 
 like" {Delany v. Delany, 15 L. R. Ir. 55, per Chatterton, V.C., at 
 p. 67). Nevertheless it is clear that so far as restrictive covenants not 
 to carry on business are concerned the word comprises some under- 
 takings which are not trades, such as an out-patient branch of a hospital 
 {Bramwell v. Lacy, 10 Ch. D. 691 ; 48 L. J. Ch. 339), and a school 
 {Doe d. Bish V. Keeling, 1 M. & S. 95 ; Kemp v. Sober, 20 L. J. Ch. 602). 
 The carrying on a school has in several cases been held to be carrying 
 on a business within the meaning of a covenant {Doe d. Bish v. Keeling, 
 (1813) 1 M. & S. 95; Wauton v. Coppard, [1899] 1 Ch. 92). It 
 therefore seems to follow that the whole of the playing fields attached 
 to the school, even in excess of five acres (see s. 17 (4) ), are exempt 
 from this duty. 
 
 Trade appears to have the primary meaning of buying and selling What is a 
 {Harris v. Amcry, L. R. 1 C. P. 148), but includes manufacturing and ^^^^^ ? 
 selling. " Trade in its largest sense is the business of selling, with a view 
 to profit, goods which the trader has either manufactured or himself 
 purchased": See per Lord Davey {Grainger v. Gough, [1896] A. C. 
 325, at p. 346). 
 
 Industry is apparently a word of wider signification than either The meaning 
 
 business or trade. There seems to be no attempt to define "an ,, , ^ „ 
 
 ' Industrv. 
 industry " in the cases. From its primary meaning of " diligence " it has 
 
 come to mean (see the Oxford English Dictionary, edited by J. A. H. 
 
 Murray, 1901) "an application of skill, cleverness or craft"; . . . 
 
 " systematic work or labour ; habitual employment in some useful work, 
 
 now especially in the productive arts or manufactures"; ... "a 
 
 particular form or brand of productive labour ; a trade or manufacture." 
 
 It is thought that a wide meaning would probably be attached to the 
 
 word in the Finance Act. The stress in the clause (if the expression is 
 
 permissible) seems to be laid on the useful employment of the land 
 
 otherwise than in agriculture, glasshouses and greenhouses being treated 
 
 for the purposes of the section as non-agricultural buildings. 
 
 Agriculture. See s. 41 (p. 463) for definition and notes. 
 
 But including Glasshouses or Greenhouses. — Land on which glass- 
 houses or greenhouses are erected is expressly stated to be developed, and 
 not liable to undeveloped land duty. The words were probably thought 
 to be necessary because land employed in agriculture is undeveloped, and 
 under s. 41 "agriculture includes the use of land ... for market 
 gardens," etc. 
 
 Glasshouses and greenhouses have been held not to be agricultural land 
 
188 Land Clauses of the Finance Act. 
 
 § 16 (2). within the meaning of that term in the Agricultural Rates Act, 1896 
 (59 & 60 Vict. c. 16), s. 1, so as to be exempted from payment of half 
 the rates which are charged upon buildings [Smith v. Richmond, [1899] 
 A. C. 448)^ but on the other hand they have been held entitled to a 
 somewhat similar exemption from rates conferred upon market gardens 
 or nursery grounds by the Public Health Act, 1875 (38 & 39 Vict. c. 55), 
 s. 211 (1) {Purser v. Worthing Local Board, L. R. 18 Q. B. 818). 
 There seems to be no real discrepancy between the two cases viewed in 
 relation to their subject-matter. 
 
 Bona fide. — By this is understood that the use for business purposes 
 is a genuine use for those purposes, and not merely a colourable use, 
 as for example the leaving of a large open space round a factory under 
 the guise of a recreation groimd, but which is never genuinely used as 
 such. That one of the motives for using the land in business, etc., was 
 to avoid undeveloped land duty is thought to be immaterial provided 
 there was a real user in fact {Attorney-General v. Duke of Richmond, 
 [1909] A. C. 466). 
 
 Proviso (a), (a) Owing to the Buildings becoming Derelict. — There seems to be 
 
 p. 181. jjQ legal definition or explanation of the word " derelict" as applied to land. 
 
 That word is thus defined in Murray's New English Dictionary, Oxford, 
 1897: 
 
 " Forsaken, abandoned, left by the possessor or guardian, especially 
 of a vessel abandoned at sea." 
 
 Dereliction is also defined as " the action of leaving or forsaking (with 
 intention not to resume)." 
 
 As applied to goods, '^'Bona waviata seu derelicta' are goods which 
 are stolen and waived by the thief in the flight " (Coke's Reports, 
 Foxleys Case, 5, 109b). 
 
 Perhaps the test of dereliction is " intention not to resume" possession. 
 
 It is submitted that the remaining unlet for some, even for many, 
 years will not make a building derelict, if reasonable endeavours have 
 been made to let it, — if any repairs have been bond fide effected. It 
 is not thought that it must necessarily be repaired if in any other way 
 an animus of non-abandonment is shown. 
 
 Buildings in the proviso seem to include dwelling-houses. 
 
 (a) Or owing to the Land ceasing to be used for any Trade, Business, 
 etc. — This will be a question of fact not to be determined only by the 
 ipse dixit of the owner, or the surface appearance of things. 
 
 (a) On the Expiration of One Year after the Buildings have so become 
 Derelict or the Land ceases to be so used. — Apparently in the ordinary 
 course the duty for the current financial year must be assessed before 
 March 31, the conclusion of that year (s. 19). It would seem that if at 
 any time previously to March 31a year of twelve calendar months had 
 expired after the cesser of user or the dereliction began, the duty can be 
 
Undeveloped Land Duty. 189 
 
 assessed for the financial year current at the expiration of the said § 16 (2). 
 
 period of twelve calendar months. It would also seem that if the duty 
 
 has not been assessed before March 31, it can under s. 19 be assessed 
 
 later subject to the limitations in that section. It will then be assessed 
 
 on the original site value, unless the site value has been ascertained 
 
 under a subsequent periodical vahiation for the time being in force, and 
 
 in that case on such subsequent valuation. See sub-s. (3) and note. 
 
 (b) Included in any Scheme of Land Development. — To entitle to Proviso (J), 
 the exemption the following requisites appear necessary : — p. 182. 
 
 (1) There m-ust be a " scheme of land development." It is not, perhaps, 
 necessary that it should be a formal scheme, or even a written scheme. 
 
 (2) The expenditure must have been made for the purpose of 
 developing, etc., the land. 
 
 (3) The expenditure must have been on or in connection with roads 
 or sewers. It is thoiight that sewers will not include the connecting 
 house drains referred to in s. 4 of the Public Health Act, 1875. 
 Expenditure on sinking wells, embanking, diverting streams, filling in 
 holes and pits, and the like, confers no exemption. 
 
 (4) It must have been made within the twenty years next preceding 
 the date of the claim for exemption. In other words, assume the 
 assessment to be made for the financial year ending March 31, 1912. 
 The duty is payable on January 2, 1912, or as soon after as demanded. 
 It is thought that the whole of the expenditure on roads and sewers 
 made since January 1, 1892, can be taken into accoimt. Whether some 
 date in the year antecedent to January 2, 1912, as, for example, April 30, 
 1911 (see s. 28), should be taken as the date of assessment, and as the 
 starting point for twenty years backwards, so that expenditure after that 
 date must be carried over to the next year's account, is not plain ; but 
 it is thought not. 
 
 (5) The expenditure must have been by " the owner " (for definition 
 of "owner " see s. 41) or his predecessors in title. It is not probable 
 that expenditure of this nature would be made by a person having a 
 term of not more than fifty years unexpired. It would seem difficult to 
 bring expenditure by a local authority incurred in default of the owner 
 paving, repairing and sewering, and recovered from him under s. 150 of 
 the Public Health Act, 1875, or s. 19 of the Public Health Amendment 
 Act, 1907, or similar provisions within the sub-section. 
 
 (6) The land must not, having once been developed, have reverted at 
 the date of assessment to the condition of undeveloped land. 
 
 (7) If the expenditure does not amount to 100^. per acre over the whole 
 of the estate the Commissioners must select the part which is to be 
 exempted, " as being the land with a view to the development or use of 
 which . . . the expenditure has been in the main incurred." 
 
 Questions may no doubt arise as to how far expenditure in relation 
 to certain land may enure for the benefit of adjacent land subsequently 
 acquired. It is of course clear that the benefited or exempted land 
 
19Q 
 
 Land Clauses of the Finance Act. 
 
 § 16 (2). 
 
 A problem 
 likely to arise 
 
 Complete 
 exemption 
 conferred by 
 
 Date from 
 which twenty 
 years runs 
 back. 
 
 need not, and usually will not, be the land upon which the expenditure 
 has actually been made. Supposing 3,000^. is spent in roads and 
 sewers on an estate of 20 acres, and then within the twenty years limit the 
 owner buys ten other adjacent acres — are they exempt, the expenditure 
 being just sufficient to cover them ? It is very doubtful whether they 
 are. They were not within the original "scheme." The money was 
 not spent with a view to their development. Nevertheless, it would 
 be reasonable that they should be exempted. The owner has proved 
 himself a bond fide land developer and not a "holder up." It is to be 
 expected that the Commissioners will take broad views on these and 
 similar points. 
 
 The following question must, it is thought, quickly arrive for 
 decision : — Expenditure of 4,000/. in roads and sewers on an estate of 
 80 acres. Exemption from undeveloped land duty under the sub-section 
 is given by the Commissioners in respect of 40 acres out of tlie 80. The 
 owner then sells 40 acres, 20 acres being part of the exempted portion. 
 What is the position of the original owner and the purchaser respectively 
 as to the tax ? It is thought that the original apportionment of the 
 expenditure and consequent exemption is final, and runs with the land 
 into the hands of purchasers, and that the original owner is not entitled 
 to claim that the whole expenditure shall, during the tmexpired 
 remainder of the twenty years' limit, be allocated in respect of his 
 retained lands ; but it must be admitted that this is simply one of 
 several possible interpretations of the sub-section. 
 
 Note that the concession comprised in {b) is complete exemption from 
 undeveloped land duty. If the expenditure is not within the twenty 
 years' limit it can still be brought in as a deduction from total value 
 under s. 25 (4) {b), thus reducing site value. Some difficult questions may 
 arise on the inter-relation of s. 16 (2) (6) and s. 25 (4) (b). Can the 
 same expenditure on roads and sewers, e.g., 10,000/., be used to exempt 
 wholly 100 acres of a 200 acre building estate, and to reduce the site 
 value of the whole 200 proportionally ? Or is the expenditure deemed 
 to be exhausted by the allocation under s. 16 (2) (6), to purposes of 
 complete exemption ? It is submitted that the former is the true 
 construction of the statute, though probably not what was really 
 intended by its authors. Perhaps this point may not be of much 
 practical importance, since it may not often happen that the area of 
 increase in site value will exceed the area of complete exemption. 
 
 It is not clear whether the twenty years limit is to riui back from 
 the assessment of the duty for the financial year, or from the last 
 general valuation, whether original or quinquennial (s. 16 (3) ). The 
 determination of this question may be very material, since the whole of 
 the exempting expenditure may have been made since the last general 
 valuation, and the land becoming developed well within the twenty 
 year limit, the owner may receive no equalising extension of exemp 
 tion at a later date. It is thought that on the general valuation no 
 
Undeveloped Land Duty. 191 
 
 notice should be taken of the right or claim to exemption under § 16 (S). 
 
 3. 16 (2) (b), but that the site value of the land should be ascertained 
 
 in the usual way, and that a claim for exemption should be made yearly, 
 
 if possible before assessment, or, if that cannot be done, immediately 
 
 after assessment. It is not thought that this view, which is adopted in 
 
 the succeeding illustration, conflicts with s. 33 (1) (b). 
 
 Illustration of Section 16 (2). 
 
 In 1886 the owners in fee of the estate, consisting of 100 acres, began 
 to develop it. They spent between 1886 and December bl, 1912, 
 3,000^. in roads (of which 1,000/. was spent before December 31, 1892), 
 3,000/. in sewers (of which 1,000/. was spent before December 31, 
 1892), 2,000/. in diverting a stream, and 1,000/. in sinking a well and 
 erecting a pumping station and machinery. From time to time they 
 have sold off portions of their land, and on December 31, 1912, they 
 have left 70 acres, having sold 20 acres since December 31, 1892. 
 They claim on that date complete exemption from undeveloped land 
 duty for the financial year ending March 31, 1913, to the extent of 
 40 acres on account of the 2,000/. for roads, and the 2,000/. for sewers 
 spent during the last twenty years, but do not claim exemption in 
 respect of the other expenditure. The Commissioners on the other 
 hand give them exemption only for 20 acres, holding that the expendi- 
 ture in question (4,000/.) must to the extent of 100/. per acre be 
 allocated to the land which has been sold " as being the land with a 
 view to the development of which . . . the expenditure has been in the 
 main incurred " ; 2,000/. then only remains for the retained land, and 
 this is allowed to give exemption to 20 acres selected by the Com- 
 missioners, on the principles of the words just cited from s. 16 (2) (b). 
 
 Note on Illustration. — It seems clear that all the expenditure will 
 have to be spread over all the land in respect of which it was originally 
 made and deducted from total value -for the purpose of ascertaining site 
 value under s. 25 (4). The two processes of ascertaining complete 
 exemption and reduction of site value will be contemporaneous. 
 
 (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, 
 
192 Land Clauses of the Finance Act. 
 
 § 16 (3). be reduced by a sum equal to five times the amount paid 
 as increment value duty. ^^ _ 
 
 The Value adopted as the Original Site Value. — The duty is revied 
 on the basis of the original site value until the first periodical valua- 
 tion has been made, and then on the basis of that and any subsequent 
 periodical valuation for the time being in force. For the adoption of 
 the original site value, see post, s. 27 (2), (4), and (6). It would seem, 
 therefore, impossible to escape three years' arrears of the duty (s. 19), since 
 the original site value may practically be fixed at any time (s. 26 (1)). 
 
 Original Site Value ascertained according to ss. 25, 26, and 27. 
 
 Subsequent Periodical Valuation. See s. 28. 
 
 y Provided that . . . Increment Value Duty. — Illustration. — The 
 
 original site value of undeveloped land is 5001. The site value on 
 January 1, 1912, being the first occasion on which increment value duty 
 ^ becomes due, is 600^. Deducting the 10 per cent, from 500^. 
 Ji under s. 3 U^, the sum of 50^. is the increment value on which 
 
 duty at the rate of 11. for every complete 5^. (s. 1 (1)), that is, 
 the sum of 10/., has been paid ; 50/. is also, under this sub-section, the 
 amount by which the value of the site is reduced for the purpose of the 
 undeveloped land tax, which is therefore payable on the sum of 550/. 
 But if, as is possible, the amount paid as increment value duty within 
 the meaning of the sub-section includes the duty remitted under s. 3 (,^, J' 
 which by that sub-section is " deemed to have been paid," then 
 the site value will be reduced by a further sum of 50/., and undeveloped 
 land duty will be payable only on 500/. 
 
 The effect of this provision appears to be that on any occasion on 
 which undeveloped land duty is assessed the site value, as fixed at the 
 last general valuation under s. 26 or s. 28, must be reduced by the 
 amount of increment value up to the last payment of increment value 
 duty. If the increment has occurred since that valuation, undeveloped 
 land duty will be paid on a site valvie reduced below that of the general 
 valuation, which is a curious result. An alternative but less probable 
 construction is that the existing five-yearly valuation is not to be dis- 
 turbed, and that the reduction in site value is only to take place after 
 the next quinquennial valuation. But this construction ignores the fact 
 that the second paragraph is a proviso or modification of the first para- 
 graph, and that the reduction is not for purposes of valuation, which is 
 quinquennial, but of "assessment and collection," which are annual. 
 
 Payments on account of undeveloped land duty do not in any way 
 go to reduce subsequent payments of increment value duty. But it is 
 evident that the undeveloped land duty paid in respect of all rises in 
 site value after April 30, 1909, is only in fact so paid till the first 
 payment of increment value duty, after which by virtue of this sub- 
 section it ceases to be paid. 
 
Undeveloped Land Duty. 19B 
 
 It would be advisable for the purchaser of undeveloped land, whose § 16 (3). 
 vendor paid increment value duty, at once to give notice to the district 
 valuer, or to the Commissioners, claiming to have the assessment reduced 
 in pursuance of this section. It is possible that after assessment a 
 claim may be too late. It is, however, submitted that this is not the 
 case, and that in any event it is the duty of valuers to obtain from the 
 registry of the Commissioners particulars of increment value duty paid 
 before assessing undeveloped land duty. 
 
 The sub-section is in pursuance of the general policy of the Act of 
 not placing two of the new land taxes on the same values. 
 
 (4) For the purposes of undeveloped land duty 
 undeveloped land does not include the minerals. 
 
 Does not include the Minerals. — Minerals and mineral royalties are 
 the subjects of a special tax which is leviable whether the surface is or 
 is not subject to the undeveloped land duty (ss. 20 to 24). It is assumed 
 that the sub-section means that undeveloped land does not, for the 
 purposes of estimating its value for the purposes of the tax, include the 
 value of the minerals. Probably this would have been clear without this 
 sub-section. Under s. 23 (2), " For the purpose 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 ids 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 purpose of valuation, but also for the purposes of the 
 assessment of duty under this part of this Act." 
 
 In some cases it may be impossible that the full value of the surface as Case where 
 
 developed land, and of the minerals under that surface, should both be ^ ^^^ /^^l^^ °^ 
 ^ . surface and 
 
 realised. If the minerals are taken, the surface may necessarily be minerals can- 
 injured or destroyed, and if the surface be preserved intact, the minerals, iiot be 
 or some of them, may not be able to be gotten. It is difficult to say 
 whether under ss. 23 and 25 there is anything to compel or even to allow 
 a reduction on this account in site or capital value. That may not 
 always be prejudicial to the subject, since a high original site value both 
 as regards land and minerals is a protection against increment value duty. 
 It is true that as regards undeveloped land duty the high site value will 
 increase the duty ; but the duty will cease or decrease when the surface 
 is destroyed or rendered less valuable. In cases where it is probable that 
 a valuable surface will be sacrificed to more valuable minerals, it is 
 suggested that it would be fair to value the surface for the purposes of 
 undeveloped land duty accordingly at a low figure, since it is practically 
 not available for being developed. Tlie difficulty will arise in cases 
 N. X3 
 
194 
 
 Land Clauses of the Finance Act. 
 
 § 16 (4) 
 
 § 17 (1). 
 
 Exemptions 
 from unde- 
 veloped land 
 duty, and 
 allowances. 
 
 s/ 
 
 where it is uncertain whether the owner will or will not elect to destroy 
 his surface, by getting his minerals, and in these cases it seems that the 
 owner will probably have to pay undeveloped land duty until he actually 
 by mining operations takes his land out of the category of undeveloped. 
 It is, of course, clear that surface land actually used for mining 
 purposes is not undeveloped. 
 
 Section 17. 
 
 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. 
 
 For a classified list of exemptions from this duty see the Explanatory 
 Summary, pp. xcvi. to cii., ante. 
 
 Site Value. — As ascertained under s. 25, site value is not the same thing 
 as agricultural value. The value of growing timber, fruit trees, fruit bushes, 
 and other things growing thereon must be considered to be non-existent 
 in estimating site value (s. 25 (2)), and any cost of divesting the 
 land of these must be deducted from total or real value as ascer- 
 tained under s. 25, in order to arrive at assessable site value. The 
 further deductions from gross site value in order to arrive at net or 
 assessable site value under s. 25 will be considered under that section. 
 It is enough here to point out that there is a distinction, and there may 
 be a considerable difference in value between the site value and the 
 agricultural value of land. The agricultural value of land may exceed 
 its site value, as where laud, without buildings, is worth 100^. per acre 
 for use as fruit or hop land, but for building purposes is worth only 
 80Z. If the agricultural value does thus exceed the site value, but 
 the land is not agricultural land, i.e., land used or employed in 
 agriculture, but is used, say, as a deer foi'est, or is lying idle, the land 
 will be taxed on the site value, provided that the site value exceeds 
 50^. per acre. In this case the whole site value will be taxed, and not 
 only the excess of site value over agricultural value, or over 50/. value. 
 If the land is actually employed in agriculture and the site value does 
 exceed 50/. per acre, the next section applies. 
 
 (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. 
 
 Illustration. — The total or selling value of land employed as a liop 
 garden is 80/. an acre, as ascertained under s. 25 (1) and (3), and this is 
 
Undeveloped Land Duty. 195 
 
 the value of the land for agricultural purposes. The site value of the § 17 (2). 
 
 land is 701. an acre as ascertained under s. 25 (2) and (4). Undeveloped 
 
 land duty is not chargeable on the land. The site value is less than the 
 
 value for agricultural purposes. If the site value had been 100/. an 
 
 acre, then undeveloped land duty would have been chargeable on 20/., 
 
 the duty being 10c?. 
 
 Agp^icultural Land of which the Site Value exceeds £50 per 
 Acre. — For a note on the valuation of agricultural land, see notes to 
 s. 7 (ante, p. 130) ; see also general note on agricultural land (s. 41), 
 post, p. 463. The site value of the land is not the site value at the date 
 of the assessment, but up to January 1, 1915, the site value as ascer- 
 tained on the original site valuation under s. 26, and thenceforward the 
 site value on the quinquennial valuation next pi'eceding the date of 
 assessment (s. 16 (3) ; s. 28). It is thought that the value of the land 
 for agricultural purposes is the value at the date of assessment, and that 
 the value as ascertained on the general valuation is only a primd facie 
 value ; but this is doubtful (s. 26 (1) ; s. 33 (1) (b) ). See note on p. 135. 
 
 By which the Site Value of the Land exceeds the Value of the Land 
 for Agricultural Purposes. — " Site value" is contrasted with value for 
 agricultural purposes. In arriving at site value you must imagine the 
 land stripped not only of buildings, but of " all growing timber, fruit / 
 trees, fruit bushes and other things growing thereon " (s. 25 (2) ). In 
 arriving at the value of the land for agricultural purposes, it would 
 seem that you value the land as it actually stands with its trees, bushes, 
 and other things growing thereon. But " land," in its legal signification, 
 includes houses, buildings, etc., on the land. 
 
 Are you then in arriving at " the value of the land for agricultural 
 purposes " to value the land composing a farm with the farmhouse and 
 farm buildings as part of the land. If so, the assessment will of course 
 be materially diminished, because the agricultural value will be 
 increased. This is no doubt the primd facie meaning of the sub- 
 section. It may, however, be suggested that the contrast in this 
 sub-section is between the value of the land in its natural and non- 
 legal sense, not including the buildings thereon, and considered as 
 capable of being used in agriculture only, and the site value of the same 
 land considered as capable of being used for all purposes. A third view 
 may be taken, and perhaps this may be the right interpretation of the 
 sub-section, namely, that the equitable method of applying the 
 undeveloped land duty to a farm is to separate the farmhouse and the 
 buildings forming part of that house, i.e., the buildings in the same 
 curtilage, from the rest of the farm, treating them as developed land and 
 not subject to the duty, and to assess the duty (under s. 29 (1), post, 
 p. 335) in respect of the value of the rest of the farm, including in that 
 value the value of the farm buildings. See also the notes to s. 7, p, 131, 
 and s. 26, p. 311. 
 
 13—2 
 
196 Land Clauses of the Finance Act. 
 
 § 17 (2). Compare this sub-section with s. 7, a corresponding provision exempt- 
 ing agricultural land from increment value duty. The exemption 
 conferred by this sub-section is wider than that given by the former. 
 Increment value duty (under s. 7) is payable on the whole increment, 
 from the datum line of April 30, 1909, when once the land has risen to 
 a higher value than its value for agricultural purposes, even thouo-h all 
 but the last few pounds of that increment took place when it had no 
 higher value than its agricultural value, and was in fact agricultural 
 increment. Under this sub-section undeveloped land duty is chargeable 
 only on the difference between the agricultural value and the hio-her 
 value for building or trade purposes. 
 
 It seems clear that the ordinary roadside piece of apparently waste 
 building land, provided that it is \vorth more than 50/. per acre, is 
 chargeable with duty on its whole capital value. It is not agricultural 
 land, but of course it is entitled to the benefit of anv exemption under 
 s. 16 (2) (b). 
 
 (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 ; 
 
 (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 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 
 
Undeveloped Land Duty. 197 
 
 used for the purpose of games or other recreation § 17 (3). 
 
 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 imder the 
 
 circumstances. 
 
 The opinion of the Commissioners as to matters which 
 are expressed to be matters for the opinion of the 
 Commissioners under this subsection shall be final and 
 not subject to any appeal. 
 
 (a) Parks, Gardens, or Open Spaces open to the Public as of 
 Right. — Probably this means to all and not a limited section of 
 the public, as the inhabitants of a certain town. But does the exemp- 
 tion frank a park through which there is a public footpath, or which is 
 interspersed with such footpaths 1 In the House of Commons, Viscount 
 Haldane, the Secretary for War, said not (see Parliamentary Debates, 
 August 11, 1909, p. 536). It would seem that this exemption is of 
 very limited scope, since most parks, gardens, and open spaces open to 
 the public as of right obtain exemption under s. 35 (Rating Authorities) 
 or s. 37 (Land held for charitable purposes). Again it will be difficult 
 to find a park, garden, or open space which obtaining exemption under 
 (a) would not also obtain exemption under (p). Woodlands are not 
 mentioned in (a), bvit being in (b) the omission appears of no importance. 
 
 There are definitions of open spaces in the Metropolitan Open Spaces 
 Act, 1881 (44 & 45 Vict. c. 34), s. 1 ; the Open Spaces Act, 1906 
 (6 Edw. 7, c. 25), s. 20, the Town Planning Act, 1909 (9 Edw. 7, 
 
198 Land Clauses of the Finance Act. 
 
 § 17 (3). c. 44), s. 73 (4), and the Development, etc., Act, 1909 (9 Edw. 7, c. 47) 
 s. 19 (1), which might be consulted if any question arises on this 
 sub-section as to what the Legislature has intended in prior legislation by 
 an open space, but their bearing seems remote on the present sub-section. 
 
 A golf course has been an "open space" within the improvement 
 section (s. 25, xvii.) of the Settled Land Act, 1882 [De La Warr's Settled 
 Estates, 27 T. L. R. 534), but the decision is hardly in point. 
 
 For a decision as to what is a " park " within the meaning of 
 5 & 6 Will 4, c. 50, s. 54, a Highway Act, see R. v. Bradford, [1908] 
 1 K. B. 365. 
 
 (6) Reasonable Access to which is enjoyed . . . Amenity of the 
 Locality. — Under this exemption the enjoyment need not be as of 
 right. Difficult questions will arise. Access daily or once or twice 
 a week 1 What if there is a small charge, the proceeds of which are given 
 to local charities ? The right to roam at will or only to walk on specified 
 paths, etc.? What is comprised in the phrase " inhabitants of the locality " ? 
 all the inhabitants of the neighbouring town or villages, or a selected few, 
 as those who live in the parish of St. Peter's, or in John Street, or within 
 a distance of one mile from the park, etc. 1 It is clear that while it is a 
 condition of exemption under (a) that the whole public should be 
 admitted, the admission of some narrower class will satisfy (6). There 
 must be (1) reasonable access ; and (2) that access must make the 
 locality a pleasanter or healthier one to live or be in, i.e., it must be of 
 public benefit. 
 
 It will be noted that the Commissioners, in addition to their other 
 duties under the Act, are to be judges of whether the access enjoyed by 
 any of the naval or military forces of the Crown, for the purposes of 
 training or exercise, is of public benefit (sub-s. (3) (b) ). 
 
 (c) Definite Scheme ... for the Development. — It does not appear 
 that such scheme must be legally incapable of being altered. All that 
 seems requisite is that the owner of the estate bond fide intends to keep 
 certain land free of buildings in the course and for the purpose of 
 developing that estate in a certain way. Note in this respect the 
 paragraph following (d) in this sub-section. Compare also with 
 8. 16 (1) (b) " in any scheme of land development." 
 
 (c) Reasonably Necessary is perhaps equivalent to advisable. 
 
 (c) In the Interests of the Public. — Probably as adding to the 
 amenities or health of the neighbourhood. 
 
 (c) Or in View of the Character of the Surroundings or Neighbour- 
 hood. — Even if there are plenty of open spaces, yet if the land in 
 question is in character with the neighbourhood it may claim exemption. 
 
 (</) BonS, fide used for the purpose of Games. — Compare with s. 9 
 (see p. 141), relating to increment value duty and an analogous 
 exemption limited to bodies corporate or unincorporate. 
 
Undeveloped Land Duty. 199 
 
 (d) Under some Agreement with the Owner . . . which could not § 17 (3). 
 be determined for . . , at least Five Years, or . . . other Circum- 
 stances render it probable . . . will continue to be so used. — These 
 words will hit the two different classes of cases, i.e., (1) where the 
 land is hired from the owner and the person or body hiring it controls 
 the games or recreation as in the case of the ordinary cricket, etc., club 
 renting land ; and (2) where the owner, whether private individual, or 
 club controls the games or recreation as in the case of Lord's, the Oval, 
 and many well-known clubs. The circumstances rendering it " probable," 
 etc., as a reason for exemption, are not, however, confined to class 2, but 
 apply as well to class 1. 
 
 It must be noted as to class 1 that the five years limitation relates 
 only to the commencement of the term. The land is exempt in the fifth 
 as much as in the first of the five years. Even if the agreement does 
 not itself specifically provide that the land shall be used for games, the 
 alternative of probability that it will be so used may give the exemption. 
 
 This section would seem to cover the case of a private golf course in 
 a park or fields. In such a case it might be more difficult to show those 
 "other circumstances" which render it probable that the land will 
 continue to be so used than in the case of a club. Still it is submitted 
 that the owner can often make out such a case. 
 
 That Land shall not be built upon unless . . . removed. — This 
 provision seems stringent, but is intended to prevent attempts to evade 
 the duty. Conditions as to the class of buildings to be erected and 
 the like are doubtless aimed at in the paragraph. 
 
 The Opinion of the Commissioners . . . shall be Final and not 
 Subject to any Appeal. — It is difficult to see why this limitation is 
 placed on appeal as to the specific matters mentioned. Many of them 
 may involve large sums of money since they will give rise to decisions 
 which may, and usually will, decide taxation for years. At all events 
 there ought to be an appeal to a referee. The matters certainly include 
 the questions (1) whether the access under (6) is of public benefit; 
 (2) whether under (c) it is reasonably necessary in the interests of the 
 public or in view of the character of the surrovindings or neighbourhood 
 that the land should be kept free from buildings ; and (3) whether 
 under (d) it is probable that the land will continue to be used for 
 games, etc. It is doubtful whether the question as to the existence of 
 an agreement with the owner of the nature indicated in (d) is one of 
 the matters as to which there is no appeal from the Commissioners. 
 As to all other findings involved in (a), (b), (c), and (d), as for example 
 whether a park is open to the public as of right, or whether reasonable 
 access is enjoyed to a park, or whether there is a definite scheme under 
 (c), or the land is being kept free from buildings in pursuance of such a 
 scheme, all such are subject to appeal in the ordinary way, first to a 
 referee and then to the High Court. 
 
200 Land Clauses of the Finance Act. 
 
 § 17 (4). (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 Commissioners to be most adapted for use as gardens or 
 pleasure grounds in connexion 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 Commissioners may determine. 
 
 Any Land not exceeding an Acre in Extent occupied together 
 with a Dwelling-house, etc.— The exemptions under this section are 
 two in number : — 
 
 (a) An exemption of any land not exceeding an acre in extent 
 occupied together with the dwelling-house. If more than one acre is 
 so occupied the exemption can only be given on satisfying the conditions 
 as to (b). Whether the yards and stables, etc., will be part of the 
 dwelling-house or are to bo reckoned in the acre is not clear. It is 
 thought that they are part of the dwelling-house, because in the latter 
 part of the first paragraph the site value of the gai-dens, pleasure 
 grounds, and dwelling-house is treated as being exhaustive of the unit 
 of taxation, and a relation is established between their site value and 
 their annual value under Schedule A, which includes the value of the 
 yards and stables. Yards and stables are certainly not gardens and 
 pleasure grounds, and therefore must, it is submitted, fall under the 
 term "dwelling-house." This exemption is independent of any relation 
 between site value and annual value under Schedule A. 
 
 (6) The second exemption is of a dwelling-house with more than one 
 
Undeveloped Land Duty. 201 
 
 acre of land, being gardeus or pleasiire grounds, attached. Exemption is § 17 (4). 
 
 given to the extent of five acres in respect of land being gardens and 
 
 pleasure grounds (but qucere if the land is not so used, but is, for 
 
 example, a field or paddock), provided that the site value of the gardens 
 
 and pleasure grounds together with the site value of the house does not 
 
 exceed twenty times the annual value of the gardens, pleasure grounds, 
 
 and dwelling-house as adopted under Schedule A. If the land, gardens, 
 
 or pleasure grounds exceed five acres in extent, those five acres are to be 
 
 exempted which are determined by the Commissioners to be most 
 
 adapted for use as gardens or pleasure grounds in connection with the 
 
 dwelling-house. It seems doubtful whether any land not being used as 
 
 a garden or pleasure ground is entitled to the benefit of the exemption, 
 
 even if it be " adapted " (? adaptable) for use as such.* 
 
 Under Schedule A. — See note on s. 8, p. 138. 
 
 When the Site Value . . . does not exceed Twenty Times the Value, 
 etc. — Example. — The site value of Cecil Villa and grounds, between 
 four and five acres in extent, is 2,000/. The annual value of the same 
 property as adopted for the income tax vnider Schedule A. is 130/. ; 
 twenty times this value is 2,600/. Unoccupied land duty is not there- 
 fore payable on the grounds. But if the site value of the grounds and 
 house had been 2,700/., which is 100/. more that the Schedule A value, 
 duty would have been payable on the full site value, 2,700/., of the 
 house and grounds. The effect of the sub-section is therefore to give 
 exemption only to gardens and pleasure grounds of which the site value 
 is not very great as compared with the rental value of the property as 
 a whole. Undeveloped land duty will therefore usually be paid on the 
 grounds (over one acre) attached to a comparatively small, or at all 
 events inexpensive, house in a neighbourhood where site values are high. 
 
 (5) Where agricultural land is at the time of the 
 passing of this Act held under a tenancy originally created 
 by a 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 v^here 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 
 
 * It also seems doubtful whether the site and annual values to be compared are 
 those of the whole property, or only of the dwelling-house and five acres selected. 
 The last paragraph of the section does not seem necessarily decisive. 
 
202 Land Clauses of the Finance Act. 
 
 § 17 (6). deemed for the purposes of this provision to continue 
 after the earliest date after the commencement of this 
 Act at which it is possible to determine the tenancy under 
 that power. 
 
 Agricultural Land. — See the definition of "agriculture" in s. 41. 
 Of course if the site value of the agricultural land in question does not 
 exceed 50/. per acre, then under sub-s. (1) it will be exempt ; and in any 
 event it will have exemption under sub-s. (2) up to the limit of its 
 agricultural value. 
 
 Held under a Tenancy. — The owner, i.e., the freeholder or lease- 
 holder for an unexpired term of over 50 years, is the person liable to 
 undeveloped land duty. Hence the exemption is given to the landlord 
 by this sub-section. 
 
 The Original Term. — If this sub-section were read without reference to 
 the definition clause, it would seem that if the lease contains an option 
 of renewal by the tenant, which is exercised, the exemption from 
 undeveloped land duty is at an end. The landlord is thenceforward 
 during the renewed lease to pay the duty. But under s. 41 " 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." The word "original" in this sub-section, though perhaps not 
 necessary, seems used to distinguish a holding under the lease, including 
 a holding under a renewed term granted in pursuance of a covenant in 
 • the lease, from a holding over on a tenancy from year to year on the 
 terms of that lease, or any prolongation of that lease by agreement 
 subsequent to the date of the Act. This construction, no doubt, would 
 be fairer than a construction which would make the landlord liable to 
 undeveloped land duty, although he would have no power to get 
 possession of the land for the purpose of developing it. 
 
 It is clear from the proviso that if the landlord has power to 
 determine the lease or agreement, and does not do so, the exemption is 
 at an end, and he must pay undeveloped land duty. Therefore a land- 
 lord who has not given notice to his tenant to quit on the first date 
 after April 30, 1910, for which he could legally so give notice will not 
 be able under this sub-section to claim exemption from duty leviable 
 after the date for which notice might have been so given. If he has let 
 the land since April 30, 1909, he cannot claim exemption whether he 
 has given notice or not. 
 
 It would further seem that a landlord whose tenant has not carried 
 out an agreement with him to do something which would prevent the 
 land continuing to be undeveloped will nevertheless be liable to the 
 duty. His remedy will be against his tenant. 
 
Undeveloped Land Duty. 203 
 
 Section 18. 
 
 18. Undeveloped land duty shall not be charged on § 18. 
 the site value of any agricultural land, occupied and J^^xempUon 
 cultivated by the owner thereof, where the total value holdings 
 
 of that land, together with any other land belonging to vdoped land 
 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. 
 
 The corresponding provision relating to increment value duty is 
 s. 8 (2). See p. 138. 
 
 Site Value. — See s. 25 for ascertainment of site value. 
 
 Agricultural Land. — See definition of "agriculture" in s. 41, and 
 notes on pp. ^463 — 471. 
 
 Occupied and cultivated by the Owner. — It does not seem that the 
 owner need reside on the land. Occupation does not necessarily imply 
 residence as in s. 8 (1) {E. v. Justices of West Riding, 2 Q. B. 505). 
 Payment of rates would doubtless be sufficient prima facie proof of 
 occupation. 
 
 Total Value. — Probably this total value is to be ascertained under 
 s. 25 (3). If so, it necessarily includes the value of the buildings. The 
 Commissioners will be able to obtain from their district collectors and 
 from the Registry to be established under s. 30 particulars of the total 
 value of the " other land." 
 
 Any other Land belonging . . . Owner. — The " other land " need 
 not be adjacent. Its situation is immaterial, but it probably must be 
 in the United Kingdom. In terms it need not be agricultural land, 
 but quaere ? It would seem that the other land is to be valued with its 
 buildings, since they are included in total value (s. 25 (3) ). 
 
 The expression "Owner" in this section differs from its meaning 
 as defined by s. 41. A leaseholder with an unexpired tei'm of a year or 
 a day is an owner under this section if the term was originally for fifty 
 years or more. 
 
 Section 19. 
 
 19. Undeveloped land duty shall be assessed by the § 19. 
 Commissioners and shall be payable at any time after the Recovery of 
 
 UnQCVGiODGQ. 
 
 first day of January of the year for which the duty is land duty. 
 
204 Land Glauses of the Finance Act. 
 
 § 19. 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. 
 
 Importance of Undeveloped Land Duty shall be assessed by the Commissioners. 
 
 s. 29 (1) as to — Yt is ill relation to undeveloped land duty that the power of the 
 
 undeveloped r ./ r 
 
 laud duty. Commissioners under s. 29 (I), post, p. 335, to assess any duty "on or 
 
 in respect of such pieces of land whether under separate occupation or 
 not " as they think fit is most likely to give rise to controversy. In 
 the case of increment value duty, reversion duty, and mineral rights 
 duty, the subject of taxation will usually be also the natural unit of 
 taxation. It would savour somewhat of unfairness to split up a piece of 
 land on a transfer on sale or on death for the purpose of preventing the 
 natural set-ofF of the decrement of one part of that land against the 
 increment of another. But in the case of undeveloped land duty there 
 will probably not be much reluctance on the Crown's part to assess 
 separately all land which passes the 50^. and agricultural value limits, 
 notwithstanding that if such land were assessed together with all the 
 other land in the same occupation the average value of the whole would 
 be on the right side of the taxable limit. 
 Meaning of ^J the words " shall be assessed " it is understood is meant, "shall be 
 
 "shall te fixed on a valuation previously made," that is on either the original 
 
 (s. 26) or the quinquennial (s. 28) valuation, or the provisional valua- 
 tion antecedent to either (s. 27 (6) ). It is not thought that the words 
 in question give any independent power of valuation at the time of 
 assessment to the Commissioners. But the point is perhaps not of 
 much importance, since if a piece of land escaped original site valuation 
 for twenty years, and then the Commissioners found it out, it is 
 probable that they could even then make the original site valuation 
 under s. 26, on which undeveloped land duty is to be paid until the 
 site value has been ascertained under a quinquennial valuation 
 (s. 16 (3) ). There is no proviso attached to s. 26 or s. 27 similar to 
 
Undeveloped Land Duty. 205 
 
 that in s. 28, suggesting that unless the valuation be begun to be made § 19. 
 
 in the quinquennial year of valuation it cannot be made at all. 
 
 It must not be forgotten that the owner cannot raise, against an Site value 
 
 assessment of undeveloped land duty by the Commissioners, any ss"^*^'! "7 ^ e 
 1- J J > J general 
 
 objection questioning the site value on which the duty is levied. That valuation. 
 is determined by the original or the quinquennial valuation as the case 
 may be, and can be questioned only on an appeal against the determina- 
 tion of the Commissioners in relation to such general valuation 
 (s. 33 (1), proviso (b) ). But it is thought that the value for agricultural 
 purposes found on the general valuation can be questioned on the 
 assessment (see p. 195, ante). 
 
 Shall be payable at any Time after the First Day of January for 
 the Year for which the Duty is charged. — Like income tax, 
 undeveloped land duty is charged for the financial year which ends 
 March 31. Up to and including January 1 no diity is payable, and it 
 is conceived, but not with confidence, that an owner who sells his land 
 befoi'e January 2 incurs no liability to the Crown for the duty which 
 becomes payable on January 2. It is further thought that a purchaser 
 who buys land liable to undeveloped land duty before January 2 has 
 no right, in the absence of agreement, to call upon his vendor to pay an 
 apportioned part of that duty (see next note). 
 
 Any such Duty for the Time being unpaid shall be recoverable 
 from the Owner of the Land for the Time being. — 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 underlease, shall be deemed to 
 be the owner instead of the person entitled to the rents and profits 
 as aforesaid (s. 41). 
 
 Tenants for life and in tail in possession are therefore owners as well as 
 tenants in fee. Queers whether the equitable tenant for life or the trustee 
 is the owner for the purposes of this duty (seethe note on p. 460, post) ? 
 
 The occupier is not liable for or concerned with the tax, which is in 
 no way charged on or payable out of the land. 
 
 The question will undoubtedly arise, who is liable to pay the duty for Liability to 
 the financial year ending March 31 when the land has been sold after 5^^*^ ^}^j^ 
 January 1, after which date the duty "shall be payable. It is not 
 clear, on the words of s. 19, that the duty is payable after that date 
 unless and until it is demanded, but it may be assumed that the assess- 
 ment is duly made and a demand note for payment on January 2 
 duly served. On January 3 A., the owner in fee, sella his interest to 
 B. On April 3, the duty being still unpaid, B. sells his interest to C. 
 (1) Who is liable to the Crown 1 (2) As between A., B. and C. who 
 must pay the duty 1 
 
206 
 
 Land Clauses of the Finance Act. 
 
 § 19. 
 
 Who is liable 
 as betv\jgen 
 vendor and 
 purchaser ? 
 
 Analogy from 
 law of rating. 
 
 " The owner of the land for the time being" is liable to the Crown. 
 But what time is meant by " the time being " 1 Four constructions at 
 least are possible. The time being may be January 2, the date the 
 duty is payable, and the owner on that day may be the one person 
 liable. Secondly, the time being may be the interval between January 2 
 and April 1, the commencement of the next financial year, and any 
 one who has owned the land between those two dates may be suable by 
 the Crown. Thirdly, it may be that the duty accrues de die in diem, 
 and each owner is liable for the amount accrued during his period of 
 ownership. Fourthly, the owner for the time being may be the person 
 who is the owner at the time of the commencement of proceedings by 
 the Crown to recover the duty, and he may be' liable to all the duty, 
 including all the arrears of duty unpaid at the commencement of the 
 proceedings. If it is thought that a text- writer should express his 
 view on so difficult a point, that of the writer, for w^hat it is worth, is 
 that the true construction of the words is either that first or that 
 fourthly suggested ; and he inclines to take the former. 
 
 Secondly, as between A., B., and C, who is the person liable to the 
 duty 1 If the view fourthly above suggested is correct, it would seem 
 that as between vendor and purchaser the duty, including all arrears 
 thereof, must be borne by the purchaser, at all events if no proceedings 
 have been commenced by the Crown before the contract of purchase, for 
 its recovery from the vendor. If the statute makes ownership at the 
 commencement of the action the test of liability, the vendor can be 
 under no obligation towards the purchaser either to pay the duty up 
 to completion, or to disclose the fact that it is unpaid. The duty is 
 not a charge on the land, but if it were, it is a public or notorious charge 
 of which the purchaser has notice. Intending purchasers, therefore, 
 should make full inquiry from their vendors before contract as to any 
 arrears of undeveloped land duty. Especially should this be done until 
 it becomes reasonably certain that the 1909-10 and 1910-11 assess- 
 ments, which may not at the time of writing have yet been made, 
 have been discharged. If the view firstly above suggested is correct. A., 
 the vendor, is alone liable to the duty, and it would seem has no right 
 of recoupment from B. 
 
 Little light is thrown upon the question as to the liability of a 
 purchaser for unpaid undeveloped land duty by the analogy of the law 
 of rating. It appears that the person in occupation at the time the 
 rate was made was liable to the full poor rates under the statute 
 43 Eliz. c. 2, even though he went out of occupation before the expira- 
 tion of the period for which it was made. This liability for rates 
 covering a period when out of possession was abolished, in the case 
 where one occupation immediately succeeded the other, by s. 12 of 
 17 Geo. 2, c. 28, but remained so long as the premises continued 
 unoccupied during the period in question (Edwards v. Rusholme, (1869) 
 4 Q. B. 554). After an ineffectual statutory effort (32 «fe 33 Vict. c. 41, 
 
Undeveloped Land Duty. 207 
 
 s. 16) to remedy this hardship, frustrated by decisions of the Courts § 19. 
 
 {Overseers of St. Werburgh, Derby v. Hutchinson, (1879) 5 Ex D. 19; 
 
 Hare v. Overseers of Putney, (1881) 7 Q. B. D. 223), it was finally 
 
 provided by 45 k 46 Vict. c. 20, s. 3, that "such outgoing occupier 
 
 shall only be liable to pay so much of the rate as shall be proportionate 
 
 to the time of his occupation within the period for which the rate was 
 
 made, notwithstanding he may not be succeeded in his occupation by 
 
 an incoming tenant." But it should be noted that the Poor Relief Act, 
 
 (43 Eliz. c. 2), creates the liability to pay rates in language quite other 
 
 than that of s. 19 of the Act of 1910. 
 
 Under the second paragraph of this section the amounts of undeveloped Liability for 
 land duty becoming due on January 2, 1910, January 2, 1911, January 2, ^^, 
 1912, and January 2, 1913^ respectively, can all be assessed up to 
 March 31, 1913, and can be assessed on the provisional valuation 
 (s. 27 (1) ) if the original site valuation to be made under s. 26 has not 
 then been finally settled. Purchasers of land liable to undeveloped land 
 duty may therefore, if the view fourthly suggested be correct, for the next 
 few years be undertaking a substantial liability in respect of such duty. 
 
 Debt due to His Majesty. — There are no words taking away the 
 Crown's priority. See note as to increment value duty and that 
 priority (p. 84). It seems more probable tliat undeveloped land duty, 
 which is an annual duty, is included in the words of the statutes there 
 referred to, so as to give the Crown priority in bankruptcy and the 
 winding up of companies, than increment value duty, which is an 
 occasional duty. 
 
 Notwithstanding any Contract to the Contrary. — It seems reasonably 
 clear that these words invalidate any agreement entered into after the 
 commencement of the Act whereby a tenant covenants with the landlord 
 to pay undeveloped land duty. But quaere as to any existing covenants 
 by tenants to pay taxes, etc., couched in language wide enough to 
 include undeveloped land duty, unless prevented from including it by 
 this section. It is thought that the section is retrospective in this 
 respect, and that the tenant cannot be made to reimburse the duty to 
 the owner. But compare s. 20 (4) (p. 225) ; compare also the statutes 
 relathig to Property Tax (5 & 6 Vict. c. 35), s. 60, Schedule A, No. 4, 
 rr. 9, 73, 103, and 16 & 17 Vict. c. 34. See also Wooler v. North 
 Eastern Breweries, [1910] 1 K. B. 246, and the remarks at p. 251 of 
 Mr. Justice Darling. 
 
 Do tliese words invalidate a contract with a purchaser that the vendor Contract by 
 shali pay the duty outstanding then actually payable ; or, assuming that ^ duty. 
 the interpretation put on the words " owner for the time being " in the 
 note on p. 205 is incorrect, do they prevent the vendor agreeing with 
 the purchaser that the latter shall pay the duty due at the date of the 
 contract? These are difficult questions. It seems so incredible that the 
 Legislature could have intended to invalidate an agreement between 
 
208 
 
 Land Clauses of the Finance Act. 
 
 § 19. 
 
 Second 
 paragraph 
 applicable at 
 present time. 
 
 vendor and purchaser of the nature referred to, that until it has been 
 decided that such is really the case, it will be submitted that the section 
 does not relate to contracts between persons interested in the land 
 as " owners," but between persons so interested and tenants of the land. 
 
 If at any Time, etc. — The second paragraph of the section establishes 
 a quasi-statute of limitations for the recovery of undeveloped land duty. 
 The duty must be assessed (not recovered) within three years after the 
 expiration of the year for which it is charged, or it cannot be assessed 
 at all. It is charged by this Act (s. 16) for every future financial year 
 until the charge is taken away or altered by Parliament. If land 
 strictly liable to the charge has managed to escape assessment, it can 
 still be assessed for three back years and the year in which the assess- 
 ment is made. It may have become developed when the assessment is 
 made, but the former arrears within the prescribed limits may still be 
 recovered. Once assessed the duty can apparently be recovered at any 
 length of time. 
 
 The same paragraph precisely hits the present position of all 
 undeveloped land in the country. Under s. 16 (1) the duty was to be 
 levied for the financial ending March 31, 1910, but during that year no 
 valuation was either provisionally made or finally settled for that year. 
 Many provisional valuations upon which undeveloped land duty will be 
 payable were not made on March 31, 1911, the end of the second 
 financial year in respect of which undeveloped land duty is payable. 
 
 Every assessment will be made on the original site valuation, unless a 
 subsequent periodical site valuation has been made, and then the assess- 
 ment will be on the later valuation (s. 1 6 (3) ). It seems, therefore, that 
 land originally valued under s. 26 (1) will not necessarily escape 
 undeveloped land duty even for a year, by being omitted from periodical 
 valuation under s. 28. 
 
 With this section compare s. 27 (6) {post, p. 329), under which duty 
 is to be assessed on the original provisional valuation until the original 
 valuation is finally settled, when there is (if necessary) to be an adjust- 
 ment of the duty. The second paragraph of s. 19 applies in case 
 the duty is not assessed 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." Apparently then, even if the value 
 is shown in a provisional or settled valuation, but owing to carelessness 
 of the officials no assessment is made, the paragraph will apply. 
 
 Under the combined effect of the two sections (s. 19 and s. 27 (6) ) it 
 would appear that as soon as an original provisional valuation is fixed, say 
 in the month of March, 1913, duty can be assessed thereon for practically 
 four years back. Thus the duty charged for the year ending March 31, 
 1910, can be assessed on a provisional valuation together with the duty 
 for the years ending March 31, 1911, 1912, and 1913, up to but not 
 later than March 31, 1913, and will be payable by the ''owner of the 
 
Undeveloped Land Duty. 20S 
 
 land for the time being" (ante, pp. 205 and 206) whatever may be the ■ 8 19. 
 meaning of that phrase. 
 
 Shown in the provisional Valuation. — For the provisional valuation 
 
 see s. 27, post, p. 320. 
 
 Value . . . finally settled. — For the final settlement of the valua- 
 tion see s. 27 (4), (5), (6), and notes thereon, post, pp. 325, 326, 329. 
 
 Shall be payable at any Time after the Expiration of Two Months 
 from the Date of the Assessment. — If the duty for the financial years 
 ending March 31, 1910, 1911, 1912, and 1913, is not assessed till 
 March 31, 1913, it will be payable on June 1, 1913. 
 
 Mineral Rights Duty and Provisions as to Minerals. 
 Summary op Sections 20 to 24, 
 
 Sects. 20 to 24 relate to duties affecting minerals. 
 
 Sect. 20 creates mineral rights duty, fixes its amount and incidence, 
 defines or describes the " rental value " on which it is levied, empowers 
 the Commissioners to obtain the necessary information to enable them 
 to levy it, and exempts certain substances from its operation. 
 
 Sect. 21 regulates the incidence of the duty as between lessors and 
 underlessors. 
 
 Sect. 22 exempts mineral leases from reversion duty, creates a 
 special method of levying an annual increment value duty on minerals 
 subsequently leased or commenced to be worked, and provides for 
 the incidence of that duty in the case of underleases, exempts from 
 increment value duty all minerals in lease or being worked on April 30, 
 1909, provides against payment both of increment value duty and 
 mineral rights duty on the same rental value, and establishes a 
 special method of ascertaining the original capital value of minerals in 
 lease or being worked on April 29, 1909. 
 
 Sect. 23 defines or describes the total and capital (site) value of 
 minerals and contains various provisions with respect to the valuation 
 of minerals. 
 
 Sect. 24 defines or describes the various terms used in the Act in 
 relation to minerals. 
 
 Section 20. 
 20. — (1) There shall be charged, levied, and paid for § 20. 
 the financial year ending the thirty-first day of March Jf'JJ^s^j^t 
 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. 
 
 N. 14 
 
210 Land Clauses of the Finance Act. 
 
 § 20 (1). For the Financial Year ending March 31, 1910, and every 
 subsequent Financial Year. — Tlie duty is a coutiuuing one. The 
 contrast of " financial year " for which the duty is charged with 
 " working year " in respect of which it is paid will be noted. The first 
 payment of duty is for the taxes of the financial year ending March 31, 
 1910. It is payable at any time after January 1, 1910. It is actually 
 paid in respect of the receipts during the working year ending on 
 September 30, 1909, or on such other day before January 1 (in the 
 financial year) as may be approved by the Commissioners (s. 24, par. 
 " The expression ' working year ' "). There is no provision in relation 
 to this duty similar to the second paragraph of s. 19. Can it be 
 assessed after the financial year for what it is payable has expired 1 
 
 Rental Value. — See sub-s. (2) for definition of. 
 
 Rights to Work. — There is no definition of the phrase "rights to 
 work." It clearly includes rights to work minerals arising from 
 ownership of the minerals and rights to work arising under a lease or 
 a licence. For the definition and extensive meaning of " mining lease " 
 see s. 24. 
 
 But is a mere trespasser who has carried off another person's minerals 
 liable to the duty 1 Does it make any difference whether he took them 
 bond fide believing he had the right to take them, or maid fide knowing 
 that be had no such right 1 The person who is to pay the duty is the 
 proprietor (s. 20 (4) ). The proprietor is defined as " the person for the 
 time being entitled in possession to the minerals '' (s. 24). Does entitled 
 in possession mean " rightly entitled," or does it merely indicate the 
 fact of possession ? Probably the latter, but the ambiguity is perhaps 
 hardly worth solving. A defence to a claim for duty of the nature of 
 " I stole them," or even " I took them by mistake," is not likely. 
 
 Minerals. — There is no definition of minerals in the Act, but sub-s. 5 
 of this section exempts common clay, common brick clay, common 
 brick earth, or sand, chalk, limestone, or gravel, from the category of 
 minerals subject to mineral rights duty, and sub-s. (8) of s. 22 exempts 
 the same substances from the annual increment value duty charged in 
 respect of minerals which are comprised in a mining lease made after 
 April 30, 1909, and of minerals which are commenced to be worked 
 after that date. Nevertheless, in so far as such substances are in fact 
 minerals, they will have to be treated as such for the purposes of the 
 Act except where, as in the above instances, the contrary is expressly 
 provided. For instance, the provisions of s. 23 (1) as to the ascertain- 
 ment of their total value and their capital value ; of s. 23 (2), that for 
 the purposes of valuation they are to be treated as a separate parcel of 
 land ; of s. 23 (3), that if comprised in a mining lease on April 30, 1909, 
 or being worked by the proprietor on that date, so long as they are for 
 the time being so comprised, or worked, etc., they are not to be subject 
 to valuation under the Act ; and of s. 23 (4), that, except where the 
 
Mineral Eights Duty. 211 
 
 context otherwise requires, references in the Act to the site value of § 20 (1). 
 land shall, where the laud consists of or comprises minerals, be con- 
 strued as references to the capital value of such minerals, all apply to 
 such of the exempted substances as are in fact minerals. 
 
 The following extract from a well-known standard authority gives a What are 
 general notion of what is included in the term "minerals" in British niiiierals? 
 law : — 
 
 " It has been held that in a legal sense the word minerals primd 
 facie includes not merely coal and ironstone and freestone, but fire clay 
 and china clay or porcelain clay and asphalt or pitch, and also every 
 kind of stone, flint, marble, granite, slate, brick earth, chalk, gravel, 
 and sand ; if workable to a profit. And in this respect, it has been held 
 immaterial that the article in question is usually worked or can only be 
 profitably worked by open quarrying. One might summarise these 
 decisions and say a mineral need not be metallic. It need not be 
 subjacent ; it need not be worked by a mine ; it need not be in any one 
 particular distinguished from any part of the substance of the earth, 
 using the word ' earth ' as applicable to every portion of this habitable 
 globe. Even the word ' organic ' must be rejected if referred to some 
 of the substances which form part of the earth. On the other hand, 
 stone not workable to a profit has been held not to be a mineral." — 
 MacSwinney on Mines, 3rd ed., pp. 10, 11. 
 
 No authorities need be cited establishing the mineral character of 
 such substances as any of the precious metals, coal, iron, tin, or copper. 
 It may be taken as cei-tain that whether the document in reference to 
 which the term " minerals " has to be construed is a conveyance or a 
 lease, or is a special Act of Parliament, or is an Act of Parliament of 
 general application, such as the Railway Clauses Act, 1845 (8 & 9 Vict, 
 c. 20), s. 77; the Waterworks Clauses Act, 1847 (10 & 11 Vict. c. 17), 
 s. 18 (containing a provision identical with that in the last-mentioned 
 Act) ; or the Quarries Act, 1894 (57 & 58 Vict. c. 42), s. 1, the substances 
 just referred to would be considered to be minerals. 
 
 On pp. 212 to 215 will be found two Tables. The first gives the eiFect 
 of the principal decisions as to certain substances, not being minerals 
 in the plain and popular sense, but also not being substances specially 
 exempted from mineral rights duty by virtue of sub-s. 5 of s. 20 of the 
 Act of 1910, and from the annual increment value duty by virtue of 
 s. 22 (8) of the same Act. The second Table gives the effect of the 
 decisions as to the exempted substances. 
 
 14—2 
 
212 
 
 § 20 (1). 
 
 Land Clauses of the Finance Act. 
 
 TABLE I. 
 Non-Exempted Substances. 
 
 Substance. 
 
 Freestone 
 
 Ditto 
 
 Ditto 
 
 Stone 
 
 Slate 
 
 Granite . 
 
 Coprolites 
 Sandstone 
 
 Fireclay 
 
 Document to be Con- 
 strued. 
 
 Conveyance of 
 land with reserva- 
 tion of "all mines 
 or seams of coal 
 and other mines, 
 metals or minerals." 
 
 Sect. 70 of the 
 EaUvray Clauses 
 Consolidation(Scot- 
 land) Act, 18J5. . 
 
 Ditto. 
 
 Special Canal 
 Act reserving 
 mines and minerals. 
 
 Gift in will of 
 all shares in mines 
 of which testator 
 died possessed . . 
 
 Inclosure Act 
 of 1812, reserv- 
 ing "mines, ores, 
 minerals, coal, 
 Hmestone, or slate" 
 
 Under copyhold 
 lands of a manor 
 
 Conveyance re- 
 serving all coal, 
 ironstone and other 
 mines and roiuerals 
 (including fire- 
 clay) " lying or 
 being within or 
 under " the land . 
 
 Sect. 70, Bail- 
 way Clauses Con- 
 solidation (Scot- 
 land) Act, 1845. 
 
 
 
 Held to be Minerals in 
 
 Bell V. Wilson 
 (1866), L. E. 1 Ch. 
 303. 
 
 Jamieson v. North 
 British Bail. Co. 
 (1868), 6 Sc. L. E. 
 188. 
 
 Midland Rail. 
 Co. V. Checkley 
 (1867), L. E. 4 Eq. 
 19. 
 
 Cleveland^. Mey- 
 rick, 37 L. J. Ch. 
 125. Decided ap- 
 parentlyon ground 
 that working was 
 by underground 
 mining operations. 
 
 A ttorney- General 
 V. Welsh Granite 
 (7o.(1887),35W.E. 
 617, C. A. 
 
 A ttorney- General 
 V. Tomline (1877), 
 15 Ch. D. 750. 
 
 Greville v. Hem- 
 ingway, [1902] 87 
 L. T. 443. 
 
 Caledonian Bail. 
 Co. V. Glenboiy 
 Union Fireclay Co., 
 [1911] A. C. 209. 
 
 Held not to be 
 Minerals in 
 
 Ca ledonian 
 Railway v. Sym- 
 ington, [1911] 
 S. C. 552 (Ct. of 
 Sess.) 
 
Mineral Eights Duty. 
 
 NoN- Exempted Substances — continued. 
 
 213 
 
 § 20 (1). 
 
 Substance. 
 
 Sandstone 
 
 Whinstone 
 
 China clay 
 
 Ditto 
 
 Eedrock (al- 
 though not 
 workable at 
 profit) 
 
 Document to be Con- 
 strued. 
 
 Sect. 70 of the 
 Railway Clauses 
 Consolidation(Scot- 
 land) Act, 1845, 
 which corresponds 
 to s. 77 of the Rail- 
 way Clauses Con- 
 solidation (Eng- 
 land) Act, 1845 . 
 
 Sect. 70 of the 
 Railway Clauses 
 Consolidation (Scot- 
 land) Act, 1845, 
 which corresponds 
 to s. 77 of the 
 Railway Clauses 
 (England) Act, 
 1845 . 
 
 Conveyance of 
 freehold by lord 
 to copyholder. Re- 
 servation of " all 
 mines and nainerals 
 within and under " 
 the premises . 
 
 Railway Clauses 
 Consolidation Act, 
 1845, ss. 77, 78 . 
 
 Lease reserving 
 " all mines and 
 minerals within or 
 under the said 
 land" . 
 
 Held to be Minerals in 
 
 Forth Bridge 
 Raihuay v. Dun- 
 fermline Qui! dry 
 (1909), S. C. 493. 
 
 Hext V. OiU 
 (1872), L. R. 7 Ch. 
 699. 
 
 Great Western 
 Railway Co. v. Gar- 
 palla Co., [1910] 
 A. C. 83. 
 
 Johnstone v. 
 Crompton & Go. , 
 [1899J 2 Ch. 190. 
 
 Held not to be 
 Minerals in 
 
 North British 
 Railway Go. v. 
 Budhill Goal, etc., 
 Go. and Others, 
 [1910] A. C. 116. 
 
 TABLE II. 
 Exempted Substances (Sect. 20 (5) ). 
 
 Substance. 
 
 Common clay, 
 common brick 
 clay . 
 
 Ditto 
 
 Document to be Con- 
 strued. 
 
 Sect. 77 of the 
 Railway Clauses 
 Act, 1845 . 
 
 Sect. 77 of the 
 Railways Clauses 
 Act, 1845 . 
 
 Held to be Minerals in 
 
 Midland Railway 
 Go. v. Uaunchwood 
 Brick, etc., Co. 
 (1882), 20 Ch. D. 
 552. 
 
 Loosemore v. 
 Tiverton, etc., Rail- 
 way (1882), 22 Ch. 
 D. 25. 
 
 Held not to be 
 Minerals in 
 
214 
 
 Land Clauses op the Finance Act. 
 
 § 20 (1). 
 
 Exempted Substances (Sect. 20 (5) )— continued. 
 
 Substance. 
 
 Document to be Con- 
 strued. 
 
 Held to be Minei-als in 
 
 Held not to be 
 Minerals in 
 
 Common 
 common 
 clay . 
 
 Ditto 
 
 clay, 
 brick 
 
 Ditto 
 
 Ditto 
 
 Clay not com- 
 mercially work- 
 able . 
 
 Common 
 earth 
 
 brick 
 
 Sand and gravel 
 
 Conveyance re- 
 serving "all mines 
 of coal, culm, iron, 
 and all other mines 
 and minerals what- 
 soever except stone 
 quarries " . 
 
 Waterworks 
 Clauses Act, 1847, 
 s. 18. Undertakers 
 not to be entitled 
 to " any mines of 
 coal, ironstone, 
 slate, or other 
 minerals under any 
 land" . 
 
 Eailway Clauses 
 Act, 1845, ss. 77, 
 
 Eailway Clauses 
 Act, 1845, ss. 77, 
 78. . . . 
 
 Conveyance of 
 a certain mine, 
 vein, bed, or stra- 
 tum of coal, iron- 
 stone, and pot pipe 
 and fire clay, " and 
 all other mines 
 and minerals lying 
 and being under 
 the defendants' 
 land" . 
 
 Conveyance re- 
 serving " all mines 
 of coal, culm, iron, 
 and all other mines 
 and minerals what- 
 soever, except 
 stone quarries" . 
 
 Sect. 1 of the 
 Quarries Act, 
 1894 . 
 
 Earl of Jersey v. 
 Neath Union Rural 
 Authority (1889), 
 22 Q. B. D. 555. 
 
 Earl of Jersey 
 V. Neath Union 
 Rural Authority 
 (1889), 22 a B. D. 
 555. 
 
 Scott V. Midland 
 Railway Co., [1901] 
 1 K. B. 317. 
 
 Glasgow [Lord 
 Provost) V. Farie 
 (1888), 13 App. 
 Cas. 657. 
 
 Great Western 
 Railway Co. v. 
 Blades, [1901] 2 
 Ch. 624. 
 
 In re Todd, 
 Birleston & Co. v. 
 North Eastern 
 Railway Co., 
 
 [1903] 1KB. 603. 
 
 Shell V. Par- 
 sons (1909), 101 
 L. T. 103. 
 
Mineral Rights Duty. 
 
 Exempted Substances (Sect. 20 (5) ) — continued. 
 
 Substance. 
 
 Sand 
 
 Limestone 
 
 Ditto 
 
 Ditto 
 
 Document to be Con- 
 strued. 
 
 Eeservation by- 
 deed of minerals . 
 
 Partition deed 
 reserving mines of 
 lead and coal and 
 other mines and 
 minerals 
 
 Eailway Clauses 
 Act, 1845 (8 & 
 Vict. c. 20) . 
 
 Conveyance of 
 lands reserving 
 ' ' all mines and 
 minerals " . 
 
 Held to be Minerals in 
 
 Midland Railway 
 Co. V. Robinson, 
 L. E. 15 App. Cas. 
 19. 
 
 Fishbourne v. 
 Hamilton (1890), 
 25 L. E. Ir. 483, 
 C. A. 
 
 Held not to be 
 Minerals in 
 
 Staples V. 
 Taung, [1908] 1 
 Ir. E. 135, 
 0. A. 
 
 Darvill v; 
 i?qpfr, 24 L. J. Ch. 
 779. On ground 
 that minerals 
 did not include 
 stone worked as 
 this was from 
 surface. 
 
 In various cases, as for example Salisbury v. Gladstone (6 H. & M. 
 123), Church v. Inclosure Commissioners (11 C. B. N. S. 664), Cowley v. 
 Wellesley (1 Eq. 656), questions relating to minerals have been litigated 
 as between lord of the manor and copyholder, which are decisions rather 
 on the question of waste tiian of what substances, part of the freehold, 
 are minerals. 
 
 Ttie foregoing are the main decisions on the question. In various 
 cases judicial definitions, statements, or explanations of what is intended 
 by minerals have been given. See especially the following : — 
 
 Per Lord Romilly, in Midland Railway Co. v. Checkley, L. R. 4 Eq. 
 19, at p. 25 ; per Mellish, J., in Hext v. Gill, L. R. 7 Ch. 699, at 
 p. 712; per Lord ^^'atson, in Provost of Glasgow v. Farie, 13 App. 
 Cas. 657, at p. 679 ; per Lord Herschell, at p. 683, and per Lord 
 Macnaghten at pp. 689 and 690, in the same case ; per Lord Esher, M.R., 
 Bowen and Fry, L.J J., in Earl of Jersey v. Neath Poor Law Union, L. R. 
 22 Q. B. D. at p. 555 (see the judgments generally) ; per Moulton, L.J., in 
 Great Western Railway Co. v. Carpalla, etc., Co., [1909] 1 Ch. 218, at 
 p. 231. 
 
 It is obvious that no very clear test of what are minerals can be 
 gathered either from decided cases or from dicta. Bat the recent case 
 of North British Railway v. Budhill, etc., Co., [1910] A. C. 116, 
 must, until the question be again considered by the House of Lords, be 
 
 215 
 
 § 20 (1). 
 
 Judicial 
 definitions of 
 minerals. 
 
 The latest 
 authorities. 
 
216 
 
 Lakd Clauses of the Finance Act. 
 
 § 20 (1). accepted as laying down the test of what is a mineral. In that case, 
 which was decided on s. 70 of the Railway Clauses (Scotland) Act, 1845, 
 which corresponds to s. 77 of the Railway Clauses (England) Act, 1845, 
 it was laid down by Lord Loreburn, L.C., at p. 127, that the true test 
 is that laid down by Lord Halsbury in Provost of Glasgow v. Farie, 
 13 App. Cas. 657. The Court has to determine " what these words 
 meant in the vernacular of the mining world, the commercial world, and 
 landowners at the time when the purchase was effected, and whether 
 the particular substance was so regarded as a mineral.'' Lord Atkinson 
 agreed with the judgment of the Lord Chancellor, as well as with that 
 of Lord Gorell, next delivered, and with the reasoning of those judgments. 
 Lord Gorell said that in his view the words of exception in s. 70 are 
 used "in the ordinary sense in which they are understood and used by 
 landowners and those engaged in mining and commerce " (p. 133). Lord 
 Shaw agreed with the judgments of the Lord Chancellor and Lord 
 Gorell. In Great Western Railway Co. v. Carpalla Co., [1910] A. C. 83, 
 judgment in which was delivered by the House of Lords a month later 
 than the decision in the Budhill case, it was held that china clay, not 
 being part of the ordinary composition of soil in the district, and its 
 presence being rare and exceptional, was a mineral within s. 77 of the 
 Railway Clauses Act, 1845. From these two cases just decided in the 
 highest Court it may be laid down that the present test of a mineral 
 within the Railway Clauses Act, 1845, is (1) that it must not be part 
 of the ordinary composition of the soil, and that its presence must be 
 rare and exceptional ; (2) that it must be understood by landowners 
 and those engaged in mining and commerce to be a mineral. These 
 decisions will doubtless govern many cases other than those arising 
 imder the Railway Acts. The exception in s. 77 is of " mines of coal, 
 ironstone, slate, or other minerals under any land," a very general form, 
 identical in effect with the language of many deeds. It may therefore 
 be assumed that, unless some distinction of meaning can be shown 
 between the particular grant or exception under examination and the 
 words of s. 77, the two authorities referred to will govern all cases in 
 which the question as to what is a mineral arises. 
 
 The fact that the present Act is a taxing statute, and therefore to be 
 
 construed strictly, does not seem, having regard to the language of the Act, 
 
 to be a very material consideration. The exemption of certain substances 
 
 from the two special duties affecting minerals (s. 20 (5), s. 22 (8) ) is in 
 
 language which it is thought throws no light upon the question whether 
 
 the term " minerals " is to have a wide or a narrow construction. It 
 
 would therefore seem that any question as to whether a substance is or 
 
 is not a mineral must be decided on general principles and the cases 
 
 referred to. 
 
 Practical The question whether any particular substance of a doubtful nature is 
 
 solution will or is not for the purposes of increment value duty, to be considered a 
 
 with owner. mineral is one to which the phrase solvitur ambulando will usually be 
 
Mineral Bights Duty. Sl7 
 
 applicable. The determination really rests to a large extent with the § 20 (1). 
 proprietor or owner. If he puts an original capital value under s. 23 (2) 
 in his return made under s. 26 (2) upon any substance, he thereby elects 
 to treat it as a mineral, and it is hardly conceivable that the Commis- 
 sioners will not agree to this election and will not charge increment 
 value duty upon it as a separate parcel of land when an occasion arises 
 under s. 1. If an owner or a proprietor puts no original capital value 
 on a substance of the nature referred to, it seems that it is not likely to 
 be treated — perhaps it cannot under the Act be treated — as a mineral, 
 until it is either sold apart from the ordinary soil as a separate parcel 
 of land, or is worked as a mineral, or until it becomes the subject of a 
 mining lease in the sense put upon that term by s. 24. Wiien any one 
 of these events happens the proprietor is obviously himself treating it 
 as a mineral, and in that case it is unlikely that it would not be so 
 treated by the Commissioners for all purposes, including payment of 
 mineral rights duty, payment of increment value duty, and separate 
 valuation and assessment vuider s. 23. It will be seen that if an owner 
 sells the fee simple of his land, which includes minerals, for a lump sum, 
 the value (including the increment value) of the minerals, which is 
 naturally reflected in the price, will be charged with duty under 
 s. 2 (2) {a) in the ordinary way. There is no power under sub-s. (4) of 
 s. 25 or any other sub-section to deduct the value of the minerals from 
 the value of the consideration under s. 2 (a). Even in the case of death 
 the principal value under s. 2 (2) (c) and the Finance Act, 1894, will stand 
 in the place of the value of the consideration on a sale under s. 2 (2) (a), 
 and the same considerations therefore ai)ply. The Commissioners, 
 therefore, in doubtful cases are likely to be indifferent as to whether the 
 minerals are valued apart from the land or as part of the land. Never- 
 theless it may be the case that the Commissioners are entitled, where 
 an occasion for payment of increment value duty arises, to insist under 
 s. 29 (1) on assessing increment value duty separately in respect of 
 surface and minerals, and for that purpose to apportion the consideration 
 under s. 32 (3). The difficulties of such an apportionment would be 
 great, if the minerals were not clearly ripe for development, since it 
 would be unfair for the purpose of obtaining increment value duty on 
 the minerals to attribute to them a value which could only be realised 
 by the destruction of the surface (see note to s. 16 (4), ante, p. 193). 
 
 Mineral Wayleaves. — For definition of mineral wayleave see s. 24 
 (p. 268). 
 
 (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 working lessee in the last working year in 
 respect of that right; and 
 
218 Land Clauses of the Finance Act. 
 
 § 20 (2). (b) Where minerals are being worked by the proprietor 
 thereof, the amount which is determined by the 
 Commissioners to be the smn 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 
 proprietor of the minerals which would ordinarily have 
 been borne by the lessee, the Commissioners shall sub- 
 stitute 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 customary in the district if the expenditure 
 had been borne by the lessee. 
 
 The Rental Value.— The rental value of the right to work is the 
 subject of the tax, but it is a realised value which is intended to be 
 taxed. In sub-s. (a) it is the actual rent received which is taxed. In 
 sub-s. (b), where there is no real rent, it is a hypothetical rent I'epresent- 
 ing the rent which might have been obtained if the proprietor had, 
 instead of working the minerals himself, let them on mineral lease, 
 but still it is a tax on value actually realised (with perhaps a slight 
 exception : see note " Which would have been received as Rent, etc.," 
 on p. 221). 
 
 (a) Mining Lease. — See definition in s. 24, paragraph "The 
 expression ' mining lease.' " Note that it must be a lease " for mining 
 
Mineral Eights Duty. 219 
 
 purposes" ; but it need not exceed fourteen years. Note also the paragraph § 20 (2). 
 of the same section beginning " Minerals shall be deemed," showing 
 that minerals may for the purpose of duty be deemed to be comprised 
 in a lease which has in fact expired. The words "mining lease" do 
 not cover a sale of minerals with the surface in fee simple, or as a ' 
 
 separate parcel of the fee. They seem to include the lease of a mineral Surface rents, 
 wayleave. Questions have in practice been raised as to whether the 
 rents of surface lands payable under mining leases are liable to mineral 
 rights duty. Something may of course turn on the special form of the 
 lease, but where one of the ordinary forms of mining lease is adopted, 
 under which a fixed rent is reserved for every acre of surface land 
 occupied, power being given to the tenant to occupy such of certain 
 surface land as he requires for the purpose of getting the miner^s, 
 with a covenant by him to restore the land and render it fit for cultiva- 
 tion after he has done using it, it seems probable that it would be held 
 that the rent is paid in respect of a right to work minerals under 
 s. 20 (2) (a). It is a rent arising from the exercise of one of the 
 rights leased to work the minerals and is paid in respect of that right. 
 It therefore seems to fall within sub-s. (2) (a). Further, " mining 
 lease " means a lease for mining purposes, that is, for working, getting, 
 etc., mines and minerals, or "purposes connected therewith" (s. 24). 
 
 If this is the case it would seem to follow that a proprietor working 
 his own minerals may be charged under sub-s. (2) [b) mineral rights 
 duty on a hypothetical surface rent based on the quantity of surface, •» 
 
 land actually used by him for the purpose of getting his minerals. 
 
 In some mining leases surface lands may be taken not only for 
 purposes of direct working, that is for sheds, furnaces, offices, tram- 
 roads, railroads, etc., but for the purpose of building houses for 
 workmen. If the above view is right, it would seem that even the rent 
 paid in respect of lands taken for the last-mentioned purpose is 
 subject to mineral rights duty. 
 
 It is not clear whether by the device of taking a separate lease of the Separate 
 surface rights mineral rights duty would be escaped. " The expression ^^^^^ °^ 
 ' a mining lease ' means a lease for mining purposes, that is, for search- 
 ing for, &c. . . . mines and minerals or purposes connected therewith " 
 (s. 24). It is possible that, so far as regards the erection of work- 
 men's houses, such a separate lease, limited to that one object, might 
 not be considered to be a " lease of the right to work the minerals " 
 under sub-s. (2) (a), whilst it might be held to be such a lease if it 
 included the right to use the surface for purposes connected with the 
 raising and storage of the minerals. 
 
 A lease of surface rights for mining purposes from a person not also 
 leasing (s. 20 (2) (a) ) the minerals might be a mining lease, but the 
 right to work the minerals would not be the subject of that lease, and 
 therefore it is submitted that mineral rights duty is not payable in 
 respect of the rent of such a lease. 
 
220 Land OlausIes oP the Finance Act. 
 
 § 20 (2). Amount of Rent paid by the Working Lessee. — Under s. 41 of 
 this Act rent has the same rneanuig as in the Conveyancing and Law 
 of Property Act, 1881, and does not inchide a rent-charge. Under the 
 Conveyancing and Law of Property Act, 1881, s. 2 (1), "Rent includes 
 yearly or other rent, toll duty, royalty, or other reservation by the acre, 
 the ton, or otherwise." Under s. 24 of this Act, " 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." Not that it is the actual sum paid 
 as rent by the lessee in the working year, which is the subject of the 
 tax. That may be less than the reserved rent, or it may include arrears 
 and be more. 
 
 Working Lessee. — For definition of, see s. 24 post, p. 267. 
 
 Working Year. — This is defined by s. 24 (post, p. 268) as follows : 
 " 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 Commissioners ; 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." 
 
 Illustration of Paragraph (a) of Section 20 (2), 
 
 A mining lease is granted by A., the proprietor, to B., the lessee, on 
 January 1, 1911, at a premium of 5,000/., a dead rent of 1,000/., 
 payable quarterly, and a royalty of Is. per ton of the mineral raised, 
 the dead rent to cover the first 20,000 tons. The 5,000/. premium is 
 paid on the grant of the lease ; four quarterly sums of 250/. are paid as 
 rent in the months of April, July, and October, 1911, and January, 
 1912; a further sum of 200/. is paid for excess royalties on account in 
 August, and a further sum of 250/. excess for royalties in October. It is 
 thought that the lessor is liable on January 2, 1912, to pay mineral 
 rights duty on all sums received by him up to September 30, 1911, 
 that is on the premium 5,000/., the two quarters' rent paid in April and 
 July respectively, and the sum of 200/. additional royalties paid in 
 August. It is thought that the two quarters' rent paid in October, 
 1911, and January, 1912, will be subject to the duty levied for the 
 financial year ending March 31, 1913, together with all further sums 
 received, whether by way of dead rent or additional royalties, before 
 October 1, 1912. 
 Duty during I*' has been assumed in the illustration just given that if rent has 
 
 first year. been paid within the last working year it is subject to mineral rights 
 
 duty, even although the lease under which the rent was paid had not 
 
Mineral Eights Duty. 221 
 
 been in force a ftill year on the expiration of the working year. If § 20 (2). 
 
 as appears possible this assumption is incorrect, the lessor will escape 
 
 duty on all sums received by him in the interval between the date 
 
 of the lease and the next September 30 after that date, since it is 
 
 clear that in the succeeding year's assessment he can only be charged 
 
 suras received since the September 30 immediately after the lease. 
 
 It does not appear that the power to alter the date of the " working Alteration of 
 year " conferred in s. 24 (post, p. 268) can be exercised by the Com- working year, 
 missioners without the consent of the proprietor, but if this is not so, 
 and the Commissioners can in any particular case appoint any day they 
 choose as the end of the working year, they would of course solve the 
 difficulty just referred to, and prevent any escape from duty by hxing 
 the day on which the first year of the lease expires as the end of the 
 working year in respect of that lease. 
 
 (b) Are being Worked. — Minerals which are being won for the 
 purpose of being immediately worked are to be deemed to be minerals 
 which are being worked (s. 24). 
 
 To win a mineral is to put it " in a state in which continuous working 
 can go forward in the ordinary way " : per Lord Hatherley, L.C., in 
 Lewis v. Fothergill, L. R., 5 Ch. 103, at p. Ill ; see also Rokehy v. 
 Elliot, 13 Ch. D. 277. 
 
 By the Proprietor. — For the definition of proprietor see s. 24 and notes 
 thereon. The term does not include a lessee for years, unless s. 65 of the 
 Conveyancing Act, 1881 (Appendix, p. 604), applies to his term. There 
 may, however, be a question whether " proprietor " does not include a 
 lessee who is also a lessor, but it is thought not. When the person 
 entitled to the property in the minerals is being dealt with by the Act in 
 relation to the special mineral taxes, i.e., mineral rights duty and the annual 
 increment value duty, he appears to be usually termed not the " owner " 
 but the "proprietor" (see generally ss. 20 — 23 inclusive). But land 
 certainly includes minerals, and the proprietor of the minerals is almost 
 certainly the owner. Subject to s. 23, s. 26 which directs the original 
 site valuation of land, applies to minerals ; and sub-s. (2) of the last- 
 mentioned section, requiring owners of land and persons receiving rent 
 in respect of land to furnish returns as to such land, appears to apply 
 to owners of minerals, even if owned apart from the ordinary soil. The 
 term " proprietor " is not, it seems, inconsistent in the scheme of the 
 Act with the term "owner" as applied to minerals, except that the 
 latter includes a lessee for a term of years of which more than fifty are 
 unexpired (s. 41), and it is thought that "proprietor" does not include 
 any lessee, even if he is also a lessor and entitled to the rents and profits 
 or a part of the rents and profits (s. 24). 
 
 "Which would have been received as Rent ... in the District. — 
 
 The discretion of the Commissioners appears wide. Rent is a factor of 
 letting which varies with other conditions. The Commissioners must fix 
 
222 Land Clauses of the Finance Act. 
 
 § 20 (2). a hypothetical rent, which would be the proper rent, having regard to 
 the length of the term and to certain hypothetical conditions which 
 they determine and which must be customary in the neighbourhood in 
 such a lease, and the rent and term must also be customary. But 
 having done this, the amount of duty to be paid is determined not 
 entirely by the rent so fixed, but partly or wholly, as the case may be, 
 by the extent of the working. The Commissioners, having fixed the 
 rent, are to determine the question how much rent would have been 
 due within the workingyear if the proprietor had been a lessee at the rent 
 on the terms fixed and had worked the minerals as lessee exactly as he has 
 worked them as proprietor. But the curious result may follow that a 
 proprietor may be charged on a hypothetical rent which is in excess of 
 the actual amount of working. If it is customary in the district to 
 lease with a dead or fixed rent, to be paid in any event, and representing 
 the royalty on a certain quantity of minerals gotten, it would seem that 
 this must be considered a term of the hypothetical lease, and that the 
 proprietor must pay duty on the hypothetical fixed rent, even if he has 
 not got minerals to the extent covered by such rent ; but of course in 
 this case he would in succeeding years be entitled to the benefit of any 
 customary provision for making up " shorts." Possibly for the sake of 
 simplicity, as well as equity, the Commissioners may charge only on 
 quantities actually worked. 
 
 Note in respect to the customary rent the last paragraph of s. 24, 
 that " where the circumstances of a district are such that in the opinion 
 of the Commissioners it is impracticable to fix any sum which satis- 
 factorily represents a rent customary in the district, the rent wliich 
 would be paid under similar circumstances and ordinary conditions 
 elsewhere than in the district shall be substituted for the rent customary 
 in the district." 
 
 Copy of their Valuation. — To facilitate, it may be presumed objection 
 to the assessment or an appeal. Unless the valuation contains particulars 
 or details — and there is no direction that it shall do so — it would not 
 appear to be of much use. 
 
 It seems that this valuation ought to be served each year. If that 
 is so, it may, of course, vary from year to year with the cost of working, 
 price of minerals, etc. It may therefore be that persons interested in 
 the reversion or remainder, other than the proprietor charged, would 
 not be persons aggrieved so as to be entitled to appeal from the 
 valuation or the assessment in pursuance thereof (s. 33 (1) ), since they 
 would have their remedy when they came into possession. 
 
 There is nothing to make the valuation so served binding on the pro- 
 prietor so as to prevent his taking objection to an assessment based on 
 the valuation analogous to the provision of s. 33 (1) (b) in relation 
 to total and site value and assessments of duty. But it would be unwise 
 not to appeal at once from the valuation, if it is objected to, and if an 
 
Mineral Eights Duty. 223 
 
 appeal will lie, and to leave the appeal till the assessment. It may, § 20 (2). 
 however, be that no appeal will lie from the valuation since it does not 
 seem to be in the nature of an order, or a decision by the Commissioners, 
 but simply to be information, that the proprietor may know on what 
 basis he is assessed. 
 
 To be Served on the Proprietor. — See s. 31 (4) as to methods of 
 service where, however, proprietor is not specifically mentioned. 
 
 (c) In the Case of a Mineral Wayleave. — Where the pi-oprietor of 
 the minerals is using a way through or over his own property other 
 than the mine itself to get his minerals to bank, the hypothetical 
 rent on which he will be charged mineral rights duty will be fixed 
 having regard to the advantages of such way. It is not in fact a way- 
 leave at all, but is part of the property hypothetically leased. Where a 
 wayleave is granted on lease to a mining lessee, whether a lessee of a 
 mine belonging to the grantor of the wayleave, or of some other pro- 
 prietor or lessor, the duty will be paid by the lessor on the rent and 
 royalties received under the wayleave, as in the case of a lease of 
 minerals under (a). The remaining case which may happen is where a 
 wayleave is leased to the owner in fee of mines, who is working them. 
 If that owner is within the meaning of s. 20 (2) (c) " the working 
 lessee," then the lessor of the wayleave will pay duty as in the case 
 of a lease of minerals under (a). Under s. 24, " The expression * working 
 lessee ' means as respects mineral wayleaves the lessee who is in 
 actual enjoyment of the wayleave." It is submitted that the words 
 "lessee who is in actual enjoyment of the wayleave" mean the lessee 
 of the wayleave who is in actual enjoyment of the wayleave, and 
 accordingly include the owner in fee of minerals who is actually 
 enjoying a wayleave for such minerals as lessee under a lease of such 
 wayleave. The words " actual enjoyment " are intended to distinguish 
 the rent payable for the wayleave on the last underlease from the rent 
 payable on an intermediate lease. 
 
 Provided that, etc. — The rent paid by the lessee practically includes 
 interest on and a contribution to a sinking fund in respect of the 
 proprietor's expenditure on such matters as boring, shaft sinking, build- 
 ings, ways, railways, etc. These sums are not, economically considered, 
 mining rents, and duty is therefore not to be paid on them. Compare 
 with this sub-section s. 22 (4). It appears that this proviso would not 
 cover expenditure by a lessee who had sub-leased. The words are 
 expenditure on the part "of any proprietor"; and proprietor under 
 s. 24 means the person entitled in possession, etc., but does not 
 include a lessee. On the strict language of the proviso its benefit would 
 not seem to be claimable by a proprietor working his own minerals, who 
 is charged with a rent, yet that hypothetical rent would apparently 
 include a return for the expenditure referred to. 
 
 (3) Every proprietor of any minerals and every person 
 
224 
 
 Land Clauses of the Finance Act. 
 
 § 20 (3). 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, par- 
 ticulars 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. 
 
 General note 
 on section. 
 
 Not of the 
 
 amount 
 
 received. 
 
 Two other sections should be considered in connection with this 
 sub-section. Under s. 26 (2) (post, p. 317) various particulars must 
 be furnished to the Commissioners by owners and persons receiving rent 
 in respect of any land, but only "for the purpose of the valuation 
 of the land." It seems that such sub-section does not therefore apply 
 for the purposes of ascertaining mineral rights duty, though doubtless 
 it does apply to the original valuation of minerals under s. 26 as a 
 separate parcel of land, which, however, has no connection with mineral 
 rights duty. The other section referred to is s. 31 (post, p. 346), 
 requiring persons who pay rent in respect of any land, or who as agents 
 for others receive rent, to furnish tlie names and addresses of the persons 
 to whom they pay, or for whom they receive rent (ib., sub-s. 1), and 
 giving the Commissioners power to employ persons to inspect the land 
 and report the value thereof (ib., sub-s. 2). It is thought that prob- 
 ably s. 31 applies to the ascertainment of mineral rights duty. 
 Sub-s. (2) of s. 31 may perhaps be useful for the purpose of fixing a 
 rent under s. 20 (2) (b). But curiously enough in sub-s. (4) of s. 31, 
 providing for the service of notices, etc., " proprietor " is not specifically 
 mentioned. No doubt the proprietor is either the owner or a person 
 interested in the land, and is therefore included. Documents or 
 notices may be served on the proprietor under s. 20 (2) (b) and (3). 
 
 Proprietor. — See definition, s. 24, and note on p. 221, ante. 
 
 Every Person to Whom any Rent is paid. — This will include 
 lessees, wlio are not proprietors (see s. 24). Doubtless it will also 
 include trustees, and probably receivex-s, agents, etc. 
 
 Upon Notice being given to him. — See s. 31 (4) as to service of 
 notices and general note above immediately following sub-s. (3) of s. 20. 
 
 To give Particulars as to the Amount received.— Not "of the 
 amount received." The words would, it is thought, include the persons 
 by whom payable, the exact allocation of the payments, and probably 
 other material matters. 
 
Mineral Bights Duty. 225 
 
 A Return in the Form required by the Notice. — For this form § 20 (3). 
 (No. 5) see p. 519, Appendix. It must be read in the light of the 
 recent decision of Mr. Justice Warrington in Burghes v. Attorney- 
 General ([1911] 2 Ch. 139) on s. 31 (1).* But there are evident 
 difFerencesbetw een the two sections. 
 
 (4) Mineral rights duty shall be assessed by the Com- 
 missioners 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 pro- 
 prietor of the minerals, where the proprietor is working the 
 minerals, and in any other case from the immediate lessor 
 of the working lessee. As between the immediate lessor 
 and the working lessee, the duty shall be borne by the 
 immediate lessor, notwithstanding any contract to the 
 contrary, whether made before or after the passing of 
 this Act. 
 
 Recoverable as a Debt due to His Majesty from the Proprietors. — 
 There is no charge on the property, and the priority of the Crown is 
 preserved (see note on p. 84). Is the immediate lessor who has received 
 the rent and the proprietor who has himself worked the minerals liable 
 for the duty on the real and hypothetical rents received by them 
 respectively, and only on those rents] Probably this is so, but the 
 sub-section is not clear. This is the sub-section of the Act which says 
 who is to pay the duty, and that which it primd facie says is that when- 
 ever any mineral rights duty is unpaid in respect of mines being worked, 
 then it is recoverable from the proprietor, if he is working the minerals, 
 and from the immediate lessor (who may be proprietor), if the proprietor 
 is not working the minerals. Arrears of mineral rights duty, therefore, 
 left unpaid by (a) a former proprietor, (b) a former immediate lessor, 
 whether accruing for the current or a past working year possibly may be 
 payable by the present working proprietor or the present immediate lessor. 
 Until it has been decided that this is not the construction of the Act, 
 proprietors taking over workings and purchasers of the interests of 
 immediate lessors must take steps to protect themselves, in respect of 
 mineral rights duty in arrear, and accruing during the current working 
 year. The sub-section is very obscure and many questions might be 
 raised upon it. 
 
 The Duty shall be borne by the Immediate Lessor, notwithstand- 
 ing any Contract to the contrary, whether made before or after the 
 passing of this Act. — For definition of " immediate lessor " see s. 24. 
 * On appeal, W. N. [1911] p. 231. 
 
 N. 16 
 
226 Land Clauses of the Finance Act. 
 
 § 20 (4). The most usual covenant in a mining lease as to payment of rates or 
 taxes is, perhaps, in the form, " To pay all rates and taxes which now 
 are or may at any time hereafter be assessed or charged upon the 
 demised premises or the owner or occupier in respect thereof." (See 
 Prideaux, Precedents in Conveyancing, 20th ed., vol. 2, p. 164, and 
 Key and Elphinstone's Conveyancing, 8th ed., vol. 1, pp. 717 and 842.) 
 It is, perhaps, doubtful whether such a covenant would, in the absence 
 of a statutory provision forbidding it to have that effect, cover mineral 
 rights duty. That duty is not assessed or charged upon the premises. 
 Whether it is charged upon the owner " in respect thereof " is a more 
 difiBcult question. It is certainly charged upon him in respect of the 
 rent received from the premises. There may, of course, be in existence 
 covenants by lessees in a wider form which would clearly cover the new 
 duty. In that case the interference with existing contracts is similar 
 to that enacted by Sir Robert Peel in the year 1842 on the reimposition 
 of the income tax (see 5 & 6 Vict. c. 35, s. 73), which was also retro- 
 spective. Having regard to s. 20 (4) and s. 21 (1) there can, it is 
 conceived, be no doubt that an agreement by a lessee to pay his 
 lessor's proportion of the duty cannot be enforced by action, and that 
 notwithstanding any such agreement the lessee may deduct the same 
 from his rent. 
 
 (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. 
 
 Mineral Rights Duty shall not be charged. — It is to be 
 noted that the sub-section does not say that for the purposes of 
 the Act- the substances in question shall not be deemed minerals, but 
 merely that mineral rights duty shall not be charged in respect of such 
 substances. They may, of course, be the subject of a claim for incre- 
 ment value duty. But is that claim a claim in respect of the capital 
 value of the minerals (s. 23 (4)), or the site value of the land ] The 
 point may arise on the lease by an owner of land with a soil com- 
 posed of one of the minerals or substances referred to in sub-s. (5), 
 with liberty to the lessee to get and use that substance. Is increment 
 value duty in such a case to be calculated under s. 22 (3), the clause 
 creating an annual increment value duty on minerals, or under s. 2 (2), 
 the clause as to land generally 1 The answer seems clear. Sub-s. 8 of 
 s. 22 provides that nothing in that section shall apply to minerals 
 which are exempt from mineral rights duty under the Act. It appears, 
 therefore, that increment value duty must be calculated on the lease 
 under s. 2 (2), difiBcult as it may be in such a case to apply 
 (8.2 (2) (J)). 
 
 Again, the question arises whether the provisions of s. 23 apply to 
 such of these substances as are minerals. Are they to be treated as a 
 
Mineral Eights Duty. 227 
 
 separate parcel of land under s. 23 (2) ; and are they to be assessed for § 20 (6). 
 increment valne duty on capital value as defined in s. 23 (1) ? The 
 answer to these questions, it is thought, should be in the affirmative. 
 Sub-s. 8 of s. 22, which exempts these substances from the provisions 
 of that section, suggests that, if it is necessary to expressly exempt them 
 from that section, they will be within s. 23, unless expressly exempted 
 from it, which is not the case. Again, it seems from s. 22 (8) that the 
 Act considers the exempted substances, or some of them, to be in 
 fact minerals. It would also seem that the second paragraph of s. 23 (2) 
 would apply to such of these exempted substances as are in fact minerals, 
 and that if comprised in a mining lease or in course of being worked 
 they are to be treated as a separate parcel of land not only for the pur- 
 poses of valuation, but also of assessment. The meaning of this 
 apparently is that if minerals, other than those comprised in sub-s. (5), 
 not in lease and not being worked on April 30, 1909 (within the 
 meaning of s. 23 (3) ), are subsequently leased [*? for more than fourteen 
 years], or commenced to be worked [1 in the latter case an occasion for 
 increment value also arising], so that the lease or working brings the 
 annual increment value duty created by s. 22 (3) into play, then on a 
 sale by the reversioner of the fee of the land (including the surface, the 
 soil, and the minerals), or on the death of the reversioner, the minerals 
 are to be assessed separately for increment value duty for the surface. 
 This, of course, is inevitable in the case of minerals subject to the 
 annual increment value duty under s. 22 (3), since increment value 
 duty on the land (excluding the minerals) is payable as a lump sum, 
 whilst increment value duty on the minerals is payable as an annual 
 duty (s. 22 (3) ). But although increment value duty may as a matter 
 of practice be assessed on the minerals exempted under sub-s. (5), and 
 the land itself as an aggregate, it seems clear that by virtue of the second 
 paragraph of s. 23 (2) it ought strictly to be separately assessed on each 
 as a separate parcel of land. (See further on p. 245.) 
 
 Section 21. 
 
 21. — (1) Any immediate lessor who under this Act § 21 
 pays any mineral rights duty, and is himself a lessee of pe'iuction of 
 the right to work the minerals or of the wayleave in ofmterme- 
 respect of which the duty is paid, shall be entitled to of minerals. 
 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 pay- 
 able ; and any person from whose rent any such deduction 
 is made may make a similar deduction from any rent 
 
 15— a 
 
228 Land Clauses of the Finance Act. 
 
 § 21 (1). paid by him in respect of the right to work the minerals 
 or in respect of the wayleave, as the case may be. 
 
 Example.- — A. leases minerals to B. at certain rents and royalties. B. 
 sub-leases to C, the working lessee, at increased rents and royalties. 
 Consequently, the rent in any given year payable to B. is greater than 
 the rent payable by B. to A. Under s. 20 (4), B., who is the immediate 
 lessor, must pay the whole duty. He may deduct from the rent which 
 he pays to A. an amount calculated on that rent at the rate of the 
 duty. It is possible that he may make this deduction before he him- 
 self has paid the mineral rights duty in respect of the rent he has 
 received. Any immediate lessor " who under this Act pays any mineral 
 rights duty " may mean who under this Act is liable to pay, etc., but 
 it is doubtful whether this is the right view of the sub-section. And a 
 similar process will apply in case there is more than one underlease. 
 But it seems somewhat clearer that if an immediate lessor does not 
 deduct the duty at Is, in the pound on the rent he pays to his lessor, the 
 latter paying rent to a superior landlord has no right of deduction in 
 respect of that rent. 
 
 It does not, appear to have been foreseen that it is possible (though 
 it is not likely) that the underlease to the working lessee may have 
 been at a reduced rental, in which case, under the strict language of the 
 section, it would seem that the immediate lessor would be entitled to 
 deduct a duty which he has not paid. Moreover, as mineral rights duty 
 is paid only on rent actually received, it is possible that even if the 
 ultimate rent paid by the working lessee is the highest of all the rents, 
 yet in any particular year less rent may be received from the working 
 lessee by the immediate lessor than the latter actually pays to his lessor, 
 and from which he deducts duty. The deduction is not limited to a 
 deduction out of the next payment of rent as a similar deduction is 
 under the Income Tax Acts. See Income Tax Act, 1842 (5 & 6 Vict. 
 c. 35), 8. 60, Sched. A, No. 4, rule 9, and Income Tax Act, 1853 
 (16 «k 17 Vict. c. 34), s. 40. Sub-sect. (2) makes it quite clear that an 
 agreement by a lessee with his lessor to bear the mineral rights duty is 
 not capable of enforcement. It is thought that the underlessee has no 
 right to recover the duty by action from his lessor. See Andrew v. 
 Hancock, 1 Br. & B. 37. 
 
 (2) Any person in receipt of rent from which a deduc- 
 tion 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. 
 
 Any Person in Receipt of Rent includes proprietor, lessee, or agent. 
 
Mineral Rights Duty. 229 
 
 Any Contract . . . without allowing such Deduction shall be § 21 (2). 
 void. — It is submitted that, taking into consideration s. 20, sub-s. (4), 
 as to contracts between the immediate lessor and the working lessee, 
 and subs. (1) of this section, the words commented upon apply to 
 contracts existing at the date of the commencement of the Act. See note 
 on 8. 20 (4), ante, p. 225. The contract to pay the rent will usually be 
 good, but the deduction must be allowed (see Gaskell v. ^m^(1809), 11 
 East, 165, and many other decisions on analogous statutory provisions). 
 
 (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 incre- 
 ment value duty, as the case may be, make a corre- 
 sponding 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. 
 
 This sub-section refers first to the proviso in s. 20, sub-s. (2). A. General note 
 
 leases minerals to B. at 150^. per annum, which is 50/. higher than the ^^fy°" 
 
 ^ ' ° section. 
 
 customary rent payable in the district, because A, has sunk the shafts 
 and partly opened out the mine. (The figures ai'e given in lump sums 
 for the sake of simplicity.) B. sub-leases to C. at 200/. per annum, 
 having himself spent nothing on the property. Under the proviso in 
 s. 20, sub s. (2), B. is entitled to claim to be taxed on a rent of 150/. 
 The expenditure need not have been by B. himself to entitle him to the 
 reduction. It is under the proviso of s. 20 (2), " expenditure on the 
 part of any proprietor," which gives the right to the reduction of duty. 
 B. having paid mineral rights dnty on a rental of 150/. therefore • 
 becomes entitled under sub-s. (1) of this section to deduct from the 
 rent payable to A. a sum equal to the mineral rights duty on the rent of 
 100/. per annum, himself bearing the duty on the profit rental of 50/. 
 
230 Land Clauses of the Finance Act. 
 
 § 21 (4). A., as well as B., is by virtue of this sub-section entitled to the benefit of 
 the reduction. If the expenditure had been by B. and not by A. and 
 the rents nevertheless the same, it is probably the intention of the Act 
 that B. should be entitled to a reduction of 50/. in respect of his 200/. 
 rent, which would represent interest on B.'s capital expenditure, but 
 that A. should pay the duty in respect of the full rental obtained by 
 him of 150/,, since that rent does not represent any interest on capital 
 expenditure. B., having in fact no profit rental, ought, it seems, to 
 pay no duty. But it seems that the Act fails to carry out this inten- 
 tion. It is only expenditure on the part of any proprietor under the 
 proviso of s. 20 (2) which may give rise to a claim for the substitution 
 of a lower rent, and proprietor does not include lessee (s. 24, p. 265), 
 except a lessee of a long term without rent equivalent to a freehold 
 under s. 65 of the Conveyancing Act, 1881. The sub-section there- 
 fore does not seem to apply to this case. Expenditure on the part 
 of B. the lessee does not under s. 20 (2) give rise to a right in any one 
 to reduction, and A. the proprietor has spent nothing and is not entitled 
 to a reduction. Probably the Commissioners will see what Parliament 
 evidently intended and manage to do justice, in spite of the sub-section, 
 to the parties concerned. 
 
 The second case to which this sub-section refers is an analogous case 
 relating to annual increment value duty arising under s. 22 (4) (see p. 240), 
 Under sub-s. (3) of that section (p. 235) increment value duty is payable 
 in respect of minerals comprised in a mining lease, or being worked, as 
 an annual duty of one-fifth of the amount by which the rental value on 
 which mineral rights duty is paid in that year 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. 
 Sab-s. (4) of s, 22 (p. 240) provides that if the rental value on which the 
 mineral rights duty has been paid represents in part a return to certain 
 capital expenditure mentioned in the sub-section made by a lessor 
 within fifteen years, such rental value shall be reduced for the purposes of 
 the collection of increment value duty by the amount which represents 
 that return, S. 21 (4) would enable this reduction to be obtained 
 by A. as well as by B. in the illustration first given where A. had made 
 the expenditure. It must be confessed that the application of the 
 clause is a little speculative, and the writer does not profess to 
 fully understand it. 
 
 § 22 (1). 
 
 Special pro- 
 visions as to 
 increment 
 value duty 
 
 Section 22. 
 
 22. — (1) No reversion duty shall be charged on the 
 determination of a mining lease, and no increment value 
 duty shall be charged on the occasion of the grant of a 
 
Increment Value Duty (Minerals). 231 
 
 mining lease or in respect of minerals which are com- § 22 (1). 
 prised in a mining lease, or are being worked, except as s^nduty' 
 a duty payable annually in manner provided by this Act. jj ^^^^,^2 
 
 worked or 
 Note that nothing in this section is to apply to the substances leased. 
 
 exempted by s. 20 (5) from mineral rights duty (sub-s. (8) ). 
 
 No Reversion Duty shall be charged. — The mine is usually worth 
 less on the determination of the lease than at the time of its grant. 
 But it may not be. The lessee may have sunk shafts and opened 
 passages, thus greatly adding to its value, and then forfeited his lease. 
 Nevertheless reversion duty is not payable. But reversion duty is of 
 course payable in respect of a non-mining lease of land containing 
 minerals, in which case the lessee could not get the minerals, since that 
 would be to commit waste. Practically in the case of a lease of the 
 latter kind the value of the minerals would be neglected both at the 
 date of the grant and on the determination of the lease. They would 
 not be taken into account in fixing the total value under s. 13 (2) at 
 the commencement of the lease, or the total value under s. 25 (3) and 
 (5) at its determination. So reversion duty might be payable on the 
 determination of a lease of the substances exempted by s. 20 (5) from 
 mineral rights duty (see sub-s. (8) of this s. 22). But it is obvious 
 that it is not often that there will be any " benefit " accruing to the 
 lessor on the determination of such a lease. There would usually be 
 great difficulty in arriving at the value of the benefit. The exception 
 in the last sentence of the sub-section does not apply to reversion duty, 
 which is not included in sub-s. (3), but only to increment value duty, 
 which is included. 
 
 No Increment Value Duty shall be charged . . . except as a Duty 
 payable annually. — Increment value duty will apparently be payable in 
 a lump sum either (1) on a transfer on sale out and out of minerals 
 under s. 1 (a), or (2) on their passing on the occasion of death under 
 s. 1 (b) or (3) on a periodical occasion under s. 1 (c), provided that in each 
 case they were not on April 30, 1909, either comprised in a mining 
 lease or being worked by the proprietor, or, if so comprised or worked, 
 that they were not at the time the claim for increment value duty 
 arises either so comprised or worked, and provided also that they were 
 not entitled to the benefit of the proviso at the end of sub-s. (2) of this 
 section. If, however, subject to the proviso at the end of sub-s. (2) of 
 this section, minerals are leased after April 30, 1909, or apparently if 
 minerals are commenced or recommenced (subject to the proviso at the 
 end of sub-s. (2) ) to be worked after that date by the proprietor 
 himself, their increment value duty is, if there is increment value and 
 if an occasion under s. 1 arises, payable annually as provided by sub-s. (3) 
 of this section. It does not seem that mere working, unless on one of the 
 occasions for payment of increment value duty arising under s. 1 the 
 
232 
 
 Land Clauses of the Finance Act. 
 
 § 22 (1). 
 
 Increment 
 value duty 
 and sales of 
 minerals. 
 
 minerals are being so worked, is an occasion for payment of increment 
 value duty. But this point is doubtful. It is thought also (but with 
 hesitation) that unless a mineral lease exceeds fourteen years (see 
 s. 1 (a) ) it is not an occasion for payment of increment value duty. If 
 this is so, it may be that by a lease in possession followed by a lease or 
 leases in reversion, all for less than fourteen years, the payment of incre 
 ment value duty on mining leases may be avoided (see note on p. 13). 
 
 The effect of s. 23 (2) upon increment value duty payable on a sale 
 of minerals appears to be as follows : If the owner does not, under 
 that section, which it is presumed refers to the original valuation 
 enacted by s. 26(1), estimate the value of his minerals, then on a sub- 
 sequent sale or lease of such minerals, not falling within the exception 
 established by s. 22 (2), the minerals are to be considered as of no 
 original capital value. The consideration for the sale of the minerals, 
 less any deduction under ss. 2 (2) and 23 (1), will therefore practically 
 be all increment value, and duty will be payable thereon, either in 
 a lump sum, if the minerals are sold, or annually under sub-s. (1) 
 and (3) of this section (22), if they are leased. But supposing the 
 owner does on the original valuation estimate under s. 23 (2) the 
 capital value of the minerals, then it seems that the Commissioners may 
 either accept that estimate or make their own valuation under s. 26, 
 subject, of course, to appeal under s. 33. This sum so fixed by the 
 Commissioners will then be the original capital value of the minerals. 
 
 If the minerals are either comprised in a mining lease or being 
 worked by the proprietor on April 30, 1909, then they are not to be 
 valued so long as they are either in lease or being worked by the 
 proprietor (s. 22 (2)). Apparently, if a new lease of the minerals 
 were made before the old lease expired, the exemption from valuation 
 would continue. Under sub-s. (7) of this section (s. 22), where minerals 
 cease to be comprised in a mining lease, or to be worked by the 
 proprietor " within the meaning of this section," words which seem to 
 incorporate the proviso to sub-s. (2) of s. 22, the capital value of the 
 minerals at the time is to be specially ascertained in accordance with 
 the provisions of the Act, and the capital value so ascertained is to be 
 treated as the original capital value of the minerals. It seems doubtful 
 whether this provision relates only to leases in existence or workings 
 in operation on April 30, 1909, in respect of which increment value 
 duty is not payable in any shape, or whether it also applies to leases 
 made and workings commenced after that date, which pay an annual 
 duty fixed, by reference, amongst other things, to an original capital value 
 already fixed. Although it is difficult to see how the sub-section can 
 apply to the latter class, which is a class of minerals the capital value 
 of which ex hypotliesi has been already fixed, it may be that the intention 
 is that, whenever a lease, or series of leases, or a working, or series of 
 workings, has come to an end by the happening of a period of two years 
 during which there has existed neither lease nor working, that a new 
 
Increment Value Duty (Minerals). 283 
 
 start should be made, and increment value duty be paid in the future § 22 (1) 
 
 on any increases in capital value happening after the close of the old 
 
 workings. If this is the intention, the capital value ascertained at the 
 
 end of the last lease or the close of the workings will be substituted for 
 
 the sum fixed on the general valuation as the original capital value of 
 
 the minerals the lease or working of which so commenced after April 30, 
 
 1909. If the lease or working commenced before that day, it will of 
 
 course be the original capital value, since no other original value will 
 
 have been previously ascertained (s. 23 (3) ). 
 
 (2) Increment value duty shall not be charged in the 
 case of any minerals which were, on the thirtieth day of 
 April 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. 
 
 It is understood that if the minerals were on April 30, 1909, General not 
 "comprised in a mining lease," then so long as they are either com- on sub- 
 prised in the same or another mining lease, there being no gap longer relation to 
 than two years between the leases, or are worked by the proprietor, there scheme of 
 being no greater interval between the expiration of the last lease and the ^^^^^^o^- 
 commencement of the working, exemption is given under the sub-section. 
 Conversely, if minerals are being worked by the proprietor on April 30, 
 1909, and are subsequently leased, there being no cessation of working 
 longer than two years before the lease is made, the exemption also con- 
 tinues. The proviso in effect allows a temporary interval between any two 
 exempting incidents so long as that interval does not exceed two years. 
 
 The principle on which the sub-section is based appears to be that by The principle 
 having leased his minerals, or commenced to work them before April 30, of the sub- 
 1909, the proprietor has really shown his intention before that date to ^^^ '*^°* 
 realise his minerals. The lease, or the commencement to work, as the case 
 may be, is an act for this purpose analogous to a contract of sale of land 
 which if made before the commencement of the Act (April 30, 1910) 
 exempts a transfer in pursuance thereof from increment value duty (s. 1). 
 
 Consequent upon this sub-section is s. 23 (3), exempting minerals which Consequent 
 on April 30, 1909, were either comprised in a mining lease or being provision as 
 worked by the proprietor, so long as they are either so comprised or of minerals. 
 worked, from the provisions of the Act as to valuation, with a similar 
 
284 
 
 Land Clauses of the Finance Act. 
 
 § 22 (2). 
 
 Doubt as to 
 extent of this 
 valuation. 
 
 allowance for a temporary cessation of being in lease or being worked. 
 The only reason for an original capital valuation in the case of minerals 
 is for purposes of increment value duty ; but increment value duty is 
 not payable in respect of minerals in this category. Therefoi'e original 
 capital valuation is not necessary. Moreover, original capital valuation 
 for the purpose of a future sale or lease is likely to be useless for the 
 purpose of obtaining increment value duty. The paying minerals are in 
 all probability about to be wholly gotten under the present lease or 
 working. Increment value charged on the basis of original capital value 
 is probably impossible. It may, however, be that after the lease or 
 working or consecutive series of leases, or workings, entitling to the 
 exemption of s. 22 (2), have come to an end, and more than two years 
 have expired from the date at which the minerals so ceased to be worked 
 or be comprised in a mining lease, the minerals are again leased or are 
 again worked by the proprietor. Prices of the mineral produce may have 
 gone up, and what was at the end of the last lease or working unpayable 
 ore may have become a valuable product. If increment value duty on the 
 new lease were to be charged on the difference between an original capital 
 (site) value of 1909 and the value when the new lease was granted, there 
 would seldom be any increment value, since mines grow less valuable as 
 they are worked. So the comparison in this case is to be between a 
 capital value ascertained at the end of the series of leases or workings 
 (of minerals in lease or being worked on April 30, 1909), and the value 
 at the date of the new lease or the new working (when the latter is a 
 working on an occasion giving rise to a payment of increment value 
 duty). For this purpose it is provided by sub-s. (7) of s. 22 that where 
 minerals cease to be comprised in a mining lease or to be worked within 
 the meaning of s. 22, their capital value at the time is to be specially 
 ascertained, and is to be treated as the original capital value of the 
 minerals. On the new lease or the new working, therefore, the incre- 
 ment value will (under sub-s. (3) of s. 22) be arrived at by a 
 deduction of the annual equivalent of the original capital value thus 
 ascertained from the rental value on which mineral rights duty is paid 
 under the new lease. This represents the real annual increment. 
 
 It ought to be added that it is not quite clear whether the process of 
 valuation at the expiration of lease or working just referred to is limited 
 to minerals in lease or being worked on April 30, 1909, or whether it 
 extends to minerals not then in lease or being worked, but which were 
 subsequently leased or worked. The former is thought to be the true 
 construction of the clause ; but it is possible that the capital value so 
 ascertained may be intended to be substituted for the original capital 
 value of the minerals not in lease or being worked on April 30, 1909, 
 but subsequently so leased or worked. There seems to be exactly 
 the same reason for the application of the clause to the latter class 
 of minerals as to the class of minerals in lease or being worked on 
 April 30, 1909. See note on p. 232, ante. 
 
Incbement Value Duty (Minerals). 286 
 
 Minerals. — Under sub-s, (8) of this clause the term "minerals" in § 22 (2). 
 this clause does not include the substances exempted from mineral 
 rights duty under s. 20, sub-s. (5). Increment duty would therefore 
 be payable as a lump sum on leases, sales of both the lease and the 
 reversion of such minerals, and on the passing on death of either ; but 
 as under s. 23 (3) such of the exempted substances as are minerals and 
 are either comprised in a mining lease, or are being worked on April 30, 
 1909, are exempt from valuation, so long as so comprised or worked, and 
 for a further period of two years, it is difficult to see how the original 
 capital value of such minerals is to be fixed. It seems, therefore, that 
 they will escape increment value duty as minerals, though as part of 
 the soil they will be liable to it. 
 
 Comprised in a Minings Lease.— See s. 24. " Minerals shall be deemed 
 to be comprised in a mining lease if the right to work the minerals is 
 the subject of a mining lease, or if the minerals are being worked 
 under the terms of such a lease although the lease has expired." 
 
 Or being worked by the Proprietor. — See the following two para- 
 graphs of s. 24 for the extensive meaning of minerals being worked. 
 
 " Where any minerals are at any time being worked by means of any 
 colliery, mine, quarry or open working, all the minerals which belong to 
 the same proprietor of the minerals are being worked by the proprietor 
 or which the lessee has power to work if the minerals are being worked 
 by a lessee, and which would in the ordinary course of events be 
 worked by the same colliery, mine, quarry or open working, shall be 
 deemed to be minerals which are being worked at that date." 
 
 "Minerals which are being won for the purpose of being imme- 
 diately w^orked shall be deemed to be minerals which are being worked." 
 
 The Proprietor. — For definition of proprietor see s. 24. Note that 
 it does not include a lessee, except under a term of years convertible 
 into a freehold under s. 65 of the Conveyancing Act, 1881 (Appendix, 
 p. 604). 
 
 (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 continues 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 
 
236 Land Clauses of the Finance Act. 
 
 § 22 (3). minerals exceeds the annual equivalent of the origina 
 capital value of the minerals, or the capital value of the 
 minerals on the last preceding occasion on which incre- 
 ment value duty has been collected otherwise than as an 
 annual duty, if increment value duty has been so collected 
 before the minerals have become comj)rised 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. 
 
 Minerals which are comprised in a Mining Lease or are being 
 worked, etc. — See notes to last sub-section (p. 235) on these words. 
 
 Where that Duty is chargeable, i.e., where the minerals do not 
 fall within sub-s. (2) of this section ; and possibly, but it cannot be 
 said that this is clear, provided that the lease is for a longer original period 
 than fourteen years, and that in the case of minerals being worked an 
 occasion has arisen in relation thereto under s. 1. It is doubtful 
 whether the working of minerals in itself gives rise to a liability to 
 increment value duty. It seems that once the payment has begun 
 it will go on until the working stops, or until any subsequent lease 
 comes to an end. 
 
 The following are cases in which annual increment value duty will be 
 chargeable on minerals not exempted from mineral rights duty under 
 s. 20 (5) and comprised in a mining lease or worked : — (1) Where the 
 minerals being not so comprised or worked on April 30, 1909, are sub- 
 sequently to that date leased [t for more than fourteen years]. (2) Where 
 minerals not so comprised or leased on April 30, 1909, are subsequently 
 commenced to be worked, [1 and an occasion for payment of duty arises 
 under section 1, e.g., the proprietor dies] ; or in the case of minerals of 
 which a body corporate, etc., is the proprietor, a periodical occasion 
 happens. (3) Where minerals were either comprised in a mining lease 
 or were being worked on April 30, 1909, and have ceased since that 
 date to be either so comprised or worked for a period exceeding two 
 years (in which case their capital value at the time is to be ascertained 
 under sub-s. (7), and is to be treated as their original capital value), and 
 since the expiration of the two years either (a) a new lease [1 exceeding 
 fourteen years] has been made of them, or (b) a new working of such 
 minerals has been commenced [1 and an occasion for the payment of duty 
 under s. 1 as stated above in relation to (2) has arisen]. 
 
 It is for the most part assumed in the commentary (1) that incre- 
 ment value duty is not chargeable even as an annual duty on a 
 mineral lease, unless the term of the lease exceeds fourteen years ; 
 and (2) that mere working of the minerals does not give rise to a claim 
 
Increment Value Duty (Minerals). 287 
 
 for annual increment value duty, unless and until one of the events S 22 (3). 
 mentioned in s. 1 (a), (b), or (c) happens so as to create an occasion. 
 But neither of these propositions is clear, and the authorities may 
 dispute them.* 
 
 If a proprietor working his minerals sells them, how is increment 
 value duty to be paid? As a lump sum under s. 1 (a) or under 
 sub-s. (3) of s. 22 ? It seems under the latter sub-section. In that 
 case increment value duty on the ungotten minerals is paid by the 
 purchaser only nominally. He will deduct the probable capitalised 
 annual increment value duty from the price he agrees to pay. 
 
 As a Capital Sum. — As in the ordinary case of a sale or lease of land. 
 In the case of minerals comprised in a mining lease or being worked, the 
 payment of increment value duty must be annual. 
 
 In each Year during which the Tenancy continues or the Minerals 
 are being worked. — In each year (which it is thought means each 
 "working year") the deduction of the "annual equivalent of the 
 original capital value of the minerals, etc.," from the *' rental value on 
 which mineral rights duty is charged " must be made in order to arrive 
 at the increment value in respect of which for that year increment 
 value duty is to be paid. During every working year of the continu- 
 ance of the lease this process must be gone through. A usual form of 
 mining lease reserves a dead rent to cover a certain amount of 
 minerals brought to the surface, with a royalty on the excess, a power 
 to make up shortages, and a cesser of rent on payment either by rent 
 or royalty of a certain sum being the estimated value of the minerals 
 or the mine. In the case of such a lease it is possible, under the pro- 
 visions of this section, that increment value duty may in some cases 
 exceed the dead rent, and in others be nothing at all. The proprietor 
 will often pay far more by way of increment value duty under the 
 provisions of this section than he would do if he paid on a capital sum. 
 
 The Rental Value on which Mineral Rights Duty is charged. — 
 
 Where the annual increment value duty is paid in respect of minerals 
 comprised in a mining lease, this rental value will under s. 20 be the 
 amount of rent paid by the working lessee in the last working year. 
 It is the sum actually paid in that year, whether greater or less than 
 the dead rent reserved, and it may comprise rent in arrear for a period 
 antecedent to that working year (see note on p. 220). Where the 
 annual increment value duty is paid in respect of minerals which are 
 being worked by the proprietor, the rental value is the hypothetical 
 rent fixed under s. 20 (2) (b). From the rental value in any year 
 
 * On the one hand minerals would often escape increment value duty 
 altogether if the two assumptions are correct. On the other hand, it 
 certainly cannot be said that it is clear that the assumptions are not correct. 
 The charge of annual increment value duty is no where clearly expressed in 
 the Act. 
 
238 Land Clauses of the Finance Act. 
 
 § 22 (3)i arrived at in either of these two ways is deducted the annual equivalent, 
 i.e., ^3^ths, of the original capital value of the minerals. The resulting 
 figure is the increment value for that year, on which duty is paid at 20 
 per cent. 
 
 Original Capital Value. — See ss. 22 (7) and 26 (1) for arriving at 
 original capital value ; see s. 23 (1) for definition of capital value of 
 minerals. 
 
 If the minerals were not in lease or being worked on April 30, 1909, 
 the original capital value will be that fixed under the original site 
 valuation of all land as on April 30, 1909 (s. 26). In that case, if the 
 proprietor has placed no value on his minerals in his return to the 
 Commissioners in pursuance of s. 26 (2), the minerals will be considered 
 to have had no original capital value (s. 23 (2) ). The whole rental 
 value, whether real and actually paid under s. 20 (2) (a), or hypothetical 
 under s. 20 (2) (b), will therefore be increment value and subject to a 
 duty of 20 per cent, under s. 22 (3). 
 
 If the minerals, on the other hand, on April 30, 1909, were either in 
 lease or were being worked, then, as already pointed out, no increment 
 value duty is payable daring the existing succession of leases or 
 workings (see s. 22 (2) and note on p. 233), and no original capital 
 valuation under s. 26 is to be made (s. 23 (3) ) (see notes on p. 255). 
 
 Or the Capital Value of the Minerals on the last preceding 
 Occasion on which Increment Value Duty has been collected other- 
 wise than as an Annual Duty. — Minei-als not in lease or being worked 
 on April 30, 1909, may have been sold in fee whilst unleased and 
 unworked, or the owner of such minerals may have died, or as to such 
 minerals of which a body corporate, etc., is owner a periodical occasion 
 may have happened, and increment value duty may have been paid in 
 each case as a lump or capital sum. So minerals in lease or worked 
 on April 30, 1909, may have ceased to be leased or worked for more 
 than two years, may have had their original capital value fixed under 
 s. 22 (7), then may have paid increment value duty as a lump sum as 
 above mentioned under s. 1 and s. 2, and finally may have a second time 
 become included in a mining lease for over fourteen years or have been 
 again commenced to be worked. In both these sets of cases that which 
 is to be deducted from the rental value on the subsequent lease on 
 working giving rise to a claim for annual duty is not the annual equivalent 
 of the original capital value, whether fixed under s. 26 (1) or s. 22 (7), 
 but the annual equivalent of the capital value on the last preceding 
 occasion on which increment value duty was paid as a lump or capital sum. 
 A difficulty in It ought perhaps to be added that the fact that the words " com- 
 tion^of^the"*^" P^'^^^^ ^^ ^ mining lease" just before the last semicolon in sub- 
 sub-section. section (3) create some difficulty as to the manner of applying the 
 sub-section to minerals which were leased or worked on April 30, 1909, 
 and have, after a period of over two years during which they ceased to 
 
Increment Value Duty (Minerals). 239 
 
 be iu lease or to be worked, again become leased or worked. It is § 22 (3). 
 thought that the word "the" instead of "a" would have been more 
 appropriate to the presumed meaning of the sub-section. 
 Illustration of s. 22 (3). 
 
 The original capital value of A.'s minerals is 12,500^. The annual 
 equivalent of this under the sub-section is 1,000^., i.e., ^^s^ths. The 
 capital value rises to 15,000^., and when they are at that value A. 
 leases them to B. at a rental of 1,200^. a year and a royalty on the 
 coal gotten over a certain quantity, say 48,000 tons, taken to represent 
 1,200^. The rent is to stop after 15,000^. has been paid. The rental 
 value of the coal gotten in the first three years of the lease is in each 
 year 2,000^., which is paid by B. to A. In each of those years, there- 
 fore, the increment value under the section is taken to be the sum 
 by which 2,000^., the rental value on which A. pays mineral rights 
 duty, exceeds 1,000^., the annual equivalent of the capital value of 
 the minerals, i.e., the sum of 1,000^. The increment value duty on 
 this sum amounts to 200^. for one and 600^. for three years. 
 
 A., however, would under sub-s. (6) of this section be entitled to be 
 relieved from all mineral rights duty, which in each of the three years 
 would amount to 100/. 
 
 It appears that substantially the same immediate result from taxing 
 on capital value and on an annual equivalent fixed at 2^5-ths of capital 
 value can only be obtained when during each of twelve and a half years 
 equal quantities in money value of the minerals are gotten, and these 
 quantities, therefore, exactly equal the capital sum of which they are 
 the annual equivalents. The quicker the mineral is paid for, the 
 heavier the duty. 
 
 Does s. 3 (5), which allows a 10 per cent, reduction on original and Does the 10 
 subsequent site values for the purpose of collecting increment value Percent, 
 duty, apply to increment value duty payable in respect of minerals, site value 
 That sub-section runs (see p. 68) : " For the purpose of the collection apply, 
 of duty on the increment value of any land under this section the 
 increment value shall be deemed to be reduced," etc. Sub- sects. (1), 
 (2), and (3) of s. 3 and the proviso to subs. (5) appear to be as applicable 
 to the collection of increment value duty in respect of minerals on a 
 sale out and out under s. 1 (a), or a death valuation under s. 1 {b), or a 
 periodical valuation under s. 1 (c), as to the like occasion in the case of 
 ordinary land. But none of those sub-sections appear to be applicable to 
 the annual increment value duty, as a close reading of them will show. 
 Indeed they are probably expressly excluded, either in whole or in part, 
 from applying to annual increment value duty by s. 22 (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." 
 But however this may be, it is open to the authorities to remedy in practice 
 the possible omission of the Act to extend the 10 per cent, allowance to 
 
240 
 
 Land Clauses of the Finance Act. 
 
 Suggested 
 equitable 
 construction 
 of s. 3 (5) as 
 applied to 
 annual 
 increment 
 value duty. 
 
 § 22 (3). the annual increment value duty, and to treat the annual increment 
 value duty collectable under s. 22 (3) as if it were collected under s. 3, 
 and therefore entitled to the 10 per cent, deduction by virtue of s. 3 (5). 
 It is suggested that this can be done by so construing the latter sub- 
 section as in effect to cause in sub-s. (3) of s. 22 the words " plus 10 per 
 cent, of that original capital value" to follow immediately after the 
 words " the annual equivalent of the original capital value of the 
 minerals," and also to cause the words " plus 10 per cent, of such 
 capital value " to follow immediately after the words " otherwise than 
 as an annual duty." It is impossible to argue this rather important 
 matter at length in a treatise of this nature, but it is submitted shortly 
 that under the suggested reading in the language of s. 3 (5) the 
 increment value would be deemed to be reduced on the first occasion for 
 the collection of increment value duty [as an annual duty] by an 
 amount equal to 10 per cent, of [the annual value of] the original capital 
 value and so on. The two sub-sections (3) (5) and s. 22 (3) would not, it 
 must be acknowledged even then completely dovetail into each other, 
 as is evident from the second and third paragraphs of sub-s. (5) of s. 3. 
 It is therefore thought, that except by an act of grace on the part of 
 the Commissioners the annual increment value duty is not entitled to 
 the exemption. 
 
 (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. 
 
 General note. See note on p. 223 as to the matter dealt with by this sub-section. 
 
 This sub-section is a correlative of the proviso at the end of s. 20 (2). 
 The increment value duty payable under sub-s. (3) of this section 
 increases with the rental value on which mineral rights duty is charged. 
 If that rental value partly represents a return to capital expenditure by 
 the lessor, it is clearly not the subject of increment value duty within 
 the scope and intention of the Act. Note that the expenditure in this 
 case is expenditure by a lessor, who may or may not be the proprietor, 
 whilst under s. 20 (2), giving partial exemption from mineral rights 
 by duty, it must be a proprietor. 
 
 Note, also, that this sub-section is more limited as to the 
 expenditure which is allowed to give exemption than s. 20 (2). The 
 money must have been spent within fifteen years, and it must have 
 been spent in boring or otherwise proving the minerals, n«ither of 
 
Increment Value Duty (Minerals). 241 
 
 which limitations is applicable to the corresponding section for the § 32 (4). 
 reduction of mineral rights duty. 
 
 The Rental Value on which Mineral Rights Duty is charged. — It 
 
 is understood that this would include a rental value substituted by 
 virtue of the proviso to s. 20 (2) (ante, p. 218) for the rental value 
 based on rent. If this is so, then under the combined effect of this 
 sub-section and s. 20 (2) there may be two sets of reductions from 
 the rent payable under a lease, in order to arrive at the rental value 
 from which the deduction of the "annual equivalent" is to be made. 
 (1) There is the reduction under s. 20 (2) of the portion of the rent (a) 
 which represents any expenditure which would ordinarily have been 
 borne by the lessee, (b) which expenditure may have been made at any 
 previous time without limit, and (c) which expenditure will, however, 
 only give rise to a reduction if made by the proprietor. (2) There is 
 the reduction under this sub-section of the portion of the rent (a) which 
 represents specific expenditure in boring or otherwise proving the 
 minerals, quite irrespective of whether such expenditure would ordinarily 
 have been borne by the lessee, and only such expenditure ; (b) which 
 expenditure must have been made within the last preceding fifteen 
 years ; and (c) which expenditure may have been made by any lessor, 
 which term would include the proprietor if he had leased the premises, 
 but not otherwise. It seems that, so far as a proprietor is concerned he is 
 protected from an unduly swollen rental value by s. 20 (2), and s. 21 (4) 
 gives him no additional protection. But it is difficult to see why the 
 proviso in s. 20 (2) should have been limited to expenditure by a 
 proprietor. It would seem that the rental value on which mineral 
 rights duty and annual increment duty are paid might sometimes be 
 dififerent, so far as paid by an intermediate lessor. 
 
 (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. 
 
 Instead of being collected as provided in other Cases. — See for 
 
 collection of increment value duty generally, ss. 1 and 3 ; for collection 
 on sales and leases s. 4 ; for collection on death s. 5 ; for collection from 
 a body corporate or unincorporate on a periodical occasion s. 6. In all 
 the above cases it is a stamp duty (see ante, pp. 70 and 92). Whether 
 the application of s. 1 (a) is excluded from relation to the annual duty 
 by these words seems doubtful. Unless it is excluded a lease of minerals 
 not exceeding fourteen years is probably not liable to duty (see notes on 
 pp. 232 and 236). 
 
 Recoverable in the same manner as Mineral Rights Duty with 
 the same Right of Deduction.— Under s. 20 (4) it must therefore 
 N 16 
 
242 Land Clauses of the Finance Act. 
 
 § 22 (5). be paid by the immediate lessor. But what is his right of deduction 
 under s. 21 from the rental value which he has to pay to his lessor] He 
 can deduct, it is submitted, all the increment value duty he has paid, less 
 the amount properly apportionable to the increment value of which he 
 is the owner — i.e., the value which has accrued between the creation of 
 his own lease and the sub-lease made by himself. Thus, if the annual 
 equivalent of the original capital value be 1,000Z., the rent paid in 
 a year by A., the first lessee, to the proprietor be 1,200/., and the 
 rent paid by the working lessee to A. be 1,400/., it is submitted 
 that A. having paid the increment value duty on 400/. — i.e., SOI. — to 
 the Crown is entitled to deduct the duty on 200/. — i.e., 40/. — from his 
 payment to the proprietor. It seems that the right of deduction would 
 exist even if the proprietor had taken a covenant from the immediate lessor 
 that the latter should not deduct the duty (s. 21 (1) to (3) ). 
 
 (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 allow- 
 ance or repayment or both of those means, as the occasion 
 may require. 
 
 Entitled to be relieved in any Year. — The relief is limited to 
 increment value duty paid in the same year as the mineral rights duty 
 is pnmd facie payable. Year, it is thought, means " financial year " 
 (ss. 20 (1) {a), 22 (3), 24). If the construction placed by this 
 work on sub-s. (3) is correct (see ante, p. 239), it may be that there may 
 during the existence of the same lease be payments on account of incre- 
 ment value duty which in the aggregate might exceed the whole amount 
 of mineral rights duty payable during the lease, and yet in certain 
 years increment value duty being little or nothing, mineral rights duty 
 might still be payable. An analogous state of circumstances might 
 also arise in case of a proprietor working his own minerals. The incre- 
 ment value should not be realised so strictly that there is no increment 
 value duty to set off in later years against the full mineral rights duty. 
 
 Relief may be given either by Allowance or Repajrment or both 
 of those Means. — If he has paid increment value duty, and the mineral 
 rights duty is greater than the increment value duty, the payment of 
 
Increment Value Duty (Minerals). 243 
 
 increment value duty will be allowed and may be deducted from the § 22 (6). 
 payment of mineral rights duty. 
 
 If both increment value duty and mineral rights duty have been paid 
 by intermediate lessors and deducted from his rent he can recover back 
 the proper amovmt from the Commissioners. 
 
 Illustrations of the Working of Section 22 (6). 
 
 It cannot be said that the operation of the above sub-section is very 
 clear, but the following illustrations are, it is hoped, correct. 
 
 (1) The original capital value of the minerals of which A. is the 
 owner in fee is 12,500^. In 1911 A. leases the minerals to B. for 
 thirty years at rents and royalties amounting for the working 
 year ending September 30, 1920, to 2,000^. In 1915 B. sub- 
 leases the minerals to C. for the residue of the term of thirty years, 
 less one day at increased rents and royalties amounting for the 
 same working year ending September 30, 1920, to 3,000/. C, 
 the working lessee, pays his rent (3,000/.) in full (less property 
 tax) to B. the immediate lessor. B. settles with the Government 
 for both mineral rights duty and annual increment value duty. 
 The mineral rights duty on a rental value (s. 20 (1) (a) ) of 3,000/. 
 is 150/. The increment value on which increment value duty is 
 paid is the sum by which in the working year ending September 30, 
 1920, the rental value on which mineral rights duty is paid, i.e., 
 3,000/., exceeds the annual equivalent, i.e., ^ths of the original capital 
 value, i.e., 12,500/. — that is, exceeds the sum of 1,000/. (s. 22 (3) ). 
 2,000/. is therefore the increment value for the working year in 
 question, and the annual increment value duty is 400/. B. is 
 therefore entitled under s. 22 (6) to be entirely relieved of the 
 payment of mineral rights duty. B. is entitled to deduct from the 
 2,000/. rent he pays to A. the mineral rights duty on that sum 
 (s. 21 (1), if he has paid it, and the increment value duty, on the 
 difference between 1,000/. (the annual equivalent of the original 
 capital value) and 2,000/., the rent under the lease from A. to B. 
 (so it is assumed is the effect of s. 22 (5) ), if he has paid it. But he 
 has only paid the latter duty, since under s. 22 (6) he is relieved 
 from the former. Therefore he can only deduct from the rent he 
 pays to A. the sum of 200/. or the increment value duty on the 
 increment value of 1,000/. A. is not himself liable for mineral 
 rights duty, since the deduction of 200/. on account of increment 
 value duty also wipes out the 100/. mineral rights duty payable by 
 him. 
 
 (2) The original capital value of the minerals of which A. is the 
 owner in fee is 12,500/. In 1911 A. leases the minerals to B. for 
 thirty years at rents and royalties amounting in the working year 
 ending September 30, 1920, to 1,200/. In 1915 B. sub-leases the 
 minerals to C for the residue of the term of thirty years less one 
 
 16—3 
 
244 Land Clauses of the Finance Act. 
 
 § S2 (6). day at increased rents and royalties amounting for the same working 
 
 year ending September 30, 1920, to 2,000^. C. pays his rent 
 (2,000^.) in full (less property tax) to B. The mineral rights duty 
 on the 2,000^. received by B. is 100^. (s. 20 (1) (a) ), but the incre- 
 ment value duty on the excess (1,000^.) of rental value (2,000^.) 
 over the annual equivalent (1,000^.) of the original capital value 
 (12,500/.) is 200/. Therefore B. pays the latter sum, which under 
 s. 22 (6) wipes out his liability for mineral rights duty. Then B. 
 has to consider what he is entitled to deduct from the rent he pays 
 to A. He can deduct the mineral rights duty on a rent of 1,200/., 
 that is 60/., if he has paid it. He can also deduct increment value 
 duty on the sum of 200/., the increment value realised by A., that is 
 40/., if he has paid it. But B. has been relieved from any pay- 
 ment of mineral rights duty because he has paid increment value 
 duty in excess of the amount of mineral rights duty due from him. 
 On the other hand A. is liable for 60/. mineral rights duty and 40/. 
 increment value duty, but the payment of the latter relieves him 
 from the former to the extent of that payment (40/.). In any 
 event, therefore, A. must pay 60/., and B. may therefore, it is 
 thought, deduct 60/. from the 1,200/. rent he pays, i.e., 40/. on 
 account of increment value duty, and 20/., being 60/., the full 
 mineral rights duty deductible under s. 21 (1) less 40/. paid by B. 
 for the increment value realised by A. 
 
 (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. 
 
 See notes involving an explanation of this sub-section, ante, pp. 232, 
 260, 311. A point of doubt is whether this sub-section applies only 
 to minerals comprised in a mining lease or being worked on April 30, 
 1909 ; or whether it applies as well to minerals leased or worked for the 
 first time after that date. A further doubt is whether s. 23 (2) is to be 
 read altogether with this sub-section, so that the minerals will have no 
 capital value as minerals unless the proprietor estimates that value in 
 his return 1 
 
 Capital Value. — In accordance with the provisions of this Act. 
 
 —See 8. 23 (1), p. 245. . 
 
 (8) Nothing in this section shall apply to minerals 
 which are exempt from mineral rights duty under this 
 Act. 
 
Increment Value Duty (Minerals). 245 
 
 There is some difficulty in ascertaining the exact position under the § 22 ^7). 
 Act of the exempted minerals (s. 20 (5) ). Under s. 23 (2), for the purposes 
 of valuation they are to be treated as a separate parcel of land. Does 
 that mean that the land is to be valued as if the substance in question 
 did not exist and that the substance is to be valued apart from the 
 land? If so, the operation will often be a difficult one in relation to 
 these substances. Probably the substances in question will usually be 
 treated as having no value as minerals (s. 23 (2) ). The land will be 
 sold and resold and increment value duty paid as if minerals were not 
 involved. If at any time there should be a sale or lease of the substance 
 in question, as of the right to take away all the chalk from a certain 
 field (within a limited time), then a claim for increment value duty may 
 arise. The first question will be, What was the original capital value 
 of the minerals? That is answered by s. 23 (2). That original capital 
 value is nothing unless the proprietor has in his [original ?] return to 
 the Commissioners [under s. 26 (2) 1] specified the nature of the minerals 
 and his estimate of their capital value. The value of the consideration 
 for the sale or lease (s. 32 (1) ) represents the capital (site) value on the 
 occasion. Therefore practically increment value duty is payable on the 
 whole consideration. When, however, the owner comes to sell the land 
 itself without the substances, no doubt he will be less likely to have to 
 pay increment value duty, since he will obtain less for his land. 
 Obviously the position of an owner of an exempted substance, which 
 either may or may not in the future be sold apart from the fee, is a 
 little difficult and requires care. 
 
 It seems certain that substances referred to in s. 20 (5), so far as Liable to in- 
 
 they are minerals, have no general exemption from increment value creraent value 
 -, 1 , ^1, , 1 ,. • 1 • 1 • c tluty but not 
 
 duty conferred upon them. Ihey are "land w^thni the meanmg of as minerals. 
 
 s. 1. Sect. 20 (5) exempts them from mineral rights duty, and s. 22 (8) 
 
 exempts them from the special form of increment value duty as an 
 
 annual charge which is created by s. 22 (3). If in lease or being worked 
 
 on April 30, 1909, they are exempt from valuation so long as they are 
 
 either comprised in a mining lease or being worked by the proprietoi', 
 
 and for a further period of two years (s. 23 (3) ) ; but at the expiration 
 
 of that period they are not, like other minerals in lease or being worked 
 
 on April 30, 1909, to have their original capital value ascertained under 
 
 s. 22 (7), since under s. 22 (8) they are wholly exempt from all the 
 
 provisions of s. 22. It is difficult to see how increment value duty can 
 
 ever in future be charged on them as minerals. Perhaps the theory is 
 
 that when brick clay, chalk, or gravel have once been worked, and the 
 
 working has come to an end, it is not worth while looking for increment 
 
 value in the future. See, further, notes on pp. 212 to 217, 226, and 263. 
 
 Section 23. 
 23. — (1) For the purposes of this Part of this Act, the § 23 (1). 
 total value of minerals means the amount which the fee Application of 
 
 provisions as 
 
246 
 
 Land Clauses of the Finance Act. 
 
 § 23 (1) 
 
 to total and 
 site value to 
 minerals. 
 
 Underlying 
 assumptions 
 of note. 
 
 The valuation 
 provisions. 
 
 simple of the minerals, if sold in the open market by a 
 willing seller in 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. 
 
 General Note on Section 23 (Valuation op Minerals). 
 
 It is assumed as the basis of the question now being discussed that 
 the general valuation "of all land in the United Kingdom" which has 
 under s. 26 (1) (see post, p. 309) to be made as soon as may be after 
 April 30, 1910, includes a valuation of all minerals. It is further 
 assumed that all the provisions of the Act coming under the title in the 
 Act, "Valuation for purposes of duties on land values," and being 
 ss. 25 to 32 inclusive, except where expressly (s. 25 (5) ) or impliedly 
 (s. 28) excluded, or obviously inapplicable, or varied by the section (s. 23) 
 now under consideration, apply to the valuation of minerals. 
 
 Sect. 25 (p. 272), is expressly excluded from being applicable to minerals 
 (sub-s. (5) ), but probably may be utilised for the purpose of analogical 
 reasoning, where an analogy plainly exists. 
 
 Sect. 26 (1), (p. 309), requiring a valuation of all lands showing the total 
 value and the site value thereof, is governed in its application to minerals 
 by s. 23, which (1) has a special definition for total value of minerals not 
 identical with total value of other land (sub-s. 1) ; (2) makes the 
 reference to site value in s. 26 (1) a reference to capital value (sub-s. 4), 
 which it defines in sub-s. (1) ; (3) renders it obligatory upon the 
 Commissioners to value all minerals (when valued on the original 
 valuation under s. 26) as a separate parcel of land ; (4) but expressly 
 states that when such minerals are not comprised in a mining lease or 
 being worked [presumably on April 30, 1909] they are to be treated as 
 having no value as minerals unless their proprietor in his return 
 furnished under s. 26 (2) specifies the nature of the minerals and his 
 estimate of their capital value (subs. (2) ), in which case it is presumed 
 their original capital value will be fixed under s. 27 ; (5) exempts from 
 valuation under s. 26, and from all other valuation under the Act, minerals 
 which were on April 30, 1909, 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, 
 for a further period of two years (sub-s. 3). It will be remembered that 
 
Valuation of Minerals. 247 
 
 these receive their original site valuation on the expiration of the lease § 23 (1). 
 or the cesser of the working under s. 22 (7). 
 
 Sect. 27 (p. 320), relating to the procedure on the original site valua- 
 tion, applies to the original valuation of minerals when there is an 
 original capital valuation of them, that is, of minerals not in lease or 
 being worked by the proprietor on April 30, 1909, and probably also to 
 the valuation just referred to under s. 22 (7) of minerals in lease or 
 being worked on April 30, 1909, substituting, of course, for references 
 to site value references to capital value as defined by s. 23 (1). 
 
 Sect. 28 (p. 333), referring to the quinquennial valuation for the 
 purposes of undeveloped land duty, has no bearing on the valuation of 
 minerals. 
 
 Sect. 29 (p. 335), giving the Commissioners a general power of 
 assessing duty on such pieces of land, whether under separate occupation 
 or not, as they think fit, and of apportioning and reapportioning original 
 and quinquennial site value, will doubtless mutatis mutandis apply to 
 minerals, excluding of course quinquennial site value, which has nothing 
 to do with minerals, and translating site value into capital value 
 (s. 23 (4) ). But the principles upon which the powers are to be 
 exercised may not necessarily be the same for minerals as for other land. 
 
 Sect. 30 (p. 344), directing the Commissioners to keep a record of all 
 transactions under the Act, s. 31, a purely machinery clause, and s. 32, 
 a clause giving the Commissioners powers of estimating and apportion- 
 ing consideration, will doubtless apply to minerals. 
 
 It also seems that s. 12 (p. 148), providing that a deduction for the 
 purpose of ascertaining site value can only be claimed on an occasion 
 for payment of increment value duty if claimed on the original site 
 valuation, provided it could have been so claimed, applies to the 
 valuation of minerals with the substitution of capital value for site value. 
 
 The way is now cleared for considering the provisions of s. 23. 
 
 Total Value of Minerals. — The four capital values, gross, full site, 
 total, and assessable, which are essential parts of the scheme of the Act 
 for ascertaining site value, are, as reflection will show, inapplicable to and 
 unnecessary for the taxation vipon minerals. Nevertheless the root idea 
 of both the mineral rights duty (s. 20) and the annual increment value 
 duty on minerals (s. 22) is that of a tax on something which is valuable. Expenditure 
 or has grown more valuable without any expenditure of money upon it f^^°!f*jj^^°°^ 
 by the owner or others interested in it. If a mineral proprietor 
 expends capital on the mine which is usually spent by a lessee he is 
 exempted from mineral rights duty (s. 20 (2) ) and annual increment 
 value duty (s. 22 (4)) on the results of that expenditure. In this 
 respect these two duties resemble the ordinary increment value duty. 
 Whether this idea is logically carried through the Act, so that on the 
 Siftle in fee of minerals not in lease and not being worked the vendor 
 is under s. 2 (2) (a) entitled to a deduction from the value of the 
 
not taxable. 
 
 248 Land Clauses of the Finance Act. 
 
 § 23 (l)f consideration of expenditure made by him which has added to the value of 
 the minerals, is a difficult question, but it is thought that the concluding 
 words of s. 2 (2), " subject to the like deductions as are made imder the 
 general provisions of this part of this Act as to valuation for the 
 purpose of arriving at the site value of the land from the total value," 
 refer as well to the deductions from the total value of minerals, the 
 subject of s. 23 (1), for the purpose of arriving at capital value, as to 
 the deductions mentioned in s. 25 (4) from the total value of land other 
 than minerals, for the purpose of arriving at site value. 
 
 Total value Total value of minerals is not taxable. It resembles or is analogous 
 
 to either gross value or full site value in the case of ordinary land, i.e., 
 something which expenditure has made more valuable than it was in its 
 natural state. But if nothing has been spent on minerals their total 
 value is the same as their capital value, just as the gross value, the full 
 site value, the total value, and the assessable site value of a cleared and 
 bare piece of land may be the same (see notes on s. 25, p. 271). 
 
 Of Minerals — That is, of the minerals considered as a separate parcel 
 of land (see sub-s. (2) ). Note that minerals in this section include 
 such of the substances exempted under s. 20 (5) from mineral rights 
 duty and under s. 22 (8) from annual increment vakie, etc., as are 
 in fact minerals. In all cases, whether the minerals are the sub- 
 stances exempted under s. 20 (5) from mineral rights duty, or are minerals 
 chargeable with that duty, or whether they were or were not on 
 April 30, 1909, either comprised in a mining lease or being worked by the 
 proprietor, they are not as minerals to be included in the value of the 
 land, whether at the original or at a subsequent periodical valuation 
 (s. 23 (2) ). If on April 30, 1909, they were comprised in a mining lease, 
 or were being worked by the proprietor, then, so long as either of those 
 conditions continue, they are not to be valued at all (see sub-s. (3) of 
 this section). But if those minerals, not being exempted substances 
 under s. 20 (5), cease for a period exceeding two years (see s. 22 (2) ) 
 to be under either of those conditions, then they must be valued for the 
 purpose of ascertaining their original capital value (s. 22 (7)). 
 
 Fee Simple of the Minerals. — Fee simple in possession not subject 
 to any lease, but not including an undivided share in a fee simple in 
 possession (s. 41). 
 
 If sold in the Open Market by a willing Seller in their then Con- 
 dition might be expected to realize. — Substantially these are the con- 
 ditions of the valuation of all land under the general valuation clause, 
 s. 25 : (see sub-ss. (1) and (2) ), which, however, does not apply to 
 minerals (sub-s. (5) ). The words "at the time," present in s. 25 (1) and 
 (2), and not present in s. 23 (1), do not appear to create any material 
 difference between the two sets of provisions. The sale would, of course, 
 be free from incumbrances, and may be presumed to be subject to such 
 conditions of sale as a prudent vendor would naturally attach to the sale. 
 
Valuation of Minerals. 240 
 
 For discussions as to the meanings to be attached to the words on which § 23 ( 1 ). 
 this note is written, see post, pp. 275 to 283, notes to s. 25 on " at the 
 time," " open market," " willing seller," " in its then condition," 
 "might be expected to realize," and see generally the notes on sale 
 under s. 25, which are often as applicable to minerals as to other land. 
 
 Capital Value may perhaps be defined as sale (total) value less the 
 expenditure which has been made on the minerals for the purpose of 
 bringing the minerals into a condition in which they are capable of being 
 worked. The deduction of this expenditure is analogous to the deductions 
 under s. 25 (2) and (4) for the purpose of arriving at site value. 
 
 After allowing such Deduction, etc. — Just as a high original site 
 value of land is desirable as a protection against future liability to 
 increment value duty, so a high original capital value is advisable for 
 the same reason. Therefore on the original capital valuation of minerals 
 either under s. 26 (1) or s. 22 (7) proprietors may probably not troiible 
 greatly about deductions. But when un worked and unleased minerals are 
 sold in fee, or when an owner of such minerals dies, and increment value 
 duty is payable under s. 1 (a) and (6), and the capital value on the 
 occasion is arrived at under s. 2 (2) (a) and (c), the proprietor will wish 
 to make the deductions, i.e., the allowance for works executed or 
 expenditure "of a capital nature incurred," etc. (see next note), as large 
 as possible. On this occasion he wishes the capital value to be low. 
 Hence no doubt s. 12 applies to the valuation of minerals (see p. 149). 
 Estate duty is payable on total or selling value, and deductions do not 
 affect it. 
 
 Works executed or Expenditure of a Capital Nature incurred. — 
 
 Note that these must be for the purpose of bringing the minerals into 
 working. The works, etc., need not be on the same vertical area of 
 land in which the valued minerals are situate, so that lines of rails laid 
 through adjoining land, and sheds, engine-houses, and other buildings, 
 erections, and machinery on adjoining land would come within the 
 clause. Nor need the expenditure be on adjoining land. A line of 
 pipes miles long, or a shed half a mile away, would fall within the 
 allowance. 
 
 Compare the deduction allowed by this sub-section with the deduc- 
 tions allowed from total value under s. 25 (4) in order to arrive at site 
 value, especially (b) of that sub-section, "Any part of the total value 
 . . . directly attributable to works executed or expenditiire of a capital 
 nature incurred." Under that paragraph the deduction is measiired by 
 the added value and clearly not by the amount of expenditure. Under 
 s. 23 (1) the deduction is "such deduction (if any) as the Commissioners 
 may allow for any works executed," and therefore is not so clearly to 
 be measured by " added value." This seems to be a specially important 
 matter in relation to minerals, since the value of the minerals may be 
 very small till expenditure (it may be little in amount) has proved them 
 
250 Land Clauses of the Finance Act. 
 
 § 23 (1). to be very valuable. It is further to be noted that it is only expenditure 
 " for the purpose of bringing the minerals into working " as distinguished, 
 it is conjectured, from expenditure for the purpose of proving the 
 existence of the minerals. Two questions therefore here present them- 
 selves for solution. First, are the Commissioners bound to allow the 
 whole added selling value caused by expenditure of the nature in ques- 
 tion 1 Secondly, if minerals are known to exist, but it is not known 
 whether it would pay to work them, is expenditure for the purpose of 
 ascertaining this fact also expenditure " for the purpose of bringing the 
 minerals into working " ? 
 
 It is thought that the probable answer to the first question is that 
 the Commissioners are not bound to allow the whole added selling value, 
 and that if the workings cause the discovery of unexpected quantities or 
 qualities of the minerals the deductions will be such sums as under all 
 the circumstances it is reasonable should be allowed. It is thought that 
 the answer to the second question is that if the expenditure for the 
 pui-pose of discovery or an equivalent expenditure would have had to 
 be made in any event for the purpose of working, then, but not otherwise, 
 it is an expenditure for the latter purpose, and should be allowed. 
 
 Bona fide. — See note on p. 188 on this expression. It is difficult to 
 see what device to avoid or lessen the burden of the taxation is being 
 aimed at by this expression in this sub-section. Perhaps it may mean 
 that expenditure for the purpose of prospecting and proving the 
 minerals must not be treated as expenditure for the purpose of bringing 
 the minerals into working, and as so giving rise to a deduction. 
 
 By or on behalf of any Person interested in the Minerals. — 
 Not only by or on behalf of the proprietor, but of any lessee, or even, 
 it is suggested, by or on behalf of any person beneficially interested in 
 the property as an equitable mortgagee, a cestui que trust, and the 
 like. It is thought that the words cover expenditure by all predecessors 
 in title. 
 
 For the Purpose of bringing the Minerals into working. — See 
 note above on the words " works executed or expenditure of a capital 
 nature incurred." For an explanation as to what minerals are included 
 in "minerals . . . being worked," see s. 24,j9os<, pp. 268 and 269, pars. 
 " Where any minerals " and " Minerals which are being won." The former 
 paragraph may have the effect of causing the deduction to be spread 
 over a larger area of minerals than otherwise it woiild be. 
 
 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. — It is of course right that, 
 if, say, 10,000^. has been spent in sinking pits, putting down machinery, 
 etc., and half the estimated produce of the mine has been realised, and then 
 an occasion arises under s. 1 (a) or (6) for payment of increment value 
 
Valuation of Minerals. 261 
 
 duty on the remaining and unrealised half of the minerals, that only § 23 (1), 
 5,000/. should be deducted from the total value of the remaining half 
 of the minerals in order to arrive at their capital value. 
 
 (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. 
 
 For the Purposes of Valuation ... all Minerals shall be treated 
 
 as a Separate Parcel of Land. — Valuation of minerals under the Act 
 
 may apparently take place on the following occasions : — (1) Minerals 
 
 not in lease and not being worked on April 30, 1909, are to be valued 
 
 on the original site valuation under s. 26 (subject, of course, to the 
 
 provisions of s. 23 (2) from the semicolon in the first paragraph of that 
 
 sub-section). (2) When minerals not in lease and not being worked 
 
 pass on death, they are, it seems, liable to increment value duty under 
 
 s. 1 (b) and must have their capital value ascertained ; but when such 
 
 minerals are sold and increment value duty is payable under s. 1 (a) it 
 
 does not appear that there need be any valuation, since if increment 
 
 value duty is then payable all that is necessary to ascertain the then 
 
 capital value is, it is thought, to make the deductions referred to in s. 23 (1) 
 
 from the value of the consideration under s. 2 (2) (a). (3) Minerals in 
 
 lease or being worked on April 30, 1909, are to be valued at the 
 
 expiration of the leasing or cesser of the working [and the lapse of two 
 
 years] under s. 22 (7). (4) Possibly, but not certainly, minerals under 
 
 head No. 1 are liable to be valued under s. 22 (7), after the expiration of 
 
 leases and cesser of workings made or begun after April 30, 1909, and 
 
 the additional period of two years. (5) On a periodical occasion under 
 
 s. 1 (c) it is apprehended that the total and capital values of minerals 
 
 not in lease nor being worked must be ascertained according to s. 23 (1). 
 
 (6) Apportionments or reapportionments of the original capital value 
 
 of minerals may be made under s. 29 (2), which will bring s. 23 (1) into 
 
 play (s. 29 (2) ). 
 
 In many of these cases the minerals will be naturally a separate Where 
 
 naturally 
 
252 Land Clauses of the Finance Act. 
 
 § 23 (2). parcel of land. The proprietor or owner of the minerals may not be the 
 a separate owner of the surface, and it is ownership and not occupation which is the 
 parcel. subject of the new taxes. In other cases the occupation which is the 
 
 normal unit of, the taxation of owners (s. 26 (2) ) will be different in the 
 case of the minerals to the occupation of the rest of the fee. Sub-sect. (2) 
 is therefore mainly operative when the owner in fee, or his lessee is in 
 possession of both land and minerals, and the minerals were not on 
 April 30, 1909, comprised in a mining lease or being worked (s. 23 (3) ). 
 There is no direction that minerals are to be treated as a separate 
 parcel of land for the purposes of assessment of duty as well as of 
 valuation, unless the minerals are either comprised in a mining lease or 
 are beiug worked. It is, of coui-se, obvious that in the latter classes of 
 cases, when surface and minerals are sold together, the assessment must 
 be separate, because the respective duties on surface and soil are paid 
 at different times and by different persons. Where minerals not in 
 lease and not being worked are sold together with the surface, increment 
 value duty on both surface and minerals is payable at the same time by 
 the vendor. See notes to sub-s. (2), "shall be treated," etc., post, 
 p. 253. 
 
 Where the Minerals are not comprised in a Mining Lease or 
 being worked. — If the minerals on April 30, 1909, are comprised in a 
 mining lease, or are being worked, then under s. 22 (7), at the time 
 when they cease to be in one of those conditions (but not temporarily 
 so as to be protected by the proviso to s. 22 (2)), their original capital 
 value is to be ascertained. 
 
 If, however, they are not comprised in such a lease, and are not being 
 worked on the date in question, this sub-section will apply. Two 
 questions then arise: (1) What is the effect of the owner of the land 
 in his return not specifying any value as that of the minerals ] He is 
 clearly not obliged to specify any vahie (s. 26 (3) ). The sub-section 
 says that in such a case they shall be treated as having no value as 
 minerals. Apparently this means that the original capital value of 
 his minerals is nil, and that if the owner sells or leases his minerals 
 separately from his land, the whole purchase price or rent will be 
 increment value on which duty, subject to deductions, is ciiargeable. 
 But supposing he sells his land including minerals, how are the minerals 
 then to be treated? It may be suggested that they are still to be con- 
 sidered as of no value, but that is hardly possible. Supposing the 
 purchaser gave a higher price for the land because it included the 
 minerals ? The vendor must, it is thought, in one way or another, pay 
 increment value duty in respect of the minerals. That result may 
 possibly be arrived at in one of two ways. Either the minerals 
 may apparently be wholly left out of consideration, and the sale 
 treated as of land only, in which case increment value duty will be pay- 
 able in the usual way under sub-s. (2) (a) ; or in the alternative the Com- 
 missioners, treating the minerals as a separate parcel of land under 
 
Valuation of Minerals. 268 
 
 s. 23 (2), may apportion the consideration under s. 32 (2). In that case § 23 (2). 
 the whole of the consideration apportioned to the minerals will be incre- 
 ment value. The value of the surface may at the same time have greatly 
 decremented, but there will be no right of set-off. In an extreme case 
 the owner might get only a price equal to the original total valuation of 
 land and minerals as an aggregate and yet have to pay a heavy sum for 
 increment value duty on the minerals. The second question which 
 arises is, what is the consequence if the owner does " specify the nature 
 of the minerals and his estimate of their capital value " ? Perhaps 
 the true view is that in such a case the Commissioners are, under 
 s. 23 (4) and s. 26 (1), bound to value the minerals as being 
 land under s. (1), and as a separate parcel of land under s. 23 (2), 
 and to fix their original capital value. If this is so, what will be the 
 position when the site and the minerals are subsequently sold as a 
 whole ? The Commissioners may probably apportion the consideration 
 under s. 32 (3) for the purpose of arriving at the increment value of the 
 surface and minerals respectively. The result would be that if you 
 have an increment on the minerals and a decrement on the surface, you 
 cannot set off the decrement against the inci-ement. If so, is not 
 this unfair to the owner ? It is a very different thing to the decrement 
 of plot A being allowed as a set-off against the increment of plot B. 
 The same result might spring from a mining lease. The owner might 
 have to pay increment value duty on a mineral rent, which partly arose 
 from the destruction of his surface. 
 
 As having no Value as Minerals. — That is, they will be looked upon 
 as an ordinary constituent of the soil, without any special value. 
 
 Unless the Proprietor ... in his Return. — This must clearly refer 
 to the return under s. 26, applicable to the ownership of all land, 
 and is so treated by the Commissioners. For copy of return required 
 see Form IV., post, p. 504. Probably the return could be amended at 
 any time before the provisional valuation, and possibly even after and 
 before that valuation is finally settled, as to which see p. 324. 
 
 Nature of the Minerals and his Estimate of their Capital Value. — 
 Great difficulties may arise where a piece of land contains mines of 
 various kinds, the extent and quality of each kind being hypothetical. 
 The original capital values once fixed cannot be altered, and there is no 
 set-off of an increment on iron ore against a decrement on coal. 
 
 It is perhaps not necessary that the capital value of each class of 
 minerals should be stated, if the value of the whole of the minerals is 
 given, since apportionment of capital value might be made later. But 
 this is not certain (see Form IV. at p. 509, post). 
 
 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. — This is so almost of necessity. Increment value duty when 
 payable is payable as an annual duty on minerals in lease or being 
 
254 Land Clauses of the Finance Act. 
 
 § 23 (2). worked, s. 22 (s. 22 (3), while it is payable as a lump sum on the land 
 other than the minerals. Each subject must naturally and of neces- 
 sity be separately assessed. But where the minerals are not comprised 
 in a mining lease or being worked, increment value duty is payable in 
 respect of them as a lump sum at the same rate as it is payable on the 
 rest of the land, and though surface and minerals may be valued separ- 
 ately, the duty may apparently be assessed on the joint product. The 
 inner meaning of this sub-section possibly is that if an owner of minerals 
 not in lease or being worked on April 30, 1909, puts no value on his 
 minerals, and later on sells his land in fee (including, but without 
 special mention, his minerals), the purchaser giving a bigger price 
 because of the presence of minerals, the Commissioners may be able to 
 assess jointly land and minerals, and to charge increment value duty 
 under s. 2 (2) (a) on the purchase price (less deductions), nominally 
 ignoring the minerals. 
 
 The sub-section may also mean that the minerals so comprised in a 
 lease or being worked are to be assessed separately from other minerals 
 of the same proprietor, either not in lease or not being worked, or in a 
 different lease or a different working. Probably this would be done 
 under s. 26 (1) and s. 29 (1) in any event. 
 
 This paragraph cannot of course apply to minerals either in lease or 
 being worked on April 30, 1909, so long as the leasing or working con- 
 tinues, and for a period of two years afterwards (sub-s. (3) ), but it will 
 apply to a leasing or working renewed after the two years has expired. 
 
 (3) The provisions of this Part of this Act with respect 
 to valuation shall not apply to minerals which were, on 
 the thirtieth day 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 com- 
 prised in a mining lease or to be worked so long as the 
 period does not exceed two years. 
 
 The Provisions . . . with respect to Valuation. — These provisions 
 will be ss. 26, 27, 29, 30, 31, 32, and the present section. Probably 
 also s. 12. Sect. 25 does not apply to minerals. The reason why these 
 provisions are not to apply to the class of leased and worked minerals 
 referred to in the sub-section until the expiration of the periods referred 
 to is because under s. 22 (2) increment value duty is not payable in 
 respect of such minerals until the expiration of such periods. Valua- 
 tion for purposes of increment value duty is therefore not needed. As 
 
Valuation of Minerals. . 265 
 
 to mineral rights duty, if the minerals are in lease the amount of the § 23 (3). 
 duty is fixed automatically by the payments under the lease (s. 20 (2) ). 
 If worked by the proprietor it is fixed by the amount of the workings 
 considered as having been made under a hypothetical rent, for the 
 ascertainment of which the total and capital values are not utilised in 
 the scheme of the Act. Original valuation is therefore unnecessary 
 for mineral rights duty, but see s. 20 (2) (b) for the special valuation 
 for that duty. 
 
 But when the minerals have ceased either to be comprised in a mining When valua- 
 lease or to be worked for a period of two years, then the valuation tion clauses 
 clauses apply, and a valuation must be made under s. 22 (7), which is 
 to be treated as the original capital value of the minerals (see ante, 
 pp. 232 and 244). 
 
 This sub-section (s. 23 (3) ) applies to the substances exempted under Exempted 
 s. 20 (5) from mineral rights duty and under s. 22 (8) from increment substances. 
 vakie duty, if any of such substances are to be treated as minerals. 
 But curiously enough s. 22 (7), requiring a valviation of such substances 
 at the end of the lease or working and the two years, does not apply to 
 those substances (s. 22 (8) ). So that if in lease or being worked on 
 April 30, 1909, they never would get an original capital value, and the 
 Commissioners would therefore never be able to calculate their increment 
 value. The point does not appear to be of much importance, because 
 the capital value of substances coming under s. 20 (5) comprised in a 
 lease allowing them to be taken away or being worked is not likely to 
 increase so as to become liable to increment value duty. 
 
 (4) Except where the context otherwise requires, any 
 references in this Part of this Act to the site vahie 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. 
 
 Except where the Context otlierwise requires. — As for example in 
 ss. 7, 8, 9, 16 — 19 inclusive, 25, 28, 36, the references in which to 
 increment value are really references to site value as distinguished from 
 capital value. 
 
 References ... to the Site Value of Land. — The application to 
 minerals of the general valuation clauses (ss. 25 to 32 and s. 12) has 
 been considered on p. 254. An attempt is now made to point out the 
 principal cases in which references in the Act to land and site value 
 are to be construed as references to minerals and their capital value. 
 
 It is premised that the exceptions established by s. 23, i.e., that incre- 
 ment value duty is not to be charged in the case of minerals which were 
 on April 30, 1909, either comprised in a mining lease or being worked so 
 
256 Land Clauses of the Finance Act. 
 
 § 23 (4). long as they are so comprised or worked, and for a period of two years 
 subsequently, and also that increment value duty is not to be charged 
 on the occasion of the grant of a mining lease or in respect of minerals 
 comprised in a mining lease or being worked except as an annual duty 
 imder sub-s. 3 of s. 22, will be borne in mind in the perusal of the 
 following note. 
 
 Sect. 1. There seems to be no doubt that the charge of duty on the 
 
 increment value of land in this section includes a charge on the incre- 
 ment value of minerals. 
 
 Sect. 2. The definition or explanation of the increment value of land in this 
 
 section is thought to apply also to the increment value of minerals. 
 The words " capital value " must be substituted for " site value " in 
 ss. 1 and 2. The "general provisions of this part of this Act as to 
 valuation," referred to in ss. 1 and 2, are so far as regards minerals, it 
 is believed, contained in s. 23. Whether sub-s. 3 of s. 2, of the Act of 
 1910, and s. 2 of the Revenue Act, 1911, relating to the substitution of 
 a higher site value for the site value on the 30th April, 1909, as 
 ascertained under the general valuation clauses, apply to the capital 
 value of minerals is not quite clear. It is thought that the provisions 
 referred to do apply. 
 
 Sect. 3. The first four sub-sections of s. 3 may all be useful, and are probably 
 
 therefore applicable to the collection of increment value duty as a lump 
 sum in respect of minerals. The question has been discussed whether 
 sub-s. 5 of the same section, relating to the 10 per cent, reduction 
 of site value for the purpose of collecting increment vahie duty, applies to 
 the capital value of minerals in respect of which increment value duty 
 is being paid as an annual duty (see p. 239). It is thought that it does 
 not apply. 
 
 jggjjf. 4 All the sub-sections of s. 4 seem in whole or in part to be applicable 
 
 to sales ; but it is very difficult to say how far they apply to leases of 
 minerals. 
 
 Sect. 5. Sect. 5, relating to the assessment, collection, and recovery of incre- 
 
 ment value duty on death, seems clearly to be applicable to minerals ; 
 subject of course to s. 22. 
 
 Sect. 6. Sect. 6, relating to the collection and recovery of increment value 
 
 duty on property held by bodies corporate or unincorporate, is applicable 
 to minerals. By virtue of s. 23 (2), where the minerals of a body 
 corporate or unincorporate are not comprised in a mining lease or being 
 worked, they are to 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. It seems doubtful whether by virtue of this sub-section, if a 
 body corporate declines to put any value on its minerals in its original 
 return, they will be exempt from periodical increment value duty until 
 they are actually sold or leased. It is possible, however, that the first 
 paragraph of s. 23 (2) only applies to the date of the original site 
 
Valuation of Minerals. 267 
 
 valuation, and that it is open to the Commissioners at any subsequent § 23 (4). 
 time when an occasion happens to put a real value on the minerals. 
 The point is very obscure, and it must be remembered that to postpone 
 the payment of increment vakie duty is not necessarily to escape it. 
 
 Sect. 7, being an exemption from increment value duty of agricultural Sects. 7, 8, 
 land without any higher than agricultural value ; s. 8, being an *^^ ^' 
 exemption of small houses and property in the owner's occupation ; and 
 s. 9, containing special provisions relating to collection of increment 
 value duty in the case of land \ised for games and recreation, are 
 obviously not applicable to minerals. 
 
 Sect. 10, relating to the increment value duty on land held by the Sect. 10, 
 State, doubtless will apply to minerals. 
 
 Sect. 11, being an exemption from increment value duty in the case Sect. 11, 
 of flats, clearly does not apply to minerals. 
 
 Sect. 12 has already been considered amongst the valuation clauses Sect. 12. 
 as being probably applicable to minerals. 
 
 Sects. 13 to 15 inclusive relate to reversion duty. It is provided by Sects. 13 to 15. 
 s. 22 (1) that no reversion duty is to be charged on the determination 
 of a mining lease. This clavise, however, does not apply (s. 22 (8) ) to 
 the minerals which are exempt from mineral rights dvity under s. 20 (5), 
 in so far as they have been the subject of a mining lease. There is not, 
 however, for obvious reasons, likely to be any value in the benefit 
 accruing to the lessor at the determination of such a lease (see s. 13 (2) 
 for definition of " value of the benefit," ante, p. 156). 
 
 Sects. 16 to 19 inclusive relate to the undeveloped land duty. It is Sects. 16 to 19. 
 only necessary with reference to these sections to refer to sub-s. 4 of 
 s. 16, which provides that for the purposes of undeveloped land duty 
 undeveloped land does not include the minerals. 
 
 Sects. 20 to 24 inclusive relate especially to minerals. Sects. 20 to 24. 
 
 Sects. 25 to 32 inclusive are the general valuation clauses, the applica- Sects. 25 to 32. 
 tion of which to minerals has already been discussed (see ante, p. 254). 
 
 Sect. 33 relates to appeals and applies to minerals. Having regard Sect. 33. 
 to the fact that there is an appeal against the determination of the 
 Commissioners upon any matter, with the exceptions mentioned in s. 33, 
 it is not necessary to attempt to enumerate any of the cases in which in 
 respect to minerals there may be such an appeal. It will be noted that 
 xmder s. 33 (1) (a) there can be no appeal against the provisional 
 valuation made by the Commissioners of the total or capital value of 
 any minerals except on the part of a person who has made an objection 
 to the provisional valuation in accordance with s. 27, and that under (6) 
 the original total value and original capital value of minerals [1 and their 
 capital value as ascertained under any subsequent valuation] are to be 
 questioned only by means of an appeal against the determination by the 
 Commissioners of that value, where there is an appeal vinder the Act, 
 and is not to be questioned in any case of an appeal against an 
 assessment of duty. 
 
 N. 17 
 
258 Land Clauses of the Finance Act. 
 
 § 23 (4). Sect. 34, creating a panel of referees, applies to minerals. 
 
 Sect. 34. Sect. 35 exempts minerals held by rating authorities (if there are any 
 
 Sect. 35. cases of such) from all duties under the Act. 
 
 Sect. 36. Sect. 36, relating to the deduction from increment value of sums paid 
 
 to rating authorities in respect of improvements, cannot, it is thought, 
 affect minerals. 
 
 Sect. 37. Sect. 37 exempts governing bodies constituted for charitable purposes, 
 
 to which phrase an extremely wide signification is given, registered 
 societies, and companies which are unable to divide profit from reversion 
 duty and undeveloped land duty while the land is occupied and used by 
 the body for the purposes of the body, and from increment value duty 
 on periodical occasions, but without prejudice to the collection of the 
 latter dvity on other occasions. The section, so far as regards increment 
 value duty under s. 1, is doubtless applicable to minerals, but it will be 
 noted that it does not give exemption from mineral rights duty, nor doe 
 it seem to apply to annual increment value duty under s. 22 (3). 
 
 Sect. 38. Sect. 38 (1) exempts land held by a statutory company for the 
 
 purposes of their undertaking so long as it cannot be appropriated by 
 the company except for those purposes from increment value duty, 
 reversion duty, and undeveloped land duty, but not from mineral rights 
 duty, though when the land is sold or ceases to be so held increment 
 value dvity is payable. This sub-section would apply to increment 
 value duty on minerals so far as any are held by statutory companies as 
 defined in sub-s. (4). Sub-s. 2 of s. 38, as to returns by a statutory 
 company, would apply to minerals so held by the company. Sub-s. (3) 
 of s. 38 enacts that "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 conveyance of land, and shall not be taken into 
 account in assessing the compensation to be paid to the transferor." If, 
 therefore, a statutory company having power to do so compulsorily 
 acquires the minerals for the purpose of its undertaking as well as the 
 surface, and increment value duty is payable on the minerals, the 
 vendor to the company would not be entitled, either as part of his 
 compensation or as part of his costs and expenses, to the amount so paid 
 by him for increment value duty. 
 
 Sect. 39. Sect. 39 (1) and (2), giving power to trustees and tenants for life 
 
 paying or liable to pay increment value duty to charge the same on 
 the land, will doubtless apply to increment value duty on minerals. 
 Sub-s. (3) of the same section, relating to the exercise of powers on 
 behalf of infants and lunatics, will also apply to minerals. So will 
 sub-s. (4), which gives power to a mortgagee to add increment value 
 duty which he is liable to pay to his security. 
 
 Sect. 40. Sect. 40 relates to copyholds and customary freeholds, the minerals 
 
 under which usually belong to the lord of the manor. As the lord 
 cannot, in the absence of special custom, enter iipon the land to get the 
 
Valuation of Minerals. ^269 
 
 minerals, it is probable that he will usually place no value upon them. 8 23 (4). 
 
 If subsequently he arranges with the copyholder for rights of entry for 
 
 the purpose of getting the minerals, he will have to pay increment vakie 
 
 duty on the full capital value of the minerals ; but it is suggested that 
 
 the consideration given to the tenant for the rights of entry would be 
 
 treated as capital expenditure under s. 23 (1). Sects. 41 
 
 Sects. 41 and 42 are the definition clauses. and 42. 
 
 Sect. 60 (2), relating to the ascertainment of the principal value of Sect. 60. 
 property on death under s. 7 (5) of the Finance Act, 1894, probably 
 applies to minerals. So does sub-s. (3) of s. 60, which substitutes an 
 appeal under the Act of 1910 for an appeal under s. 10 of the Act of 
 1894, when a question arises as to the value of real or leasehold property. 
 
 Where the Land consists solely of Minerals or comprises Minerals. 
 — It is easy to follow the meaning of these words as applied to a sale or 
 lease of minerals alone, the surface being not comprised in the sale or 
 lease. Then " the land consists only of minerals." It is not so easy to 
 follow the meaning when applied to a case where land and minerals are 
 sold as a single unit, i.e., where "the land . . . comprises minerals." 
 If the minerals have an original capital value of " nil '' (s. 23 (2) ), and 
 the land is sold without mention of minerals, but realises a higher 
 price because of the possibility or probability that it comprises minerals 
 it seems that under these words the Commissioners ought strictly to 
 apportion the consideration under s. 32 (3), value the minerals under 
 s. 23 (1), and assess increment value duty on the whole apportioned 
 price of the minerals as increment value iinder s. 1 {a). But how are 
 the Commissioners to apportion the consideration between the unproved 
 minerals and the site, which if the minerals prove unpayable will be 
 valuable, but which if the minerals are payable and worked will be a 
 howling waste ? Probably in such a case they will assess the site and 
 the minerals as a whole, ignoring the fact that there are minerals, the 
 result of which might sometimes, so far as regards increment value duty, 
 be the same as that arrived at by apportionment of the consideration 
 and separate assessment. The latter speculative process might indeed 
 be more favourable to the Crown than a single assessment of site and 
 minerals jointly, since the site value might have gone down since the 
 original valuation, which would cause more of the purchase price to be 
 apportioned to the minerals, and would thereby evolve a larger taxable 
 increment value. 
 
 General Note on Increment Value Duty in Rbijltion to Minerals. 
 
 The following series of propositions arising out of the somewhat 
 complicated provisions of s. 22 (1), (2), (3), (5), and (7), and s. 23 (2), 
 (3), and (4), considered in relation to the charging and operative clauses 
 as to increment value duty, namely, ss. 1 and 2, is attempted with some 
 diffidence. 
 
 1. All minerals, including the substances exempted from mineral All minerals 
 
 11— Z 
 
260 
 
 Land Clauses op the Finance Act. 
 
 § 23 (4). 
 
 pay increment 
 value duty 
 except as 
 hereinafter 
 stated. 
 
 Minerals in 
 lease or being 
 worked pay 
 the annual 
 increment 
 value duty 
 only. 
 
 But not if in 
 lease or being 
 worked on 
 April 30, 1909, 
 
 Until two 
 years have 
 elapsed since 
 the last lease 
 or working. 
 
 rights duty by s. 20 (5), are liable to pay increment value duty as a 
 lump sum on the occasions mentioned in s. 1, ascertained by the process 
 pointed out by s. 2 (2) (a) and (6), subject to the following exceptions 
 and modifications. 
 
 2. Whenever minerals not exempted under section 20 (5), which are 
 hereinafter referred to as the " non-exempted minerals," are the subject 
 of a mining lease, or whenever such minerals are being worked by the 
 proprietor, then the increment value duty payable in respect of them, 
 ivhenever an occasion, other than a lease, arises under s. 1 (c)* — that is, 
 either on a conveyance of the reversion in fee under s. 1 (a), or on the 
 death of the owner and proprietor under s. 1 (b), or the owner and 
 proprietor being a body corporate or unincorporate on a periodical 
 occasion under s. 1 (c) — takes the form (under s. 22 (3) ) of an annual 
 payment by the proprietor or immediate lessor with power of deduction 
 as in the section mentioned, and no other increment value duty in any 
 shape or foi-m is payable by any one whether proprietor, intermediate or 
 immediate lessor, or w^orking lessee, so long as the lease or the working 
 continues (s. 22 (1) ). 
 
 3. If on April 30, 1909, non-exempted minerals were (a) either com- 
 prised in a mining lease or (b) being worked by the proprietor, no 
 original valuation under s. 26 is to be made by the Commissioners, and 
 no increment value duty, annual or otherwise, is payable so long as the 
 minerals remain either the subject of the same or another lease, or so 
 long as they are being worked by the proprietor. Ceasing for a 
 temporary period to be comprised in a mining lease or to be so worked, 
 so long as that period does not exceed two years, does not take away the 
 exemption (s, 22 (2) ). The exemption is understood to mean that not 
 only is no increment value duty payable in respect of the leased term 
 by the lessor, or of the w^orked minerals by the proprietor, but that 
 none is payable under s. 1 (a) if the reversion in fee is sold, or under 
 s. 1 (b) if the ow^ner or the intermediate lessor or the tenant dies during 
 the existence of the term, or under s. 1 (c) if a periodical occasion 
 happens for the payment of increment value duty by a body corporate 
 or unincoi-porate, whether owner or lessee. The owner has in fact 
 realised his interest before the Act came into force, by making the lease 
 or beginning to w^ork the minerals. It is also thought that no increment 
 value duty is payable by the tenant on assigning his lease at any time 
 after April 30, 1910, or on the death of the tenant. 
 
 4. When two years have elapsed from the end of the lease or the cesser 
 of the working of non-exempted minerals which were comprised in a 
 lease or were being worked on April 30, 1909, the capital value of those 
 minerals is to be ascertained under s. 22 (7), and this will be their 
 original capital value ; that is, it will be the terminus a quo their future 
 
 * It seems doubtful whether merely working on a lease for less than fourteen 
 years gives rise to the claim for duty (see arite, pp. 223 and 232). 
 
Incbement Value Duty (Minerals). 261 
 
 increment value will be measured when a future occasion arises for S 23 (4). 
 either payment of increment value duty imder s. 1, or s. 22 (3), 
 
 5. When such non-exempted minerals are not on April 30, 1909, Minerals not 
 either comprised in a mining lease or being worked by the proprietor, ^^ lease, &c., 
 increment value duty will be payable as a lump sum under s. 1 (a) on 1909. ' 
 a conveyance in fee of those minerals, under s. 1 (6) on the death of the 
 proprietor, and under s. 1 (c) on a periodical occasion by a body cor- 
 porate, etc., provided that in all these cases the proprietor is not 
 
 working the minerals and has not made any existing lease of them since 
 April 30, 1909. In all these cases where the increment value duty is 
 paid as a lump sum the capital vahie of the minerals will under 
 s. 23 (2) be valued as a separate parcel of land. The original capital 
 value of the minerals, (which will be nil unless the owner has put a 
 value on the minerals in his original return (s. 23 (2) ), or which, if the 
 owner has put a value in such return, will (it seems) have been fixed on 
 the original valuation under s. 26), will be deducted from the capital 
 value on the occasion as ascertained under s. 2 (2) (a), (b), or (c), as the 
 case may be, and s. 23 (1). 
 
 6. If a lease [1 for over fourteen years] is made after April 30, 1909, Lease after 
 
 of these minerals which were not in lease or being worked on April 30, j^Ry ?' 
 
 1909, the annual increment value duty established by s. 22 (3) becomes minerals not 
 
 payable. In such case the provisions expressed in No. 2 of these *^^" .•'" ^^^^^ 
 
 . . -PI 01" being 
 
 propositions come into force, and no increment value duty will be worked. 
 
 payable on any occasion or by any one interested in the minerals so long 
 as the minerals continue in that lease. After the minerals cease to be 
 comprised in that lease, it appears doubtful whether the capital value is 
 to be ascertained under s. 22 (7) and is to be treated as their original 
 capital value. It seems that, as they have an original capital value 
 already, and as s. 22 (7) is capable of being construed so as to relate 
 only to minerals in lease or being worked on April 30, 1909, its pro- 
 visions will be confined to the latter class of minerals. 
 
 7. If the proprietor of non-exempted minerals not in lease or being Working in 
 worked on April 30, 1909, begins himself to work those minerals, it is similar case, 
 doubtful whether increment value duty is payable until one of the 
 occasions mentioned in s. 1 (a), (b), and (c) occurs. When that takes 
 
 place, the consequences referred to in proposition No. 6 as happening 
 on the occasion of a lease ensue, and the doubt there expressed as to 
 valuation on the expiration of the lease is equally applicable to valuation 
 on the cesser of the working. 
 
 The following are, amongst others, the principal points of doubt Points of 
 which seem to arise out of the foregoing series of propositions. doubt, 
 
 1. If (as supposed in proposition 2, p. 260) it is the fact that the con- Increment 
 veyance of the reversion in fee expectant on a mining lease is not the value duty 
 occasion of any claim for increment value duty, other than the duty chaser not 
 being paid on the lease, and if, as is the case, increment value duty is ^y vendor, 
 recoverable in the same manner as mineral rights duty, that is from the reversion 
 
262 
 
 Land Clauses of the Finance Act. 
 
 § 23 (4). 
 
 Or of minerals 
 being worked. 
 
 Exemption 
 from incre- 
 ment value 
 duty of 
 woriiing 
 lessee. 
 
 Is mere 
 working an 
 occasion ? 
 
 Qv^re as to 
 s. 22 (7), 
 
 Doubt as to 
 s. 2 (2). 
 
 immediate lessor (s. 22 (5) ), it would follow that the increment value 
 duty on the sale of a reversion in fee is from thenceforth to be bonie 
 not by the vendor as ordinary increment value duty, but by the pur- 
 chaser. This is perhaps not anomalous, since the realised increment 
 is an annual occurrence represented by rent (s. 22 (3) ). 
 
 2. The same consequences would follow where the proprietor who has 
 commenced to work minerals after April 30, 1909, not being worked or 
 in lease on that date, sells his mine and minerals as a going concern. In 
 this case the purchaser would pay annual increment value duty under 
 s. 22 (3). 
 
 3. The working lessee is exempted from increment value duty by 
 virtue of s. 22 (1), although the value of his minerals may have greatly 
 incremented during the period of his lease. The rent and royalties 
 being fixed amounts and not depending on the price of the produce, the 
 w^hole of this increment would go to the lessee, but on his assigning his 
 lease or on his death it appears that increment value duty would not be 
 payable under s. 1 (a) or [h) (s. 22 (2) and (3) ). If he were to make 
 an underlease for over fourteen years, it would seem that increment 
 value duty would be payable under ss. 1 (a) and 22 (3). 
 
 4. It does not seem that there is anything in the Act directly render- 
 ing the mere working by a proprietor of minerals not comprised in any 
 lease or commenced to be -worked on April 30, 1909, an occasion for the 
 payment of duty. But this is a very difficult and doubtful question, 
 and no definite opinion is expressed upon it. 
 
 5. It appears doubtful whether the provisions of s. 22 (7) apply to 
 minerals not in lease or being worked on April 30, 1909, but subseqiiently 
 leased or worked. 
 
 6. The application of s. 2 (2) to the ascertainment of the capital 
 value of minerals on an occasion is not quite plain, since the sum which 
 is to be taken as the site value (in the case of minerals as the capital 
 value, s. 23 (4) ) is subject " in each case to the like deductions as are 
 made under the general provisions of this part of this Act as to valuation 
 for the purpose of arriving at the site value of the land from the total 
 value." The provisions referred to are contained principally in s. 25, 
 but sub-s. (5) of that section says that " the provisions of this section 
 are not applicable for the purpose of minerals." Further, the site value 
 of the land where an occasion arises under s. 2 (2) {d), that is, on the 
 periodical occasion applicable to a body corporate, etc., is to be taken to 
 be " the total value of the land on that occasion to be estimated in 
 accordance with the general provisions of this part of this Act as to 
 valuation." Those are the same general provisions which, at all events 
 as to 8. 25, the principal of them, are expressly made not applicable to 
 minerals. It is, of course, possible that it might be held that no incre- 
 ment value duty is payable in respect of minerals except as an annual 
 duty under s. 22 (3), and the decision miglit be based on the fact that 
 there are no intelligible directions for the valuation of minerals in fee 
 
Incbement Value Duty (Minerals). 263 
 
 simple on an occasion arising under s. 1. But this is unlikely, because § 23 (4). 
 
 the term " land " undoubtedly includes minerals unless the context shows 
 
 that it does not (s. 41 ; sect. 3, Interpretation Act, 1889). Sect. 22 (1) 
 
 would hardly have said that increment value duty was not to be 
 
 charged on minerals comprised in a mining lease or being worked, 
 
 except as a duty payable annually, if it were never to be charged 
 
 upon any minerals otherwise than as an annual duty. Further, it is 
 
 easy to see that many of the provisions of s. 25 could not possibly be 
 
 applicable to minerals, and that therefore they were excluded by 
 
 s. 25 (5) from applying to them. It is further thought that s. 23 (1) 
 
 is a general provision of the Act as to valuation of minerals, and as such 
 
 is referred to when the capital value of minerals is to be ascertained 
 
 imder s. 2 (1) and (2). For these reasons it is thought that minerals 
 
 are liable to increment value duty payable as a lump sum in the 
 
 circumstances referred to. 
 
 7. It is doubtful whether increment value duty is payable in respect Mining lease 
 of the grant of a mining lease for not more than fourteen years. The £^^^.^^2^^ ^°^ 
 duty is charged under s. 1. But (a) of s, 1, which enacts the exception years. 
 of leases not exceeding fourteen years relates only to " collection " of 
 duty. Sect. 22 (5) (see p. 241) establishes a special method of collection 
 of annual increment value duty. It is possible that s. 22 (5) only applies 
 the machinery of ss. 20 (4) and 21 to annual increment value duty, thus 
 impliedly ruling out ss. 3 and 4 as to collection, but not ruling out 
 s. 1 (a), which in substance relates to the occasions for rather than to 
 the methods of collection. 
 
 Exempted Minerals. 
 
 It is not easy to determine whether it is worth while hazarding a series 
 of propositions relating to the position of the substances exempted from 
 mineral rights duty and annual increment value duty under s. 20 (5) 
 and s. 22 (8). There is some ground for believing that the Inland 
 Revenue authorities do not attach much importance to those 
 substances from the point of view of mineral revenue, and will be 
 content to treat them as part of the ordinary soil. The following 
 propositions may perhaps be accepted, with relation to these exempted 
 substances. 
 
 (1) Any one of them, even common clay, may conceivably be a Any one may 
 mineral, if and when it is an exceptional substance not the ordinary ^ ^ minera . 
 rock or soil of the district [Great Western Railway Co. v. Carpalla, 
 
 [1910] A. C. 83, at p. 86, and Iforth British Railway Co. v. Bud- 
 hill, [1910] A. C. 116, at pp. 127). 
 
 (2) What is or is not the ordinary rock or soil of the district is a ques- A question of 
 tion of fact in each case to be determined by evidence. But it is sub- ^^^*'" 
 mitted that, if the soil of a district is composed in varying but sub- 
 
264 
 
 Land Clauses of the Finance Act. 
 
 Gieatly an 
 option of 
 owner. 
 
 A difficult 
 problem. 
 
 § 23 (4). stantial parts of all or some of the seven exempted substances, 
 none of such substances in that district are minerals. Apparently the 
 presence of a substance must be "rare and exceptional" to constitute 
 it a mineral (see Great Western Railway Co. v. Carpalla, etc., Co., [1910] 
 A. C. 83, at p. 86). So far as the earlier cases (cited on pp. 208 
 to 211) are contrary to the two 1910 House of Lords cases just referred 
 to, they are probably not now law. If this view is correct, an exempted 
 substance can seldom be treated as a mineral, unless the owner himself 
 wishes so to treat it. 
 
 (3) An owner may doubtless, if he pleases, in his original return under 
 s. 26 (1) treat his unleased and unworked gravel, limestone, etc., as a 
 mineral (for the form of the retvim as to minerals, see p. 531), and have it 
 valued as such, but, in view of the apparent difficulties of the Crown in 
 relation to the recovery of increment value duty on these substances, he 
 is not advised to adopt this course. 
 
 (4) If the owner did not treat the substance as a mineral in his 
 original return, but did subsequently sell or let it with the site, as 
 where a field of brick earth is let on lease for more than foui-teen years 
 with liberty to take all the brick earth off the land at a royalty per ton, 
 and the Commissioners then claim increment value duty, several very 
 interesting questions will arise, such as, (1) Is increment value duty to 
 be paid on the lease under s. 1 (a) and s. 2 (2) (b), as on the lease of a 
 site, or is it to be paid as on the lease of a mineral, bringing into play 
 s. 23 (1) and (2)? (2) How in either event is the value of the 
 fee simple of the land to be ascertained under s. 2 (2) (b) when the 
 amount of royalty payable is quite uncertain ? Sect. 22 (7), of course, 
 does not apply {ib., sub-s. (8) ). These comments have been made lest it 
 should be thought that the points involved had been overlooked, and 
 they might be continued ad infinitum. In the view of the writer, how- 
 ever, it is not worth the reader's while losing his head in a legal edition of 
 " Alice in Wonderland " until it is certain that the Treasury mean to 
 treat the exempted substances as to minerals to the extent at least that 
 they are to be valued as separate parcels of land. 
 
 (5) To avoid questions of payment of increment value duty on 
 exempted substances it is at all events advisable that a lease of them 
 should not exceed fourteen years. This will confine the difficulties of 
 increment value duty in relation to these substances to death and the 
 periodic assessment of a body corporate, etc. On a conveyance out and 
 out of the fee, including the substances, probably the Commissioners will 
 treat the transaction as an ordinary sale of land. Under s. 2 (2), 
 applying s, 25, there is in such a case no deduction from the value of the 
 consideration, by virtue of sub-s. (4) (a), of the value of the minerals. 
 The authorities would therefore probably fix the gross value approxi- 
 mately the same as the consideration and obtain increment value duty on 
 the full increment value of the land, including the minerals considered 
 simply as part of the soil. 
 
 Comprises 
 leases to 
 fourteen 
 years. 
 
Definitions (Minekals). 265 
 
 Section 24. 
 24. For the purpose of the provisions of this Act as to § 34. 
 
 minerals— Definitions 
 
 for purpose 
 
 The expression "proprietor" means the person for of mineral 
 
 , . , . •11' • 1 • 1 provisions. 
 
 the time bemg entitled m 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 44 & 45 vict. 
 Act, 1881, applies ; 
 
 The Expression Proprietor means the Person entitled ... in 
 possession to the Minerals or any Part of those Rents and Profits. — 
 
 Tenants in fee, and in tail, and tlie various kinds of life tenants, 
 tenants in common, and joint tenants in fee, tail, or for life are tlius 
 proprietors. Possibly a person in possession without a title is a 
 proprietor. 
 
 This definition should be compared with that of owner in s. 41. Both 
 mean the person entitled in possession to the rents and profits. But 
 " owner " includes a person entitled as lessee to an unexpired term of 
 fifty years, whilst "proprietor" does not include a person entitled as 
 lessee other than the owner of a long term to which s. 65 of the Con- 
 veyancing Act, 1881, applies.* It does not seem that it is possible to 
 construe " proprietor " as including a lessor who is also a lessee, though 
 if it could, be done it would remove some difficulties in the Act. See 
 s. 20 (2), proviso, ante, p. 217, and s. 21 (4), ante, p. 229. 
 
 The proprietor will then usually, if not without exception, be the Difference 
 same person as the owner of the minerals considered as a separate parcel between 
 of land. He must then make both returns, i.e., that as to ownership i< proprietor " 
 under s. 26 (1), either Form IV., p. 498, or Form VI., p. 533, and that 
 as to the minerals specially, i.e., rental value, etc.. Form Y.,post, p. 519. 
 
 One at least of the reasons why the term " proprietor " is defined as 
 not including a lessee of lands including minerals for a term of over 
 fifty years unexpired is because an ordinary lease does not entitle the 
 lessee to get the minerals. To get the minerals would be to commit 
 waste. He therefore cannot be liable to mineral rights duty or the 
 annual increment value duty. The definition of " owner " seems, how- 
 ever, to be important only (1.) so far as regards undeveloped land duty 
 
 * I.e., a term of not less than 200 years unexpired, etc. (see Appendix, p. 604), 
 which may be enlarged into a fee simple with the right to get the minerals. 
 
266 Land Clauses of the Finance Act. 
 
 § 24. as to which a lessee with a term of over fifty years unexpired is owner ; 
 (2) for the purpose of vahiation under sections 26 and 27 (3) and for 
 the purposes of sections 8 and 18. 
 
 In the case of a lease for over fifty years unexpired the lessee would 
 seem to be the owner, but he is not the proprietor, of the minerals. The 
 lessee ought therefore to make the original return on Form VI. under 
 s. 26 (2) as well as the freeholder as a " person receiving rent " under 
 the same section. 
 
 Long Term of Years to which Section 65, etc., applies. — This is the 
 kind of term which may be enlarged into a fee simple under s. 65 
 of the Conveyancing and Law of Property Act, 1881 (44 & 45 Vict, 
 c. 41). See Appendix, p. 604, for that section, and s. 11 of the 
 Conveyancing Act, 1882 (45 & 46 Vict. c. 39), an amending provision. 
 
 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 ; 
 
 In Addition to the Meaning assigned, etc. — By s. 41, rent has the 
 same meaning as in the Conveyancing and Law of Property Act, 1881, 
 and does not include a rent-charge. Under s. 2 (ix.) of the Con- 
 veyancing and Law of Property Act, 1881, rent includes (not means) 
 yearly or other rent, toll, duty, royalty, or other reservation by the 
 acre, the ton, or otherwise. 
 
 Mining lease. The exprcssiou "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 connected therewith, and includes an 
 agreement for such lease, or any tenancy or 
 licence, whether by deed, parol, or otherwise for 
 raining purposes, and the expressions "lessor" 
 
Definitions (Minerals). 267 
 
 and *' lessee " shall in addition to the meaning § 24. 
 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; 
 
 Mining Lease means a lease expressly for " mining purposes." An 
 ordinary lessee by implication of law is not allowed to commit waste, 
 and mining is waste. It is extremely unlikely that a lease should be 
 made without impeachment of waste, and yet not intended to be an 
 ordinary mining lease under which the lessee was expected to mine. No 
 question is therefore likely to arise on this score. 
 
 Mining lease seems to include mining underlease (see paragraph 
 •'The expression 'lease,'" s. 41, p. 443, which is probably applicable). 
 Mining lease is stated by the paragraph under comment to include an 
 agreement for a mining lease. 
 
 Or Purposes connected therewith. — This gives a somewhat wide 
 meaning to tl)e term "mining lease," (see notes on pp. 218 and 219). 
 It probably renders a lease of the surface (in a separate document from 
 the lease by the same person of the mines), for the purpose of works 
 and conveniences connected with mining operations, a mining lease. 
 Possibly even a lease of the surface of Blackacre by A. for the purposes 
 of the mines leased to the same lessee by B. may be a mining lease, 
 even if the mines are not in Blackacre. 
 
 Licence, whether by deed, parol, or otherwise, does not, as is well 
 known, confer any interest in land, and is revocable at any moment 
 {Wood V. Leadbitter, 13 M. & W. 838), subject to any claim for damages 
 for breach of contract, but of course royalty or toll or other reservation 
 (see above note on rent) could be reserved under it, so that the mineral 
 rights duty came into play. 
 
 The expressions "Lessor" and "Lessee." — See the paragraph 
 commencing with these words in s. 41 (p. 461). 
 
 The expression " working lessee " means as respects Working 
 
 •- . *-' _ ^ lessee. 
 
 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 Lease," etc. — A., a tenant for life of 
 minerals the subject of a settlement, leases the minerals to B. for thirty 
 
268 
 
 Land Clauses of the Finance Act. 
 
 § 24. 
 
 Working 
 year. 
 
 years at a dead rent of 100^. a year and a royalty of Is. a ton for every ton 
 over 2,000 tons gotten in each year. B. sub-leases the same minerals to 
 C. at increased rents and royalties, and C. sub-leases on improved terms 
 to D. D. is the working lessee. C. is the immediate lessor. B. is an 
 intermediate lessor. A; is the proprietor. 
 
 As respects Mineral Way-leaves. — As to mineral way-leaves leased to 
 proprietors working their own minerals and the payment thereon of 
 mineral rights duty, see ante, p. 223. 
 
 The expression "working year" means the year end- 
 ing 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 imme- 
 diately before the first day of January in any 
 financial year for which the duty is paid ; 
 
 Mineral 
 way-leave. 
 
 The mineral rights duty charged for the year 1910 is calculated on 
 the results of the working year ending September 30, 1909, or such other 
 day in the year 1909 as may in the particular case be approved by the 
 Commissioners, and so in all succeeding years. It is doubtless intended 
 that the conclusion of a working year for purposes of taxation should 
 be made to fit in with the usual working year of the business. It is not 
 thought that under this provision the Commissioners can fix another day 
 for the end of the working year without the consent of the lessors and 
 proprietor, but the point is not plain. 
 
 The expression "mineral way-leave" means any way- 
 leave, air-leave, water-leave, or right to use a shaft, 
 granted to or enjoyed by a working lessee whether 
 above or under ground, for the purpose of 
 access to or the conveyance of the minerals, or 
 the ventilation or drainage of his mine or other- 
 wise in connection with the working of the 
 minerals. 
 
 Where any minerals are at any time being 
 worked by means of any colliery, mine, quarry, or 
 open working, all the minerals which belong to the 
 same proprietor, if the minerals are being worked 
 by the proprietor, or which the lessee has power to 
 
Definitions (Minerals). 269 
 
 work if the minerals are being worked by a lessee, § 24. 
 and which would, in the ordinary course of events, 
 be worked by the same coUiery, mine, quarry, or 
 open working, shall be deemed to be minerals which 
 are being worked at that date. 
 
 Illustration. — A., before April 30, 1909, owned land including 
 minerals, but did not sink a shaft and in no manner attempted to work 
 the minerals. He subsequently bought, also before April 30, 1909, a 
 mine in workiiig operation adjacent to this land and from which the 
 minerals originally owned by him could naturally and conveniently 
 (i.e., " in the ordinary course of events ") be worked together with the 
 minerals of the last purchased mine. In working the latter he is 
 deemed to be working the minerals he originally owned. Therefore it 
 is thought that the original as well as the more recently acquired 
 minerals are by virtue of s. 22 (2) exempt from increment value duty 
 so long as either A. himself works the last purchased minerals, or so 
 long as both sets of minerals are leased to the same lessee. So also 
 the minerals originally owned by A. would seem to bo exempt from 
 original capital valuation under s. 26 and s. 23 (1). 
 
 Minerals which are being won for the purpose of 
 being immediately worked shall be deemed to be 
 minerals which are being worked. 
 
 Are being won. — See notes to s. 20 (2), p. 221, under words " are 
 being worked." 
 
 Minerals shall be deemed to be comprised in a 
 mining lease if the right to work the minerals is 
 the subject of a mining lease, or if the minerals 
 are being worked under the terms of such a lease, 
 although the lease has expired. 
 
 Under the Terms, — Doubtless a variation in particulars of the terms 
 would not alter the position. But it probably would not matter if it 
 did, provided two years did not intervene between the workings, since 
 the definition of mining lease (ante, p. 266) seems to cover every 
 arrangement under which minerals could be worked so as to produce 
 rent. 
 
 Where the circumstances of a district are such 
 that in the opinion of the Commissioners it is 
 impracticable to fix any sum which satisfactorily 
 
270 Land Clauses of the Finance Act. 
 
 § 24. represents a rent customary in the district, the rent 
 
 which would be paid under similar circumstances 
 and ordinary conditions elsewhere than in the dis- 
 trict shall be substituted for the rent customary in 
 the district. 
 This refers to the proviso to s. 20 (2), see p. 218. 
 
 VALUATION FOR PURPOSES OF DUTIES ON LAND 
 
 VALUES. 
 
 Sects. 25 to 32 inclusive of the Act of 1910, and s. 2 of the Revenue 
 Act, 1911, establish a code of principles and procedure with respect to 
 vahiation for purposes of the new land taxes. See comment on p. cxvii. 
 
 Sect. 25 defines or describes the four values — (a) gross, (6) full site, 
 (c) total, and (d) assessable site value — which all land (except minerals) 
 possesses. 
 
 Sect. 26 lays the duty upon the Commissioners of making a general 
 valuation of all land in the country as on April 30, 1909, showing 
 separately total and site value, and in the case of agricultural land its 
 value for agricultural purposes. It lays the duty upon owners and 
 others of making returns to the Commissioners, and permits o\vnei*s, if 
 they think fit, to furnish for the consideration of the Commissioners 
 their own estimate of value. Sect. 5 of the Revenue Act, 1911 
 (1 Geo. 5, c. 2), allows the subject in certain cases to have land in 
 divei-se occupations aggregated for the purpose of valuation. 
 
 Sect. 27 relates to the procedure on valuation, the provisional valua- 
 tion, and the method of objecting thereto by owners and others interested 
 in the land. 
 
 Sect. 28 enacts a periodical site valuation of all imdeveloped land for 
 the purposes of undeveloped land duty on April 5 in the year 1914 
 and in every subsequent fifth year. 
 
 Sect. 29 confers upon the Commissioners the wide power of assessing 
 duty under the Act on such pieces of land as they please, and the power 
 of apportioning and reapportioning site values, and gives the owner and 
 persons interested the power to require the Commissioners to make such 
 an apportionment. 
 
 Sect. 30 requires the Commissioners to record all valuations, appor- 
 tionments, and assessments, etc., made, and deductions allowed by them, 
 and provides for the furnishing of copies of such records to persons 
 interested. 
 
 Sect. 31 contains certain incidental powers and provisions vested in 
 the Commissioners and otherwise for facilitating valuations. 
 
Valuation. 271 
 
 Sect. 32 empowers the Commissioners to fix the value of certain con- § 24. 
 siderations, and to apportion considerations, etc. 
 
 Sect 25 deals with the important subject of the valuations upon General note 
 which the new duties are to be assessed. It defines or explains the subject- °" valuation, 
 matter of the various taxes. Increment value duty and undeveloped land I 
 duty are levied on site value only. This section points out what is site 
 value, or, in other words, how site value is to be arrived at. Reversion 
 duty is leviable on " total value " at the time of levy, less a prior 
 "total value." The former total value, that at the time of levy, is to 
 be ascertained under s. 25 (s. 13 (2) ). The total value at the earlier 
 date is to be ascertained by the special process set forth in s. 13 (2). 
 
 The earlier editions of the clause in Parliament contained definitions 
 only of total value and "site value." The later added one entirely new 
 definition and divided that of "site value" into two categories. " Gross 
 value" is the addition; "full site value" and "assessable site value" 
 are the two divisions into which site value is split up. It may be 
 doubted whether the additional definitions have added to the lucidity 
 of the scheme. On p. 308 it is attempted to explain one at least of the 
 reasons why the four values were introduced into the valuation scheme. 
 
 To the layman it seems an easy task to determine the taxable value The view of 
 of, on the one hand, the house and land considered as an aggregate, *^^ layman 
 and of the land contemplated as a site cleared of all that industry has legal view, 
 added to it or placed upon it on the other. But the numerous incidents 
 which are attached to laud and buildings in the process of meeting the 
 complex requirements of civilisation make the task, which seems so easy 
 to a layman, one of greater difficulty to a lawyer. The value of | 
 lands and buildings is affected by all sorts of things, invisible, as well \ 
 as visible to the onlooker. Rates and taxes, private and public ' 
 rights of way, easements of many other kinds, restrictive covenants, rent- 
 charges, and charges under public or private improvement schemes are 
 examples, not exhaustive, of the things which count as elements of 
 value. Further, the Finance Act of 1910 creates by definition a new 
 taxable entity, never before known to the law, which has seldom 
 existed in fact, and will seldom exist in the future, except in imagination, 
 and which is called in the Act " the assessable site value." * 
 
 " Total value," defined in sub-s. (3), and " assessable site value," in The four 
 subs. (4), play an operative part in the machinery of the Act. They "^^l^^s. 
 are the values upon which the new taxes are levied. " Gross value," 
 defined in sub-s. (1), and " full site value," in sub-s, (2), appear to be 
 mere steps in the ascertainment of " total value " and " assessable site 
 value " Conceivably there may be no difference at all between the amount 
 of all four values. The " gross value " of a bare piece of land on which 
 
 * This statement is not intended to criticise the tax on site values, which 
 would be outside the scope of this work. It is intended only to assist the 
 reader in grasping the idea of the subject-matter of the tax. 
 
272 Land Clauses of the Finance Act. 
 
 § 24. there are no buildings and there is no growth, which is subject to no 
 burdens, charges, or restrictions, easements, public or private rights, and 
 in respect of which no money has been spent in any of the ways 
 mentioned in the section, is the same as its " total value," its " full site 
 value," and its "assessable site value." But little of the land of the 
 country is in this position. Whenever fixed charges, easements, public 
 or private rights, or restrictive covenants affect a piece of land, its 
 *' total value " is different from and less than its " gross value." When- 
 ever there are buildings, erections, or growing produce on land, its 
 "full site value" differs from its "gross value," and its assessable site 
 value from its total value, except, indeed, in the possible case of the 
 cost of clearing the land exactly balancing the additional value 
 conferred upon it by the buildings, erections, or produce. If the 
 buildings are so dilapidated that the cost of clearing them away would 
 exceed the value arising from their existence, the full site value is 
 actually greater than the gross value. " Full site value," again, differs 
 from and is greater than "assessable site value" whenever (1) the land 
 is subject to any burden, charge or restriction, easement, public or 
 private right, or (2) there has been any expenditure adding value to the 
 land and falling under any of heads (b) to (e) in sub-s. (4). Enough 
 has been said to indicate the complexities of the system of values 
 introduced by the Act. At this point it will be sufficient to emphasise 
 (a) the paragraph of sub-s. (4) providing that any reference in the Act 
 to "site value" (other than the reference to the site value of land on 
 an occasion on which increment value duty is to be collected) is to be 
 deemed a reference to the assessable site value of the land as ascer- 
 tained in accordance with this section, and (b) sub-s. (5), which provides 
 that the provisions of this section are not applicable for the purpose of 
 the valuation of minerals. 
 
 Section 25. 
 
 § 25. 25. — (1) For the purposes of this Part of this Act, 
 
 Definition of the gross vaUie of land means the amount which the 
 land. fee simple of the land, if sold at the time in the open 
 
 market by a willing seller in its then condition, free 
 from incumbrances, and from any burden, charge, or 
 restriction (other than rates or taxes), might be expected 
 to realise.* 
 
 This section does not apply to the valuation of minerals (sub-s. 5). 
 
 * See ajite, p. cL, for copy of instructions published after this book was passing 
 through the press, by the Inland Kevenue to its valuers as to the ascertainment 
 of site value on an occasion and note thereon. 
 
Valuation. 273 
 
 Gross Value. — "Gross value," as contemplated by the section, appears § 25 (1). 
 to be the value of a property held in fee without any visible or invisible 
 deduction from the fullest and most complete rights of ownership 
 known to English law. When the " man in the street," not being a 
 lawyer or a valuer, estimates the value of a house which he is looking 
 at from the street, the value present to his mind is probably that which 
 is intended in s. 25 (1) by " gross value." He knows the house is 
 subject to rates and taxes : he does not recur to the fact that it may be 
 subject to easements, fixed charges, restrictions arising out of contract, 
 and many other burdens ; or he assumes that it is not so subject. 
 Gross value is, however, in many cases a purely hypothetical value which 
 does not exist in fact. It is not identical with " principal value " 
 referred to in the valuation clause of the Finance Act, 1894, s. 7, 
 which is as follows : — 
 
 " The principal value of any property shall be estimated to be the 
 price which, in the opinion of the Commissioners, such property would 
 fetch if sold in the open market at the time of the death of the 
 deceased." That clause is a definition of the value of a real and not a 
 hypothetical subject-matter. 
 
 Gross value is a step in the ascertainment of original total (or real) A step to 
 value and original site value under ss. 26 and 27 (see s. 26 (1) and y^j^ygg 
 s. 27 (4) ). The gross value of the land must be first ascertained, 
 because its total value is arrived at by deducting from the gross 
 value the amount by which the hypothetical gross value would be 
 diminished, if the land which, in arriving at gross value, is valued free 
 from its actual burdens as mentioned in sub-s. (3) were valued subject to 
 those burdens. In other words, assvime that the gross value of a piece 
 of land is 1,000^., but that the land is, as a matter of fact, subject to a 
 land tax of \l. a year, and a certain easement of way attached to a 
 neighbouring property ; assume further that the land if sold subject to 
 the land tax and the easement would fetch 200^. less than if sold free 
 from them. Then the total value under sub-s. (3) = 1,000^. - 200^. 
 = 800^. This is a roundabout way of arriving at total value, because, 
 as is seen by considering the above figures, you have in fact to 
 arrive at total value before you can find the sum which under sub-s. (3) 
 you have to deduct from gross value to arrive at total value. The 
 process as described in sub-ss. (1) and (3) of s. 25 may thus be stated 
 algebraically. 
 
 Let a — gross value 
 
 X = total value 
 Then a = x -\- (a — x) 
 
 and X = a - (a — x). 
 
 Gross value is also a step in arriving at original assessable site value, 
 because, as will presently be seen (sub-s. (4) (a), p. 294), assessable site 
 value is arrived at by deducting from total value the same amount as is to 
 be deducted for the purpose of arriving at full site value from gross value. 
 
 N. 18 
 
274 
 
 Land Clauses of the Finance Act. 
 
 § 25 (1), 
 
 Must be 
 ascertained 
 on occasions 
 under ss. 1 
 and 2. 
 
 On apportion 
 ment. 
 
 On payment 
 of reversion 
 duty. 
 
 Generally. 
 
 That amount is one which can only be determined under sub-s. (2) af tei 
 gross value has itself been determined. 
 
 " Gross value " for similar reasons must also be ascertained as a step 
 in the process of ascertaining assessable site value under s. 28 or the 
 quinquennial valuation for the pui-poses of undeveloped land duty. 
 
 Gross value must also be ascertained on the occasion of a payment of 
 increment value duty imder ss. 1 and 2. On each of the occasions (a), 
 (6), (c), and (d) mentioned in s. 2 (2), the site value on the occasion 
 (which is to be deducted from the original site value in order to ascertain 
 the increment value) is a certain sum, arrived at in diflferent ways, 
 according to the nature of the occasion, from which is to be deducted in 
 each case *' the like deductions as are made under the general provisions 
 of this part of this Act as to valuation for the purpose of arriving at 
 the site value of land from the total value." Those deductions are set 
 out in sub-s. (4) of s. 25, and the first of them (a) is " the same amount 
 as is to be deducted for the purpose of arriving at full site value from 
 gross value." This, as already stated, involves the ascertainment of 
 gross value. 
 
 Gross value for reasons which will now be tolerably apparent must 
 also be ascertained on the apportionment or reapportionment of original 
 or periodical site value under s. 29 (2). 
 
 It is also necessary to ascertain gross value in the case of an occasion 
 for payment of reversion duty under s. 13 (2) in order to arrive at 
 " 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 determines." 
 
 It will be unnecessary to repeat these remarks under sub-ss. (2), (3), 
 and (4) of s. 25, if it is now said that whenever assessable site value has 
 to be arrived at, that is on the original and the quinquennial valviations, 
 and on apportionments and reapportionments of original and periodical 
 site values under s. 29 (2), gross value, full site value, and total 
 \ value must, as steps in the process of valuation, be ascertained ; that 
 Whenever site value (not designated assessable site value (s. 25 (4) ) on an 
 joccasion of payment of duty under ss. 1 and 2 has to be ascertained, both 
 /gross value and full site value must also be ascertained ; and that whenever 
 ^ total value at the time of the determination of a lease has to be ascer- 
 tained for the purposes of reversion duty, gross value should in theory 
 be ascertained. Total value has not to be ascertained on " an occasion 
 arising for payment of duty under s. 1," except under s. 1 (c), because 
 the "value of the consideration for the transfer" under s. 2 (2) (a), 
 "the value of the fee simple of the land calculated on the basis of the 
 value of the consideration for the grant of the lease or the transfer of 
 the iuterest " under s. 2 (2) [b), and "the principal value of the land as 
 ascertained for the purposes of Part I. of the Finance Act, 1894," etc., 
 under s. 2 (2) (c), are respectively taken as better tests of total value 
 than a valuation under s. 25 (3). 
 
Valuation. 275 
 
 Fee Simple means, under s. 41, the fee simple in possession not § 26 (1). 
 subject to any lease, but does not include an undivided share in a fee 
 simple in possession. The definition is vital. 
 
 At the Time.* — The time at which the value is to be ascertained, i.e. : 
 (a) Under s. 26 all land in the United Kingdom is to be valued as soon 
 as may be after the passing of the Act, and the original total and site 
 values are to be estimated as on April 30, 1909. (b) Under s. 28 in the 
 year 1914 and in every subsequent fifth year a valuation is to be made of 
 undeveloped land, showing the site value, which presupposes valuations 
 showing gross value, full site value, and total value as on Api-il 30 of 
 that year, (c) Under s. 29 apportionments and reapportionments of 
 original and periodical site values may be made, and this sub-section 
 (s. 25 (1)) will again be applicable as at the date of the original or • 
 periodical valuation, (d) On occasion for payment of increment value 
 duty arising on sale, lease, or death under s. 1 the time will be the 
 date of the occasion in question, (e) In the case of periodic payments 
 of increment value duty under s. 1 (c) and s. 6 the account to be 
 furnished by the body "shall contain an account of the increment value 
 of the land as on the preceding 5th day of April " {ib., sub-s. (2)). 
 (J) Under s. 13 for purposes of reversion duty the total value of the 
 land has to be ascertained at the time the lease determines. 
 
 The valuer must \inder these words, it is thought, take into considera- 
 tion the cost of erecting the buildings at the time. All increase or decrease 
 of values of built- over land is not necessarily referable to site valiie. 
 The value of the buildings as applied to that land may vary with the 
 cost of building. But the permanency of the variation must also be 
 considered. 
 
 In the Open Market, i.e., not by offers confined to or made by a 
 selected class, but not necessarily by auction. Probably the words mean 
 nothing more than is implied in every ordinary valuation. For the 
 same words see the Finance Act, 1894, s. 7 (5), and the Licensing Act, 
 1904, s. 2 (2). As to the meaning of these words as applied not to land 
 but to shares, with peculiar incidents attaching, see Attorney- General 
 V. Jameson, [1905] 2 I. R. 218. It is thought that it must be assumed 
 by the valuer that proper steps have been taken to put the property on 
 " the open market," i.e., that notice boards have been put up, that it has 
 been in the hands of agents, or advertised to a reasonable and average 
 extent. 
 
 Willing Seller. — The word "willing" does not seem really to add to 
 the meaning of the clause. Probably it is inserted to guard against 
 certain possible methods of valuing. It may be intended, on the one 
 
 * The notes on the following words in sub-s. (1) of s. 25, "at the time," "in the 
 open market," "by a willing seller," "might be expected to realise," are to a 
 large extent as applicable to sub-s. (2) as to sub-s. (1). 
 
 18—2 
 
276 
 
 Land Clauses of the Finance Act. 
 
 § 25 (1). hand, to prevent any lowering of the value on the assumption that the 
 vendor is bound to sell against his will and that buyers know it and 
 take advantage of his necessities. It may, on the other hand, be 
 intended to prevent any inflation of the value on the grovmd that not 
 being a willing seller he must be tempted by a high price, or ought to 
 receive compensation, as imder the Lands Clauses Acts, for the loss of 
 his property. It is submitted, however, that the words " by a willing 
 seller " do not alter or add to the meaning of the sub-section, and that 
 the value of a property "in the open market " is quite independent of 
 the state of mind of the seller. The sub-section says nothing about a 
 willing buyer, but it must be assumed by the valuer that there is such 
 a person, because he is to assume that the property is actually sold. 
 At a price there is always a willing buyer, for if there is not there is no 
 value "at the time " in the land. The real test of the value of land is, 
 it is submitted, what a hypothetical buyer, who is necessarily a willing 
 buyer, would give, and the hypothetical willingness or unwillingness of 
 the seller seems to have nothing to do with the matter in a valuation, 
 which is not an actual offering of the property for sale, when the 
 personal elements involved in the higgling of the market have an 
 influence. 
 
 In its then Condition, i.e., with all its buildings and all its growth — 
 " as it stands." The contrast is with the valuation of a hypothetical 
 thing as in sub-s. (2), i.e., the full site value. But the words probably 
 include the then condition of the surroundings of the property, so far 
 as such condition influences its value. A house in good repair itself, 
 but surrounded by dilapidated buildings, is thereby depreciated in value. 
 
 But the words do not, it is thought, mean that the valuer is to 
 assume that the property is to be deemed always to remain in its then 
 condition. Full consideration must be given to the possibilities of value 
 in the future. A house on the line of Kingsway, or other wide and 
 handsome street, may be dilapidated and out of character with its 
 surroundings. It is submitted that the fact that the cleared site would 
 command a higher sum than the existing site and building is a matter 
 which the valuer should take into account. A terrace of suburban 
 houses could, with small expenditure, be transformed into shops for 
 which there is a demand. The same reasoning would apply. A 
 probable fall in value must be considered by the valuer. It is, of course, 
 needless to add that there is no analogy in this respect between the 
 value on sale under the Finance Acts of either 1894 or 1910 and the 
 annual value for rating purposes, or the annual value for income tax 
 under Schedule A. The latter vahies are expressly based on the letting 
 value of the property as it stands at the moment, without regard to its 
 possibilities in the future. 
 
 Free from Incumbrances. — For definition of" incumbrances,' see s. 41, 
 p. 451. In all four values the land if valued as free from incumbrances. 
 
 Future 
 development 
 to be allowed 
 for. 
 
Valuation. 277 
 
 Other than rates or taxes. — Must not the vahier allow a deduction § 25 (1). 
 for increment value duty and reversion duty under these words 1 Surely 
 he must take into account the undeveloped land duty ! 
 
 Might he expected to realise. — The amount which a property 
 " might be expected to realise " depends largely upon the number of 
 similar properties in the market at the same time, but not in the least 
 upon the number of similar valuations which are at that time being 
 made. It woidd therefore appear that the problem which the valuer 
 has to solve is simply what would this property probably fetch if it 
 were added to the number of existing properties actually on sale, and if 
 it had to be sold then. Full weight ought to be given to any temporary 
 depression as well as temporary inflation of the land market. For 
 example, if there has just been a commercial crisis and the rate of 
 interest is 10 per cent, with no immediate prospect of a reduction, it 
 would probably need a low price to tempt a buyer to come forward ; but 
 that low price — it is thought — is the value under those circumstances. 
 
 Cases under the Lands Clauses Act, 1845, are perhaps not of much Cases under 
 value as authorities on s. 25. Under that Act the owner is to be ^}]^ Lands 
 compensated for the loss to himself of his property, and the test of that 
 compensation is neither solely market value, nor is it the value of the 
 property to the promoters (Stebbing v. Metropolitan Board of Works, 
 (1870) L. R. 6 Q. B. 37). Under s. 25 of the Act of 1910 the values 
 to be ascertained are not the values to the owner, but the market 
 values. The following cases, however, may be mentioned as not 
 irrelevant. 
 
 The probability that agricultural land near a town may be required for Future 
 buildings generally {E. v. Brotvn (1867), L. R. 2 Q. B. 630), that land possibilities. 
 near a reservoir may be required for building mills which could use the 
 reservoir {Ripley v. Great Northern Raihvay Co. (1875), 10 Ch. App. 
 435), the fact that the land has a special adaptability for the construc- 
 tion of a reservoir {In re an Arbitration between Gough and the Aspatria 
 Water Board, [1904] 1 K. B. 417, C. A. ; In re an Arliitration between 
 Lucas and the Chesterfield Gas and Water Board, [1908] 1 K. B. 16, C. A.), 
 the fact that the land was the only land suitable in the neighbourhood 
 for a school which it was in evidence there was an intention to build 
 {Bailey and Isle of Thanet Light Raihvay s, [1900] 1 Q. B. 722) have 
 all been held to be matters proper to be taken into account in assessing 
 compensation payable by promoters. It would seem tolerably certain 
 that not only considerations of the nature of those referred to, but all 
 other matters which could reasonably be thought to influence buyers, 
 must be the subject of the valuer's consideration under s. 25, as for 
 example that a railway is projected, or that it is probable that a 
 railway will be projected, or that it is likely that factories may be 
 established in the neighbourhood and that the land may be wanted for 
 workmen's houses. So it is thought it would be a proper matter for 
 
278 
 
 Land Clauses of the Finance Act. 
 
 § 25 (1). 
 
 Value to 
 
 owner 
 
 himself. 
 
 Goodwill. 
 
 Large build- 
 ings and 
 undertakings. 
 
 the valuer's consideration that a superior class of property is being built 
 on the demolition of old property in the neighbourhood. 
 
 The special value of the property to the owner himself ought perhaps 
 to be taken into consideration, as where a piece of land in separate 
 occupation and being separately valued forms part of a larger property. 
 It is a more difficult question whether, in the valuation of, for example, 
 a shop, the probability that the owner and occupier who had established 
 a business would be a bidder should be taken into account. It seems 
 that it should, under the w^ords "in the open market," but that the 
 deduction iinder sub-s. (4) (d) of any part of the total value which is 
 proved to the Commissionei-s to be directly attributable to (inter alia) 
 goodwill or any other matter which is personal to the owner, occupier, 
 or other person interested in the land would bring about a reduction in 
 the site vahie of so much of the additional price caused by considering 
 the owner or occupier as a buyer as was attributable to goodwill. There 
 is indeed a question arising on sub-s. (4) (d) whether the goodwill which 
 is to be deduced is only personal goodwill, that is goodwill arising from 
 pei^sonal connection (see Trego v. Hunt, [1896] A. C. 7, at p. 17 ; 
 Ginesi v Cooper (1880), 14 Ch. D, 596), or includes goodwill connected 
 with the premises (Ex parte Punnett, 16 Ch. D. 226 ; see also Com- 
 missioners of Inland Revenue v. MvXler dh Co., [1901] A. C. 217). 
 As to the further difficult problem — viz., where the line of difference 
 between local and personal goodwill is to be or can be drawn in such a 
 case see per Lord Lindley in the case last cited at p. 235. Comer plots 
 are thought to be specially suitable for doctors' residences and public- 
 houses. 
 
 No doubt difficult cases will seemingly arise in relation to the gross 
 value of certain large buildings, whether of a public or private nature. 
 Persons familiir with rating law know that mills, electric lighting and 
 gas works, railway stations, public halls, libraries, university buildings, and 
 the like, not occupied by tenants paying rent, are often valued for rating 
 purposes by estimating the sum which it would cost to replace the build- 
 ing and then charging interest on that siim (see Ryde on Rating, 
 2nd ed.). A little reflection will, however, show that the value put upon 
 the buildings as included in gross value is of comparatively small 
 (if of any) importance in the complicated scheme of s. 25, except in case 
 of reversion duty, where the tax is placed on "total value " (s. 13 (2) ). 
 In all other cases the crux of the valuation is site value. This is fully 
 worked out later (see note on p. 305). Again, many of the buildings 
 thus subject to special treatment in rating are either exempt from the 
 new duties under s. 35 or partially exempt under ss. 37 and 38, or are 
 practically exempt because they are both developed and quite out of the 
 range of incrementing in value. The site value of an East-end factory 
 is not likely to grow presently more valuable. For these reasons it is 
 thought that there will not be much difficulty in arriving at the gross 
 value of the large buildings referred to. The full site value, which is 
 
premises. 
 
 Valuation. 279 
 
 the really important matter, will be ascertained on the principles § 26 (1). 
 already referred to. 
 
 It is thought that the value of the licences must be taken into iii^ensed 
 account in ascertaining the gross value of licensed premises. In rating 
 cases it is clear that that value must be taken into account in ascertaining 
 annual value (H. v. Bradford, 4 M. & S. 317). If that is the case also 
 under s. 25 it would seem that evidence of the amount of trade which 
 can be and has been actually done on the premises would be admissible 
 (Cartwright y. Gtiardians of Sculcoates Union, [1900] A. C. 150). The 
 case referred to was a rating case, but the speeches (see especially that 
 of Lord Morris at p. 155) seem to be applicable to a valuation for sale 
 in the open market. It does not, however, follow that evidence of such 
 takings will be admissible in all cases of valuation of public-houses 
 under s. 25, since Dodds v. South Shields Union ( [1895] 2 Q. B. 133, 
 C. A.), in which evidence of weekly takings was rejected, was not in 
 express terms overruled by the House of Lords in Carhvright v. 
 Guardians of Sculcoates Union, though the speeches of Lord Davey (see 
 p. 159) and Lord Bramwell (pp. 160, 161) must, it is thought, have 
 greatly weakened its authority.* The amount of compensation payable 
 on the refusal of a licence under s. 1 of the Licensing Act, 1904 
 (4 Edw. 7, c. 23), is, by virtue of s. 2 (2) of that Act and s. 7 (5) of the 
 Finance Act, 1894, to be based in default of agreement on the price 
 which such property would fetch "if sold in the open market.'' In Re 
 Ashbys Cobham Breivery Co., etc., [1906] 2 K. B. 754, it was held by 
 Mr. Justice Kennedy that in estimating the value of licensed premises 
 it was material to inquire into the quantity and quality of the trade 
 previously done, since possible purchasers in the open market would 
 be brewers, and the price which they would be willing to pay would 
 depend upon the profits which they might fairly expect to make by the 
 supply of liquor to the licensed premises. From the result of this 
 inquiry would be ascertained " the annual profit, which according to the 
 ordinary course of the brewer's trade, may be treated as likely to be 
 derived from the supply of liquors to the licensed premises " (p. 764). 
 But tenants' profits arising out of the retail supply were not to be 
 taken into consideration, because (inter alia) they were not " factors in 
 the calculation of the market price of the premises" (p. 765). If this 
 decision is correct, it would seem to lay down a rule for valuing licensed 
 premises under s. 25. An extremely difiicult legal question will arise as 
 to the valuation of tied houses, but this will occur in the ascertainment 
 of total and not of gross value. Gross value must be ascertained free 
 from the tie. The tie would seem to be a "covenant or agreement 
 restricting the use of the land " within the meaning of sub-s. (3). But 
 
 * But see the case of Re an Ariitration between the London County Council and 
 the City of London Brewery Co., [1898] 1 Q. B. 387. It was, however, decided 
 before the Sculcoates Case above referred to, and on a statute very specially worded. 
 
280 
 
 Land Clauses of the Finance Act. 
 
 Profits of 
 businesses, 
 
 § 25 (1). quasre do these words apply to covenants or agreements affecting only 
 leasehold interests. If they do not, the tie, it seems, must be disregarded 
 in finding " total value." If they do (subject to the question as to the 
 desirability of the tie in cases where it is created after April 30, 1909) 
 (sub-s. (3) ), the value of the premises is diminished by the tie to every 
 one in the world except the brewer in whose favour the tie is given. 
 But as he must, it is thought, when gross value is being ascertained, 
 be considered a possible purchaser in the open market, the total value, 
 which is regulated by gross value less the deductions mentioned in 
 sub-s. (3), will not, it seems, necessarily be diminished by the existence 
 of the tie. It seems that in rating cases the annual value of the house 
 is not considered to be affected by the existence of a tie {Overseers of 
 Sunderland near the Sea v. Sunderland Union, 34 L. J. M. C. 121 ; 
 Bradfm'd-on-Avon Committee v. White, [1898] 2 Q. B. 630). 
 
 It is thought that evidence as to the takings and profits of businesses 
 other than licensed premises carried on upon the land is not usually 
 material in ascertaining market value, the question being what would 
 an ordinary buyer give (see per Lord Esher, M.R., in Dodds v. South 
 Shields Union, supra, at p. 135 ; Mersey Docks v. Liverpool, L. R. 9 Q. B. 
 84). In certain exceptional cases the practice adopted in rating cases 
 of admitting evidence of takings or profits may perhaps be followed (see 
 M&rsey Docks v. BirkenJiead Union, [1901] A. C. 175, and cases there 
 referred to). 
 
 But such cases will be comparatively few in number as compared 
 with the like class of cases in relation to the law of rating. Sects. 35 
 (exemption of rating authorities) and 38 (special provisions for statutory 
 companies) will confine the number of such cases to a comparatively few 
 private undertakings. 
 
 If the value added to premises by licences and profits to be derived 
 by a trade carried on upon the premises is to be taken into account 
 under gross value, it would seem that this must be the case in 
 arriving at full site value under s. 25 (2)* and total value under 
 sub-s. (4). But in calculating assessable site value under sub-s. (4) 
 there must probably be some deduction under {d) in respect of " good- 
 will or any other matter which is personal to the owner, occupier, or 
 other person interested for the time being in the land." Exactly what 
 this deduction will include in the case of licensed premises it is difficult 
 to prophesy. The view expressed in the first edition of this work 
 (p. 136), that "in estimating the value of the vacant site of a formerly 
 well-known hotel there is to be deducted any extra value arising from 
 the fact that a new hotel there would probably obtain some of the 
 custom of the old hotel," is on further consideration thought to be of 
 doubtful correctness. From the words in s. 25 (4) {d) " or any other matter 
 
 Licences and 
 total site 
 values. 
 
 * But as to full site value compare Lotulou County Qiujicil and (My of London, 
 etc., Co., [1898] 1 Q. B. 387. 
 
Valuation. 281 
 
 which is personal to the owner," etc., it seems that the goodwill to be § 25 (1). 
 
 deducted under (d) may be only the personal goodwill derived from the 
 
 peculiar skill and energy of the owners and occupiers which have caused 
 
 the house to be more profitable than under average ownership and 
 
 management (see Ginesi v. Cooper, 14 Ch. D. 596, at p. 599, for the 
 
 distinction between " personal " and " local " goodwill as explained by 
 
 Jessel, M.R.). The goodwill of a public-house may, it seems, inckide 
 
 several elements : (1) The value of the business owing to the skill and Elements of 
 
 attention of owner and occupier being more than the average applied ^"odwill^"^^ 
 
 to such a business ; (2) the value of a specially advantageous situation ; 
 
 (3) the value of the licence. 
 
 As to No. (1) it is thought that it clearly ought to be deducted 
 under (d). As to No. (3) it is thought that it ought not to be deducted 
 so long as the licence lasts and therefore the added value continues. 
 As to No. (2) it is thought that it ought not to be deducted. It is 
 thought that the general scheme of the clauses is to tax increases in 
 value arising otherwise than from the expenditure or exertions of owners. 
 Unless, therefore, you find a clear direction to deduct from the real 
 selling value of a site in the open market the amount of the value 
 added to that site by the licence, it is submitted that that value ought 
 not to be deducted (see note on goodwill, po^, p. 300). 
 
 It may, however, be urged that the added value of the licence Is value of 
 is within (4) (b) " value directly attributable ... to expenditure of a ^^Pf'^P^. 
 capital nature . . . incurred . . . for the purpose of improving the to capital 
 value of the land ... for the purpose of the business of a public-house," expenditure ? 
 and that therefore all original value and all subsequent increases in 
 value derived from the existence of the licence ought to be deducted, 
 'i^he capital expenditure might be suggested to have been the costs of 
 the applications to the magistrates for the licence, which are often con- 
 siderable, and the fact that expenses of advertisement are classed by (6) 
 as capital expenditure shows that the expenditure is not limited to 
 material objects. But it is doubtfiil whether this view would prevail. 
 
 In estimating gross value the state of structural repair of the State of repair 
 buildings is of course an important element, and this is so to a greater °^ buildings, 
 extent than in rating cases, where the question is what rent a tenant 
 could pay from year to year. 
 
 Gross value must clearly include irremovable fixtures. Fixtures. 
 
 The value will be fixed, it is thought, without any deduction for the 
 expenses of the hypothetical sale. 
 
 The question of depression in values caused by restrictive covenants Influence of 
 
 is dealt with by sub-s. (3) of this section and is referred to in the note i"6strictiye 
 
 •' . L^' covenants in 
 
 on such sub-section. But is the valuer in valuing for purposes of enhancing 
 
 s. 25 (1) to take into consideration the fact that the mutual covenants "^^l^e. 
 
 of all the owners or lessees of a certain defined area of land have had 
 
 the total effect of raising the value of the land he is appraising? 
 
 Assume that the value of the land composing a building estate of 
 
282 
 
 Land Clauses of the Finance Act. 
 
 § 25 (1). 
 
 Easements 
 attached to 
 the land. 
 
 No conflict 
 with s. 41. 
 
 Finance Act, 
 1910, s. 60. 
 
 twenty acres has befen increased, on account of a covenant inserted in 
 the conveyance of the fee of every lot that no house should be built 
 upon it the prime cost of which did not exceed £1,500. In the 
 valuation for " total value " under sub-s. (3) an owner is entitled to a 
 deduction on account of that restriction (under the limitations of the 
 sub-section) if in fact it does detract from the value of his land. If you 
 are to imagine all the rest of the estate free from the condition, while 
 the owner whose property is being valued is subject to it, then the 
 condition does, probably, reduce the value of his lot. But surely the 
 condition must be taken with its corresponding advantages, which it 
 is submitted must form an element in the value arrived at under 
 sub-s. 1. 
 
 Again, is the valuer bound to take into account the existence of 
 easements appurtenant or attached to the property, such as rights to 
 light, rfghts to support, and rights of way, which in fact increase the 
 value of the property? Unless he does so the "gross value" of a 
 property within the meaning of the Act would in many cases be hope- 
 lessly out of relation to the real facts of the case, and the whole scheme 
 of the Act would become absurd. Conceive the valuation of a house 
 situate in a court off Threadneedle Street, and let its gross, total, and 
 site values be ascertained as on April 30, 1909, as if it had no rights of 
 light, support, or access. Assume it sold in a few years for its real 
 value. The purchase price would then represent total value under 
 s. 2 (2) (a). The consequence would be that its site value would appear 
 enormously greater, though in fact it had not increased in the least, and 
 increment value duty would be payable on a large sum. 
 
 It is submitted that to value the land with its easements is not to do 
 anything which conflicts with the paragraph of s. 41 which runs as 
 follows : " The expression ' land ' does not include any incorporeal 
 hereditament assess^ed or granted out of the land." The meaning of 
 that is, it is siiggested, that you are not to value as a separate parcel of 
 land an easement or a rent-charge, or sporting rights over or issuing 
 out of the land. So where in the clause of s. 41 beginning "the 
 expression ' interest ' in relation to land " it is enacted that " interest " 
 does not include " any purely incorporeal hereditament," it is submitted 
 that what is meant, is, that such hereditaments are not considered as 
 separate parcels of land to be the siibject of the increment value duty 
 or undeveloped land duty. 
 
 The valuation of land comprising minerals which may or may not be 
 so worked as to destroy the surface will be of some difficulty. 
 
 The provision of s. 60 (2) of the Finance Act, 1910 (see p. 478), ought 
 not perhaps to be overlooked. Tliat section provides that " in estimating 
 the principal value of any property under sub-s. (5) of s. 7 of the Finance 
 Act, 1894, in the event of any person dying on or after April 30, 1909, 
 the Commissioners shall fix the price of the property according to the 
 market price at the time of the death of the deceased, and shall not 
 
Valuation. 283 
 
 make any reduction in the estimate on account of the estimate being § 25 (1). 
 made on the assumption that the whole property is to be placed on the 
 market at one and the same time." This enactment relates only so far 
 as the new duties are concerned to valuation for purposes of increment 
 value duty on death under s. 2 (2) (c). 
 
 "Principal value" under the Finance Act, 1894, is not, however, the Principal 
 counterpart of "gross value" under the Finance Act, 1910, biit takes value com- 
 the place, on an occasion arising for payment of increment value duty gross value, 
 on death, of " total value " (sub-s. (3) ) on the original site valuation. 
 When that duty is payable on death under s. 1 (b), and the increment 
 value on the occasion is being ascertained vinder s. 2 (2) (c), the gross 
 value of the land as well as the full site value have to be ascertained 
 under s. 25 (1) and (2), and the difference between these two values is, 
 by virtue of the concluding words of s. 2 (2), deducted, with any other 
 proper deductions under s. 25 (4), from the principal value of the land 
 as ascertained under the Finance Acts, 1894 and 1910 (s. 60). Never- 
 theless it seems that s. 60 (p. 478) can hardly be ignored by the valuer in 
 estimating gross value on a death occasion for payment of increment 
 vahie duty, since it would be absurd to make a reduction such as is 
 referred to in s. 60 from gross value, and yet not to make such a 
 reduction in estimating principal value. It seems, however, that this 
 question is one of theoretical rather than of practical importance, since 
 if the reduction is made in estimating gross value, it must also be made 
 in estimating full site value under s. 25 (2), and it is the difference 
 between these two values which is to be deducted from principal value 
 under s. 2 (2) and si 25 (4) (a) in order to ascertain assessable site 
 value on the occasion of death. It is obvious that this difference 
 is not affected if a similar reduction is made under both sub- 
 sections. 
 
 (2) The full site value of land means the amount 
 which remains after deducting from the gross value of 
 the land the difference (if any) between that value and 
 the value which the fee simple of the land, if sold at the 
 time in the open market by a willing seller, might be 
 expected to realise if the land were divested of any 
 buildings and of any other structures (including fixed or 
 attached machinery) on, in, or under the surface, which 
 are appurtenant to or used in connection with any such 
 buildings, and of all growing timber, fruit trees, fruit 
 bushes, and other things growing thereon. 
 
 " Full Site Value." — Full site value, for reasons which will be found 
 stated on p. 305, is the value which is the basis of the calciilation 
 
284 
 
 Land Clauses of the Finance Act. 
 
 § 25 (2). 
 
 An involved 
 definition. 
 
 & 
 
 It is the value 
 of a cleared 
 site. 
 
 But includes 
 
 artificial 
 
 value. 
 
 As to the 
 buildings. 
 
 determining the amount of the increment value duty and of the 
 undeveloped land duty which may from time to time be payable in 
 respect of land. It is suggested that "full site value'' is simply "the 
 value which the fee simple of the land if sold . . . growing thereon," 
 and that "assessable site value" is simply "full site value" less the 
 deductions to be allowed from that value in respect of any of the 
 matters mentioned in sub-s. (3) and in sub-s. (4) (6) to (e) inclusive 
 which affect the site in question. 
 
 The first point which strikes the reader is that the definition seems to be 
 very involved. The "full site value "is in fact "the value which the fee 
 simple of the land, if sold, . . . growing thereon." That, in any event, 
 must be found by the valuer. Assume that the gross value has been 
 fouud under sub-s. (1) to be 1,000^., and that " the value which the 
 fee simple, etc., might be expected to realise if the land were divested, 
 etc.," has been found to be 200^. Is it not rather a circumlocutory use of 
 language to explain the latter sum (200^.) as the amount which 
 remains after deducting from 1,000/. the difference between 1,000/. 
 and itself (200/.), i.e., 800/. 1 The explanation is probably that it was 
 desired to have the difference which represents the non-site element of 
 the property as an ascertained amount to use under sub-s. (4) (a) for 
 the purpose of arriving at assessable site value (see notes on pp. 295 — 
 309). 
 
 " Full site value " appears to be the value of the site as a cleared 
 site — that is, as a site without any buildings or erections or natural or 
 artificial growth of any kind upon it. It further seems that its value 
 as a cleared site is to be estimated on the supposition tliat it is " free 
 from incumbrances and from any burden, charge or restriction (other 
 than rates or taxes)." The sub-section does not indeed say so, as it does 
 with reference to gross value in sub-s. (1). But what is obviously being 
 compared in sub-ss. (1) and (2) is the value of the total hereditament with 
 the value of the cleared or naked site, and it is therefore thought that 
 if the one is to be taken as free from incumbrances, etc., so must the 
 other. 
 
 "Full site value," unlike assessable site value, includes value 
 created by artificial means, such as drainage and levelling. It includes 
 value added to the land by any of the methods or works or in any of 
 •the ways referred to in sub-s. (4) (b), (c), (c/), as well as in any other 
 manner. It is nevertheless in many cases a purely hypothetical value, 
 for in arriving at it, it is (probably) to be assumed that the site is free 
 from incumbrance, burden, charge, or restriction other than rates or 
 taxes ; and it is to be valued as a cleared site when it may in fact be 
 covered with buildings, crops, or vegetation. The problem for the 
 valuer is, what would that site sell for at that moment if offered free 
 from incumbrances, as a cleared site ready to be built upon, and assuming 
 the actual conditions then existing in the neighbourhood ]- 
 
 Full site value is not necessarily gross value less the then value of the 
 
Valuation. 
 
 285 
 
 buildings. That may be the case where the buildings on the site are § 25 (g). 
 
 buildings suited to the site, but if the buildings are not good enough for 
 
 the site it will be found that the site value is greater than the gross 
 
 value — minus what is called the value of the buildings. Though a site 
 
 can be, and is, every day valued without its buildings, it may be 
 
 doubted whether there can be any intelligible valuation of buildings 
 
 apart from their, site. And this seems clearly to be the view of the 
 
 Act. There is gross or total value under sub-ss. (1) and (3), which is the 
 
 value of the whole hereditament, site and buildings, either subject or 
 
 not to the usual incidents of and burdens on property, and there is site 
 
 value either subject or not to the same incidents (sub-ss. (2) and (4) ). 
 
 All the gross or total value which is not full site value is non-site value. 
 
 This non-site value is not necessarily the value of the buildings, but is 
 
 the diiFerence between the value of the hypothetically cleared site and 
 
 the value of the whole hereditament, site and buildings, as it stands. 
 
 Bearing this in mind, it can now be seen what is the reason for having 
 "gross " and " full site " valuations under the scheme of increment value 
 duty. 
 
 The real, perhaps the only, object of finding "gross value " and " full Keason for 
 site value " appears from the consideration of the process of ascertaining p^^^.^'^" 
 site value under s. 2 (2) on an occasion arising for payment of increment valuations. 
 value duty. In order to arrive at that site value, which under s. 1 (a) 
 and s. 2 (2) (a) and (b) is either a realised sum or a value based on a 
 realised sum, minus certain deductions, you must find the amount which 
 represents the value added to the full or cleared site by the buildings, 
 that is you must find the non-site value, and then deduct that sum 
 from the value of the consideration, etc., under s. 2 (2) (a) and (b). 
 
 The value so added by the buildings to the cleared site is found by 
 ascertaining under s. 25 (1) the gross value, i.e., the value of the total i 
 hereditament as it stands without deductions for easements, etc. ; and / 
 under sub-s. (2) the value of the site as a cleared site, and of course without ) 
 deductions for easements, etc. The diiFerence between these two values 
 is the value added to the site by the buildings, which is not, as before 
 stated, necessarily the same as that which is often loosely spoken of 
 as the value of the buildings. This is the sum which, imder the last 
 sentence of s. 2 (2), must be found and deducted as one of the deduc- 
 tions vinder the general provisions, that is under s. 25 (4) (a) from the 
 value of the consideration, or the value of the fee simple calculated on 
 the basis of the value of the consideration, in order to arrive on an 
 occasion under s. 2 (2) (a) and (b) at the site and increment values. 
 This is also the sum which must be deducted from the principal value of 
 the land as ascertained for the purposes of the Finance Act, 1894, on a 
 death occasion under s. 2 (2) (c) for payment of increment value duty, 
 and from the total value of the land as ascertained under s. 25 (3) 
 where the occasion is a periodical one under s. 2 (2) (d) affecting the 
 land of a body corporate or unincorporate. 
 
286 Land Clauses of the Finance Act. 
 
 § 25 (2). The Diflference (if any) between that Value and the Value, etc. — 
 Usually the gross value will be greater than the full site value. Even 
 the gross value of pasture land will be greater than its full site value. 
 There will then be a difference to deduct under the sub-section. It is 
 understood, however, that in many cases for purposes of the original 
 site valuation the Government valuers are treating the gross and full 
 site values of pasture land as the same. For practical purposes this 
 will often be convenient and immaterial. But where undeveloped 
 'and duty is to be charged, it seems there should be some substantial 
 deduction, varying with the quality of the herbage, from gross value to 
 arrive at full site value. So far as increment value duty is concerned 
 the course adopted by the valuers is favourable to the subject. Full 
 site value will often be really the same as gross value, as in the case of 
 bare land, unbuilt upon and uncultivated. So where it would just pay 
 to remove dilapidated buildings for the sake of the materials, which 
 consequently have no selling value, the two values will be the same. 
 If the materials would fetch a price, that price is the excess of gross 
 over full site value. If a contractor must be paid a sum to remove 
 them, the gross value will be less by that amount than the cleared 
 site value, and there will be no difference to deduct. 
 
 _ ,■■ 1 ^ ) See notes on subs. (I), pp. 275 to 
 
 Open Market _-^ v,- i, * +. ^ 
 
 -ji:.,,. „ ,. V 277, which for the most part are 
 
 „. ...T. i. J X T applicable to sub-s. (2). 
 
 Might be expected to realise i ^^ "• ^ 
 
 Divested of any Buildings. — See note on p. 184 as to buildings 
 Herein lies the contrast with gross value which is the value of the 
 property " in its then condition." But all the surroundings are for 
 purposes of full site value assumed to be in their then condition, 
 though not necessarily to remain so for ever. 
 
 Any other Structures ... on, in, or under the Surface which 
 are appurtenant to or used in connection with any such 
 Buildings. — A. structure is distinguished from a building. The land 
 for the purposes of the hypothetical valuation is deemed to be divested 
 of buildings and "of any other structures . . . appurtenant to or used in 
 connection with any such buildings." But what about structures not being 
 buildings, and not appurtenant to or used in connection with buildings 
 on the land 1 A gymnasium is hardly a building, but is composed of a 
 number of structures. It is not necessarily " appurtenant to or used in 
 connection with" a particular building. A roundabout, a wooden 
 grand stand, and a wooden shed are, it is thought, structures at all 
 events when "structures" are contrasted with buildings. If the land is 
 to be valued to ascertain full site value, with such structures considered 
 as being part of it, then may the value added by such structures to the 
 site be deducted by virtue of sub-s. (4) (6) from the total value, in 
 
Valuation. 287 
 
 order to arrive at assessable site value"? The last words of (b) would § 25 (2). 
 probably be sufficient to authorise deduction where the structures were 
 erected for the purpose " of improving the value of the land for the 
 purpose of any business, trade or industry other than agriculture." 
 It is thought that such things as wells, drains, and bridges are aimed 
 at by the words " appurtenant to or used in connection with any such 
 buildings." As to structures not " appurtenant to or used in connection " 
 with buildings (as for example the culvert which depressed the value in 
 Shepherd v. Croft, [1911] 1 Ch. 621), it seems they must be considered 
 to be on or under the land ; but nevertheless it is thought not as the 
 irremovable subjects or instruments of any easement, burden or 
 restriction (see sub-s. (1) ), as for example gas or water pipes. So far as 
 they affect the physical conformation of tiie land they may reduce its 
 full site value ; but only to the extent of the cost of physically 
 remedying the defect. But the sense is by no means plain. For a 
 statutory definition of "structure," see the London Building Act, 1894, 
 s. 102 ; see also London County Council v. Pearce, [1892] 2 Q. B. 109, 
 and Moran v. Marsland, [1909] 1 K. B. 744, decisions on the word 
 "structure" under the London Building Acts, which, however, are not 
 much assistance. 
 
 Under the Surface. — There may be supports to buildings perhaps 
 not strictly a part of the buildings. 
 
 And all Growing Timber . . . growing thereon. — Thus it is clear 
 that the site value of agricultural land is not the same thing as the 
 value of that land for agricultural purposes. In ascertaining the site 
 value of pasture land the Commissioners have to find, it is submitted, 
 the value of the land stripped of its pasture, i.e., to value it as bare 
 soil. But they must, it is submitted, under subs. (1) give full effect to 
 the inherent capacity of the land for agricultural purposes, since that is an 
 element of market value. The sub-section does not, it is true, use either 
 the word " grass " or the word " herbage " ; but it is thought that both 
 are included in " other things growing thereon." 
 
 (3) The total value of land means the gross value after 
 deducting the amount by which the gross value would be 
 diminished if the land were sold subject to any fixed 
 charges and to any public rights of way or any public 
 rights of user, and to any right of common and to any 
 easements affecting the land, and to any covenant or 
 agreement restricting the use of the land entered into or 
 made before the thirtieth day of April nineteen hundred 
 and nine, and to any covenant or agreement restricting 
 the use of the land entered into or made on or after that 
 
288 
 
 Land Clauses of the Finance Act. 
 
 § 26 (3). date, if, in the opinion of the Commissioners, the restraint 
 imposed by the covenant or agreement so entered into or 
 made on or after that date was when imposed desirable 
 in the interests of the pubUc, or in view of the character 
 and surroundings of the neighbourhood, and the opinion 
 of the Commissioners shall in this case be subject to^^n 
 appeal to the referee, whose decision shall be final. 
 
 ** Total Value." — The root notion of total value appears to be " gross 
 
 value " less the easements, burdens, and restrictions to which the 
 
 property is subject either under the general law of the land, or under 
 
 Acts, deeds, or agreements specially affecting this property, or 
 
 under some customary or prescriptive claim. Rates and taxes are, of 
 
 course, taken into account in arriving at " gross," and therefore at 
 
 / " total " value. In other words, just as "gross value " appears to be the 
 
 / value of a property held in fee without any visible or invisible deductiou 
 
 7 from the full and complete rights of ownership, " total value " is that 
 
 value subject to all deductions, whether visible or invisible, which in 
 
 fact affect the property. But, as in the case of "gross value " so in the 
 
 case of total value, no deduction is under the actual language of the 
 
 clause to be made in respect of incumbrances. For the purpose of 
 
 raising the new taxes, incumbrances are to be considered nou-existeut. 
 
 Total value, except in the case of reversion duty (s. 13 (2)), is not a 
 value which is taxed. With site value it has to be ascertained on the 
 original site valuation under s. 26 (2). But it has to be ascertained 
 then as a step in or towards the ascertainment of site value. It has 
 also to be ascertained in the same way on the quinquennial valuation 
 for undeveloped land duty under s. 28, on the periodical valuation of 
 the land of a body corporate or unincorporate for increment value duty 
 under s. 1 (c), s. 2 (2) (d), and s. 6, and on the apportionment or 
 reapportionment of site values under s. 29 (2), (3), and (4). In cases 
 of reversion duty the tax is placed on the excess of the total value 
 calculated under s. 2.5 (3) at the determination of the lease over the 
 total value calculated as laid down in s. 13 (2) at the commencement 
 of the lease. 
 
 In order to arrive at total value the valuer must in theory first ascer- 
 tain gross value and then ascertain the amoimt which is to be deducted 
 under the sub-section from gross value. For example, if a field is subject 
 to a public right of way, the valuer must fix its selling value, as if it 
 were not subject to such right. This is its gross value, which is, say, 
 100/. He is then, under sub-s. (3), to deduct from that value "the 
 amount by which the gross value would be diminished if the land were 
 sold subject to " that right of way. Strictly speaking he ought to say, 
 " I think so much, say 5/., would be the amount by which the value of 
 the land would be diminished if it were sold subject to the right of way,'' 
 
 Total value 
 when the 
 subject of 
 taxation. 
 
 How total 
 value is 
 arrived at. 
 
Valuation. 
 
 289 
 
 is the market 
 value. 
 
 and then to deduct that 51. from the gross value, thus arriving at 951. § 25 (3). 
 total value. But how is the 51. arrived at as the proper sum to deduct 
 under sub-s. (3). It is thought that that sum can only be arrived at 
 by valuing the land subject to the right of way and deducting its value 
 considered as subject to that right from its gross value. But this is in 
 fact first to ascertain total value by valuation, and then, In order to 
 comply with the directions of sub-s. (3), to go through the formality of 
 ascertaining that same total value by deducting from gross value the 
 difference between gross value and total value. 
 
 Total value in the case of a fee simple in possession is really the Total value 
 selling or market value of the property as it stands. This is clear from 
 the definition in s. 25 (3). It is gross value, subject to the actual 
 burdens, charges, and restrictions, which are ignored in gross value. In 
 order to arrive at original site value there has to be deducted from this 
 total value (1) all that is not site value, which is represented by the 
 deduction (s. 25 (4) (a) ) ; (2) all value that has been added to the land 
 by expenditure under s. 25 (4) (6), (c), and (d) ; and (3) the cost of 
 clearing the land so as to realise the full site value. In order to arrive 
 at the increment value, and necessarily therefore at the site value, on 
 an occasion for payment of increment value duty under ss. 1 and 2, 
 exactly the same deductions as are made from total value for the purpose 
 of ascertaining site value on the original valuation must be made from 
 the sum arrived at by one of the various ways pointed out in s. 2 (2) (a), 
 (h), (c), and (d). That sum in each case really represents the selling or 
 market value of the fee simple in possession of the land on the occasion, 
 just as total value represents its selling or market value on the original 
 valuation as on April 30, 1909. In case s. 2 (2) '(a), a sale of the fee, 
 the sum in question is the market value actually realised ; 'in case 
 s. 2 (2) (6) the market value of the fee is deduced from the realised value 
 of the lesser interest ; in case s. 2 (2) (c) the valuation for death duties 
 under s. 7 (5) of the Finance Act, 1894, and s. 60 of the Finance 
 (1909-10) Act, 1910, is adopted as the market value; and in case 
 s, 2 (2) (d), where there is no test arising from realised value, and no 
 valuation for purposes of death duties, the market value is the " total 
 value " at that date, as ascertained under s. 25 (3). 
 
 But total value is not necessarily the same as the selling value of the Total value 
 reversion. The real or total value of the property may be greater or 
 less than the value represented by the rent reserved by the lease. A 
 reversion falling in in thirty years' time to a property let on lease at 
 1001. per annvim, the rack rental of which is 300^., is worth consider- 
 ably less than the fee simple in possession of the property. The total 
 value is the combined values of all the interests in the property. 
 
 Fixed Charges. — By s. 41 the expression " fixed charge" means any 
 rent-charge as defined by this Act, and any burden or charge 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 
 
 N. 19 
 
 not the same 
 as the selling 
 value of the 
 reversion. 
 
290 Land Clauses of the Finance Act. 
 
 § 26 (3). 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. 
 See notes on this definition on pp. 450 and 456. Under s. 41 (post, 
 p. 440) " ' rent-charge ' means tithe or tithe rent^charge, or other 
 periodical payment or rendering in lieu of or in the nature of tithe, or 
 any fee farm rent, rent seek, quit rent, chief rent, rent of assize, or any 
 other perpetual rent or annuity granted out of land." 
 
 If rent-charges reserved by deed ais the consideration on the sale of 
 land are fixed charges, then their value must on valuations after they 
 are created be deducted from the gross value of the land in order to 
 arrive at total and site values. This, of course, would greatly reduce 
 the site value of the land for purposes of undeveloped land duty, and 
 might lead to the extension to other parts of the country of the practice 
 in Manchester, Liverpool, and elsewhere of selling land on chief rent. 
 But it does not appear quite certain whether such rent-charges, i.e., 
 rent-charges reserved on sales, are fixed charges, or only rent^charges " as 
 defined by this Act . . . 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 " are fixed charges (s. 41, 
 pp. 440, 456). Further, a rent-charge, it seems, may be an incumbrance 
 which under s. 41 includes, inter alia, " a charge of a portion, annuity, 
 or any capital or annual sum, but does not include a fixed charge as 
 defined by this Act," and to arrive at total value it seems clear that 
 the land must be valued free from incumbrances. The true explanation 
 may possibly be that to arrive at total value you must value the land as 
 free from rent-charges which are in the nature of incumbrances or 
 securities for money, but not free from rent>charges which are reserved 
 as consideration on and for the sale of the land, or which otherwise are of 
 the nature of "fixed charges " as defined by the Act.* 
 
 Fixed charges will doubtless include charges by local authorities 
 under s. 257 of the Public Health Act, 1875 (38 & 39 Vict. c. 55), for 
 expenses incurred under the Act by the authority in relation to the 
 premises, and analogous charges under other public and local Acts. 
 But fixed charges do not include charges in pursuance of the exercise 
 of any powers or the performance of any duties by a person interested 
 in the land or in consideration of any advance to any person interested, 
 as for example charges by tenants for life or trustees under s. 39 of the 
 present Act of the amount of increment value duty or reversion duty 
 which they have become liable to pay. (As to fixed charges see further, 
 post, s. 41, p. 456, note on " The expression ' fixed charge.' ") 
 
 * The existence of a rent-charge taay often cause the land to have a minus total 
 or site value (see House of Commons Debates, July 25, 1911, p. 1573). The autho- 
 rities are of opinion that increment value duty is chargeable on an increment on 
 that minus quantity even though the site value may not reach a plus quantity of 51. 
 
Valuation. 291 
 
 To any Public Rights of User. — Examples of public rights of user § 26 (3). 
 are the right to use a village green for games, to use a common for 
 horse-racing or for booths at a fair. Many examples of this species of 
 right have been proved in the Courts, and others may exist. 
 
 Any Covenant or Agreement restricting the Use of the Land. — 
 
 If the covenant or agreement has been entered into before April 30, 
 1909, the valuer must consider whether its existence diminishes 
 the value of the property, and if it does, he nnist allow such deduction 
 for it as he considers proper. He has not to consider in this case, as he 
 has when the covenant or agreement was entered into after that date, 
 whether it was when imposed desirable on the grounds mentioned later 
 in the sub-section. But he may have to decide wliether in fact it is 
 binding at the time upon the then owner of the property. Covenants 
 restricting the use of the land may have ceased to be binding upon it or 
 its owner, because there is no property in respect of which the benefit 
 of those covenants is capable of being enforced. Again, by the general 
 acquiescence of all parties entitled to enforce them, the breaches of such 
 covenants may have been so waived that the covenants are legally 
 unenforceable {Sayers v. Collyer, L. R. 28 Ch. D. 103). There are also 
 cases to the effect that where the character of the neighbourhood has been 
 so altered that the object for which the covenant was originally entered 
 into must be considered at an end, then the Court will not enforce 
 that covenant {Duke of Bedford v. Trustees of British Museum, 2 M. & K. 
 552 ; Eoper v. Williams, T. <fe R. 18). Whether such cases are not really 
 either instances of acquiescence, or cases in which, the original object of 
 the covenant being incapable of being carried out, the Court declines to 
 afford equitable relief, may be doubted {German v. Chapman, L. R. 7 
 Ch. D. 271 ; Knight v. Simmonds, [1896], 2 Ch. 294, see per Lindley, 
 L.J., at p. 298 ; Osborne v. Bradley, [1903] 2 Ch. 446). It is at all 
 events certain that there are many estates in and near the towns of 
 this country where restrictive covenants, once binding and capable of 
 being enforced by injunction, have ceased to be effective. These are 
 often cases very difficult for even the trained lawyer to decide after 
 hearing the plainest evidence on oath. 
 
 It is not every kind of covenant affecting land in respect of which a Negative 
 deduction may be claimed. It must be a covenant " restricting the use restrictioiis 
 of the land." In other words, it must be a negative covenant. 1 he the sub- 
 reason for this distinction is perhaps not far to seek. A covenant to section. 
 build a wall round a certain piece of land is affirmative. It binds the 
 original covenantor, being a purchaser of the fee, to build, and if he does 
 not do so the covenantee may sue him for damages. But if the first 
 purchaser sells the land, the second purchaser is not bound either to 
 build the wall or to pay damages to the original vendor {Haywood v. 
 Brtmswick Building Society, 8 Q. B. D. 403). The burden of an 
 affirmative covenant does not, except as between landlord and tenant, 
 
 19—2 
 
292 
 
 Land Clauses of the Finance Act. 
 
 § S5 (3). 
 
 No deduction 
 for 
 
 affirmative 
 covenants. 
 
 Covenants 
 implied from 
 building 
 scheme. 
 
 Covenants 
 affecting 
 leasehold 
 interest only. 
 
 run with the land. But the burden of a negative or a restrictive 
 covenant does run with the land into the hands of purchasers with 
 notice of such covenant. Tlie draftsman seems to have assumed that 
 the only case in which a covenant will in fact diminish the market 
 value of laud is when the fee simple of the land is subject to a negative 
 covenant either by the present or a former owner. Hence, he has 
 not thought fit to allow any deduction to be made for afhrmative 
 covenants, which, though not binding on assignees of the covenantor, are 
 binding on the original covenantor and may detract from the value of 
 his property. When the latter sells the land the subject-matter of the 
 covenant, he will have for self-protection to take a covenant from the 
 purchaser to fulfil the obligation which he himself has entered into with 
 his vendor; and this covenant will naturally diminish the price obtained 
 by him for the land. Such covenants may involve the expenditure of 
 money on the site in a manner which may actually diminish the value 
 of tlie site, as, for example, a covenant to build a wall high enough to 
 shut out a charming prospect over the lessor's land, or a covenant to 
 reduce the level of the site to that of the neighbouring land, or a 
 covenant to put a building on the site unsuitable to it. These cove- 
 nants detract from the value of the site, and yet the Commissioners 
 have no power to allow a deduction in respect of them. 
 
 Whether the words " coveuant or agreement restricting, etc.," will 
 cover the class of cases in which a negative covenant is, in the absence 
 of an express covenant between the parties, implied from a general 
 building scheme, as between the different purchasers and their assigns 
 with notice, will no doubt be a question raised upon this sub-section. It is 
 submitted that although such an agreement is enforceable against a sub- 
 sequent purchaser oidy on the ground of the equity arising from the fact of 
 the purchase of the property affected by it, with notice of that agreement, 
 yet it is a " covenant or agreement restricting the use of the land." 
 
 A difficult case will be where the covenant or agreement affects only 
 a leasehold interest in the land. For example, A. the owner in fee has 
 leased to B. for ninety-nine years ; B. has sub-leased to C. for the same 
 term less ten days with a covenant that no buildings erected on the 
 land shall be used as shops, but as private dwellings only. At the date 
 of the valuation the original term has thirty years to run. The premises 
 would be worth as much again if converted into shops, the expense of 
 which would be slight. The restriction does not affect the freeholder, 
 but he cannot release it, and is not entitled to possession for thirty years. 
 The question arises whether the restriction is to be taken into account 
 at all. Are not the only restrictions referred to in sub-s. (3) such as 
 affect the fee simple and every interest in the land equally 1 Is it not 
 plain that the owner and all other persons interested in the land by 
 combining can abolish the restrictions, and is not the subject-matter of 
 the valuation the total combined interests of all these persons, i.e., the 
 fee simple in possession ? 
 
Valuation. 293 
 
 And the Opinion of the Commissioners shall be subject to an § 25 (3). 
 Appeal to the Referee, whose Decision shall be Final. — Under s. 33 (1) 
 there is a general right of appeal from all determinations of the Com- 
 missioners (subject to the provisoes in the section) first to the referees and 
 from them to the Higii Court or the county court, as the case may be. 
 Under this sub-section the right to appeal from the referee to the 
 Court as to the matters left to the opinion of the Commissioners is 
 taken away, and the decision of the referee is to be final. It appears 
 that this limitation of the right to appeal affects only the question whether 
 the restraint imposed by the covenantor was, wlien imposed, desirable, and 
 does not affect the prior question as to whether the covenant, etc., is still 
 binding, or, in other words, whether there is in fact a covenant. 
 
 When imposed. — The Commissioners must precipitate their point of 
 view backwards to the date when the restraint was first imposed, how- 
 ever long ago that may have been. Tiiey muBt obtaiu a map as well 
 as a picture of the neighbourhood and its external features at the time 
 in question. Then when they have done this, they will still be faced 
 with the difficulty of the construction of the sub-section, i.e., whether evil 
 results to the public arising, as time goes on, from the restrictions are 
 proof that it was not, when imposed, desirable ; or whether, if it was 
 at the moment of imposition beneficial to the public, that is sufficient, 
 whatever later evils may have arisen, to justify a deduction ; or 
 whether, as a third alternative, the general opinion at the moment of 
 irnposition that it was desirable is to justify the deduction, notwith- 
 standing that in fact, and owing to a better understanding of sanitary 
 or similar facts, it has never in fact been desirable, either then or since. 
 
 Desirable in the Interests of the Public or in view of the 
 Character and Surroundings of the Neighbourhood. — The mere fact 
 that the covenant or agreement has been entered into and is capable of 
 being enforced against the land does not apparently justify the valuer 
 in taking it into account by way of reducing value unless, in the 
 opinion of the Commissioners, the restraint imposed by it was " when 
 imposed desirable in the interests of the public or in view, etc." As 
 a matter of fact, the existence of a restrictive covenant may very 
 seriously diminish the value of the site, and at the same time may not 
 fulfil the conditions of the sub-section necessary to obtain a deduction 
 on account of its existence. For example, a covenant that no houses of 
 less cost price than 1,000/. each shall be erected on a certain piece of 
 land may practically prevent the development of that land as a building 
 site. There may be no demand, and may never be likely to be one, for 
 houses costing as much in that locality. How can it be said that such 
 a restraint was, when imposed, desirable either " in the interests of the 
 public or in view of the character and surroundings of the neighbour- 
 hood"? There can, therefore, be no deduction in respect of such a 
 covenant entered into after April 29, 1909. The land will be valued as 
 
294 Land Clauses of the Finance Act. 
 
 § 25 (3). if the covenant did not exist, and it will be valued as if it were capable of 
 being used for the purpose of building the houses required in the district. 
 But for that purpose the owner is unable to use it. He will therefore pay 
 undeveloped land duty on a higher value than the land really has for all 
 practical purposes. It is of course possible that at some time or other 
 the covenant or agreement in question may cease to be binding, owing to 
 the doctrines of equity respecting the enforcement of restrictive covenants 
 (see ante, p. 291) ; then, but not till then, will the owner be able to realise 
 the full site value on which he has been taxed. 
 
 A distinction is drawn by the sub-section between what is desirable " in 
 the interests of the public " and what is so " in view of the character 
 and surroundings of the neighbourhood." It would seem therefore 
 that a restriction might give rise to a deduction because it was desirable 
 in view of the character and surroundings of the neighbourhood, as, for 
 example, that no houses of less value than 200^. per annum or with 
 less land attached than two acres should be built. Nevertheless such a 
 restriction might be very undesirable in the interests of the public, as 
 there might be a great demand for houses of a lesser rental value, 
 
 (4) The assessable site value of land means the total 
 value after deducting — 
 
 {a) The same amount as is to be deducted for the 
 purpose of arriving at full site value from gross 
 value; and 
 
 {h) Any part of the total value which is proved to 
 the Commissioners to be directly attributable 
 to works executed, or expenditure of a capital 
 nature (including any expenses of advertisement) 
 incurred bona fide by or on behalf of or solely in 
 the interests of any person interested in the land 
 for the purpose of improving the value of the 
 land as building land, or for the purpose of 
 any business, trade, or industry other than 
 agriculture ; and 
 
 (c) Any part of the total value which is proved to the 
 Commissioners to be directly attributable to the 
 appropriation of any land or to the gift of any 
 land by any person interested in the land for the 
 purpose of streets, roads, paths, squares, gardens, 
 or other open spaces for the use of the public ; 
 and 
 
Valuation. 295 
 
 (d) Any part of the total value which is proved to the § 25 (4). 
 
 Commissioners to be directly attributable to the 
 expenditure of money on the redemption of any 
 land tax, or any fixed charge, or on the enfran- 
 chisement of copyhold land or customary free- 
 holds, or on effecting the release of any covenant 
 or agreement restricting the use of land which 
 may be taken into account in ascertaining the 
 total value of the land, or to goodwill or any 
 . other matter which is personal to the owner, 
 occupier, or other person interested for the time 
 being in the land ; and 
 
 (e) Any sums which, in the opinion of the Commis- 
 
 sioners, it would be necessary to expend in order 
 to divest the land of buildings, timber, trees, or 
 other things of which it is to be taken to be 
 divested for the purpose of arriving at the full 
 site value from the gross value of the land and 
 of which it would be necessary to divest the land 
 for the purpose of realising the full site value. 
 Where any works executed or expenditure incurred for 
 the purpose of improving the value of the land for agri- 
 culture have actually improved the value of the land as 
 building land, or for the purpose of any business, trade, 
 or industry other than agriculture, the works or expendi- 
 ture shall, for the purpose of this provision, be treated 
 as having been executed or incurred also for the latter 
 purposes. 
 
 Any reference in this Act to site value (other than the 
 reference to the site value of land on an occasion on 
 which increment duty is to be collected) shall be deemed 
 to be a reference to the assessable site value of the land 
 as ascertained in accordance with this section. 
 
 Assessable Site Value. — This is the value which is the subject-matter 
 of the undeveloped land duty. It is also the value which, taken as on 
 April 30, 1909, is the teiyninus a quo all future claims for increment 
 value duty are based. But " assessable site value " is not (nominally, 
 
296 Land Clauses of the Finance Act. 
 
 § 26 (4). at least) the " site value " on an occasion on which increment value duty 
 is to be collected under s. 2 (2) (see the last paragraph of this sub- 
 section and note thereon on p. 303) ; though it appears to be in fact 
 though not nominally the chargeable entity on the occasion of a periodical 
 collection under s. 2 (2) (d) of increment value duty in the case of a body- 
 corporate or unincorporate. For notes on the relations of the various 
 values see post, p. 303. 
 
 After deducting. — Deduction (a) seems one which the Commissioners 
 are bound to make in any event, but the remaining deductions, it is 
 thought, cannot be made unless the subject claims them. This is a 
 doubtful, but very important point, in relation to the original valuation. 
 
 (a) The Same Amount as is to be deducted for the Purpose of 
 arriving at Full Site Value from Gross Value. — To arrive at 
 "assessable site value," "gross value" must first be ascertained under 
 sub-s. (1). "Full site value "must next be ascertained under sub-s. (2), 
 by deducting from " gross value " the difference between gross value 
 and the value of the site as a cleared site, i.e., the non-site value. 
 
 " Total value " is then ascertained as in sub-s. (3), and then under 
 sub-s. (4) (a) as the first deduction from "total value," in order to arrive 
 at "assessable site value" the difference referred to in sub-s. (2) and 
 the last paragraph must be deducted. 
 
 Illustration. — Let the gi-oss value be 8,000/., and the cleared or full 
 site value 2,000/. The difference under s. 25, sub-s. (2), between gross 
 value and the value as a cleared site is therefore 6,000/. Let the total 
 value be 7,500/. From this must be deducted that difference, i.e., 
 6,000/., leaving an assessable site value of 1,500/. The amount to be 
 deducted under sub-s. (4) (a) is always the same as the amount to be 
 deducted under sub-s. (2). It is always the non-site value of the 
 hereditament. 
 
 (b) Any Part of the Total Value which is proved to be directly 
 Attributable to Works . . . executed for the Purpose of Improving, 
 etc. — It is not the amount expended which is to be deducted, but the 
 value added to the site by that expenditure, which may be either more 
 or less than its amount. Increment value is often, owing to expenditure 
 and general development, in unascertainable proportions. A sea wall 
 and the growing town may jointly cause land to become valuable. 
 It will be difficult to apportion the weight to be attached to the two 
 elements. 
 
 (6) Directly. — The word must be noted. It is not " solely." 
 An indirect benefit to the land may arise from capital expenditure on 
 adjoining property, and may cause a rise in total value directly attribu- 
 table to that indirect benefit. A., having a building estate, lays out 
 money on roads and sewers in the centre of that estate, and builds on 
 plots adjoining the roads and sewers. He conducts his operations at a 
 
Valuation. 297 
 
 loss, but he had in view, when expending his capital, the fact that the § 26 (4). 
 start thus given to the development of the estate would probably render 
 the rest of his land more marketable ; and this is in fact the case. It 
 is svibmitted that he is entitled to some deduction, but it will be very 
 difficult to suggest any basis for arriving at the amount of that 
 deduction. Still some effect must be given to the word "directly,'' 
 though it is difficult to suggest in theory any limitation of the right to 
 deduction which might not seriously impair that right. 
 
 (b) Works executed or Expenditure of a Capital Nature . . . 
 incurred. — The works and expenditure are those incurred either for the 
 purpose (1) of improving the value of the land as building land, or 
 (2) for the purpose of any business, trade, or industry other than 
 agriculture. The deduction is not of the value added by the buildings, 
 since that with all other non-site value has been deducted under (a). 
 Such works as drainage, embankment from the sea or river, the making 
 of roads, the sinking of wells, the diversion of streams, would be examples 
 of the expenditure contemplated. 
 
 (b) Capital Nature. — Difficult questions may arise as to what is 
 expenditure of a capital nature. A land company sinks a well, makes a 
 reservoir, and installs expensive pumping machinery. The yearly cost of 
 pumping exceeds the annual water rents obtained from purchasers 
 and tenants. Can that annual excess of expenditure over income be 
 treated as expenditure of a " capital nature " 1 It is intended to 
 facilitate the sale of the remaining portion of the company's land by 
 securing to purchasers a water supply. It is suggested that it is really 
 expenditure of a capital nature, though it is incurred at periodic intervals 
 and the water accounts are made up yearly. For a case (not much in 
 point) on the words " expenditure of a capital nature " in the Education 
 Act, 1902, s. 18 (1) (c), see B. v. Wrai/h, [1907] 2 K. B. 756. It seems 
 indeed that it is immaterial whether there is a deficit, or a profit, on the 
 works. Even if there is a profit, so that the only expenditure of a 
 capital nature is paying in itself, it may well be that that expenditure 
 has added to the total value ; and that the value so added may be 
 deducted under sub-s. (4) (b). There is nothing in clause (b) to rule it 
 out. It is to be noted that the expenditure contemplated by (b) need 
 not be on the benefited land. A water tower may have been erected 
 a mile away. There is no limit as to the time within which such 
 expenditure has been made. The value added by an embankment made 
 in the reign of Queen Anne may be deducted. Probably legal expenses 
 as the cost of obtaining a release of a right of way or other easement 
 should be included ; but not, it is thought, the initial expenses of the 
 purchase of the land. 
 
 (b) Including any Expenses of Advertisement. — No limit is placed 
 upon the time within which the advertisements may be issued. It is 
 perhaps rather strange to consider the capital value of building land as 
 
298 Land Clauses op the Finance Act. 
 
 § 26 (4). being enhanced by advertisement. But the capital value of such land 
 may well be considered to be composed, amongst other things, of the 
 extent to which the fact that it is on sale is known to the public- 
 Advertisements may give it a vogue. It is common to run special 
 trains to seaside resorts at fares which sometimes do not repay the 
 vendors for the cost of the trains, and to provide gratuitous refreshments 
 to pei-sons who will, it is hoped, under their influence, become purchasers 
 of the land. It is hardly thought that expenditure of this kind is 
 included in " expenses of advertisement." A case nearer the line seems 
 to be where a company of more or less distinguished men, as M.P.'s, are 
 taken down gratuitously to inspect the development of a garden city, or 
 other quasi-philanthropic undertaking, and are entertained at a luncheon, 
 the speeches at which are reported in the newspapers. 
 
 (b) By or on behalf of or solely in the Interests of any Person 
 interested in the Land. — That is, by a person interested himself, or 
 by his agent, or by a person- with the sole intention of benefiting a 
 person interested, i.e., not by the owner of other land to improve his 
 own property, or by a local authority. " Person interested " would 
 doubtless include owner of the fee simple in possession. By that 
 phrase is no doubt meant " pei-son interested at the time of the 
 expenditure." Expenditure by a predecessor in title can be deducted. 
 
 {b) For the Purpose of Improving the Value of the Land as Building 
 Land or for the Purpose of any Business, Trade, or Industry other 
 than Agriculture. — See paragraph on "agriculture " in s. 41. Note that 
 expenditure which has improved the value of the land for agriculture only 
 cannot be deducted. The reason is that so long as the value of the land 
 is not in excess of its value for agricultural purposes neither increment 
 value duty nor undeveloped land duty is chargeable. The last paragraph 
 but one of this sub-section must be noted in relation to these words. 
 Suppose a man improves his land for the pui-poses of letting the same 
 out in cricket pitches, or for games of bowls, is this expenditure an 
 allowable deduction ? Does he carry on the business of letting cricket 
 pitches, etc. 1 It is submitted that he does, and that (6) deduction 
 should be allowed. 
 
 It is thought that in order to obtain a deduction under this sub-section 
 expenditure " for the purpose of any business, trade, or manufacture " 
 is not enough, and that the expenditure must be "for the purpose 
 of improving the value of the land ... for the purpose of any 
 business, trade, or manufacture." See the last paragraph but one in the 
 sub-section, in which the same words occur in a less ambiguous context. 
 
 (c) Any Part of the Total Value.— This is a garden city clause, 
 but of course may extend to other cases. The whole clause is governed 
 by the last words, "for the use of the public." Are the flower beds 
 and plantations which dot the roads and open spaces of the garden cities 
 " for the use of the public " ? It is submitted that they are. 
 
Valuation. 299 
 
 (c) The Appropriation of any Land or to the Gift of any Land. — § 25 (4). 
 The appropriation may be unaccompanied by any change of ownership, 
 as in the ordinary case of the formation of streets and squares by an 
 owner. The gift is illustrated by the conveyance of a public park to the 
 local authority, having the effect of increasing the site valvie of the rest 
 of the donor's property. It is of course clear that either under this 
 paragraph (c) or under paragraph (b) the added value arising from the 
 expenditure of money on the roads, paths, etc., by the appropriators or 
 donors can be claimed as a deduction. It seems clear that value added 
 in respect of the dedication of land as public roads or spaces, even 
 though the ownership remains in the dedicator, must be deducted. 
 
 It is sometimes the case that builders appropriate land for tennis 
 courts adjacent to the estate they are developing. But whether such 
 courts are used for the purpose of a tennis club to which all who pay 
 and are elected are admitted, or whether they may be gratuitously used 
 by the occupiers of the builders' houses, it is not thought that they give 
 rise to any deduction. The appropriation is not "for the use of the 
 public." Even if they are legally appropriated the same is thought to 
 be the case. They may of course be entitled to exemption under s. 9 
 and s. 17 (5) (d). 
 
 (c) Open Spaces. — There is no reason to suppose that the definitions 
 of an " open space " referred to in the note on p. 197 would have 
 influence on the interpretation of the words in this Act, but the 
 existence of those definitions may be noted. 
 
 (d) The Expenditure of Money on the Redemption of any Land 
 Tax, etc. — It would seem that the expenses of redemption might be 
 allowed in addition to the actual payment for the charge, as for tithe 
 rent-charge, if the valuer was of opinion that the increased value 
 included these. 
 
 (d) Fixed Charge. — See definition of fixed charge, s. 41, pest, p. 456, 
 paragraph " The expression ' fixed charge ' " ; see also note on fixed 
 charge, ante, p. 290. It would seem that money expended in redeeming 
 a perpetvial chief rent, which is a rent-charge (s. 41, paragraph " The 
 expression ' rent-charge ' "), and therefore under the definition above 
 referred to, a fixed charge may be deducted, but not money expended 
 in redeeming a jointure rent-charge, which is not a perpetual rent- 
 charge (see definition of rent-charge above referred to), but is probably 
 an incumbrance (s. 41, paragraph "The expression 'incumbrance'"). 
 
 (d) The Enfranchisement of Copyhold Land. — Till enfranchisement, 
 the owner may not be able to clear the land which is a valuable building 
 site of trees so as to utilise his site for building purposes, since to cut 
 down timber trees would be waste. It is nevertheless not thought that 
 more than approximately the costs of enfranchisement could be claimed 
 as a deduction. As enfranchisement can be compelled, the market 
 
300 Land Clauses op the Finance Act, 
 
 § 25 (4). value is the value of the land as if it were freehold, minus the cost of 
 enfranchisement. 
 
 (d) Effecting the Release of any Covenant or Agreement . . . 
 which may be taken into Account, etc. — The limitation implied 
 by the words " which may be taken in account, etc.," applies to such 
 covenants as were entered into on or after April 30, 1909, which in the 
 opinion of the Commissioners wei-e " when imposed " not " desirable in 
 the interests of the public, or in view of the character and surroundings 
 of the neighbourhood." If they were not "desirable, etc.," when 
 imposed, they may not be allowed as reducing total value, and therefore 
 money uaid for getting them released may not be deducted from site 
 value. If the covenants or agreements were entered into before April 30, 
 1909, or if being entered into after that date they were "desirable in 
 the interests of the public or in view of the character and surroundings, 
 etc.," the A'alue added by expenditure in obtaining a release from them 
 may be deducted. 
 
 (d) Goodwill. — The exact nature of the deduction in respect to good- 
 will which may be made is a little difficult to arrive at. The clause 
 appears to suggest that the value to be deducted is in respect of good- 
 will which is " personal to the owner." This might therefore seem to 
 exclude a deduction of the kind of goodwill which in Ux parte Punnett 
 (16 Ch. D., p. 226, C. A.), the case of a public-house, was held not to 
 be a personal goodwill, but a goodwill which passed on the sale of the 
 property, i.e., the benefit of the habit on the part of a section of the 
 public of resorting to that house for refreshment. There are three 
 different kinds of value attached to premises which may possibly be 
 of the nature of the goodwill. There is purely personal goodwill of 
 the nature referred to by Jessel, M.R., in Ginesi v. Cooper ( (1880), 14 
 Ch. D. 596, at p. 599), and bj' Cotton, L. J., in Cooper v. Metropolitan Board 
 of ]Vorks (25 Ch. D. 472, at p. 479). The value of this, it seems clear, 
 must be deducted under sub-s. (4) (d). There is the kind of value which 
 arises from the suitability of the land for a particular trade or profession, 
 as of a comer plot for a pawnbroker's or a publican's business, or for a 
 doctor's residence. This value, it is thought, is not goodwill at all, and 
 ought to be given full effect to in arriving at site value. Lastly there 
 is the kind of goodwill which attaches to the premises as in Chissum v. 
 Deives (5 Russ. 29 ; 29 R. R. 10) and Ex parte Funnett {supjra)^'' A 
 particular site may have an increased value for a public-house site, not 
 only because it is a corner plot, but because people have been accustomed 
 to go there for drinks (see p. 280). Of a similar nature is the kind of good- 
 will arising from the attachment of a trade to a wharf or depot (see per 
 Jessel, M.R., in Ginesi v. Cooper, supra, at p. 599 ; see also Austen v. 
 
 • See also CommUsionerg of Inland Revenue v Muller's Margarine, [1901] A. C. 
 217. 
 
Valuation. 301 
 
 Boys^ 27 L. J. Ch. 714). It is thought that this last species of good- § 25 (4). 
 will is not intended to be deducted, but is to be treated as site va'vie. 
 Unless this is the case, it is difficult to see how site values in, say. 
 Regent Street or Cheapside, or any of the principal streets in the larger 
 cities, are to be valued. But it must be admitted that the point is not clear. 
 In Llewellyn v. Rutherford (L. R. IOC. P. 156) the distinction between 
 an increase in the value of the goodwill of a public-house owing to the 
 increased value of property in the neighbourhood generally, and an 
 increase owing to other causes, was clearly recognised in all the jvidgments. 
 In contracting to buy premises to which goodwill is attached, as for 
 example pviblic-houses, it would seem advisable to have separate con- 
 siderations for the premises and goodwill. If there were one considera- 
 tion only, it is possible that the Commissioners would claim the right to 
 apportion it under s. 32 (3) {post, p. 357) in a manner which would 
 increase the increment value duty on the land more than the vendor 
 approved. Further, the purchaser may improve the goodwill and will 
 wish when he sells not to run the risk of being charged increment value 
 duty on his improved goodwill. That the goodwill of a public-house 
 (including the licence) may be sold apart from the premises, see 
 West Lo)idon Syndicate v. Inland Revenue, [1898] 2 Q. B. 507. 
 
 It may be that, if the consideration is originally fixed in the contract 
 as a single sum for premises and goodwill, it nevertheless might be 
 apportioned by the parties between the two in separate conveyances by 
 virtue of s. 58 (1) of the Stamp Act, 1891 (54 & 55 Vict. c. 39). But it 
 is not certain that that section applies to an apportionment for purposes 
 of increment value duty (see note on p. 72). The section in question 
 seems primarily intended to meet a case where it is really immaterial 
 from the revenue point of view how the consideration is apportioned, 
 because duty has to be paid on the full consideration however divided 
 at the fixed ad valorem scale. Moreover, s. 32 (3), post, p. 357, must be 
 reckoned with. That sub-section, however, appears to apply only to cases 
 where a document is presented for stamping with an unapportioned 
 consideration, and to have nothing to do with any antecedent 
 agreements. 
 
 {d) Personal to the Owner, Occupier, or other Person interested 
 for the time being in the Land. — This would exclude value arising 
 from sentimental considerations, such as family associations. It would 
 also seem to exclude value arising from the fact that for private reasons 
 not common to other people it is specially necessary or advantageous to 
 a particular person that he should own a certain site. But this is not 
 quite clear (see ante, p. 278, note on "Value to owner himself"). 
 
 (e) Any Sums which in the Opinion of the Commissioners, etc. — 
 
 This sub-division is the corollary of s. 25 (2). To ascertain " full site 
 value " the site is to be valued as a cleared one. To ascertain the value 
 of the site on which the tax is to be levied, the owner must be allowed 
 
^^2 Land Clauses of the Finance Act. 
 
 § 26 (4). the deduction of the cost necessary to place him in the position of being 
 able to realise or utilise that site. A pvirchaser who wanted a site to 
 build upon would, in the price he was prepared to give, allow for the 
 cost of clearing the site, and this cost is therefore a just deduction from 
 the present value of the site. Sub-s. (2) and sub-s. (4) (e) do not, how- 
 ever, exactly correlate with each other. Under sub-s. (2) all the 
 specified things erected or produced on the land are to be deemed off it. 
 But under (e) the owner is only to be allowed the cost of clearing away 
 those things " of which it would be necessary to divest the land for the 
 purpose of realising the f\ill site value." Trees may actually improve a 
 site for building purposes. But under sub-s. (2) they are to be deemed 
 cleared away. Under sub-s. 4 (e) the owner is not entitled to a deduc- 
 tion of the expense of doing that which would prevent his realising the 
 full site value. By reason of clause (c) a site value may come out as a 
 minus quantity. The whole value of the site may be due to an 
 embankment and the house built on it may be ruinous. 
 
 (e) Necessary to expend. — The sub-section does not, it is conceived, 
 give the owner of land, the site value of which is being ascertained, 
 the absolute right to a deduction in all cases of the cost of clearing the 
 site by pulling down the buildings or grubbing up the trees. If a 
 person would give anything for the materials of the buildings or the 
 trees as they stand, taking them away at his own cost, or if a person 
 would be willing to clear them away for their own value, then it would 
 not be necessary for the owner to expend anything for that purpose, 
 and he will probably not be entitled to a deduction. 
 
 (e) Of which it is to be taken to be divested for the Purpose, etc., 
 
 i.e., see sub-s. (2), ante, p. 283, and notes on that sub-section. Note 
 that it is not to be deemed to be divested of " structures " as distinguished 
 from buildings " on, in, or under the surface " which are not " appur- 
 tenant to or used in connection with such buildings." Therefore in 
 valuing the site value of land in which the main water or gas pipes of 
 undei-takers are placed there is to be no deduction for the cost of their 
 removal. The same is the case in valuing land subject to an easement 
 of carrying water through pipes to or from a neighbour's land. The 
 reason, it is thought, is that the site cannot in such cases be treated 
 as if it were free from these easements, which either in total value 
 (s. 25 (3) ), or on an occasion under s. 1, will naturally depress the value. 
 
 Where any Works executed . . . latter Purposes. — See note on (b) 
 of this sub-section, ante, p. 297. If an owner drains and levels his 
 private park for purposes of residential ahienity, and also as an 
 agricultural improvement, and subsequently sells it for building land, 
 and the levelling has improved the site value, is the improved value to 
 be allowed him as a deduction under this provision ? The answer would 
 seem to be in the affirmative. Under s. 41 agriculture includes the use 
 of land as meadow or pasture land. 
 
Valuation. 303 
 
 Any reference in this Act to Site Value (other than ... on an § 26 (4). 
 Occasion on which Increment Value Duty is to be collected) shall be 
 deemed to be a Reference to the Assessable Site Value as ascertained 
 in accordance with this Section. — This paragraph is probably intended to 
 prevent the confusion which it was perhaps thought might arise from 
 the special method of arriving at site value on an occasion arising under 
 ss. 1 and 2 for payment of increment value duty. Two taxes only are 
 put on site value, i.e., increment value duty and undeveloped land dvity. 
 As to the latter no difficulty arises, since it is always charged on " assess- 
 able site value " as ascertained by direct valuation and deduction 
 under s. 25 (s. 16 (1) ). Increment value duty is payable in respect of 
 " increment value " (s. 1), that is of the amount by which the site value 
 on the occasion on which increment value duty is to be collected exceeds 
 the original site vakie (s. 2 (1) ). Now the original site value, 
 ascertained on the original site valuation under s. 26, is ascertained 
 wholly under clause 25 and is "assessable site value." The term is 
 indeed a misnomer as applied to original site value from the point of 
 view of increment value duty, for increment value duty, unlike 
 undeveloped land duty, is not payable on original site value, but only 
 on the increment of the original site value. But the point is that under 
 s. 2 (I) the original site value is ascertained by the direct application 
 of s. 25, in the process of applying which gross, full site, and 
 total values must be ascertained as preliminary steps to ascertaining 
 "assessable site value." The site vakie on the occasion on which Difference 
 increment value duty is collected is not called "assessable site value "1 assessable site 
 (though in fact it is the site value which contains the increment) value and site 
 which is assessed). Nevertheless it is ascertained exactly as "assess- I^casion ^° 
 able site value " is ascertained, with one important exception. Total r 
 value is not on such an occasion to be ascertained by the process of ] 
 deduction from gross value enacted in s. 25 (3). Now total value 
 is estimated market value of the land as it stands. But on " an j 
 occasion " of sale or lease the consideration for the sale or lease is realig!g_d ^ 
 ^noarket vahie. This, the value of the fee simple calculated on the basis 
 of therealfsed consideration for the sale of a derivative interest in, 
 or for the lease of, the land, is the value or amount which on an 
 occasion arising under s. 1 (a) and s. 2 (2) (a) and (b) is substituted for 
 the total value which has to be estimated on the original site valuation 
 under ss. 25 and 26. Hence it is from this realised sum, or this sum 
 calculated on the basis of a real consideration, that to arrive at site value 
 on an occasion there must be deducted (s. 2 (2) ) " the like deductions 
 as are made under the general provisions of this part of this Act as to 
 valuation, for the purpose of arriving at the site value of the land from 
 the total value." The general provisions specially referred to are in 
 s. 25 (4). It now appears why on "an occasion" gross value and full 
 site value must be ascertained. This is so because the first of the 
 deductions of s. 25 (4) is " (a) the same amount as is to be deducted 
 
304 Land Clauses of the Finance Act. 
 
 § 26 (4). for the purpose of arriving at full site value from gross value." That 
 amount is the amount referred to in s. 25 (2). It is, as has been 
 shewn (ante, p. 296), the difference between the gross value and the 
 full site value. When found it represents the non-site value element 
 of the property. It is the value which is added to the full site by the 
 buildings or growth. When it is deducted (with the other deductions 
 mentioned in s. 25 (4) (6), (c), (d), and (e) ) from total value on the 
 original or the quinquennial site valuation the result is " assessable site 
 value." When it is so deducted on " an occasion " under s. 2 (2) from 
 either (a) the value of the consideration, (6) the valuation of the fee 
 simple calculated on the basis, etc., (c) the principal value on death as 
 ascertained under the Finance Act, 1894, or (d) the "total value" as 
 ascertained under s. 25 in the case of periodical occasions relating to 
 the land of bodies corporate, etc., as the case may be, the result is not 
 "assessable site value," but "site value on the occasion." 
 , It will now, it is thought, be clear that the only difference between 
 / the method of arriving at " assessable site value " and " site value on an 
 occasion " is that while in the former case there is a valuation to ascertain 
 I the real or selling (total) value, in the case of sale or lease the considera- 
 tion, and in the case of death the principal value on which estate duty is 
 paid, is taken as the test available at hand of that total value. In the 
 remaining case of a "periodical occasion," as there is no consideration 
 and no existing valuation, total value is ascertained as in s. 25. There 
 would, therefore, certainly be on the periodical " occasion " no difference 
 between the two methods of arriving at site value, and in theory at 
 least there ought not to be any difference in the case of the death 
 occasion, for principal value under the Finance Act, 1894, is really the 
 same thing as total value under s. 25 (3). 
 Object of The principal, perhaps the only, reason for the last paragraph of 
 
 summ^ised s^i^'-s- (4) was probably to make it quite clear that the site value 
 mentioned in s. 3 (5) (relating to the 1 per cent, reduction of increment 
 value), other than the " original site value " there mentioned, was to be 
 ascertained as "on an occasion," and not by finding total value iinder 
 8. 25 (3), and that subject to that qualification site value as used 
 throughout the land clauses means assessable (sub-s. (4) ) and not full 
 site value (sub-s. (2) ). 
 
 (5) The provisions of this section are not applicable 
 for the purpose of the valuation of minerals. 
 
 It is obvious that the code as to valuation contained in this section is 
 not applicable to minerals. For valuation of minerals, see s. 23 and 
 note on pp. 246 to 264. It is thought that on occasions for payment of 
 increment value duty on minerals as a lump sum under ss. 1 and 2 the 
 reference at the end of sub-s. (2) of the latter section to " the general 
 provisions of this Part of this Act as to valuation " is to s. 23 (1) and 
 
Valuation. 305 
 
 not to s. 25. This sub-section is an indication that ss. 26 to 32 (but, of § 26 (6). 
 course, not s. 28) do apply to minerals. 
 
 General Note on Relation op Gross Value to the other Values 
 
 OP Section 25. 
 
 It has been already said (ante, p. 278) that the gross value of any 
 tenement is not under the general scheme of the Act as to valuation a 
 matter of so much importance as at first sight may appear. That 
 statement has now to be proved. 
 
 Gross value has been considered in detail. Let us assume that the Gross value 
 
 gross value of a house is 1,000/. In order to ascertain the full site 9 ^ . , 
 ° ' immaterial, 
 
 value (p. 274) we must, under sub-s. 2, deduct from 1,000/. the difference 
 
 between 1,000/, and the value of (what is termed for conciseness' sake) 
 
 the cleared or full site. To do this we must ascertain the value of that 
 
 at cleared site by valuation under the conditions of sub-s. (2). Assume 
 
 the cleared site value to be 200/. Then to ascertain full site value 
 
 according to sub-s, (2) we must deduct from 1,000/, the difference 
 
 between 1,000/, and 200/., that is we must deduct 800/, from 1,000/. 
 
 The difference is 200/., the cleared or full site value. 
 
 This may be expressed by the following simple formula : — 
 Let A = the gross value. 
 Let B — the full site value. 
 Then B = A — (A - B). 
 
 It will be seen that whatever actual value in the above equation, 
 whether 1,000/., 10,000/,, or 1,000,000/., is given to A the gross value, 
 the value of the cleared site remaining constant, B will still equal 200/., 
 and B is full site value. The bigger A or gross value is, the bigger 
 of course total value is, for total value is A — certain deductions, also 
 expressed in a roundabout manner (sub-s. 3). But then the bigger A 
 is, at the same time B remaining constant, the greater is the difference 
 between A and B, and it is the difference between A and B which has to 
 be deducted under sub-s. (4) (a) from total value in order to arrive at 
 assessable site value. 
 
 It thus appears that on a valuation wholly under s. 25 gross value is, But not in 
 except in the case of reversion duty, where the tax is levied on total 
 value, an immaterial value. It matters not whether the gross value of duty, 
 my house be 1,000/. or 100,000/. so far as site value is concerned. 
 What is important is the cleared site value referred to in sub-s, (2). 
 
 Therefore on the original total and site valuations under s. 26, on the 
 quinquennial valuation for undeveloped land duty under s. 28, and on 
 the periodical valuation for increment value duty of the land of a body 
 corporate or unincorporate under s. 2 (2) (d), it seems to be immaterial 
 for the purpose of fixing site value whether gross value be high or low. 
 Different considerations, however, exist when an occasion arises for 
 payment of increment value duty under s. 1 and s. 2. 
 
 N. 20 
 
 the case of 
 reversion 
 
306 
 
 Land Clauses of the Finance Act. 
 
 § 25 (5). 
 
 Gross value 
 on occasions 
 under s. 2 (2). 
 
 Indirect effect 
 of gross value. 
 
 Gross value 
 and reversion 
 duty. 
 
 In the case of the payment of increment value duty on an occasion 
 mentioned in s. 1 total value is not in three out of the four cases taken 
 as the sum from which the deductions referred to in sub-s. (4) (a) of 
 s. 25 must be made in order to arrive at the site value on the increment 
 of which duty is leviable. Under s. 2 (2) (a), (6), and (c), instead of 
 total value is substituted either (a) the actual sum realised for the 
 property, or (b) the value of the property based on the sum realised for 
 an interest in it, or (c) the principal value of the property as ascertained 
 for the pui-pose of the death duties, as the case may be. But these 
 values are in fact the total values as ascertained by the fact of sale, 
 lease, or valuation under the Finance Act, and these total values must, 
 it is thought in practice, though perhaps not theoretically, determine 
 the gross values subject to the addition of the sums w^hich the valuer 
 would presume to have been deducted from gross value on account of 
 any of the matters mentioned in s. 25 (3) in order to arrive at total value."' 
 
 Gross value will not therefore be in practice the most important part 
 of the valuations even in cases of the ascertainment of occasional site 
 value under s. 2 (2) (a), (b), and (c), while under (d) of the same 
 sub-section it appears, as on the original site valuation, to be of no 
 consequence at all. In cases (a), (b), and (c) it is, curiously enough, the 
 interest of the taxpayer to keep gross value high as compared with full 
 site value, and the interest of the Crown to keep it low. The greater 
 the difference between gross value and full site value the bigger the 
 sum to be deducted from the value of the property (the equivalent of 
 total value) as ascertained under s. 2 (2) (a), (b), and (c), and the less 
 the resultant site value to be taxed. 
 
 Nevertheless, as possibly gross value may in some way, not exactly 
 foreseen at the moment, be used or tried to be used by the Crown as an 
 admission or determination of value upon which principal value (under 
 s. 7 (5) of the Finance Act, 1894) may subsequently be based for the 
 levy of estate duty, it cannot be said that it is from that point of view 
 an immaterial circumstance. 
 
 Gross value must be ascertained as a step in ascertaining " the total 
 value ... of the land at the time the lease determines " for the purpose 
 of the assessment of reversion duty under s. 1 3 (2) . In this case gross value 
 is of nominal importance. Subject to the deductions referred to in 
 sub-s. (3) of s. 25 it is in fact "total value," the excess of which over 
 the total value at the time of the original grant of the lease is the 
 taxable subject of the reversion duty. It would follow, therefore, that 
 in the assessment of gross value for purposes of increment value duty, 
 whether on sale, lease, death, or periodical occasion, the taxpayer should 
 have in mind the question whether a claim for reversion duty may 
 
 • Since the above note was in type the Inland Revenue instructions to its 
 valuers have been published (see p. cl.). They are in substantial accordance with 
 the view above expressed as to the effect of the consideration in determining gross 
 value. 
 
Valuation. 307 
 
 shortly arise in respect to the property. If it may, he will desire on § 25 (5). 
 
 that account a low gross value. Though theoretically there must for 
 
 reversion duty be an entirely fresh valuation on the determination of 
 
 the lease, it stands to reason that a recent gross valuation on an occasion 
 
 for payment of increment value duty, which will of course appear from 
 
 the Commissioners' records, is likely to be consulted by, and will exercise 
 
 a weighty influence on, the valuer for the reversion duty. 
 
 The part which gross value plays in ascertaining assessable site value Gross, full 
 
 has been commented vipon at some length. One further remark may ^'„f'gj^ f "^ ^ 
 
 be made. So far as the original site valuation is concerned it would, it necessary on 
 
 seems, have been quite easy and much simpler to have defined assessable origirial 
 
 . valuation, 
 
 site value without the aid of gross and total values. It is thought that 
 
 the following would (with obvious elaborations) be an adequate definition 
 
 of the assessable site value which under s. 25 is the result of the processes 
 
 carried out under that section. 
 
 " The assessable site value of land means the amount which the fee Suggested 
 simple of the land, if sold free from incumbrances in the open market gjj.^ yaiue. 
 by a willing seller, might at the time be expected to realise, if the land 
 were divested of any buildings and of any other structures (including 
 fixed or attached machinery) on, in, or under the siirface, which are 
 appurtenant to or used in connection with any such buildings, and of all 
 growing timber, fruit trees, fruit bushes, and other things growing 
 thereon, but subject to any fixed charges and other things mentioned 
 in sub-s. (3) of s. 25. Provided that there shall be deducted from the 
 value so ascertained any part of the total value proved to the Com- 
 missioners to be directly attributable to the matters mentioned in 
 sub-s. (4) (6), (c), and (d), and any sums which, in the opinion of the 
 Commissioners, it would be necessary to expend in order to divest the 
 land of buildings, timber, trees, or other things of which it is to be 
 taken to be divested as aforesaid, and of which it would be necessary to 
 divest the land for the purpose of realizing the site value thereof." 
 
 Total value could, of course, have been even more shortly and clearly 
 expressed by combining sub-ss. (1) and (3). 
 
 If this be the case, it may properly be asked why the scheme of four why scheme 
 values was adopted, and why a total value and a site value would not °^ four valuea 
 have answered all the purposes of the Act. No complete answer to 
 these questions was ever given during the passage of the Bill through 
 Parliament, and the writer does not pretend that he has satisfactorily 
 solved them. The following is simply a possible or probable explana- 
 tion. In cases where duty is to be based on a direct valuation of the total 
 hereditament and of the site, as on the original total and site valuations 
 under s. 26, on a quinquennial site valuation for undeveloped land duty 
 under s. 28, and on a periodical valuation of the land of a body corporate, 
 etc., under s. 1 (c), s. 2 (2) (d), and s. 6, in order to arrive at full site 
 value, all that is necessary is to value the site. To arrive at the taxable 
 site value, deductions under sub-s. 4 (b), (c), (d), and (e) would be made 
 
 20—2 
 
808 Land Clauses of the Finance Act. 
 
 § 26 (6). from full site value. But when site value is to be valued on the 
 occasion of a sale or lease imder s. 1 (a) and s. 2 (2) (a) and (b), the test 
 of that site value is thought to be the amount realised by the sale of the 
 fee (s. 2 (2) (a) ), or the amount of the value of the fee calculated on the 
 basis of the consideration for the grant of the lease or the sale of the 
 reversion or leasehold interest (s. 2 (2) (b)). The question then arises, 
 how much of that amount is to be apportioned to the site value ? To 
 find that out you have to find how much of the value of the property 
 as a whole is not site value. That is done (so it seems) by taking the 
 gross value of the property and finding out under s. 25 (2) how much 
 of that gross value is full site value. That being done, the difference 
 between the two is of course the value added to the site by the 
 buildings, etc., i.e., the non-site value. This is the value which under 
 sub-s. 4 (a) is to be deducted from the purchase price of the fee under 
 s. 2 (2) (a), or the value of the fee simple calculated on the basis of the 
 consideration for the lease, reversion, etc., under s. 2 (2) (b), in order to 
 arrive at the taxable site value on the occasion. The method seems to 
 be that you arrive by the gross and full site valuations at the value of 
 the non-site element in the property, and then you deduct that from the 
 value of the whole property evidenced by, or based upon, the sale or 
 lease, and the balance is the then site value. 
 Merit of This plan has the merit of taxing the subject fairly on his realised 
 
 site increment, provided that the gross and cleared (full) site valuations 
 are correct.' Assume that on an occasion for payment of increment 
 value duty, the gross value under sub-s. (1) of s. 25 of a property is 
 1,300^., and its full or cleared site value under sub-s. (2) is 300/. The 
 non-site value element is therefore 1,000/. Assume the real (or total) 
 value of the property to be 1,200/, but that it is sold slackly for 1,100/. 
 If the seller were to be taxed on the basis of the real site value of the 
 property sold, that site value, there being no deductions under 
 s. 25 (4) (b) to (e) inclusive, would clearly by the process indicated in 
 s. 25 be 200/. But under the scheme of the Act, which requires the 
 non-site value of a property to be ascertained under s. 25 (1) and (2), 
 this non-site value {i.e., 1,000/.) is capable of being deducted from the 
 actual amount (1,100/.) realised by the sale ; and, therefore, though in 
 reality the vendor has sold a site value worth 200/., having made a 
 foolish bargain he is only charged as on a site value of 100/.* 
 
 Assume, on the other hand, that the vendor made a good bargain and 
 sold his property for 1,400/., or 200/. more than the real (total) value, 
 the figures as to gross, full- site, and real (or total) value being the 
 same. In this case the non-site value, 1000/., would be deducted from 
 1,400/., and he would pay increment value duty as on a realised site 
 
 * Since the above note was written a copy of tha instructions for the ascertain- 
 ment of site value on an occasion issued by the Inland Revenue to its valuers has 
 been laid before Parliament, and will be found on p. cl., ante, with a note 
 thereon. 
 
 scheme. 
 
results. 
 
 Valuation. 809 
 
 value of 400/. Of course in each of the above cases increment value § 36 (6). 
 duty would only be payable if there were increment value. 
 
 A few of the results arrived at may now be summarised : — Summary of 
 
 1 . The reason for the ascertainment of gross and full site values 
 is to find the non-site element which is to be deducted from total 
 value on (a) the original valuation under s. 26 ; (b) the quinquennial 
 valuation under s. 28 (c), and the occasional valuation under / 
 s. 2 (2) (d) ; and which is to be deducted from the several values 
 which represent or stand in the place of total value on an occasion 
 under s. 2 (2) (a), (b), and (c). 
 
 2. The amount of gross value is immaterial on the original site 
 valuation and the quinquennial valuations, except in so far as it 
 may be used as a precedent for or test of the value on subsequent 
 occasions for payment of increment value duty, reversion duty, or 
 estate duty. 
 
 3. On occasional valuations under s. 2 (2) it is the interest of 
 the subject to obtain a high gross value and a low full site value, so 
 as to have a large difference to deduct under s. 25 (4) (a) from the 
 value of the consideration, etc., under s. 2 (2) (a), (b), (c), and (d), 
 thereby lowering the taxable site value. 
 
 4. On valuations for reversion duty it is the interest of the 
 subject to have a low gross value, because that means a low total 
 or taxable value. Site valvie in this case is immaterial. 
 
 5. On the original valuation a high site value is advisable if 
 increment value duty is feared more than undeveloped land duty, 
 a low site value if undeveloped land duty is feared more than 
 increment value duty. 
 
 6. On quinquennial valuations a low site value is always to be 
 aimed at. 
 
 Section 26. 
 
 26. — (1) The Commissioners shall, as soon as may be § 26 (1). 
 after the passing of this Act, cause a valuation to be made yaiuation of 
 
 ... . land for 
 
 of all land in the United Kingdom, showing separately purposes of 
 the total value and the site value respectively of the land, 
 and in the case of agricultural land the value of the land 
 for agricultural purposes where that value is different 
 from the site value. Each piece of land which is under 
 separate occupation, and, if the owner so requires, any 
 part of any land which is under separate occupation, shall 
 be separately valued, and the value shall be estimated as 
 on the thirtieth day of April nineteen hundred and nine. 
 
310 Land Clauses of the Finance Act. 
 
 § 26 (1). As soon as may be after the passing of this Act. — There is, there- 
 fore, no limit of time for the original valtiation. But as to assessment 
 for undeveloped land duty see ante, s. 19, p. 203. 
 
 Cause a Valuation to be made. — This valuation fixes the original 
 site value of all land in the United Kingdom for the purposes of incre- 
 ment value duty, and the site value for the purposes of undeveloped 
 land duty until after the assessment in the year 1914 comes into force. 
 It also fixes the original capital value of all minerals not being comprised 
 in a mining lease, and not being worked by the proprietor on April 30, 
 1909 (s. 23 (1) ). It also fixes the total value of both land and the 
 minerals above referred to, which, however, is not a taxable entity. 
 The total value on which reversion duty is paid under s. 13 (2) is the 
 total value at the date of the determination of the lease, and not the 
 total value as fixed on the original or a quinquennial vahiation 
 under s. 28. 
 
 The valuation is that of the Commissioners, though of course they 
 may accept that of the owner under sub-s. (3) of this section. 
 
 Of all Land. — There is to be a valuation even of land not at the 
 moment liable to any of the new taxes, i.e., agricultural land with no 
 element about it of value for other purposes, and land exempted from 
 duties under ss. 8, 9, 16 (2) (6),* 17, 35, and 37. Probably also Crown 
 lands must be valued, for though the Crown is not bound unless 
 expressly, or by necessary implication, yet the provision of s. 10 that 
 increment value duty on the sale of Crown lands shall be deemed to 
 have been paid presupposes an original site valuation of Crown lands 
 (see ante, s. 10, and notes thereon, p. 144). If that is the intention of 
 the Act it appears immaterial how far officers and servants of the Crown 
 are legally bound to make the returns required by the Act under 
 sub-s. (2). They will naturally be made. As to Statutory Companies, 
 see s. 38 (2). It may perhaps be assumed that, where there is not at 
 the time of valuation, and it seems that in all probability there will not 
 within a long period of time be, any value in land other than agri- 
 cultural value, then the valuation, especially of site value, will be of a 
 somewhat perfunctory nature. Nevertheless it must be remembered 
 that as soon as agricultural land comes to obtain a building or trade 
 value it is considered to pass out of the one category and into the other, 
 and increment value duty is payable on all increment to the original site 
 value, even if that increment is below the building or trade value (s. 7). 
 The importance of this clause can hardly be overrated. The site 
 valuation is, except as to developed land, to be kept up to date, for by 
 clause 28 a quinquennial valuation is to be made of " undeveloped land." 
 Undeveloped land is, under s. 16, all land, " if it has not been developed 
 by being built upon or by being used bond fide for any business, trade 
 
 * Amended by 1 Geo. 5, c. 2, s. 4. 
 
Valuation. 811 
 
 or industry other than agriculture." It is not material that the § 26 (1). 
 undeveloped land duty is not charged upon it, because it comes within 
 one of the various exemptions contained in s. 17. It is still 
 undeveloped land. This is confirmed by the language of the proviso of 
 s. 28, which refers to " any undeveloped land which is liable to 
 undeveloped land duty." All undeveloped land is indeed potentially 
 subject to undeveloped land duty. 
 
 Land includes minerals, but the section must be read in relation to Valuation of 
 minerals subject to s. 23 (4), under which references to " site value " ^^i^^i'^ls. 
 are references to the capital value of minerals, and to sub-s. (2) of the 
 same section, under which all minerals are to be treated as a separate 
 parcel of land, but where not comprised in a mining lease or being 
 worked are to be treated as of no value unless the proprietor, in his 
 return to the Commissioners, specifies the nature of the minerals and 
 his estimate of their capital value. 
 
 It would seem that it is only under the original valuation that there 
 is to be a general valuation of minerals. The quinquennial valuation 
 under s. 28 is *' for the purpose of obtaining a periodical valuation of 
 undeveloped land," and is a valuation of "undeveloped land." By 
 s. 16 (4) "for the purpose of undeveloped land duty undeveloped land 
 does not include the minerals." 
 
 But the valuation of minerals, which being in a mining lease or being 
 worked by the proprietor on April 30, 1909, have ceased to be either 
 in such a lease, or to be worked (s. 22 (7) ), must not be overlooked. 
 Since increment value duty is not to be charged on minerals so in lease, 
 or being worked, a valuation as on April 30, 1909, is not necessary for . 
 the time being. The appropriate time for fixing the datum line as to 
 them is when the present possibilities of successful working may be 
 considered exhausted, and this is done by s. 22 (7). See notes on pp. 244 
 and 260. 
 
 " Land," of course, will include land covered by water, as a pond or 
 reservoir, and land on the sea-shore down to low water mark, and the 
 bed of rivers. 
 
 Showing separately the Total Value and the Site Value respectively. 
 
 — This is the "assessable site value" (s, 25 (4) ). For definition of 
 total value, see s. 25 (3), and of assessable site value, ib., sub-s. (4). On 
 the face of the section, gross value and full site value (s. 25 (1) and (2) ) 
 have apparently disappeared, but they must necessarily be ascertained 
 to arrive at total value and assessable site value (see notes to s. 25). 
 
 And in the Case of Agricultural Land the Value of the Land for 
 Agricultural Purposes where that Value is different from the Site 
 Value. — For notes on the value of land for agricultural purposes, see 
 ante, notes on pp. 130 and 195. It is thought that the value of the land 
 for agricultural pvirposes must in this section mean the value of the land 
 with its agricultural buildings. Whether this be the case or not is 
 
312 Land Clauses of the Finance Act. 
 
 § 26 (1). perhaps not so important as may seem, since the Commissioners under 
 s. 29 (1) may assess any duty on or in respect of any such pieces of land 
 whether under separate occupation or not as they think fit, and may 
 therefore separate land with buildings upon it from the rest of the farm. 
 It is not thought that the " value of the land for agricultural purposes ' ' 
 means the site value of the land for those purposes, since it is ordinary 
 market value at the time of the land for agricultural purposes, which 
 under s. 7, at all events, is the test as to exemption from increment 
 value duty. Under s. 17 (2), as to undeveloped land duty, it is 
 apparently the excess of the site value of the land for purposes other 
 than agriculture over the [market] value of the land [at the time] for 
 agricultural pui-poses upon which undeveloped land duty is charged. 
 The words in brackets are not in s. 17 (2), but are thought to be 
 implied. 
 
 To render the two valuations necessary, (1) the land must be 
 agricultural land, i.e., used or employed in agriculture, and (2) its 
 value for agricultural purposes must be different from its site value. In 
 the case of pasture land, of laud used as orchards and hop gardens, and 
 in other cases the agricultural value may be greater than the site value, 
 and will be greater if the land has no value higher than its value for 
 agricultural purposes. 
 
 It is thought that the " value of the land for agricultural purposes " 
 as ascertained under s. 26, is not like total and site values so ascertained 
 as conclusive on an assessment by virtue of s. 33 (b), at all events as to 
 the agricultural value at the date of the assessment as distinguished 
 from the date of the valuation under s. 26. 
 
 Neither increment value duty, reversion duty, nor undeveloped land 
 duty are charged in respect of land used in agriculture which has 
 no higher value than its value for agricultural purposes. Reversion 
 duty, indeed, is not chai'ged on any land which is at the time of the 
 determination of the lease employed in agriculture (s. 14 (2) ). 
 
 The reason why the two values must be ascertained are, (1) because 
 imder s. 7 iucrement value duty becomes payable on land the value of 
 which exceeds its market value at the time for agricultural purposes 
 only. In such a case, as has been seen (p. 133), the whole increment 
 value starting from the original site value is subject to the duty ; and 
 (2) because under s. 17 (2) undeveloped land duty is charged on the 
 amount by which the site value of land employed in agriculture and 
 exceeding a value of 50^. per acre also exceeds its value for agricultural 
 purposes. A high agricultural value is therefore desirable, because it 
 limits the amount of the duties. 
 
 Each Piece of Land which is under Separate Occupation. — It is 
 
 thought that " piece of land " in this context is not so used as to cause 
 the sentence to mean that each portion of land with marked boundaries 
 is to be separately valued, so that, for example, a garden and an adjoining 
 
Valuation. 318 
 
 paddock would be treated as two pieces of land. It is thought that § 26 (1). 
 what is to be valued is the totality of the adjoining land belonging to 
 the same owner in a single occupation. 
 
 And if the Owner so requires, any Part of any Land which is under 
 Separate Occupation, — The sense seems clear. The units which are to be 
 valued are determined by the fact that they are property belonging to 
 one owner, and in one occupation. But an owner may require the 
 Commissioners to split up any property so occupied into as many parts 
 as he indicates, and to value each such part separately. Compare s. 43 
 of the Succession Duty Act (16 & 17 Vict. c. 51), 1853. 
 
 There is a great deal of law relating to what is technically called Separate 
 " separate or exclusive occupation " mainly arising with respect to poor "^^^^^^^^^^ ^^ 
 law rating and franchise cases. In regard to the former the usual franchise 
 question is whether A. is liable to pay the poor rates tax ; in regard to cases. 
 the latter, whether A. is entitled to vote.* Indirectly the question 
 usually arises, if A. is not liable to pay or entitled to vote, who is or may 
 be so liable or entitled "i No such question arises under s. 26. There 
 is no doubt that the owner or person exercising the rights of ownership 
 must pay. The only question is how is his property to be massed or 
 carved up for the purpose of assessing it. Sub-sect. (1) of s. 26 says or 
 implies (1) that the Commissioners are to value separately each piece of 
 land under separate occupation ; (2) that the owner may require any 
 part of any separate occupation to be separately valued ; (3) but that 
 neither owner nor Commissioners are entitled to lump together two 
 separate occupations for the purpose of valuation. This latter incident 
 has, however, been altered by s. 5 of the Revenue Act, 1911 (1 Geo. 5, 
 c. 2), under which the Commissioners may, on the request of the owner 
 of any pieces of land which are contiguovis, value those pieces together, 
 although under separate occupation (see p. 315 for the full section). 
 
 As under s. 29 any duty may be assessed on or in respect of any such Compara- 
 pieces of land, whether under separate occupation or not, as the Com- pj^tant under 
 missioners think fit, for which purpose they may make such apportion- s. 26. 
 ments and reapportionments of site value as they consider necessary, the 
 question of the unit of valuation loses something of its importance. 
 
 It is not thought that any land can escape valuation because it is not Unoccupied 
 occupied. The direction is to vakie all land whether occupied or not. 
 The owner will, it is submitted, be in occupation, if there is no tenant 
 {Holywell Union v. Halkyn Drainage Co., [1895] A. C. 117). The 
 direction to value separately land under separate occupation may 
 cause uncertainty as to the unit of valuation in particular cases, but 
 none as to the obligatory nature of such valuation. For this reason the 
 decisions upon " occupation " in rating law seem to have comparatively 
 little importance in relation to s. 26. It may, nevertheless, be noted 
 
 * See the recent case of Young ^ Co. v. Liverpool Assessment Committee, [1911] 
 2 K. B. 195. 
 
314 
 
 Land Clauses of the Finance Act. 
 
 Valuation of 
 separately 
 occupied land 
 as an aggre- 
 gate. 
 
 § 26 (1) that occupation does not necessarily involve residence [R. v. Jitstices of 
 West Riding, 2 Q. B. 505). 
 
 If the Commissioners value two separate occupations as a unit 
 except at the request of the owner, under s. 5 of the Revenue Act, 
 1911, then, although it may be that they are entitled to assess duty on 
 such an aggregate when obtained by separate valuations (under s. 29 (1)), 
 it is thought that the assessment would be bad. The assessment of the 
 two occupations as a unit may be different from that of the combined 
 sum of the separate assessments of the two occupations. On the other 
 hand the owner may, as we have seen, get separate valuations of different 
 portions of a property in a single occupation, and those separate valua- 
 tions may in the aggregate amount to less than the sum of a single 
 valuation of the whole property. In this case it is thought that the 
 Commissioners must be content with the smaller amount arising from 
 the separate valuations.* 
 
 In cases of undeveloped land duty where the value of various pieces 
 of land may be increased by the fact that such pieces are in one owner- 
 ship, it may be advisable for the owner to obtain separate valuations. 
 Nevertheless it is not quite clear that such separate valuations are 
 to be on the basis of separate ownerships. The present owner may be 
 a possible purchaser (see p. 278). It must also be remembered that 
 sometimes a high and not a low original site value is desirable. 
 
 The power of the owner to require land in one occupation to be split 
 up for purposes of valuation is apparently vinlimited, so that prima 
 facie an owner of a block of flats could say " value separately every 
 square yard of my property [for the whole seven storeys of my building?] " ; 
 or the owner could send a plan of his property to the Commissioners 
 with the land cut up into divers fancy and irregular pieces, and require 
 them to find the four values of each piece. It is not thought that any 
 device of this kind could ultimately be successful in eluding taxation, 
 and such a device might be dangerous from the point of view of the 
 costs of any proceedings on appeal, but it seems certain that any bond 
 fide desire to have any portion of his property separately valued must 
 be complied with by the Commissioners, although in their opinion that 
 desire may be unreasonable. The effect of this is that an owner having 
 two pieces of land occupied either by himself or a single tenant, the value 
 of one or of both of which is increased by the fact that they are in the 
 same ownership, will require them to be separately valued, if he wishes 
 
 * It is difficult, however, to see how the directions of s. 26 are to be strictly 
 applied to a block of buildings let out as offices or flats. Probably by consent of 
 the owner, the buildings will be valued as a whole. If Form IV. is returned by 
 the owner for the whole building it is possible he may be considered to have con- 
 sented to its valuation as a whole. So if the owner has returned several Forms IV. 
 for land in difierent occupations, which under s. 5 of the Revenue Act, 1911 
 {post, p. 31.'>), he might be entitled to have jointly valued, he may, subject to the 
 temporary grace allowed by that section, l>e precluded from requiring joint 
 valuation. 
 
 Unlimited 
 power of 
 requiring 
 separate 
 valuation. 
 
Valuation. 315 
 
 for a low site valuation ; but if he wishes for a high site valuation he § 26 (1). 
 will of course acquiesce in the joint valuation of the two as being in one 
 occupation. 
 
 Compare with this sub-section the provisions of s. 29 (2), under which 
 apportionments and reapportionments of original site value may be 
 made. 
 
 The Kevenue Act, 1911 (1 Geo. 6, c. 2), s. 5. 
 
 Notwithstanding anything in sub-section one of sec- Revenue 
 tion twenty-six of the principal Act the Commissioners -^^^^ 1911, 
 may, on the request of the owner of any pieces of land ^' ' 
 which are contiguous, and which do not in the aggregate 
 exceed one hundred acres in extent, value those pieces of 
 land together for the purposes of that Act, although those 
 pieces of land are under separate occupation, if they are 
 satisfied that in the special circumstances of the case it 
 is equitable to do so ; and any such valuation may be 
 made under this provision, although any of the pieces of 
 land have been valued before the passing of this Act, if 
 the request for the valuation under this provision is made 
 by the owner of the land within three months after the 
 passing of this Act, and in that case any valuation 
 previously made shall be of no effect. 
 
 The Commissioners may on the Request of the Owner, etc. — 
 
 To bring this section into play, (1) there must be a request by the 
 owner, which, though not compulsorily so, will naturally be made in 
 writing ; (2) the pieces of land required to be vakied as an aggregate 
 must be contiguous ; (3) the Commissioners must be satisfied that there 
 are special circumstances which render joint valuation equitable. 
 What such circumstances will be it is not easy to prophesy. 
 
 A case given in Parliament, to which it seemed there was a general Application 
 consensus that it would be equitable that the section should apply, is as ^? increment 
 follows. The leases on an urban estate are on the point of expiring and 
 the buildings are dilapidated. When all the leases have fallen in it is 
 probable that the sites will be cleared by the owner, and the land let 
 for new and larger buildings. The aggregate value of the sites let as a 
 whole, or in larger areas than those held under the expiring leases, will 
 probably greatly exceed the total value of the separate sites separately 
 valued. This will be the case, it was said, because, amongst other obvious 
 reasons, the various easements affecting and reducing the value of the 
 various sites, such as easements of light and support, will have disappeared 
 
316 Land Clauses of the Finance Act. 
 
 § 26 (1). in the ownership of the whole in fee simple. It is thought that it is fair 
 that the owner, the person entitled to the fee simple on reversion, should 
 be able to obtain from the Commissioners an original site value of the 
 whole estate, as an aggregate, as a defence against an excessive claim for 
 increment value duty on a resale or on the new leases. See Official 
 Report of Parliamentary Debates, March 27, 1911, vol. 23, No. 37, 
 pp. 998 and 999. 
 And to Whether it would be " equitable " so to apply the clause as to reduce 
 
 L'S^dut'^^'^ or get rid of the liability of land A. to undeveloped land duty by 
 valuing it as an aggregate together with land B., the value of which is 
 under 50^. an acre, is a matter to be determined by the Commissioners. 
 The question must, it is thought, depend vipon the particular facts of 
 each case. But the limit of one hundred acres is placed on the 
 aggregate extent of all the pieces of which a joint valuation may be 
 requested. 
 
 There are probably cases in which land naturally forming an aggregate 
 has, under exceptional circumstances, come to be in diverse occupations. 
 A paddock attached to a house may have been separately let either by 
 the owner or lessee of the house. The value of the site of the house 
 and paddock valued together may exceed the aggregate of the separate 
 values of each. In such a case it rtiay be advisable for the owner to 
 endeavour to utilise this section as providing a buffer against a claim 
 for increment value duty on the sale of the house and paddock for a 
 single consideration. 
 
 Whicli are Contiguous. — If an angle of field A. touches an angle of 
 field B., as in the following diagram, are the fields contiguous 1 
 
 A. 
 
 
 
 B. 
 
 Although any of the Pieces have been Valued before the 
 passing of this Act. — If it is clear that the pieces have not been so valued 
 before the passing of the Act, as, for example, where the owner's return 
 under sub-s. (2) has not yet been made, an immediate request, or a 
 request accompanying the return, which should at once be made, should 
 be given to the Commissioners for the joint valuation desired. If the 
 pieces have been so valued, the notice referred to in the section must be 
 given within the specified time. It is not, however, clear at what 
 moment of time the pieces must be considered to " have been valued." 
 Is it the date of service of the provisional valuation under s. 27 (I) ; or 
 the moment when the Government valuer has made for his own purposes 
 
Valuation. 317 
 
 the valuation, or sent it on to the Commissioners; or the moment the § 26 (1) 
 Commissioners have adopted that valuation hy directing it to be inserted 
 in the provisional valuation ; or not till that valuation is finally settled 
 (see p. 324). Tliere seems to be a strong argument for the last 
 mentioned date. 
 
 And in that Case any Valuation previously made shall be of no 
 Effect. — That is if the request is acceded to, not simply made. 
 
 (2) Any owner of land and any person receiving i-ent Finance 
 in respect of any land shall, on being required by notice Act, mo, 
 from the Commissioners, fm^nish to the (Commissioners '^^ ^^ (^^• 
 a return containing such particulars as the Commis- 
 sioners may require as to the rent received by him, and 
 as to the ownership, tenure, area, character, and use of 
 the land, and the consideration given on any previous 
 sale or lease of the land, and any other matters which 
 may properly be required for the purpose of the valuation 
 of the land, and which it is in his power to give, and if 
 any owner of land or person receiving any rent in respect 
 of the land is required by the Commissioners to make a 
 return under this section, and fails to make such a return 
 within the time, not being less than thirty days, specified 
 in the notice requiring a return, he shall be liable to a 
 penalty not exceeding fifty pounds to be recoverable in 
 the High Court. 
 
 Any Owner. — See definition of owner (s. 41, post, p. 458). A tenant 
 for life as well as a lessee with a term of which more than fifty years are 
 unexpired is an owner within the meaning of this sub-section. The 
 owner of minerals is also within the section (see Forms IV. (p. 504) 
 and VI. (p. 533)). Form V. (p. 519) is the return to be made under 
 s. 20 (3) in respect of minerals being worked) ; although in relation to 
 the special mineral duties the owner is termed in the Act " proprietor " 
 and the valuation of the minerals will be under s. 23 (1) and (4) and not 
 under s. 25 (see ante, pp. 246 and 255). The extended meaning of the 
 term " owner " in s. 27, created by sub-s. (7) of that section, does not 
 apply to s. 26. 
 
 See also s. 41, paragraph beginning "The expressions 'transferor,' " 
 (p. 461), under which ss. 59, 60, and 62 of the Settled Land Act, 1882 
 (which relate to the exercise of powers on behalf of infants and lunatics), 
 are to apply to the exercise of the powers of an owner under the land 
 clauses of the Finance Act, 1910, in the same manner as they apply to 
 
318 Land Clauses of the Finance Act. 
 
 § 26 (2). the exercise of the powers of a tenant for life under the Settled Land 
 Act. Under the sections referred to (see p. 426), in the case of an infant 
 the trustees of the settlement, or, if there are none, a person appointed 
 specially by the Court, and in the case of a lunatic, the committee of his 
 estate, are to exercise the powers of the Settled Land Act, and there- 
 fore, under s. 41, the powers of an owner under this Act. It would seem, 
 therefore, by implication that they would be subject to the liabilities of 
 an owner, including that of making a return under this sub-section. In 
 any event, in so far as trustees receive rent on behalf of infants or 
 committees for lunatics, they come within the words " any person 
 receiving rent." 
 
 Any Person receiving Rent. — Such persons, as distinguished from 
 owners, will include the person entitled to the fee simple expectant upon 
 the determination of a lease with over fifty years unexpired, the lessee 
 of a leasehold reversion expectant upon a like term, the lessee of a term 
 of less than fifty years unexpired, who is therefore not the owner, and 
 will possibly include agents of all kinds, receivers under the Court, 
 and possibly under powers contained in mortgage or other deeds, and 
 even persons without any title other than possession, etc. No limitation 
 can safely be placed upon them. 
 
 With this sub-section must be compared s. 31 (1) (see post, p. 346). 
 The two sections appear so far as the receipt of rent by an agent to 
 cover the same ground ; since it does not appear that there is any other 
 reason than the fact of the duplication by two separate clauses of the 
 liability for suggesting that s. 26 (2) does not apply to agents generally. 
 More particularly is this the case if the words " and which it is in his 
 power to give " refer to all the particulars enumerated in s. 26 (2), and 
 not only to " any other matters." 
 
 Rent has the same meaning as in the Conveyancing and Law of 
 Property Act, 1881, and does not include a rent-charge (s. 41). The 
 Conveyancing and Law of Property Act, 1881, s. 2 (ix.), is as follows: — 
 
 (ix.) Eent includes yearly or other rent, toll, duty, royalty or other 
 reservation by the acre, the ton, or otherwise, and fine includes premium 
 or foregift, and any payment, consideration or benefit in the nature of 
 a tine, premium or foregift. 
 
 The sub-section would doubtless apply to mineral rents ; see s. 24 
 (ante, p. 265). 
 
 On being required by Notice. — For the manner in which notices 
 may be served on owners and persons interested, see s. 31 (4). But 
 qucere whether a " person receiving rent " under s. 26 (2) is necessarily 
 a " person interested " under s. 31 (4). If the unit of valuation adopted 
 by the Commissioners is objected to, the return should not be filled in ; 
 otherwise the owner runs the risk of being considered to have assented 
 to the unit. The person served should in such case, having expressed 
 his objections to the Commissioner, either await an action for penalties 
 under the sub-section, or possibly himself bring an action gi-ounded on 
 
Valuation. 319 
 
 Dyson V. Attorney-General, [1911] 1 K. B. 410, and Burghes v. Attorney- § 26 (2). 
 General, [1911] 2 Ch. 139, post, p. 347, and appendix, p. 510, for a 
 declaration that he is not bound to make the return as demanded. 
 
 A Return containing, etc. — Compare the return required under this 
 sub-section with the returns or particulars required by the Income Tax 
 Act, 1842, ss. 48 and 53, and the Finance Act. 1894, s. 8 (sub-s. 5). On 
 p. 504 will be found a copy of the return (Form IV.) required to be 
 made under this sub-section, and a note thereon. 
 
 And as to the Ownership, Tenure, Area, Character, and Use of the 
 Land, and .the Consideration given on any Previous Sale or Lease of 
 the Land.— These particulars are certainly very searching, and it is easy 
 to see that they cannot all be always within the knowledge of a receiver or 
 agent. It does not appear certain that the later words of the section, 
 "and which it is in his power to give," qualify anything else except the 
 words " any other matters, etc." 
 
 It has been decided under this sub-section and Form IV. (see 
 above), that a statement of claim in an action for a declaration that 
 the form is illegal, unauthorised, and ultra vires as to certain of the 
 particulars required, brought by the owner against the Attorney-General, 
 as representing the Crown, will not necessarily be struck out under 
 Order 25, r, 4, on the ground that it discloses no reasonable cause of action 
 {Dyson Y. Attorney-General, [1911] 1 K. B. 410). For an examination 
 of this case, see the note thereon in the Appendix immediately follow- 
 ing Form IV. {post, p. 504). One of the points decided was that the 
 particulars under head (*') in Form IV. could not be required. 
 
 And which it is in his Power to give. — Quoere, is he bound to get 
 information not at the moment of inquiry in his possession ? Apparently 
 not, as to these " other matters " to which alone the qualification gram- 
 matically refers. But supposing he has the information in his power, but 
 it requires calculation to place it in a comprehensible form, is he bound to 
 work out such calculation ? 
 
 Fails to make, etc. — Not " refuses " or even " neglects." But simply 
 does not do so, whatever may be the reason, such as ill-health, inevitable 
 absence from home, etc. (See Attorney-General v. 1%U, [1910] A. C. 50.) 
 See p. 78 for note on penalties. 
 
 A Penalty not exceeding £50, etc. — Not recoverable summarily, but 
 probably subject to the provisions of the Inland Revenue Regulation 
 Act, 1890 (53 & 54 Vict. c. 21), which relate to the procedure in pro- 
 ceedings by the Crown to recover stamp duties. See ss. 21 to 27, 
 33, 36. 
 
 (3) Any owner of land may, if he thinks fit, furnish to 
 the Commissioners his estimate of the total value or 
 site value or both of the land, and the Commissioners, in 
 
320 
 
 Land Clauses of the Finance Act. 
 
 § 26 (3). making their valuation, 
 furnished. 
 
 shall consider any estimate so 
 
 § 27 (1). 
 
 Ascertain- 
 ment of the 
 original site 
 value of land. 
 
 Before making their valuation the Commissioners require a return 
 under sub-s. 2 from the owner or person receiving the rent (see 
 Form IV., post, p. 504), asking for the particulars which they require 
 for the purpose of making their valuation. 
 
 In such form (see p. 508) the Commissioners draw attention to sub- 
 s. (3), and give the owner the opportunity of stating his own valuation 
 of both total and site value. This must be considered by the Commis- 
 sioners before making their valuation. It must be remembered that 
 minerals not in lease or being worked on April 30, 1909, are to be treated 
 as having no capital value unless the proprietor in his return under this 
 section specifies their nature and his estimate of their capital value 
 (s. 23 (2), ante, p. 251). 
 
 Section 27. 
 
 27. — (1) The Commissioners shall cause a copy of 
 
 their provisional valuation of any land to be served on 
 
 the owner of the land, and unless objection is taken to 
 
 the provisional valuation in manner provided by this 
 
 section, the values shown in the provisional valuation 
 
 shall be adopted as the original total value and the 
 
 original site value respectively for the purposes of this 
 
 Part of this Act. 
 
 Their Provisional Valuation, i.e., the valuation made under s. 26 (1), 
 after considering the estimate of the owner (if he has made an estimate) 
 under sub-s. (3) of s. 26. (For form of valuation, see p. 546, and for note 
 thereon, see p. xxxiii., ante.) Unless objection is taken in manner provided 
 by the section, or unless the Commissioners without objection amend 
 it, the valuation which was originally provisional becomes absolutely 
 binding. The whole section appears to apply to a valuation of minerals, 
 substituting of course capital value for site value. 
 
 To be served on the Owner. — It must be noted that where the lessee 
 is the owner within the meaning of the Act (s. 41), that is, has an 
 unexpired terra of more than fifty years, this section applies as if the 
 person entitled to the fee simple reversion, and also to any leasehold 
 reversion exceeding twenty-one years, were the owner as well as the lessee 
 (sub-s. 7) ; so that the provisional valuation may have to be served on 
 more than one person. For service on an owner or person interested, 
 see s. 31 (4). 
 
 Unless Objection is taken to the Provisional Valuation in Manner 
 provided by this Section. — See as to the manner of taking objection, 
 
Valuation. S21 
 
 sub-s. (2) of this section. It is to be noted that under s. 33 (1) (a) an § 27 (1). 
 appeal to a referee and from him to the High Court will not lie against 
 a provisional valuation, except on the part of a person who has made 
 an objection to the provisional valuation. 
 
 Original Total Value. — See s. 25 (3) for definition of total value. 
 This original total value is not in itself a taxable entity. It is 
 necessary that it should be ascertained in order that original site value 
 should be deduced from it. Original total value is, it is conceived, in 
 the case of agricultural land on which are no buildings and which has 
 no higher value than its value for agricultural purposes, identical with 
 the agricultural value of the land. 
 
 Original Site Value. — See s. 25 (4) for description of site value, a 
 reference to which is deemed to be to the assessable site value, except a 
 reference on an occasion on which increment value duty is to be 
 collected, as to which see s. 2 (2). Original site value is the terminus a [ 
 quo increment value is calculated and upon which increment value duty I 
 is payable in future. It is the taxable entity of undeveloped land duty / 
 until the year 1915. 
 
 It will be noted that though under s. 26 (1) the Commissioners As to the 
 
 have to find in the case of agricultural land the value of the land agricultural 
 
 • 11 11 i-i-«. P 1- value and the 
 
 tor agricultural purposes where that value is dmerent irom the site provisional 
 
 value, yet there is no provision in sub-s (1) of s. 27 making their valuation. 
 
 estimate of agricultural value binding, as in the case of total and site 
 
 values. As the undeveloped land duty is charged on the excess of site 
 
 value over agricultural value, it would at first sight seem convenient if 
 
 the agricultural value of the land were also found. But on reflection it 
 
 will be seen that the agricultural value of the land at the date of the 
 
 original valuation is under the Act probably immaterial. Under s. 7, 
 
 the section exempting agricultural values from increment value duty, 
 
 and s. 17 (2), the section exempting them from undeveloped land duty, 
 
 it will be seen that it is apparently the agricultural value at the date of 
 
 assessment which determines the exemption. There is nothing in the 
 
 Act to render the original or a periodical valuation of agricultural land 
 
 binding on occasions for payment of duty, as there is in relation to 
 
 original total value and original and quinquennial site value (s. 16 (3) 
 
 and 8." 33 (1) (6)). In each case when exemption is claimed, either 
 
 under s. 7 or s. 17 (2), there ;iiust, it is thought (though it is not quite 
 
 clear), be a new valuation of agricultural value. As to undeveloped 
 
 land duty it is quite probable that in most cases the general valuation 
 
 for agricultural purposes will only be altered at long intervals. It seems 
 
 not clear, however, that s. 28 applies to the quinquennial valuation the 
 
 provision of s. 26 under which the Commissioners must find the value 
 
 of the land for agricultural purposes. Gross, full site, and total values 
 
 are necessarily found before assessable site value can be ascertained, but 
 
 value for agricultural purposes is nominally independent of s. 25. 
 
 N. 21 
 
322 Land Clauses of the^Finance Act. 
 
 § S7 (2) ^2) If the owner considers that the total or site value, 
 as stated in any provisional valuation, is not correct, he 
 may, with a view to an amendment of the provisional 
 valuation, within sixty days of the date on which the 
 copy of the provisional valuation is served, or such 
 extended time as the Commissioners may in any special 
 case allow, give to the Commissioners notice of objection 
 to the provisional valuation, stating the grounds of his 
 objection and the amendment he desires, and, if the 
 Commissioners amend the provisional valuation so as to 
 be satisfactory to all persons making objections, the total 
 and site value as stated in the amended valuation shall 
 be adopted as the original total and the original site 
 value for the purposes of this Part of this Act. 
 
 Owner. — See s. 41 for definition, and also sub-s. (7) of this section, 
 and notes, ante, pp. 317 and 320. 
 
 Date on which the Copy of the Provisional Valuation is served. — 
 For service of valuation, see s. 31 (4), p. 348. 
 
 Or such extended Time, etc. — It is thought that there is an appeal 
 from the refusal of the Commissioners to allow an extension of time. 
 See s. 33, p. 358. 
 
 Give to the Commissioners. — The notice should be addressed to the 
 Commissioners, and not to the District Valuer (compare Burghes v. 
 The Inland Revenue, [1911] 2 Ch. 139). 
 
 Stating the Grounds of Ms Objection and the Amendment he 
 desires. — The valuation, under s. 26 (1), need only show (1) total value, 
 (2) site value, and (3) in the case of agricultural land the value of the 
 land for agricultural purposes, where that value is different from the site 
 value. Apparently no reasons for, or particulars as to, the manner in 
 which the values are arrived at need be given to tlie owner under s. 27 (1), 
 but as a matter of fact such particulars are to a certain extent given 
 in the provisional valuation (see post, p. 546, for form of provisional 
 valuation). * In particular, gross and full site values and particulars of 
 deductions under s. 25 (3) and (4) are stated. The grounds of objection 
 by the owner and the amendment desired must, where no particulars 
 are given in the valuation, necessarily be equally concise, as for 
 example — "That the assessable site value is not, as alleged, in the 
 valuation 300/., but is 250/., and that the valuation be amended 
 
 * For a practical note on the provisional valuation see explanatory 
 Bummarj', p. xxxiii. 
 
Valuation. 323 
 
 by substituting the sum of 250^. for the sum of 300^. as the assessable § 27 (2). 
 site value." But, as appears to be intended to be the case, if the 
 valuation contains details of the deductions from total value made 
 in order to arrive at site value, exception should be taken to the 
 particular details which are disagreed with, and the amendments desired 
 in details, including consequential amendments in totals, should be 
 stated. In giving notice of objection to the Commissioners as to the 
 provisional valuation it will be advisable so far as possible and as the 
 nature of the case will allow to follow the same course and forms as are 
 prescribed in the case of an appeal to the referee (see Rules and Forms 
 as to that appeal, post, p. 376). 
 
 It is thought that the whole question of the values is open on the 
 objections to the provisional valuation, and that owners who have not 
 claimed for deductions under Form IV. (p. 504) and Form VII. (p. 514) 
 can still do so. But this is not certain. 
 
 As to an objection to agricultural value as found by the provisional 
 valuation, see note on p. 321, "Original site value." But clearly 
 owners are in a difficulty until the question there raised is decided. 
 
 It is not thought that there is any right in an objector to insist on a Personal 
 personal hearing by himself or agent in objection to the valuation, since Clearing. 
 (1) there is no provision in this Act equivalent to s. 19 of the Union 
 Assessment Act, 1862 (25 & 26 Vict. c. 103), relating to poor rates, 
 under which union assessment committees are bound to hold meetings 
 for hearing objections, and to give prescribed notice thereof, and " may 
 at such meeting hear and determine such objections " ; (2) when 
 personal hearing is required, as in the case of appeal to referees, the 
 right is specifically given (s. 33 (3) ) ; and (3) the general course of 
 procedure in other matters of an analogous nature before the Com- 
 missioners (Stamps, Income Tax, etc.) against the right. 
 
 All Persons making Objections. — For the persons who may make 
 objections, other than the owner, see sub-s. (5), infra. Supposing the 
 Commissioners amend the provisional valuation so as to be satisfactory 
 to all persons *' making objections," but that the effect of these amend- 
 ments is to render the valuation unsatisfactory to the owner or to 
 persons interested, who have not made objections to, but were satisfied 
 with, the provisional valuation. Their time for objecting (sixty days from 
 service upon them of the copy of the provisional valuation) has almost 
 certainly gone by. The point is, perhaps, intended to be met by 
 sub-s. (3) of this section. The amended provisional valuation is to be 
 deemed a provisional valuation. It is thought that it must be served 
 on the owner under sub-s. (1) and all persons interested who have 
 already applied under sub-s. (5) for copies of the provisional valuation, 
 and it is thought (but with some hesitation) that all parties so served 
 have another sixty days from service to make objections. See further 
 the note to sub-s. (3). 
 
 21—2 
 
324 Land -Clauses of the Finance Act. 
 
 § 27 (2). The Total and Site Value as stated on the . . . Amended Valuation 
 shall be adopted, etc. — ^" Adoption" of total and site values is, it is 
 assumed, the correlative of the final settlement of the provisional 
 valuation referred to in sub-s. (3). The same act finally settles the 
 valuation by adopting the values. The language used is ingeniously 
 calculated to raise doubts as to whether the whole meaning of the 
 phraseology has been grasped. 
 
 (3) The Commissioners may amend any provisional 
 valuation, whether objected to or not, before it is finally 
 settled, and the amended provisional valuation shall be 
 deemed to be a provisional valuation for the purposes of 
 this section. 
 
 Before it is finally settled. — The final settlement of the provisional 
 valuation appears to be (a) where no objection is taken either by the 
 owner under sub-s. (2), or by any person interested under sub-s. (5) 
 within the sixty days of service on the owner or the delivery of the 
 copy valuation under sub-s. (5) to the person interested, as the case 
 may be, but qiusre whether the person interested has sixty days from 
 service on himself or must appeal within the owner's sixty days and any 
 further time he can get under sub-s. (2) ; (b) where objections are 
 taken either by owner or person interested, and the Commissioners 
 amend the valuation, or where they amend the valuation of their own 
 accord without objection, and in either case serve such amended 
 valuation on the owner [it would seem also on all parties who have 
 applied under sub-s. (5)], and there is no further objection on the part 
 either of the owner or those parties within the sixty days from the 
 service of the amended valuation ; (c) where objections being taken 
 the Commissioners overrule them, and there is no appeal to a referee 
 within the time fixed by Rule 4 of the Appeal Rules {post, p. 377) ; 
 (d) where there is an appeal and that appeal is either allowed or 
 overruled and there is no further appeal, or the time for such a 
 further appeal has expired. 
 
 Shall be deemed to be a Provisional Valuation for the Purposes 
 of this Section. — Does this mean that the amended valuation shall be 
 re-served under sub-s. (1), and that the owner and any other persons 
 interested shall have a right to object under sub-s. (2) to the amended 
 valuation % Probably it does ; and indeed this procedure may be only 
 fair to owners and others interested. But this may necessitate delay. 
 In the case where the Commissioners give full effect to an owner's 
 objection it is difficult to see why he should have sixty more days to 
 object again. At the same time, if by giving effect to the objection of one 
 of the several owners (see sub-s. (7) of this section), or parties interested 
 (sub-s. 5), a new objection is created on the part of another owner or a 
 
Valuation. 325 
 
 party interested (sub-s. (5) ), it is of course only fair that the latter § 27 (3). 
 should have time to formulate his objections. 
 
 (4) If the provisional valuation is not amended by the 
 Commissioners so as to be satisfactory to any objector, 
 that objector may give a notice of appeal under this Act 
 with respect to the valuation, but if no such notice is given, 
 the total and site value as stated in the provisional valua- 
 tion, subject to such amendments as may be made by the 
 Commissioners in order to meet objections, shall be 
 adopted as the original total and the original site value 
 respectively for the purposes of this Part of this Act. 
 
 Any Objector, i.e., the owner or persons objecting under sub-ss. (5) 
 and (7) of this section. 
 
 Notice of Appeal under the Act, i.e., to a referee (s. 33 (2) ). For 
 the form of the notice and the procedure on appeal see " Land Vakies 
 (Referee) Rules, 1910," dated December 5, 1910 {post, p. 376). Rules 3, 
 4, and 5 relate to the form of notice of appeal and the time within 
 which it must be given. If a provisional valuation is objected to, 
 amended, and as amended still objected to, and not re-amended, it 
 would seem that the latter valuation is that which must be appealed 
 against (but compare R. v. Justices of Derbyshire, 19 W. R. 934). But 
 to be quite safe the appeal may be directed to both valuations. 
 
 But if no such Notice is given, the Total and Site Value 
 as stated . . . shall be adopted as, etc. — If an owner or person 
 interested desires to appeal from the provisional valuation of original 
 total or site value he must (1) make an objection under sub-s. (2) 
 or (5) of this section (see s, 33 (1) (a) ). Then if the Commissioners 
 do not amend their provisional valuation in accordance with that 
 objection he must give a notice of appeal under this sub-section. (For 
 the rules as to appeals to a referee see post, p. 376). This is 
 apparently the only way of challenging original total and site value 
 (s. 33 (1)(6)). If a notice of appeal is not given now, the values as 
 stated in the provisional valuation are to be adopted as the original total 
 or site values respectively, and it seems that there is no appeal li'om such 
 adoption. But ss. 27 (4) and 33 (1) [a) are not quite clearly consistent. 
 
 Notice of objection by A., one owner, overruled by the Commissioners 
 will not entitle B., another owner, to appeal (s. 33 (1) (a), see p. 358). 
 
 It is thought that the persons mentioned in the note to sub-s. (2) 
 (see p. 323), who, being satisfied with, have not given notice of objection 
 to the original provisional valuation, but who have given notice of 
 objection to the proposed amendment under sub-s. (3) of the original 
 provisional valuation, are objectors within the meaning of sub-s. (4), and 
 accordingly may give notice of appeal under that sub-section. 
 
826 Land Clauses of the Finance Act. 
 
 § 27 (4). Subject to such Amendments as may be made by the Com- 
 missioners, etc., i.e., not a new set of amendments, but the amendments 
 in the original provisional valuation already made 'at the date of the 
 notice of objection. 
 
 Shall be adopted as the Original Total and Original Site Value 
 respectively. — Apparently this adoption is conclusive. See note 
 above. 
 
 (6) Any person interested in the land, not being an 
 owner, may apply to the Commissioners for a copy of the 
 provisional valuation of the land before it is finally settled, 
 and shall then have the same right of giving notice of 
 objection and of appealing as the owner. 
 
 Any Person interested in the Land.— It is not thought that the 
 words "any person interested in the land" are to be limited by the 
 definition of "interest" in relation to land in s. 41, bat the point is not 
 plain. Unless the meaning is not so limited, a remainderman, whether 
 expectant on a term of years or on a freehold estate, a reversioner, 
 whether in fee or for a term exceeding twenty-one years expectant on 
 the determination of a life estate in possession, and a mortgagee are not 
 .entitled to object to and appeal from the provisional valuation. It is 
 thought that none of such persons are " owners " within sub-s. (7) of 
 this section as "being entitled to the fee simple reversion or to a lease- 
 hold reversion" expectant upon the determination of a lessee owner's 
 term of over fifty years unexpired, and they have not an interest in 
 land (s. 41, paragraph " The expression ' interest ' in relation to land "). 
 
 It appears, however, that mortgagees are considered by the Crown to 
 be entitled to the benefit of thissuG-section, and may obtain a copy of 
 the provisional valuation by applying for it. See the speech of the 
 Attorney-General in the House of Commons on February 14, 1911 
 (Parliamentary Debates, vol. 21, No. 8, p. 919). 
 
 See as to the position of persons interested not being appellants on 
 appeal to the referee, the "Land Values (Referee) Rules, 1910," rule 11 
 (1) and (2) (post). There seems to be no special reference to such 
 persons in the rules regulating appeals to the High Court from the 
 referee (see the Rules of the Supreme Court (Finance (1909-10) Act), 
 191\, 2)ost, p. 383. Apparently unless appellants or respondents they 
 have no right to be heard on that appeal. 
 
 Not being an Owner. — See sub-s. (7) of this section for the extended 
 meaning of "owner" within the section and note thereon. Under the 
 joint effect of sub-ss. (1), (5), and (7), and see s. 41, par. " The expression 
 owner," and the interpretation put upon the term "person interested" 
 by the Crown as including a mortgagee, the following propositions are 
 thought to be correct — 
 
Valuation. 327 
 
 (1) Where there is (a) an owner in fee and (6) a mortgagee of the § 27 (5). 
 inheritance, the owner in fee must be served with a copy of the 
 provisional vahifttion (sub-s. (1) ), and the mortgagee may apply for a 
 
 copy under sub-s. (5). 
 
 (2) Where there is (a) a lessee in possession for an unexpired term 
 of over fifty years, (b) a lessee in reversion immediately expectant on 
 that term for a term less than twenty-one years after its expiration, 
 and (c) a reversioner in fee expectant on the twenty-one years' term, all 
 three are owners and must be served under sub-s. (1).* 
 
 (3) Where there is (a) a lessee in possession for a term of less than 
 fifty years unexpired, (b) a lessee in immediate reversion on that term 
 for a term of less than fifty years unexpired, and (3) a reversioner in fee, 
 the reversioner in fee only must be served as owner, and the two lessees 
 may apply as persons interested under sub-s. (5). 
 
 (4) A. is tenant for life in possession, and, subject thereto, B. is tenant 
 in fee in remainder. A. is the owner and must be served. It is 
 doubtful whether B. is a person interested within sub-s. (5), but it is 
 believed that the Commissioners will allow him to be so treated. He 
 clearly has not an interest under the definition clause (s. 41). 
 
 (.5) A, is lessee for a term of over fifty years unexpired, created 
 by B., a deceased owner in fee simple in possession. By his will, 
 B. has devised the land to C. for life, remainder to D. in fee 
 simple. A. is the owner within sub-s. (1) of s. 27 (s. 41). It is doubtful 
 whether either C. or D. is also an owner within sub-s. (7) of s. 27. 
 Clearly C. is a party interested within sub-s. (5) of that section (see 
 s. 41, par. "The expression 'interest' in relation to land"). D. 
 is not a party interested, unless the wider view is taken of the meaning 
 of the words in sub-s. (5). 
 
 (6) If in the last case (No. 5) A.'s lease had had only fifty years or 
 less unexpired, C. would clearly have been owner ; A. would have been 
 a party interested, and the position of D. would have been as stated in 
 No. 5. 
 
 Instances might be multiplied ad infinitum. 
 
 It appears that the authorities are of opinion that mortgagees 
 whether of the fee simple in possession or of leaseholds for an unexpired 
 term of over fifty years, the mortgage being way of assignment, are not 
 owners within s. 27, notwithstanding the definition of owner in s. 41. 
 Whether that view applies to a case in which the mortgagee has gone 
 into possession is not known. 
 
 May apply to the Commissioners for a Copy of the Provisional 
 Valuation . . . before it is finally settled. — There are no provisions 
 for enabling a person interested to obtain knowledge that the 
 
 * Sub-s (7) is so interpreted. But it is possible that the words, " a term 
 of years exceeding twenty-one," apply to its original erection, and not to its 
 duration at the time of valuation. 
 
828 Land Clauses of the Finance Act. 
 
 § 27 (5). provisional valuation has been made. If such a person desires to 
 safeguard his position he should be prepared to take immediate steps 
 to do so. The most critical time for him is the first vafuatiou under the 
 Act, which was commenced shortly after it received the Royal assent 
 and has not yet been completed. Then the original site value is 
 fixed, apparently for all eternity, probably for existing lifetimes at all 
 events. If it is fixed too low, a reversioner or remainderman may 
 find that he has to pay too much increment value duty. The existing 
 owner may desire to keep site value low in order to keep undeveloped 
 land duty low also ; and he may be indifferent to increment value duty. 
 Thus it is clear that for purposes of the new taxes there may be a marked 
 divergence between the interests of tenant for life and remainderman or 
 reversioner. In these circumstances, the latter may well desire to 
 have an opportunity of considering, and if he thinks it advisable of 
 objecting, either to the provisional valuation, or to alterations proposed 
 to be made in that valuation on behalf of the tenant for life. This 
 being the case, as the matter is urgent, it Avould seem advisable for 
 remaindermen and persons entitled to future interests, who are not 
 owners within the meaning of either s. 41 or s. 27 (7), and who are 
 not acting in conjunction with the owners, as well as for mortgagees, 
 to write to the Board of Inland Revenue informing them of the 
 situation of the land in question, stating concisely their interest in 
 the present ownership of that land, and their desire to have a copy 
 of the provisional valuation in pursuance of their rights under 
 s. 27 (5). The Board should be asked to state what, if any, 
 further steps should be taken to secure and enforce those rights, and 
 whether the applicants may be heard before the provisional valuation is 
 made. It is oftener easier to get an original decision in one's favour 
 than to vary in the same direction a provisional decision against one's 
 interests. There is, however, apparently no right in persons interested, 
 not being owners, to make representations to or be heard by the Com- 
 missioners before the latter have made their provisional valuation. As 
 to when the valuation is finally settled, see ante, p. 324. 
 
 Although before this (the second) edition is issued the time will in 
 many cases have elapsed within which "persons interested" could adopt 
 the suggestion in the note as to the original total or site valuations, that 
 suggestion will, with lesser force, be applicable to the provisional valua- 
 tion for the purpose of the qiiinquennial valuation under s. 28. As to 
 the latter valuation the interests of tenant for life and remainderman 
 appear to be identical, namely to keep the site value low. This is 
 clearly so in regard to undeveloped land duty, and if the quinquennial 
 valuation is to have any indirect influence in fact upon the valuation of 
 gross and full site value, on occasions when increment value duty is 
 payable, it is the interest of both tenant for life and remainderman to 
 keep gross value high as compared with site value, so as to have a large 
 sum to deduct under s. 2 (2) and s. 25 (4) (a). 
 
Valuation. 329 
 
 The same Right of giving Notice of Objection and of appealing § 27 (5). 
 as the Owner. — Primd facie these words would mean that the objection 
 must be made within the same time as an owner's objection. That 
 objection must be made within sixty days of the date on which the copy 
 of the provisional valuation is served, or such extended time as the Com- 
 missioners may in any special case allow (s. 27 (2) ). Possibly in the case of 
 the person interested the sixty days would run from the receipt of the 
 copy. But the point is not clear. Sect. 33 (1) (a) is important in this 
 connection. By virtue of its provisions an appeal will not lie against a 
 provisional valuation of total or site value except by a person who has 
 made objection to the provisional valuation in accordance with the Act. 
 The importance of obtaining early an intimation of the provisional 
 valuation to " persons interested " is thus emphasised. 
 
 See note to s. 27 (3), ante, p. 324. 
 
 (6) Where the value to be adopted as the original total 
 or the original site value of any land for the purposes of 
 this Part of this Act has not been finally settled at the 
 time when any duty under this Part of this Act becomes 
 leviable, any duty under this Part of this Act shall be 
 assessed as if the values as shown in the provisional 
 valuation, or, if the provisional valuation has been 
 amended by the Commissioners, as shown in the valuation 
 as so amended, were the values adopted as the original 
 total and site values for the purposes of this Part of this 
 Act, and, on the values to be adopted being finally settled, 
 if it is found that the amount which should have been 
 paid as duty exceeds that actually paid, the excess shall 
 be deemed to be arrears of the duty, except so far as any 
 penalty is incurred on account of arrears, and, if it is 
 found that the amount which should have been paid as 
 duty is less than that actually paid, the difference shall 
 be repaid by the Commissioners. 
 
 Has not been finally settled; either because the sixty days for 
 objecting under sub-s. (1) has not expired, or because of an appeal, or 
 because the Commissioners are considering proposed amendments, or for 
 other reason. A careful consideration of the possible delays in settling 
 the original values will show that, allowing for appeals, a very long time 
 might elapse before the original site values of (say) a settled and 
 mortgaged building estate were finally fixed. Hence the utility to the 
 
330 Land Clauses of the Finance Act. 
 
 § 27 (6). Crown of this provision. See note on p. 324 as to the meaning of 
 "finally settled." 
 
 Compare with this section the second paragraph of s. 19 {ante, p. 204), 
 under which, if there is no value either shown in the provisional valua- 
 tion or finally settled on which undeveloped land duty can be assessed, 
 so that that duty is not assessed within the year for which it is charged, 
 it may be assessed at any time, but not more than three years after the 
 expiration of the year for which it is charged (see note on p. 208). 
 Section 27 (6) applies both to increment value duty and undeveloped 
 land duty. 
 
 At the Time when any Duty under this Part of this Act becomes 
 leviable. — The sub-section will apply to claims for increment value 
 duty on an occasion arising under s. 1, and to claims for the undeveloped 
 land duty leviable for the financial years ending March 31, 1910 and 
 1911, and for even subsequent years. 
 
 As to the former, if the provisional valuation were too high (the 
 authorities looking chiefly to the undeveloped land duty), so that too little 
 increment value duty w'as paid on the occasion, and on appeal the value 
 was low^ered, it is to be expected that the Commissioners w^ould not 
 allow a purchaser to be prejudiced because enough increment value 
 duty had riot been paid ; but the strict legal position is not very clear 
 (see s. 4 (4) ). 
 
 If the Provisional Valuation has been amended. — See sub-ss. (2) to 
 (5) as to amendments. 
 
 The Excess shall be deemed to be Arrears of the Duty. — Attention 
 to the position created by this sub-section should be given by purchasers 
 who buy after payment of duty on a provisional valuation (see note 
 above on the Avords " at the time, etc."). The question is too ephemeral 
 for further discussion. 
 
 The Difference shall be repaid by the Commissioners ; but apparently 
 without interest. Compare with s. 4 (6), ante p. 88 ; also with Finance 
 Act, 1894,8. 8 (12); s. 10 (3). 
 
 (7) Where a lessee is the owner of the land within the 
 meaning of this Act, this section shall apply as if any 
 person entitled to the fee simple reversion or to a lease- 
 hold reversion for a term of years exceeding twenty-one 
 were the owner as well as the lessee. 
 
 Where a Lessee is the Owner of the Land. — For definition of owner 
 see 8. 41, par. " The expression ' owner,' " p. 458. 
 
 The object of this sub-section was doubtless to meet the simple case 
 of a lease for a term of over fifty years unexpired, followed by an 
 immediate reversion in fee on the one hand, or a long term of years on 
 
Valuation. 331 
 
 the other. But these simple cases form only a portion of those to § 27 (7). 
 which the principle assumed to underlie the section is applicable. 
 
 It is difficult to see why a tenant for life interested in the reversion 
 expectant on the determination of the lessee owner's term should not be 
 treated as owner, if a lessee in reversion for a term of years exceeding 
 twenty-one is so treated. As a matter of fact, the estate in reversion, 
 on the expiration of the lessee owner's term, will often be a settled estate. 
 There will probably be a tenant for life, or perhaps two successive tenants 
 for life, and a tenant in tail, or several tenants in tail entitled one in 
 remainder to the other in existence. The ultimate limitation of 
 the fee (which may never take effect) after the determination of 
 dozens of intermediate limitations may, or may not, be to the first 
 living tenant for life. 
 
 It may be possible to read the words of sub-s. (7), " any person 
 entitled to the fee simple reversion," as including not only an owner in 
 fee simple entitled immediately expectant upon the lease, but also a 
 person entitled as tenant for life [in possession] to the settled fee simple 
 reversion, such a person being the person entitled to the rent payable 
 by the lessee owner. It will of course be remembered that the pro- 
 cedure of sub-s. (5) of this section is open to persons interested who are 
 not owners. 
 
 The Leasehold Reversion for a Term of Years exceeding Twenty- 
 one. — That is, it is understood, from the date of the expiration of the 
 lessee owner's term, and not for the date of the valuation, sed quaere. 
 
 General Note on Sections 26 and 27. Procedure on Valuation. 
 
 As the settlement of the original total and site values is at the 
 present moment occupying the attention of owners, it is thought that 
 the following summary of ss. 26 and 27 may be useful. 
 
 The Commissioners have now issued Form 4 (see p. 504), requiring 
 the return under s. 26 (2), and involving at the option of the taxpayer 
 a claim for deductions on Form 7 (see p. 514). Form 4 may be served 
 not only upon owners in the strict sense of the term, but on " any 
 person receiving rent " (s. 26 (2) ), the exact meaning of which words is 
 not certain (see notes on p. 318). At any time, it seems even after the 
 return of Form 4 and before the provisional valuation is made, the 
 owner, but not, it seems, a person receiving rent (s. 26 (2) ), a person 
 " interested " in the land (s. 27 (5) ), or an owner in the extended sense 
 of that term placed upon it by s. 27 (7) as distinguished from the owner 
 in the sense defined by s. 41, paragraph "The expression 'owner,'" 
 may, if he wishes, require a separate valuation of any part of his land 
 which is separately occupied. Whether he may do so after the 
 provisional valuation is made is doubtful. It is thought not. He 
 may further avail himself of s. 5 of the Revenue Act, 1911 (see p. 315 
 relating to joint valuation), where applicable. In making his return, 
 
332 Land Clauses of the Finance Act. 
 
 § 37. or probably at any time before the provisional valuation is made, 
 the owner, in the narrow sense of that term as defined by s. 41, 
 may, if he thinks fit, furnish his estimate of the total or site value, 
 or both, of the land, which must be considered by the Commis- 
 sioners in making their valuation (s. 26 (3) ). The Commissioners 
 having made their provisional valuation serve a copy of it on the owner 
 of the land (s. 27 (1) ), and if that owner is a lessee with an unexpired 
 term of over fifty years they also serve wdth a copy of the valuation 
 any person entitled to the fee simple reversion or to a lease- 
 hold reversion for a term of years exceeding twenty-one (s. 27 (7) and 
 note thereon). Such persons have the rights of an owner within 
 s, 27 (tb.). An owner may then, if he considers the total or site value 
 as stated in the provisional valuation is not correct, within sixty days 
 from the service of the provisional valuation or such extended time as 
 the Commissioners may in any special cases allow, give the Commissioners 
 notice of objection, stating the ground of his objection and the amend- 
 ments he desires. Several owners of or persons interested in the 
 same land may make different objections. If the Commissioners amend 
 the provisional vakiation so as to satisfy all persons making objections, 
 then the total and site values in that amended valuation are to be 
 adopted as the original total and site values. If the Commissioners 
 do not amend the valuation so objected to, or amend it in such 
 a way that it is not satisfactory to any one of the persons who has 
 made an objection, then the dissatisfied person may appeal. If no person 
 gives a notice of appeal within the time fixed by rvile 4 of the Appeal 
 Rules (see post, p. 376), then the amended provisional valuation 
 becomes absolutely binding (sub-s. 4). * Even if no one objects to 
 the provisional valuation, the Commissioners may amend it of their 
 own motion, but in that case it is apparently to be served on all owners 
 as if it were the original provisional valuation, and such owners have 
 apparently the same rights of objecting as if it were a provisional 
 valuation, i.e., within sixty days of service. 
 
 Persons " interested in the land (which term in practice will include 
 mortgagees), not being owners, though not entitled without application 
 to a copy of the provisional valuation, may apply to the Commissioners 
 for such a copy. Having done so, they have the same right of giving 
 notice of objection [i.e., within sixty days from receipt by them of the 
 copy, sed qucei-e] and of appealing as the owner (sub-s. (5) ). If the 
 Commissioners amend a provisional valuation in response to the applica- 
 tion of persons interested in the land, it seems that the provisional 
 valuation as so amended must be served on the owners (sub-s. (3) ) and 
 other persons interested as if it were an original provisional valuation, 
 and they would, it is thought, then have sixty days for giving notice of 
 objection. But this is not quite certain. It is at all events unlikely 
 
 * But under rule 4 (1) {b) the time for appeal is unlimited, unless the 
 Commissiouere give the notice referred to in such sub-rule. 
 
Valuation. 333 
 
 that the Commissioners would amend a provisional valuation on the § 27. 
 application of either owners or persons interested without giving the 
 other owners and other persons interested the opportvmity of objecting 
 to such amendments. In any event it would seem that notice of 
 objection to an amended provisional valuation must be given after the 
 amendment has been made by either an owner or person interested 
 as a condition precedent to an appeal (s. 33 (1) (a) ). 
 
 Section 28. 
 
 28. For the purpose of obtaining a periodical valuation § 28. 
 of undeveloped land the Commissioners shall, in the year vaiuatJoif of 
 nineteen hundred and fourteen and in every subsequent j^anlf^^'^^^^ 
 fifth year, cause a valuation to be made of undeveloped 
 land showing the site value of the land as on the thirtieth 
 day of April in that year, and, for the purpose of ascer- 
 taining the value at that time, the provisions of this Act 
 as to the ascertainment of value shall apply for the 
 purpose of ascertaining value on any such periodical 
 valuation as they apply for the purpose of ascertaining 
 the original value : 
 
 Provided that if on any such periodical valuation the 
 valuation of any undeveloped land which is liable to 
 undeveloped land duty is for any reason begun but not 
 completed in the year of valuation, the Commissioners 
 may complete the valuation after the expiration of the 
 year of valuation, subject to an appeal under this Act. 
 
 For the Purpose of obtaining a Periodical Valuation of Undeveloped 
 Land.^ — The valuation enacted by this section is only of undeveloped 
 land, i.e., land not developed by the erection of dwelling-houses or of 
 buildings for the purpose of any business, trade, or industry other 
 than agriculture, or not otherwise used bond fide for any business, trade 
 or industry, other than agriculture (s. 16). It is not therefore a pro- 
 vision for vmiversal site valuation. The valuation apparently is not 
 intended to be utilised for the purpose of increment value duty payable 
 on death, or in the case of bodies corporate and uniucorporate, on a 
 periodic occasion, but only for undeveloped land duty during the time 
 it is in force (s. 16 (3) ). But in practice it will no doubt often be so 
 utilized when occasions occur shortly after the general land valuation. 
 
 It appears doubtful whether land falling within s. 16 (2) (6) (see p. 182), ^g jq j^nd 
 
 as amended by the Revenue Act, 1911 (1 Geo. 5, c. 2), s. 4 [ibid.), exempted by 
 
 expenditure. 
 
334 
 
 Land Clauses of the Finance Act. 
 
 § 28 
 
 Agricultural 
 land. 
 
 The proviso. 
 
 Minerals. 
 
 must be valued under this section. The exception thereby established 
 (arising where certain expenditure over 100^. per acre has been made) is 
 an exception /or the purposes of s. 16. But s. 16 is the section which 
 imposes the duty and defines the meaning of the term " undeveloped 
 land." To say, as s. 16 (2) (b) does, that certain land for the pur- 
 poses of that section shall be treated as developed land is apparently to 
 exempt it from the charge altogether and from valuation under s. 28. 
 It is nevertheless doubtful whether it must not be valued under this 
 section, since, as soon as at any moment there ceases to have been expended 
 on any such exempted land within the last twenty years the sum of 
 100^. per acre, the exemption comes to an end. In such a case, even 
 if it has not been valued under s. 28, the provisions of ss. 19 and 27 (6) 
 respectively may probably be applicable. 
 
 Apparently all agricultural land is imdeveloped land (s. 16 (2) ), 
 though duty is not charged on the exempted categories in s. 17 (3) (a) to 
 {d) inclusive (see p. 196), and on any land the site value of which does 
 not exceed 50^. per acre. If the site value does exceed that sum, then 
 it is to be charged only on the amount by which the site value of the 
 land exceeds the value of the land for agricultural purposes (s. 17 (1) and 
 (2) ). This site value is the site value as ascertained on the original, or 
 the quinquennial valuation under s. 28 (s. 17 (3) ). If this view is 
 correct, then all agricultural land must strictly, by virtue of s. 28, be 
 revalued every five years, including the various categories of duty-- 
 free land existing under the provisions of s. 17. As, however, under 
 s. 19 and the second paragraph of this section (28), the duty may 
 be assessed at any time within the practically four years' limit of s. 19 
 for the purposes of the Act, there seems to be little object in revaluing 
 at the quinquennial periods any land or site values obviously unlikely 
 to become assessable to the duty within the quinquennial period. Never- 
 theless, the terms of the section are mandatory. " The Commissioners 
 shall . . . cause a valuation to be made, etc." 
 
 The proviso of the second paragraph of s. 28 must be noted. It draws 
 a distinction between undeveloped land which is and undeveloped land 
 which is not liable to undeveloped land duty. The valuation of Lhe 
 former may, but by inference the valuation of the latter may not, be 
 completed after the year of the quinquennial valuation. 
 
 This section does not direct or authorise a quinquennial (see p. 335) 
 valuation of minerals. What is to be valued is " undeveloped land." 
 " For the purposes of undeveloped land duty, undeveloped land does 
 not include the minerals" ( (s. 16 (4)). Further, "for the purposes 
 of valuation, all minerals shall be treated as a separate parcel of land " 
 (8. 23 (2)). 
 
 Showing the Site Value of the Land as on April 30 in that 
 Year. — It is to be noted that there is no express direction in s. 28, as 
 there is in s. 26, to the Commissioners to value " in the case of agricul- 
 
( 
 
 Valuation. 335 
 
 tural land the value of the land for agricultural purposes where that § 28. 
 value is different from the site value," unless, indeed, inferentially that 
 direction is imported by the latter part of the first paragraph of s. 28 
 into that section, which seems doubtful. It also seems doubtful whether, 
 though the site value is fixed for the quinquennial period, the value for 
 agricultural purposes only is also fixed for that period, or whether such 
 value has not to be ascertained afresh in each year of assessment. Note 
 that the provisions of s. 29 as to assessing duty on or in respect of such 
 pieces of land, and apportioning and reapportioning site value as the 
 Commissioners think fit, apply to site values as fixed under this section. 
 
 The Provisions of this Act as to . . . for the Purpose of ascertaining 
 the Original Value. — The sections thus referred to are ss. 25, 26, and 27. 
 At each quinquennial valuation, therefore, the process of ascertaining 
 site value must be gone through by the Commissioners just as on the 
 ascertainment of the original site value, and persons interested have the 
 same rights of objection under s. 27. But s. 26 (1) cannot be literally 
 applied, though it is thought that directions as to the unit of valua- 
 tion would apply to valuation under s. 28. * 
 
 Total value must be ascertained as well as site value at each such 
 valuation, since assessable site value is arrived at by deductions from 
 total value. Gross value and full site value, though not of practical 
 moment, must also be ascertained as steps to total and full site value 
 (s. 25). 
 
 Is for any Reason begun but not completed in the Year of 
 Valuation. — Apparently the valuation is intended to be completed in 
 each of the calendar years 1914, 1919, 1924, and so on. If the valuation 
 is not even begun in such a year, it seems it cannot be begun later. If 
 the valuation of any particular piece of land is begun but not finished, 
 then, if the land in fact is liable to undeveloped land duty, the valuation 
 can be completed, but not, it seems, otherwise. As there is no limit to 
 the time within which the original valuation may be made under s. 26 (1), 
 except that implied in the words "as soon as may be," it would seem 
 that the original valuation might be made at any time even after the 
 year 1914. In such case escape from valuation under s. 28 in 1914 
 would not be of much avail (s. 1 6 (3) ), except in so far as the value on 
 April 30, 1909, was lower than at the date of the quinquennial 
 valuation. 
 
 Subject to an Appeal, etc. — It is difficult to understand the 
 significance of these words. 
 
 Section 29. 
 29. — (1) Any duty under this Part of this Act may be § 29. 
 
 * It is not thought that s. 5 of the Revenue Act, 1911 (p. 315), is applied, of duty on 
 
336 
 
 Land Clauses of the Finance Act 
 
 § 29. 
 
 separate par- 
 cels of land 
 and appor- 
 tionment of 
 valuation. 
 
 Comparison 
 with valua- 
 tion provi- 
 sion. 
 
 Illustration of 
 application of 
 sub-s. (1). 
 
 assessed on or in respect of any such pieces of land 
 whether under separate occupation or not, as the 
 Commissioners think fit. 
 
 Pieces of Land. — It is diflficult to say what meaning is to be given to 
 the phrase "pieces of land." It is used in s. 26 (see note, ante, p. 312). 
 In s. 23 (4) the phrase " separate parcel of land " is used. Perhaps it 
 is equivalent to " portion of land." The section prima facie confers 
 great power on the Commissionei-s. It would doubtless be possible to 
 increase the productiveness of increment value duty and undeveloped 
 land duty by a skilful selection of the "pieces" on which the taxes 
 were levied. But of course the Commissioners will be reasonable and 
 judicial. 
 
 Compare with this section the provisions of s. 26 (1), under which 
 on the general valuation " each piece of land which is under separate 
 occupation, and, if the owner so requires, any part of any laud, which 
 is under separate occupation, shall be separately valued " ; and of s. 5 
 of the Revenue Act, 1911 (1 Geo. 5, c. 2), under which the Com- 
 missioners may, if satisfied that in the special circumstances it is 
 equitable to do so, on the request of the owner, value together con- 
 tiguous pieces of land not exceeding in the aggregate one hundred acres. 
 The owner may require separate or joint valuation, but the Com- 
 missioners determine as to assessment. The power of the Commissioners 
 to carve up the land for the purposes of assessing different rates of duty 
 on different portions renders the owner's power of requiring separate 
 valuation subordinate to the Commissioners' power of imposing taxation 
 as within the limits of the Act, and subject to appeal, they think 
 proper. Nevertheless, the owner's right of requiring separate valuation, 
 tliough subordinate to the Commissioners' power of dividing the land 
 for the purposes of duty, as they think proper, may affect the totals, 
 and also be useful to him in the estimates which he may make for 
 his own purposes. 
 
 It is obvious that the site value of a ten-acre field, on the slope of a 
 hill, purchased originally for a lump sum as agricultural land, may a few 
 years after the purchase comprise land of various values. The land on 
 the frontage of the road, at the crest of the hill, may be well within the 
 building line of values, and liable to undeveloped land duty. The back 
 land, towards the foot of the hill, near the brook which drains the valley, 
 may have no building value. There may be no demand in the district 
 for the small houses, for which alone it could be used as building land ; 
 or for houses so large that it would suitably form their kitchen garden 
 or paddock. Whether the owner likes it or not, in such a case the 
 Commissioners have, under this section, the power to draw a line of 
 demarcation between the different portions of the field, and charge 
 undeveloped land duty accordingly. The fact that the whole field is 
 
Valuation. 337 
 
 under one occupation is immaterial. It seems that this power can § 29 (1). 
 be exercised at any time, and that the Commissioners are not com- 
 pelled to exercise it at the first assessment after a general valuation. 
 Again, on the sale of the whole estate giving rise to the first claim 
 for increment value duty under the Act, the Commissioners may, it 
 appears, determine to treat the land in two sections, the one liable to 
 increment value duty and the other exempt. But the power is obviously 
 a dangerous one. 
 
 Assume, as is quite possible, that while one portion of a field or estate Set-off of 
 heretofore assessed as a whole has appreciated in value, or shows taxable against 
 increment value, the rest of the field or estate has depreciated in value, increment. 
 The question arises whether the Commissioners on a sale of the property 
 as a whole are, under this sub-section, entitled to split it up into two por- 
 tions for purposes of taxation, charging increment value duty on the 
 appreciated portion, and thus depriving the owner of the set-ofF of the 
 decrement of part against the increment of other part, which would have 
 been the natural consequence of assessing the field as a whole. It is 
 submitted that, though such an assessment is within the language of the 
 Act, it would be so contrary to equity that it would neither be made by 
 the Commissioners, nor, if made, upheld on appeal. 
 
 Assume that in the case referred to the owner sold first the 
 depreciated portion of the property, and later the appreciated portion. 
 Assume further that there is a small claim for increment value duty on 
 the later sale, but the amount of depreciation on the first sale is equal to 
 or greater than the amount of increment value. It is clear that there can 
 be no set-oflF. The owner must pay the increment value duty on the 
 appi'eciated portion. But though the net result is the same as if the . 
 Commissioners had, on a sale of the whole field, split it up as suggested, 
 that result is due to and necessarily follows from the act of the owner, 
 and not to the exercise in a special manner of the taxing powers of the Act. 
 
 It would seem to be within the powers of the Commissioners under 
 this sub-section to assess for undeveloped land duty portions of two or 
 more holdings of different tenants of the same owner as an aggregate. 
 In such case the site values of the different holdings would have to be 
 apportioned, and the aggregate of the site values of the portions of such 
 different holdings making up the site of the assessed unit would be the 
 site value of that unit. But such an assessment would of course be 
 liable to an appeal. 
 
 Probably a power on its face as apparently arbitrary as this was 
 thought necessary, since it was obviously impossible to lay down at once 
 an exhaustive code of rules for the imposition of a method of taxation 
 quite novel, and giving rise to great complications. 
 
 No doubt this sub-section applies to minerals. 
 
 See note as to this sub-section in relation to undeveloped land duty 
 (s. 19, ante, p. 203). 
 
 N. 22 
 
838 Land Clauses of the Finance Act. 
 
 § 29 (2). (2) The Commissioners shall make such apportion- 
 ments and re-apportionments of any original site value 
 or any site value fixed on a periodical valuation as they 
 consider necessary for the purpose of the collection or 
 assessment of increment value duty or undeveloped land 
 duty, or which they may be required at any time to make 
 on the application of any person entitled to the fee simple 
 of any land or to an interest in any land. 
 
 On any such apportionment or re-apportionment for 
 the purpose of the collection of increment value duty on 
 the occasion of the transfer on sale of the fee simple of 
 the land or any interest in the land, or on the occasion 
 of the grant of any lease of the land, the consideration 
 for the transfer, or for the grant of the lease, shall 
 be treated as one of the matters to which regard must be 
 had in making the apportionment or re-apportionment. 
 
 Apportionments and Re-apportionments of any Original Site Value 
 or any Site Value fixed on a Periodical Valuation. — A portion of a 
 field, the original site value of which has been fixed as a whole, is sold, 
 e.^,,the best part of the ten-acre field referred to in the note to sub-s. (1) 
 (see p. 336). It is necessary in such a case tliat the original site value of 
 the field should be apportioned for the purpose of the increment value 
 duty. The Commissioners would in any event find it necessary to make 
 that apportionment when the conveyance was presented to them for the 
 purpose of fixing the increment value duty. But the owner in fee, or a 
 tenant for life, or in tail in possession, or other person having an interest in 
 the field within the meaning of s. 41, might, it seems, under this sub-section, 
 before sale require such an apportionment of site value. Apparently the 
 application may be made at any time, and must be complied with at the 
 expense of the Crown. The apportionment to be made is clearly of the 
 site value (original or periodic) as at the time of the valuation in 
 question, whether that be the original or a quinquennial valuation. 
 
 In the case of the ten-acre field referred to on p. 336, five yeai-s after the 
 sale of the first portion and the apportionment of original site value, a 
 second portion (being part of the back, or formerly inferior land) is sold. 
 In that five years considerable variations in value have arisen owing to a 
 general deterioration of the neighbourhood, and the erection of a smaller 
 class of houses. The inferior back land has become more valuable. The 
 superior front land is, relatively to that back land, though not absolutely, 
 less valuable than it was at the time of the first sale. On the second sale 
 the owner finds himself faced with a heavy increment value duty on the 
 
Valuation. 339 
 
 original site value of the back land at the figure at which it then stands. § 29 (2). 
 
 He applies to the Commissioners for a re-apportionment under this 
 
 section, i.e., for an increase of original site value on the back land, and 
 
 a decrease of that on the front land so far as it has been retained by him. 
 
 The Commissioners must, it appears, under the second paragraph of 
 
 this section, in making this re-apportionment, take into consideration 
 
 the fact that the increased price obtained for the back land shows that 
 
 its value was really greater than was formerly supposed. But it is not 
 
 quite clear that this reading of the second paragraph is accurate. 
 
 On this second sale, a further re-apportionment of original site value 
 must be made between the part of the inferior land retained by the 
 vendor and the part then sold ; and such apportionment need not, it is 
 submitted, be on the basis that an equal amount of original site value 
 shall be allocated to each similar unit in area of the back land. It may 
 be evident that on April 30, 1909, certain portions of the back land 
 were more valuable than certain other portions. 
 
 It is suggested that once the amount of the original site value of a To what 
 certain area is fixed by an apportionment, or re-apportionment of the extent 
 original site value of a larger area, then all that can be done under site value 
 8. 29 (2) is to redistribute the amount of the apportioned or re-appor- can be 
 tioned site value in varying proportions over that smaller area. The 
 aggregate amount of the site value of the smaller area cannot, it is 
 thought, be either increased or diminished. Possibly if all the portions 
 of a divided area are in the same hands, or if the persons entitled to all 
 those portions consent, a redistribution of site value over that area is 
 within the section, but otherwise it is suggested that the Commissioners 
 have no right, or, if they have, would not exercise the right, to 
 re-apportion the already apportioned original site value. If it be 
 not so all finality of valuation will be impossible, which can hardly 
 be the intention. It is of course quite clear that, the original site 
 value of an area being fixed, there is no power in the subject to 
 compel the Commissioners, by way of rectification of the register (to be 
 kept under s. 30) or otherwise, to alter that original site value, nor can 
 the Commissioners alter it themselves. Possibly by agreement of 
 owner and Commissioners an alteration might be made, provided that 
 the rights of third parties were not affected. * 
 
 Apportionments of site values, fixed at quinquennial periods, may 
 be made for various purposes in connection with undeveloped land 
 duty, and also, perhaps, for purposes of increment value duty, payable 
 by bodies corporate or unincorporate on periodical occasions (see s. 6), 
 if the quinquennial valuation is to be used as a practical index to the 
 value on such occasions. Under s. 28 that valuation is, as has been 
 seen, in theory only for the purpose of undeveloped land duty. 
 
 * It may be added that there is a similar absence of power to rectify a 
 quinquennial valuation under s. 28. 
 
 22—2 
 
340 
 
 Land Clauses of the Finance Act. 
 
 § 29 (2). 
 
 Apportion- 
 ment of 
 occasional 
 site value. 
 
 Apportion- 
 ment and 
 minerals. 
 
 No power is expressly given to the Commissioners to apportion the site 
 value fixed on an occasional valuation for the payment of increment value 
 duty. Thus, suppose the original site value of Blackacre is 500^., and 
 its site value on January 1, 1912, when it is sold as a whole, is 8001., 
 and duty is then paid or credited under s. 3 (5) on 300/. (i.e., 601.), and 
 suppose that on January 1, 1914, portion A of Blackacre is sold, and it 
 is clear that portion A has incremented since April 30, 1909, more 
 than B, the remaining portion of Blackacre. In order to ascertain the 
 amount of increment value duty due on A the following processes must 
 be gone through : — 
 
 (1) Apportion original site value of Blackacre between A and B 
 (s.29(2)). 
 
 (2) Arrive at site value of A on January 1, 1914, by the process 
 described in s. 2 (2) (a). 
 
 (3) Deduct the amount of the original site value of A from the 
 amount arrived at under process (2). The balance is the increment 
 value of A on January 1, 1914 (s. 2 (2) (a) ). 
 
 (4) Divide this increment by 5, and the result is the duty on A (s. 1). 
 
 (5) From this duty deduct (i.e., give credit under s. 3 (1) for) the 
 amount of duty paid on the one prior occasion, January 1, 1912, on 
 which duty has been paid on A (s. 3 (1)). 
 
 But duty never was paid on A considered as a unit of taxation ; 
 60/. duty was paid on the site value of Blackacre, comprising A and B, 
 as ascertained on January 1, 1912. To ascertain how much duty was 
 paid in respect of A, the occasional site value of January 1, 1912, must 
 be apportioned between A and B, because the duty was paid in pro- 
 portion to the increment value, and the increment value depended upon 
 the site value on the occasion. 
 
 It is suggested that, as under s. 3 (1) the Commissioners "shall make 
 such apportionments and re-apportionments of any duty paid on previous 
 occasions as they think necessary for the purpose of " determining the 
 amount of duty unsatisfied on any occasion, the words in inverted 
 commas will be deemed to carry an implied power of apportioning site 
 value fixed on prior occasions of payment of duty. 
 
 There seems to be no reason to doubt that this sub-section applies to 
 minerals, so far as regards increment value duty. It would apparently 
 apply to the case of the division of minerals comprised in a mining lease 
 on which annual increment value duty is payable under s. 22 (3). 
 
 There is apparently no special form in which the application for an 
 apportionment must under the statute be made, but no doubt the 
 Commissioners will supply forms of a suitable nature, on which it will 
 of course be advisable that applications should be made. 
 
 On the Application of any Person entitled to the Fee Simple of any 
 Land, or to an Interest in any Land. — A lessee of a portion of a 
 building estate may wish to have the site value apportioned amongst his 
 
Valuation. 341 
 
 various lots. The freeholders, his vendors, have, and he himself has not, § 29 (2). 
 
 the details of the expenditure on the various portions of the site. Can 
 
 the necessary information for apportionment be obtained under the joint 
 
 effect of sub-s. (3) of this section and s. 26 (2) (see p. 317) "? Possibly it 
 
 may be, but it is not quite clear that it can be, since it may be that the 
 
 whole of s. 26 is confined to the original site valuation as on April 30, 
 
 1909, and the subsequent quinquennial valuation under s. 28. In some 
 
 cases the record to be kept by the Commissioners, under s. 30, will no 
 
 doubt be useful, but that record may not always sufficiently distinguish 
 
 the expenditure and its effect on value in relation to the various parts 
 
 of the land. 
 
 On a sale of the reversion in a portion of the premises it may be Apportion- 
 necessary for the vendor to have apportioned and ascertained the respec- ^^^^ o" ^^^^ 
 tive original site values of the land the reversion of which is sold, and 
 of the land the reversion of which is retained, and similar remarks 
 would apply to such a case. It may be noted, however, that s. 26 (2), 
 even if it applies, places the duty of supplying information only on 
 owners and persons receiving rent. The lessee, under a lease, is not 
 an owner unless his term has more than fifty years to run and he is 
 not as lessee a person receiving rent. It is not, therefore, quite clear 
 how a reversioner is to obtain information of expenditure on the site by 
 the lessee. No doubt in some cases, under the joint operation of s. 29 (3) 
 and s. 27 (5), the lessee may voluntarily place his views as to value 
 before the Commissioners, but he is not obliged to do so, and may 
 choose to be indifferent. 
 
 Nevertheless, it is to be expected that before any apportionment or 
 re-apportionment of site value is made the Commissioners will require 
 all persons interested in the land to have notice of the proceedings, and 
 will give them an opportunity of stating their views, and protecting 
 their own interests, so far as that can be done consistently with the 
 provisions of the Act. 
 
 The Commissioners are bound to make the apportionments when Commis- 
 
 required. The site value to be apportioned is that of the fee simple of sioners bound 
 ^ 11 ^ to apportion 
 
 the land. It would seem, therefore, that a lessee of the whole of a if required. 
 
 property originally valued as an aggregate could alter the taxable 
 position of the owner of the fee by requiring an apportionment of original 
 site value. Such an apportionment might possibly deprive the owner Curious 
 of the fee of the practical setting off of the decrement of one part of the consequences, 
 property against the increment of another on an occasion where incre- 
 ment value duty was claimable. It might also deprive him of the 
 advantage of the joint assessment of low valued land and high valued 
 land in reducing the liability of the latter to undeveloped land duty. 
 Conversely, the reversioner could in the same manner prejudicially affect 
 the position of the lessee. Further, the site value must necessarily be 
 apportioned on a sale or lease by either lessee or reversioner of a portion 
 of the land, and probably on a devise or bequest by will of different 
 
342 Land Clauses of the Finance Act. 
 
 § 29 (2). portions of either leasehold interest or reversion to divers devisees or 
 legatees. 
 
 Apportionments of site values may involve apportionments of duty 
 previously paid. But while under s. 3 (1), ante, p. 47, the Commis- 
 sioners may apportion such duty, there is nothing in that sub-section and 
 nothing expressed in s. 29 to compel them to apportion such duty on 
 request. Perhaps the last-mentioned sub-section may imply a duty in the 
 Commissioners, and at all events they will act reasonably, and it would 
 not be reasonable to apportion the site values and not the duties. 
 The sub- If this section is being correctly interpreted, the Act admits of an 
 
 section indefinite sub-division of original site values, and an interminable series 
 
 the taxes. ^f combinations by the Commissioners of such sub-divided site values for 
 the purpose of the assessment of duty. On reflection it will be seen 
 that without these two factors it would be impossible to fit the duties 
 to their subject-matter. 
 
 It will be noted that the application for apportionment or re-appor- 
 tionment may be made not only by the person entitled to the fee simple, 
 but by any person " entitled ... to an interest " in the land, as the 
 tenant for life in possession, lessee in possession, tenant in fee subject to 
 a lease, etc. (see s. 41, post, p. 446, paragraph commencing "The 
 expression 'interest'"). The expression used is not as in many other 
 cases " person interested " (s. 27 (5) ; s. 30 (2) ; s. 31 (4) ), and it may 
 therefore be assumed that only a person entitled to an " interest " as 
 limited by s. 41 has the right created by the sub-section. 
 
 The Consideration for the Transfer. — It appears therefore that in 
 apportioning and re-apportioning original site value for the purpose of 
 the collection of increment value duty the actual present value of the 
 site (which is presumedly represented by the consideration for the 
 transfer or lease, subject to deductions) must be taken into account. 
 This is to interpret the value of land in the past, not by its 
 then value, but by events. But the consideration is, it will be noted, 
 only one of the matters to which regard must be had. It is only 
 for the purpose of the collection of increment value duty that the 
 consideration is to be regarded. But of course the consideration for a 
 former sale is one of the elements which must inevitably be considered 
 in valuing either originally or periodically for purposes of undeveloped 
 land duty. 
 
 (3) The provisions relating to the procedure on the 
 valuation of land for the purposes of this Part of this 
 Act shall apply with respect to the apportionment or 
 re-apportionment of site value under this section as they 
 apply with reference to the ascertainment of the original 
 site value of land. 
 
Valuation. 343 
 
 The Provisions relating to the Procedure on the Valuation of § 29 (3). 
 Land. — Sects. 25 to 32 inclusive, biit probably excluding s. 28, relating 
 only to the quinquennial valuation, and parts or the whole of s. 26, 
 which may relate only to the original valuation. It may be doubtful 
 whether s. 25 is a provision relating to " procedure on the valuation of 
 land," but it will be clearly necessary to use it. But it does not follow 
 that every provision will necessarily have to be applied to a particular 
 case or to any case of apportionment or re-apportionment. When there is 
 a single owner of land entitled in possession and in fee simple apportion- 
 ments will be comparatively simple. In the case of settled estates, and 
 of land split up into leaseholds and reversionary interests, more difficulty 
 and some delay may be anticipated in carrying out an apportionment. 
 
 On a sale by a tenant for life of part of a field the original site value 
 of which has been ascertained as a- whole, it becomes necessary to 
 apportion that original site value. This sub-section incorporates 
 into the proceedings for apportionment, which may involve revaluation, 
 the provisions of s. 27, which provide, amongst other things, for a 
 provisional valuation, and for objections thereto by persons interested 
 in the land. The uncertainty as to the time within which objection 
 may be made by persons interested under this sub-section has already 
 been referred to (see p. 329). At all events, whatever the strict 
 construction of the section may be, such persons must have a reasonable 
 time within which to object to the proposed apportionment. In the 
 meantime the sale cannot in ordinary course be completed until the 
 increment value duty payable is ascertained. In some cases the Com- 
 missioners may be able to stamp the deed with a stamp under 
 s. 4 (3) (6).* Apportionment, therefore, so far as possible, relating to 
 lands likely to be sold in the near future should be at once effected. 
 It is not possible, especially at the commencement of a new system, to 
 foresee all the causes of delay which may result from a simple appli- 
 cation to apportion an original site value forming part of a settled estate 
 and subject to leasehold interests and possibly also to mortgages. 
 
 (4) The value attributed on any such apportionment 
 or re-apportionment to each part of the land shall, for the 
 purposes of this Part of this Act, be treated as the original 
 site value or the site value of the land, as the case 
 may be. 
 
 This sub-section is probably implied in sub-s. (2). 
 
 * It appears that this is the course usually adopted by the Commissioners for the 
 purpose of facilitating business, when the increment value duty cannot be 
 ascertained at once. They give credit to the vendor for the duty. 
 
344 
 
 Land Clauses of the Finance Act. 
 
 § 30. 
 
 Duties of 
 Commis- 
 sioners as 
 to keeping 
 records and 
 giving in- 
 formation. 
 
 Section 30. 
 
 30. — (1) The Commissioners shall record particulars 
 of all valuations, apportionments, re-apportionments, and 
 assessments made by them under this Part of this Act, 
 and of any deductions allowed in determining any value, 
 and of the amount of any duty paid under this Part of 
 this Act in respect of any land. 
 
 The Commissioners shall record. — The sub-section is mandatory. 
 It has been said to create a new Domesday Book. Clearly there will 
 be, as a result of this and other sections (26 and 27), a record of the 
 total and site values of all landed property on April 30, 1909. But it 
 is not clear that this will, so far as regards site value at least, be kept up 
 to date. 
 
 There will be a record every fifteen years of the total and site values 
 of land held by bodies corporate and unincorporate, except where those 
 bodies are exempted from duty on such an occasion (ss. 10, 35, 37, 38), 
 in which case under s. 6 (5) no account of the increment value of their 
 land is to be taken. (But quaere as to s. 35, in which case the increment 
 value duty payable on a periodical occasion is " deemed to have been 
 paid.") 
 
 There is the occasional estimate or valuation under s. 2 (2) on sale, 
 lease, or death. But, apparently, unless increment value is suspected, 
 no estimate or valuation of the site value is at present attempted to be 
 made (see the Regulation under s. 4, No. 14, p. 490 ; Circular letter to 
 solicitors, p. 538). Perhaps this is because so short a time has elapsed 
 since April 30, 1909, that increment value will rarely have happened. 
 .The practice may be altered as time passes and as the staff is enlarged 
 to meet the requirements of increased stringency of collection. In the 
 meantime the quinquennial valuation under s. 28 of undeveloped land 
 (whether liable to undeveloped land duty or not) will afford an index to 
 the rise and fall in site value of all but developed land. 
 
 Nothing is known as to the kind of records which will be kept by the 
 Commissioners under this section. The section is capable of being used 
 as establishing an historical record of the land of the country. But as 
 the greater part of that land will not in any appreciable distance of 
 time come within the range of the new taxes, it is not thought that the 
 Commissioners will be at pains to record particulars of sales and death 
 devolutions, except in relation to property likely to yield revenue. The 
 centres and circvimferences of towns will be the hunting-grounds of 
 the Treasury for increment value duty, and the circumferences for 
 undeveloped land duty. The intermediate and generally depreciating 
 zones will not attract its attention, except in the event, as sometimes 
 happens, of shopping centres developing here and there. Ninety-nine 
 
Valuation. 345 
 
 hundredths of the agricultural land of the kingdom will be as free from § 30 (1). 
 the new taxes as it is from gold deposits. 
 
 Note Rule 12 of the rules regulating appeals to a referee {post, p. 379) 
 under which the Commissioners are to make such alterations in the 
 particvilars of any valuations, apportionments, re-apportionments, 
 assessments or other documents as may be necessary to carry out the 
 decision of the referee. 
 
 Particulars of Valuations.— See ss. 2 (2), 2 (3), 20 (2) (6), 23 (1), 
 25, 26, 28, 29 (3). 
 
 Apportionments, Re-apportionments. — See ss, 3 (1), (3), 29 (2), 
 32 (3). 
 
 Assessments made.— See ss. 3, 4 (1), 5, 6, 15, 19, 20 (4), 22 (3). 
 
 Deductions allowed. — See ss. 2 (2), 3 (5), 12, 23 (1), 25 (4), 
 40 (I) (a). 
 
 Amount of any Duty paid. — See ss. 3 (5), 4 (1), 4 (4), 5, 6 (4), 
 10 (1), 15 (1), 19, 20 (4), 22 (3), (5), (6), 35, 36. This will doubtless 
 include duty deemed to be paid. 
 
 ("2) The Commissioners shall fm-nish to any person 
 interested in any land, or to any person authorised by 
 any person so interested, on his application and on pay- 
 ment of such fee, not exceeding two shillings and six- 
 pence, as the Commissioners may fix with the approval 
 of the Treasury, copies of any particulars so recorded by 
 them relating to the land, certified, if required, by a 
 Secretary or Assistant Secretary to the Commissioners. 
 
 Any Person interested. — It is suggested that these words are not 
 to be confined to persons who have an " interest " in land, as that word 
 is defined by s. 41, but that they include the owner in fee simple within 
 the meaning of s. 41 (see pp. 446 and 457), and also all persons who in 
 common legal language would be said to have an interest, as, for 
 example, a remainderman in fee, or a mortgagee, neither of whom 
 have an "interest" inland witliin the meaning of s. 41. A question 
 may arise as whether they include a person who has entered into a 
 written contract to buy the land. At all events an intending pur- 
 chaser should agree with his vendor that the latter should give him an 
 authority imder the sub-section, which had better be in writing. 
 
 The sub-section does not prevent the Commissioners furnishing other 
 persons than those referred to with copies, or information as to the 
 contents, of the register. For example, the Commissioners are not 
 prevented from giving the local authority information which would 
 facilitate that authority's negotiations for, or support its case in, an 
 arbitration relating to the acquisition of the land for public purposes. 
 
346 
 
 Land Clauses of the Finance Act. 
 
 § 30 (2). 
 
 § 31. 
 
 Information 
 as to names 
 of owners 
 of land. 
 
 It is not known what view the Commissioners would take of an applica- 
 tion from a local authority for this purpose. It is thought to be quite 
 certain that no private individual or private undertakers w ould be allowed 
 to obtain information as to the contents of the register for the purposes 
 of the acquisition of property. On the other hand there seems to be 
 no doubt that the information on the register will be available for all 
 the departments of the Inland Revenue, including those having charge 
 of income tax and death duties. Further, the provisions of s. 16 of the 
 Stamp Act, 1891 (54 & 55 Vict. c. 39), must not be overlooked, under 
 which all public officers must allow the Commissioners to have inspection 
 of the books, etc., under their control. Up to March 31, 1911, no 
 application had been made under sub-s. (2). (Commissioners' Report, 
 1911, p. 166.) 
 
 Section 31. 
 
 31. — (1) Every person who pays rent in respect of any 
 
 land, and every person who as agent for another person 
 
 receives any rent in respect of any land, shall, on being 
 
 required by the Commissioners, furnish to them within 
 
 thirty days the name and address of the person to whom 
 
 he pays rent or on behalf of whom he receives rent, as 
 
 the case may be. 
 
 Rent. — See notes to s. 20 (p. 220) ; also s. 41 {post, p. 442). 
 Probably, rent due on a mining lease is included. 
 
 Every Person who as Agent for another Person receives, etc. . . . 
 shall furnish, etc. — A man who pays rent on his own behalf must 
 furnish the name and address of the person to whom he pays it. A 
 ])erson who receives rent as agent for another must give the name and 
 address of the person for whomhe receives it. But it does not appear 
 that a person who receives rent as agent for the payer, as where a 
 person gives his solicitor money with instructions to pay it as rent to 
 the client's landlord, is bound to furnish to the Commissioners the name 
 and address, etc. The words " every person who pays rent in respect 
 of any land " seem to mean every person who pays rent on his own 
 behalf; because they are immediately followed and contrasted with the 
 words "and every person who as agent for another person receives," etc. 
 If this view be correct, the solicitor in the above illustration seems not 
 bound to furnish the name, either of the landlord or the tenant. But 
 it is clear that the client, through his solicitor as his agent, has paid 
 the landlord, and must, therefore, give the landlord's name. 
 
 This sub-section must be compared with s. 26 (2) {ante, p. 317) 
 and s. 20 (3) {ante, p. 223). Sect. 31 (1) is a sub-section which 
 relates to a preliminary stage in the process of valuation, and is 
 intended to enable the Commissioners to find out the person who is to 
 
Valuation. 847 
 
 be subsequently required to make the returns referred to in s. 26 (2) § 31 (1). 
 and s. 20 (3). It is thoixght that an agent is within s. 26 (2), and 
 possibly within s. 20 (3), and therefore may be required either under 
 those sub-sections to give the particulars required by them, or under 
 s, 31 (1) simply to give the name and address of his principal. 
 
 Forms "No. 8, Land," "No. 8a, Land," with accompanying instruc- 
 tions, have been issued by the Commissioners under this sub-section (see 
 Appendix, pp. 537 and 541). It is clear that the Act does not make an 
 answer on the form itself obligatory. All tlie agent has to do is to 
 furnish the name and address, and he may do so in whatever intelligible 
 form he pleases. It does not seem that such furnishing need even be in 
 writing. 
 
 For a case on Form 8 and the notice accompanying it, see Burghes 
 V. Attorney-General, [1911] 2 Ch. 139; [1911] W. N. p. 232. The 
 form of action was based on Dyson v. Attorney -General, [1911] 1 
 K. B. 410, C, A. (see Appendix, post, p. 510), and was for a declara- 
 tion that the form and notice were unauthorised, and that the plaintiff 
 was not bound to comply with them. Objections were taken to the 
 form and notice on the ground that the latter required the form to 
 be filled in in respect of land not specifically mentioned in the form, b\it 
 described simply as " land situate within or partly within the parish 
 or place of Plaistow South " ; in other words that it amounted to a 
 roving inquiry as to the plaintiff's payments and receipts. Other 
 objections were that the thirty days mentioned in the sub-section meant 
 thirty days after the receipt of the notice, and not thirty days from the 
 date of notice ; that there was in fact no civil " parish or place of 
 Plaistow South," although there was an income-tax parish with that 
 title, and that the return was not to be made to the Commissioners 
 themselves, but to one Mr. Anstey, their district official. 
 
 Mr. Justice Warrington held ([1911] 2 Ch. 139) that the notice 
 and form were unauthorised, and that the plaintiff was not bound to 
 comply with the form on the grounds (1) that the notice purported 
 to require the agent to give the description and precise situation 
 of the land ; (2) that the form required the agent to furnish 
 particulars as to any land in the district, and was not, as it ought to 
 have been, confined to land specifically referred to ; and (3) that the 
 Commissioners had no right to require the plaintiff to send the return 
 to any one but themselves, though they might permit him to do so. 
 He further held, on the authority of Dyson v. Attorney-General, [1911] 
 1 K. B. 410 (see p. 510, Appendix), that the Court had, under Order 25, 
 rule 5, of the Supreme Court Rules, a discretionary power to entertain 
 an action against the Attorney-General for a declaration as claimed, and 
 that in the circumstances the procedure was a convenient one, "enabling 
 the Commissioners to be informed how far they may go, and relieving 
 the plaintiff from the doubt and perplexity into which he has been cast," 
 and should be allowed. The plaintiff did not ask for costs, and the 
 
348 Land Clauses of the Finance Act. 
 
 § 31 (1). Judge thought that he could not have given them. As this 
 edition was passing through the press this decision was affirmed by 
 the Court of Appeal on the points, Nos. (1) and (2), just referred to, 
 and on the further ground that the plaintiff was entitled to, and had 
 not had, thirty days from the receipt of the notice to answer (W. N., 
 1911, p. 231.) The effect is that all forms 8 not already complied with 
 are waste paper and cannot be enforced. (See further the notes on 
 Dys(yti V. Att<ymey- General, post, p. 510). 
 
 (2) For the purpose of the exercise of their powers or 
 the performance of their duties under this Part of this 
 Act in reference to the valuation of land, the Commis- 
 sioners may give any general or special authority to any 
 person to inspect any land and report to them the value 
 thereof, and the person having the custody or possession 
 of that land shall permit the person so authorised, on 
 
 . production of the authority of the Commissioners in that 
 behalf, to inspect it at such reasonable times as the 
 Commissioners consider necessary. 
 
 This sub-section may be compared with a corresponding section in the 
 Finance Act, 1894, s. 7 (8) (see Appendix, p. 594). See also sections 
 of similar purport in the Parochial Assessments Act, 1836 (6 & 7 Will. 4, 
 c. 96), s. 4, and the Income Tax Act, 1842 (5 A 6 Vict. c. 35), s. 78. 
 It is implied by the sub-section that the authority must be a written 
 one. 
 
 (3) If any person wilfully fails to comply with the 
 provisions of this section he shall be liable to a penalty 
 not exceeding fifty pounds to be recoverable in the High 
 Court. 
 
 Wilfully fails to comply. — Note the word " wilfully," which is abs^ent 
 from sections 4 (2), 20 (3), 21 (3), and 26 (2). Compare also with 
 section 15 (3) of the 1910 Act, section 8 (6) and (14) of the Finance 
 Act, 1894, and section 18 of the Customs Act, 1885 (see p. 127). For 
 the meaning of " wilfully," see Re Young's Contract, 31 Ch. D. 168, at 
 p. 175 ; Re The Mayor of London and Tubbs' Contract, [1894] 2 Ch. 524. 
 
 (4) Any notice requiring a return for the purpose of 
 valuation, any copy of a provisional valuation, and any 
 other notice or document which is required to be given 
 or sent to an owner or a person interested in land under 
 this Part of this Act by the Commissioners shall be 
 
Valuation. 349 
 
 sufficiently given or sent if sent by post to the address of § 31 (4). 
 the owner or person interested furnished to the Commis- 
 sioners under the powers given by this section, or, if the 
 address cannot be so ascertained, by leaving the notice 
 or a copy of the document addressed to the owner or 
 person interested with some occupier of the land, or, if 
 there is no occupier, by causing it to be put up in some 
 conspicuous place on the land. 
 
 Any Notice requiring a Return.— See ss. 20 (3), 26 (2), 28, and 
 29 (3). 
 
 Any Copy of a Provisional Valuation. — See ss. 27, 28, and 29 (3). 
 
 Any other Notice or Document which is required to he given or 
 
 sent.— See s. 20 (2) (b). 
 
 To an Owner or Person interested. — These words would not seem to 
 
 include an agent under sub-s. (1). 
 
 Furnished to the Commissioners under the Powers, etc. — See s. 31 (1). 
 
 If sent hy Post. — The notice, it appears, will be served (1) if, being 
 sent by the Commissioners, it, in any way, reaches the hands of the 
 owner. 
 
 (2) If it is sent by the post to the address of the owner, i.e., furnished 
 to the Commissioners under the powers of sub-s. (1) of this section. 
 
 But qucBve, in this case, must the Commissioners prove that the address 
 fvirnished was in fact the address of the owner, or does the sub-section 
 mean that posting to the address furnished under sub-s. (1) by the rent 
 payer as the address of the owner, etc., is sufficient ? 
 
 And further, qucere, is posting a letter addressed ta the address 
 furnished (being the real address of the owner) sufficient if it is not 
 in fact received 1 The cases of posting and non-receipt in relation 
 to contracts (see Harris's Case, 7 Ch. App. 587 ; Henthorn v 
 Fraser, [1892] 2 Ch. 27 ; Re London and Northern Bank, [1900] 
 1 Ch. 220) proceed on the ground that the one party has authorised 
 the other to send, his answer by post (see Household Fire Insurance Co. 
 V. Grant, 4 Ex. D. 216, C. A.), or, to put the matter in another way, 
 that " it must have been within the contemplation of the parties that 
 according to the ordinary usages of mankind the post might be vised as 
 a means of communicating the acceptance of an offer " (see per Lord 
 Herschell in Hevthorn v. Fraser, [1892] 2 Ch. 27, at p. 33). 
 
 This sub-section perhaps puts the owner in the same position as the 
 contracting party so referred to, and in that case it would seem that 
 even if the notice is not received by the post it will have been duly 
 served {Household Fire, etc., Co. v. Grant, 4 Ex. D. 216, C. A.). Further, 
 
350 
 
 Land Clauses of the Finance Act. 
 
 § 31 (4). this question seems to be answered by the words of the sub-section, 
 "sufficiently given or sent if sent by post." See also s. 26 of the 
 Interpretation Act, 1889 (52 & 53 Vict. c. 63), which, though material, 
 seems not to be decisive as to the question under discussion. 
 
 The words "sent by post" in s. 37 of the Solicitors Act, 1843, refer 
 to the time when, in the ordinary course of post, the bill would be 
 delivered, and not to the time of posting {Broxvne v. Black, [1911] 1 
 K. B. 975). 
 
 (3) If the real address of the owner cannot be ascertained, then, 
 whether the rent payer has furnished an address or not, by leaving the 
 notice addressed to the owner with some occupier of the land. In this 
 case it seems to be immaterial that the notice does not reach the owner. 
 
 (4) If there is no occupiei-, by causing the notice to be put up in 
 some conspicuous place on the land. In this case as well as in No. 3 it 
 appears doubtful whether a notice addressed to "the owner'' and not 
 mentioning his name, or similarly to " the lessee," would be good 
 service. 
 
 §32. 
 
 Determina- 
 tion of value 
 of considera- 
 tion. 
 
 General note 
 on s. 32 
 (1), (2). 
 
 What is to be 
 estimated as 
 consideration? 
 
 Section 32. 
 
 32. — (1) Where the value of any consideration for a 
 transfer or lease is to be determined for the purposes of 
 this Part of this Act, that value shall, so far as the 
 consideration consists of the payment of a capital sum, 
 be taken to be the amount of that capital sum, and, so 
 far as the consideration consists of a periodical money 
 payment, be taken to be such sum as appears to the 
 Commissioners to be the capital value of that payment. 
 
 Where the Value of any Consideration ... is to be determined. — 
 
 An inference, which may or may not be correct, from sub-ss. (1) and (2) of 
 s. 32 is that only money payments (sub-s. (1) ) and the additional con- 
 siderations mentioned in sub-s. (2) are to be considered " consideration " 
 for the purposes of the land clauses. 
 
 Unless the whole consideration, whether one or more of the kinds of 
 consideration mentioned in s. 32 (1) and (2), or something else not there 
 mentioned, as the compromise of an action, or the dissolution of a 
 partnership, is valued on the occasion of a transfer on sale under s. 1 (a) 
 and s. 2 (2) (a) and {b), the site value on the occasion will come out at 
 less than it is really worth ; and on the next occasion when there is sale 
 for cash, or a death, or valuation under s. 2 (2) (c) and ((/), there would 
 be a great jump in site value, possibly involving a payment of increment 
 value duty on an increment which had wholly accrued before the earlier 
 sale on which the consideration had not been fully estimated. This 
 result would be a defect in the scheme of the Act, which is to make 
 
Valuation. 361 
 
 each vendor pay on the increment value he puts into his pocket, and one § 32 (1). 
 of the alternative conclusions seems to be preferable, that is, that either 
 
 (a) all considerations are to be valued by the Commissioners, whether men- 
 tioned in s. 32 (1) and (2) or not, and treated as part of the consideration; 
 
 (b) that no sales or leases are to be considered transfers on sale or leases 
 and occasions for payment of increment value duty unless the whole con- 
 sideration consists of either (a) a capital sum, (b) a periodical payment, 
 or (c) a covenant, undertaking, or liability to discharge an incumbrance, 
 or partly of one and partly of the other of such alternatives. It seems 
 difficult to conclude that all considerations are to be estimated in money 
 value by the Commissioners when express power is given to them to 
 put a value upon certain considerations only.* On the other hand the 
 latter alternative, if correct, might have a serious effect upon the 
 immediate collection of increment value duty. If, for instance, it is the 
 case that a sale for Consols is not within the Act, it would often pay to 
 buy Consols for the purpose of using them to pay for the purchase of 
 land. Yet seriously as the construction, that only money transactions 
 and covenants to discharge incumbrances are contemplated as being 
 sales, and that consequently ss. 55, 56, and 57 of the Stamp Act, ISQll 
 (which deal with considerations for sales other than for cash), do not 
 apply to the estimate of the consideration under this Act, would affect 
 the working of the Act, it cannot be overlooked (1) thats. 32 (1) and (2) 
 of the 1910 Act is not consistent with s. 56 or probably with s. 57 of 
 the Stamp Act ; (2) that it is extraordinary that if the more unusual 
 considerations were intended to be considered as making a transaction a 
 sale, they are ignored in s. 32 (1), which deals with the simpler case of 
 money payments, as to which a provision of the kind in sub-s, (1) seems 
 hardly necessary ; (3) that two specified cases of such unusual considera- 
 tions are dealt with by s. 32 (2) (but qucere in the case of a lease only) 
 whilst the general class of such considerations is ignored as to both sales 
 and leases ; (4) that the portion of s. 32 (2) which deals with agree- 
 ments to 'discharge incvimbrances is, if the sections referred to of the 
 Stamp Act, 1891, apply to the 1910 Act, already enacted in a more 
 sweeping form in s. 57 of the former Act, and is therefore unnecessary. 
 
 For these reasons the conclusion briefly stated in the first edition of this Doubt as to 
 work, that it is doubtful whether anything is a transfer on sale within meaning of 
 the meaning of the Act so as to require the value of the consideration sale!^ 
 to be ascertained under s. 2 (2) (a) and (6) for purposes of increment 
 value duty where the consideration is not either expressed in the form 
 of money or is not a covenant, etc., to discharge an incumbrance within 
 s. 32 (2), is again repeated (see further note to s. 3 (6), p. 70. This ' 
 may, indeed, be the case without seriously upsetting the scheme of the 
 
 * Curiously enough they may estimate the money value of a mining rent payable 
 in kind or in service, etc. (s. 24, par. " Where any rent," p. 266). 
 
 t See Appendix, pp. 617 to 621, for the principal sections of the Stamp Act, 1891, 
 thought to be relevant sections. 
 
852 
 
 Land Clauses of the Finance Act. 
 
 § 32 (1). 
 
 When value 
 of considera- 
 tion requires 
 determina- 
 tion. 
 
 Cases under 
 Lands Clauses 
 Acts. 
 
 Compensation 
 for goodwill. 
 
 For sever- 
 ance. 
 
 Act. There is not a complete analogy between increment value duty 
 and ordinary ad valorem stamp duty. If increment value duty is not 
 paid to-day it will (unless there is a recession of site value) have to be 
 paid to-morrow. To avoid an occasion of paying ordinary stamp duty 
 may be to escape it altogether. 
 
 The value of a consideration has to be determined — 
 
 (1) Under s. 2 (2) {a) to fix the site value of land for increment value 
 duty on the occasion of a transfer on sale of the fee simple. 
 
 (2) Under s. 2 (2) (6) to fix the site value for the same duty on the 
 occasion of the grant of a lease of the land or the transfer on sale of 
 an interest in the land. 
 
 (3) To fix, under s. 2 (3) of the Act of 1910, and s. 2 of the Revenue 
 Act, 1911, the site value of the land on a purchase or mortgage made 
 before April 30, 1909, at the date of such purchase or mortgage in 
 cases where the site value had gone down on April 30, 1909, and the 
 site value at the date of the purchase or mortgage is substituted for 
 the site value as on April 30, 1909, for the purposes of increment 
 value duty. 
 
 (4) To ascertain, under s. 13 (2), for the purposes of the reversion 
 duty the total value of the land at the time of the original grant of 
 the lease. 
 
 (5) To ascertain on an apportionment or re-apportionment, under 
 8. 29 (2), for the purpose of the collection of increment value duty on 
 a sale or lease, the value of the consideration for the transfer or for the 
 grant of the lease. 
 
 (6) To determine the value of a mining rent paid otherwise than in 
 money or money's worth (s. 24, paragraph, "Where any rent," p. 266). 
 
 In all the above cases the amount of duty depends upon the value of 
 the consideration. 
 
 When lands are purchased under the provisions of the Lands Clauses 
 Acts, the whole purchase-money paid by the company, although including 
 compensation for loss of business, is liable to ad valorem stamp duty as 
 consideration for the sale (see Inlaixd Revenue v. Glasgow and South 
 Western Railway Company (1887), 12 App. Cas. 315). If, as is possible, 
 that decision applies to the value of the consideration for the purpose 
 of the assessment of increment value duty, it would seem that there 
 should be some deduction from that consideration under s. 2-5 (4) (d) 
 for goodwill {Pile v. Pile, 3 Ch. D. 36) (see notes on pp. 278 and 300). 
 The amount of that deduction must necessarily depend upon the con- 
 struction placed on the word " goodwill " in that sub-section. 
 
 Whether a sum explicitly and separately paid as damages for severance, 
 either found by a jury under s. 49 of the Lands Clauses Act, 1845, or 
 by an arbitrator under that Act, or fixed by agreement and so expressed 
 in the conveyance of land to a company under the Lands Clauses Act, 
 and whether such a sum not separately ascertained from the purchase- 
 moneys of the land, which are expressed in the conveyance, as is usual, 
 
Valuation. 353 
 
 " to include compensation for severance, etc.," is part of the con- § 32 (1). 
 sideration so 'as to increase the increment value duty, are difficult 
 questions which cannot be adequately discussed in this note. 
 
 It is thought that, if a sum of money was expressly allocated either by For 
 a jury (under s. 49 of the Lands Clauses Act, 1845), or by an arbitrator, ii^uriously 
 or by agreement in respect of the " injuriously affecting " lands not taken, other lands, 
 but held with the taken lands, this sum should not be treated as 
 part of the consideration on the sale of the taken lands. If such sum is 
 not separated from the rest of the purchase-money, which is expressed, 
 as is usual, to be " in full satisfaction and discharge of all claims for 
 injuriously affecting other lands," a more difficult qviestion arises, for it 
 may be said that the onus is on the vendor to get his purchase-money 
 apportioned, and if he does not do so, it must all be treated aS payment 
 for the land. Therefore it is clear that in this case also the purchase - 
 money should be apportioned in the conveyance. It is thought that 
 the additional percentage for compulsory sale is a part of the 
 consideration. 
 
 So far as the Consideration consists of the Payment of a Capital 
 Sum be taken to be the Amount of that Capital Sum. — ^But if it is a 
 
 capital sum payable by instalments, as in the case of the purchase of 
 building land is not now uncommon, the real consideration is less than 
 the aggregate of the actual inatalmeuts which include interest on deferred 
 payments. In such a case it seems that the consideration is not strictly 
 a " periodical money payment," and that the aggregate of the instal- 
 ments is the capital sum, but this is not quite clear. 
 
 A Periodical Money Payment. — As the rent reserved by a lease or a 
 sale in consideration of the original reservation or regrant of a rent-charge, 
 usually known as a chief rent. If, however, the transaction is a sale of 
 land held svibject to a chief rent or rent-charge, as is often the case in 
 sales of land in or near Manchester, Liverpool, and Bristol, the purchaser 
 covenanting to pay the rent-charge and indemnify the vendor therefrom, 
 a difficiilt question arises. It would appear that such rent-charge is 
 within the decision in Sivayne v. Inland Revenue, [1899] 1 Q. B. 335 ; 
 [1900] 1 Q. B. 172 ; and if that case applies to conveyances under 
 s. 1 (a) of' the Finance Act, 1910, would not form part of the considera- 
 tion on sale {ante, p. 32). The words " so far as the consideration 
 consists of a periodical payment " may be held to mean " so far as the 
 consideration consists of a periodical payment or an indenmity given to 
 the vendor against his liability for such a payment." 
 
 (2) If the Commissioners are satisfied that any 
 covenant or undertaking or liability to discharge any 
 incumbrance, or, in cases where a nominal rent only has 
 been reserved, any covenant or undertaking to erect 
 
 N. 23 
 
354 Land Clauses of the Finance Act. 
 
 § 32 (2). buildings, or to expend any sums upon the property, has 
 formed part of the consideration, the Commissioners shall 
 allow such sum as they think just in respect thereof as 
 an addition to the value of the consideration. 
 
 If the Commissioners are satisfied that any Covenant . . . 
 has formed part of the Consideration . . . the Commissioners shall 
 allow, etc. — This is in form a concession not likely to be snatched at 
 by vendors and lessors, one of whose objects is to keep down the value 
 of the consideration on a sale or lease, and thereby to diminish their 
 own liability for increment value duty. 
 
 They will not, therefore, try to satisfy the Commissioners by increasing 
 their own liability. Possibly the words " shall allow " amount in 
 efifect to a direction to the Commissioners to add sums in respect of the 
 matters referred to the value of the consideration. It must be 
 remembered that, on the other hand, it is the interest of purchasers and 
 lessees, so far as increment value duty is concerned, to make the con- 
 . sideration appear as large as possible, since the increment value depends 
 largely upon that factor, and it is to their interest that the vendor or 
 lessor should pay the full duty. 
 
 It is, however, to the interest of the lessor on the determination of a 
 lease with a nominal rent (a rare event) to get the allowance of the 
 value of a covenant to build, etc., as an addition to the value of the 
 consideration for the grant of the lease, thereby increasing the total 
 value at the time of the original grant of the lease (s. 13 (2) ). 
 
 Covenant or Undertaking or Liahility to discharge any Incum- 
 hrance. — On the sale of an equity of redemption in land, when the pur- 
 chaser either expressly covenants to discharge the mortgage debt and 
 indemnify the vendor therefrom, or is implied so to covenant (Bridg- 
 rtian v. Daw^ 40 W. R. 253), such debt forms part of the consideration, 
 and should therefore be added under s. 57 of the Stamp Act, 1891, to the 
 amount of the purchase-moneys. This section has been applied to cases 
 where one company took over under a private Act of Parliament the 
 whole of the undertaking and assets of the other company, and undertook 
 the liability to pay off its debentures {Great Westet-n Railway Company 
 V. Inland Revenue, [1894] 1 Q. B: 507).^ The ad valorem duty was 
 charged on the amount of such debentures. . (See other cases on s. 57 
 of the Stamp Act, 1891, collected in Alpe, Stamp Duties, 12th 
 edition.) The language of s. 57 is, however, far wider than that 
 of sub-s. (2). (See Appendix, p. 620.) 
 subject to ^^ would seem that on the sale of land subject to a rent-charge, the 
 
 rent-charge purchaser covenanting to pay the rent-charge and indemnifying the 
 vendor therefrom, the question whether the rent-charge forms part of the 
 
 or chief 
 rent 
 
Valuation. ^55 
 
 consideration may depend upon whether it is or is not an incumbrance. § 32 (2). 
 This, of covirse, is on the assumption that Swayne v. Inland Revenue, 
 [1899] 1 Q. B. 353, is applicable (see ante, p. 32), which is by no means 
 certain. Under s. 41 (see^os^, p. 451) incumbrance includes {inter alia) 
 " a charge of a portion, annuity, or any capital or annual sum, but does 
 not include a fixed charge as defined by this Act." Primd facie, a rent- 
 charge issuing out of land seems to be a charge on land of an annual sum, 
 and therefore to be an incumbrance. But incumbrance does not include 
 a " fixed charge as defined by this Act." As defined by this Act (s. 41, 
 post, p. 466), ^^ fixed charge means any rent-charge as defined by this Act, 
 and any burden or charges (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 con- 
 sideration of any advance to any person interested in the land." 
 
 As defined by this Act (s. 41, post, p. 450), " * rent-charge ' means 
 . . . any fee farm rent, rent seek, quit rent, chief rent, rent of assize, 
 or any other perpetual rent or annuity granted out of land." The 
 question, therefore, is whether a rent-charge or chief rent issuing out of 
 the land, and subject to which the land is sold, falls under the words in 
 the definition of incumbrance, " a charge of a portion, annuity, or any 
 capital or annual sum," in which case it may form part of the con- 
 sideration under s. 32 (2), or whether it falls under the words in the 
 definition of rent-charge, namely, " fee farm rent . . . chief rent . . . 
 or any other perpetual rent or annuity granted out of land," in which 
 case it does not form part of the consideration because it is then a fixed 
 charge, which is not an incumbrance. As the words quoted from the 
 definition of " incumbrance," i.e., " a charge of a portion, annuity, or 
 any capital or annual sum," might be interpreted to refer to "annual 
 sums " charged on land, such as jointures and other life annuities not 
 being in the technical sense rent-charges, it is thought that rent-charges 
 strictly so called, i.e., fee farm rents, chief rents, perpetual rents or 
 annuities granted out of land, would not be incumbrances, but would 
 be fixed charges. 
 
 But this does not quite exhaust this problem, for if, as is possible 
 (see p. 289), fixed charges include only rent-charges " arising by 
 operation of law or imposed by any Act of Parliament," and do not 
 include rent-charges created by "act of the parties, rent-charges so created 
 are not fixed charges, and not^being fixed charges, there is nothing in the 
 Act to say that they are not incumbrances ; and even if they are not 
 expressly included in the meaning of incumbrances under the words " a 
 charge of . . . any capital or annual sum," they may still be incum- 
 brances as a matter of ordinary construction of law, since the definition 
 of incumbrances in s. 41 is not exclusive. " The expression incum- 
 brance includes, etc." It is thought, however, that as a matter of 
 construction of the clause all rent-charges, whether arising by operation 
 
 23—2 
 
856 Land Clauses of the Finance Act. 
 
 § 32 (2). of law or created by express grant or reservation, are included in the 
 
 definition of fixed charge, and are therefore not incumbrances. 
 A practical The point discussed is not of an academic nature, as the following 
 
 illustration will show. The original site value of a cleared plot of 
 building land is 1,000/. It is sold, still unbuilt upon, on May 1, 1911, 
 on a chief rent of 40^. per annum, which the purchaser covenants to 
 pay. The site value on that day is still 1,000^., the capitalised value 
 (under s. 32 (1) ) of the chief rent. It is again sold, being still unbuilt 
 upon, but nothing giving rise to a deduction under s. 25 having been 
 spent upon it by the first purchaser, to a second purchaser on May 1, 
 1912, for the sum of 300^., with a covenant by the latter to pay the chief 
 rent and indemnify purchaser No. 1 against liability for its payment. 
 If the chief rent is not an incumbrance within s. 32 (2), and if it is not, 
 under the analogy of Swayne v. Inland Bevenue, [1899] 1 Q. B. 335 ; 
 [1900] 1 Q. B. 172 {supra, pp. 32 and 353 — 5), a part of the consideration 
 consisting of a periodical money payment within sub-s. 1 of s. 32, the 
 value of the consideration for the sale under s. 2 (2) (a) will be only 
 300^., and the site value cannot be more than 300/. In reality the 
 site value has gone up 300/. since the sale on May 1, 1911, as is evident, 
 and is now 1,300/., and the consideration for the sale is really equivalent 
 to a cash payment of 1,300/. 
 
 Or in Cases where a Nominal Rent only has been reserved. — It is 
 
 difficult to see why the covenant to erect buildings or to expend money 
 on the property is to be deemed part of the consideration only in the 
 case of a lease where a nominal rent has been reserved, and not in all 
 cases where such covenant in fact forms a part of the consideration. 
 To limit the effect upon value of such covenants is surely to ignore 
 realities. Thousands of leases are granted every year at substantial 
 rents, but still at rents less than the real annual value of the property 
 in consideration of the covenants by the lessee to erect buildings or 
 otherwise to spend money on the property. On the other hand, it very 
 seldom happens that a nominal rent accompanies such a covenant. 
 
 This sub-section is no doubt intended to be consistent with s. 13 (2). 
 (See ante, p. 156.) 
 
 It must not be overlooked that the effect of the section will be, under 
 8. 2 (2) (a), (b), to keep down the site value on " an occasion " when 
 duty might be payable, as on a lease, or sale on " chief rent," the 
 lessee or purchaser covenanting to build a house or otherwise to expend 
 money on the property. 
 
 Shall allow such Sum as they shall think just. — The liability or 
 the incumbrance may be uncertain, or the incumbrance may comprise 
 other properties. Qucere how far in that case sub-s. (3) of this section 
 would apply. The Commissioners have a discretion as to the amount, 
 but appealable, it is thought. 
 
Valuation. 357 
 
 (3) Where it is necessary to apportion any considera- § 32 (3). 
 tion for the purposes of this Part of this Act as between 
 properties included in any transfer or lease, the considera- 
 tion shall be apportioned by the Commissioners in such 
 manner as they determine. 
 
 Necessary to apportion any Consideration. — Properties A and B 
 ai*e separately assessed by the Commissioners as on April 30, 1909, 
 Later they are purchased together for a single lump sum. For the 
 purpose of ascertaining the site value of each property under s. 2 (2) (a) 
 for increment value duty payable on such sale it is necessary to ap{)ortion 
 this sum between properties A and B. Apportioument is necessary, or 
 strongly advisable, because one pi'operty may have incremented more than 
 another, and on a future occasion, when the properties may again be 
 sold separately, it will be necessary to know how much increment value 
 duty has been paid on each. So where land and chattels are bought at 
 an aggregate sum, the Commissioners must be satisfied that the usual 
 apportionment for ordinary stamp duty purposes is fair for the purposes 
 of this Act. So where the goodwill of a business is bought with the 
 premises it is clearly necessary either to (a) apportion the consideration, 
 making no deduction for goodwill under s. 25 (4) (d), or [b) not to 
 apportion the consideration, but to deduct a sum for goodwill under that 
 sub-section (see notes as to goodwill on pp. 278 and 300). Having 
 regard to the fact that the exact nature of the goodwill the value of 
 which is to be deducted imder s. 25 (4) is imcertain, it is suggested 
 that contracts for the sale of premises and goodwill should themselves 
 apportion the consideration, and also define what they include in 
 goodwill. 
 
 Section 33. 
 Appeals.* 
 
 Sects. 33 and 34 deal with the question of appeals. 
 
 Sect. 33 gives an appeal to a referee against all determinations of the 
 Commissioners subject to the exceptions laid down in that section. It 
 further gives an appeal to the subject from the referee to the High 
 Court, with an option in small cases to appeal to the county court. 
 It establishes and nominates a reference committee for each of the three 
 kingdoms. 
 
 Sect. 34 establishes a panel of referees and provides for their 
 remuneration. 
 
 By the Revenue Act, 1911 (1 Geo. 5, c. 2), s. 3, it is declared that 
 the Commissioners of Inland Revenue, if dissatisfied with the decision 
 
 * For notes as to the practice on appeal, see " Notes on the Practical Working," 
 ante, p. xxxviii. 
 
358 Land Clauses of the Finance Act. 
 
 § 33 (1) of a referee, have under sub-s. (4) of s. 33 of the principal Act a right 
 of appeal to the High Court against the decision as persons aggrieved 
 within the meaning of that provision. 
 
 §33. 33. — (1) Except as expressly provided in this Part of 
 
 Appeals to thls Act, any person aggrieved may appeal within such 
 time and m such manner as may be provided by rules 
 made under this section against the first or any subse- 
 quent determination by the Commissioners of the total 
 value or site value of any land ; or against the amount of 
 any assessment of duty under this Part of this Act ; or 
 against a refusal of the Commissioners to make any 
 allowance or to make the allowance claimed, where the 
 Commissioners have power to make such an allowance 
 under this Part of this Act ; or against any apportionment 
 of the value of land or of duty or any assessment or 
 apportionment of the consideration on any transfer or 
 lease made by the Commissioners under this Part pf this 
 Act ; or against the determination of any other matter 
 which the Commissioners are to determine or may 
 determine under this Part of this Act : 
 Provided that — 
 
 (a) an appeal shall not lie against a provisional valua- 
 tion made by the Commissioners of the total or 
 site value of any land except on the part of a 
 person who has made an objection to the provi- 
 sional valuation in accordance with this Act ; and 
 (h) the original total value and the original site value 
 and the site value as ascertained under any 
 subsequent valuation shall be questioned only by 
 means of an appeal against the determination by 
 the Commissioners of that value where there is 
 an appeal under this Act, and shall not be 
 questioned in any case on an appeal against an 
 assessment of duty. 
 
 Except as expressly provided. — There seems no reaiion to doubt that 
 appeals in respect of claims for increment value duty on death fall 
 
Appeals. 359 
 
 within this section, and are not by virtue of s. 5 {ante, p. 89) to be § 33 (1). 
 made under the Finance Act, 1894. See also s. 60 (3) (p. 478). 
 
 The exceptions to the right to appeal are {a) and (6) in this sub-section, 
 and the exemptions from undeveloped land duty in s. 17 (3), (6), (c), {d) 
 (see p. 196), so far as respects the matters left to the opinion of the 
 Commissioners. 
 
 There is no appeal from the adoption of the total and site values as 
 stated in the provisional valuation under ss. 26 and 27 (see s. 27 (4) ) as 
 the original total and site values, unless an appeal has been made from 
 such provisional valuation (see s. 27 (4), ante, p. 325) ; but this appears 
 to be only another way of stating (a) (see above). Again, there is no 
 appeal from a referee in the case of deductions in respect of the covenants 
 or agreements referred to in the latter lines of s. 25 (3) (p. 287). 
 
 Appeals may be either as to fact or as to the law, and, it is thought, as 
 to freedom from or liability to duty as well as to amount. 
 
 Any Person aggrieved. — Many cases might be cited on these words. 
 Stroud's Judicial Dictionary, title " Aggrieved," contains a fair summary 
 of them. It is thought that if a person is, or may reasonably expect to 
 be, injured by a decision of the Commissioners, he is a " person 
 aggrieved." Examples are : — 
 
 (1) An owner in fee simple in possession who disagi-ees with the Com- 
 missioners' original or subsequent valuation whether of total or site value. 
 
 (2) A tenant for life in possession who thinks the original site value 
 is fixed too high, so that he has to pay more than he ought by way of 
 undeveloped land duty. He does not so much care about increment 
 value duty, which the remainderman may have to pay on his death. 
 
 (3) A remainderman in fee, i.e., person interested under s. 27 (6), who 
 thinks that the original site value is fixed too low (see note on that 
 sub-section, ante, p. 326, as to person interested). He may have to pay 
 increment value duty on the death of the tenant for life. 
 
 (4) The grantor of the fee simple of land or any interest in it, who 
 denies that a particular transaction is as claimed by the Crown " a trans- 
 fer on sale" withinthemeaningof s. 1(1) (a). He alleges that the so-called 
 sale is merely a family arrangement for the division of property part of a 
 residuary estate on which increment value duty has already been paid. 
 
 (5) A devisee who is liable to pay increment value duty under s. 5, and 
 who alleges that the site value on the occasion is fixed too high. 
 
 (6) A donee of property conveyed to him in a deceased's lifetime 
 whom the Crown alleges to be liable for increment value duty under s. 1 (6) 
 of this Act, incorporating the Finance Act, 1894, s. 2 (1) (c) (incorporating 
 s. 38 of the Customs and Inland Ee venue Act, 1881, s. 11 of the 
 Customs and Inland Eevenue Act, 1889) and s. 11 of the Finance Act, 
 1900, on the ground that the donor, under a secret agreement, x'etained 
 and enjoyed the land or a benefit therefrom during his lifetime. 
 
 (7) A body corporate or unincorporate entitled in fee, or to any interest 
 which in the case of an ordinary person would give a right of appeal, 
 alleging that the site value on a periodical occasion under s. 6 is fixed 
 too high, and that therefore too much increment value duty is payable. 
 
860 Land Clauses of the Finance Act. 
 
 § 33 (1). (8) An owner who, having borrowed money within twenty years 
 
 before April 30, 1909, on the property, claims under s. 2 (3) to have the 
 site value of the land at the time of the advance substituted for the pur- 
 poses of increment value duty for (or considered as) the original site value. 
 
 (9) A tenant under a lease with less than fifty years to run who 
 thinks the original site value is fixed either too high or too low (s. 27 (3) ). 
 
 (10) A reversioner, whether he be (a) an owner in fee or tail, {h) a 
 tenant for life of any of the various kinds of life tenants, or (c) a tenant 
 for years having a reversion or remainder of more than twenty-one years, 
 as to the amount of the reversion duty, on the grounds either (1) that 
 the total value of the land at the time of the grant of the lease is fixed 
 too low, or (2) that the total value at the determination of the lease is 
 fixed too high. 
 
 (11) A mortgagee who has foreclosed and therefore ceased to be a mort- 
 gagee under the difficult sub-s. (5) of s. 14, as to whether the amount of 
 reversion duty with which it is sought by the Commissioners to charge 
 him is in excess of the amount by which the total value of the land at 
 the time of the determination of the lease exceeds the amount payable 
 under the mortgage at the date of the foreclosure. 
 
 (12) A purchaser who alleges that the site value on the occasion of his 
 purchase is fixed too low, so that the vendor is charged too Little incre- 
 ment value duty under s. 2 (2) (a). But quaere whether he is a " person 
 aggrieved." 
 
 In the above examples for site value of land may often be substituted 
 capital value of minerals (s. 23 (4) ). 
 
 Examples might be multiplied ad infinitum. 
 
 " ' Person ' includes any body of persons corporate or unincorporate " 
 (Interpretation Act, 1889, s. 19). 
 
 Within such Time and in such Manner as is provided by Rules 
 made under this Section.— Under subs. (5). For the rules see post, 
 pp. 376 and 383. 
 
 First or any subsequent Determination ... of the Total Value or 
 Site Value of any Land. — That is (1) on the original valuation under 
 s. 26 ; (2) on the quinquennial site valuation under s. 28 ; (3) on the 
 occasional ascertainment of site values under s. 1 and s. 2 (2) (a), (6), 
 (c), and (d) ; (4) on the apportionment or re-apportionment of site 
 values under s. 29 (2) (included also expressly in the sub-section). 
 
 Total value on a general valuation xinder s. 26 or s. 28 is only a step 
 in the ascertainment of site value, but it is nevertheless quite possible 
 that a site value which the owner accepts may be accompanied by a 
 total value which he does not accept ; as, for example, the total value 
 may be placed too high (a fact which, in view of the death duties, the 
 owner regards as dangerous), and yet, because an over-liberal allowance 
 has been made in the matter of deductions, a tnie site value may have 
 emerged. His position is then a difficult one, since it does not follow 
 (though it may not be uulikely) that the same liberal allowance will 
 again be made for deductions on an occasion happening for payment of 
 
Appeals. 861 
 
 increment vakie duty, while the total value will stand against him for death § 33 ( 1 ) . 
 duties. Tn such a case, if the interests involved are substantial, he had 
 better appeal from both total vakie and the amount at which the allow- 
 ance of the deductions is fixed, but of course he must be careful, for he 
 might get his deductions diminished and his site value increased in 
 consequence (which he might not want), but his total value left as it is. 
 " Gross value " and " full site value" are not specifically mentioned as 
 subjects of appeal ; though there seems no doubt that under the words 
 " the determination of any other matter " an appeal will lie from the 
 determination of the Commissioners as to those values. An appeal 
 from total value or assessable site value will, however, usually, though 
 not necessarily, involve an appeal from gross value or full site value ; 
 and in cases where the total and assessable site values are correct, it is 
 difficult to see what manner of errors as to gross or full ^ite value 
 can be injurious. It may perhaps be assumed that where an error in 
 finding gross or full site values is balanced and rendered nugatory by a 
 further error in deducing total value from gross value, or assessable site 
 value from total value, an owner who allowed these errors to go 
 unchallenged on a general valuation would not be prejudiced in 
 setting up the true facts as to gross and full site value on future 
 occasions, if it should ever prove usefiil to him to do so. Nevertheless 
 it would seem to be his right not to have any incorrect values found 
 against him, and in a case where he might possibly be prejudiced in the 
 future, it is conceived he would be justified (so far as regards being held 
 entitled to his costs) in appealing to get the matter set right, even if 
 the appeal did not materially alter the immediate liability to taxation. 
 
 Against the Amount of any Assessment of Duty. — It is a little 
 difficult to follow the logical co-ordination of tlie matters as to which 
 there is an appeal. An appeal against " the first or any subsequent 
 determination by the Commissioners of the total value or site value of 
 any land " would seem indirectly to confer an appeal in all cases of 
 error in the elements which go to make up that value, unless errors 
 in any particular elements are expressly excluded as grounds for appeal. 
 Thus a mistaken refusal to make an allowance, or a sufficient allowance, 
 for drainage, whereby a swamp had been turned into a building estate, 
 would vitiate the determination of site value. 
 
 An appeal against an assessment of duty is under (6) of this section 
 not to include an appeal against original total or site value, or site value 
 as ascertained under any sixbsequent valuation. 
 
 Assessments of duty are made by the Commissioners as follows : — 
 Of increment value duty by virtue of ss. 2, 3, 4, 5, and 6 ; of reversion 
 duty by virtue of ss. 13 and 15 ; of undeveloped land duty by virtue of 
 ss. 16 and 19 ; of mineral rights duty by virtue of s. 20 ; of the annual 
 increment value duty charged on minerals by virtue of s. 22 (3). 
 
 Provisional assessments of increment value and undeveloped land 
 duties may be made under s. 27 (6). 
 
362 Land Clauses of the Finance Act. 
 
 § 33 (1). Or against the Refusal of the Commissioners to make any Allowance 
 or to make the Allowance claimed. — For the power or duty of the 
 Commissioners to make deductions on the occasion of fixing site value 
 for increment value duty, see ss. 2 (2) and s. 25 (4) ; as to allowances to 
 a lessor in relation to reversion duty, see s. 13 (2) and Revenue Act, 
 1911, s. 3 (2) ; as to the 100^. expenditure per acre for the purpose of 
 complete exemption from undeveloped land duty, see s. 16 (2) (b) 
 and Revenue Act, 1 91 1, s. 4 ; as to an allowance of increment duty, in the 
 case of undeveloped land d\ity, s. 16 (3), proviso ; as to deductions from 
 the total value of minerals for the purpose of ascertaining capital value, 
 s. 23 (1). As to deductions for purpose of ascertaining site value 
 generally, see s. 25 (2), (3), and (4). As to allowances in estimating 
 the value of the consideration, see s. 32 (2) ; as to copyholds, s. 40 (1). 
 
 Possibly the term " allowance " may not be construed simply by refer- 
 ence to the term as used in previous sections, but in a broad and liberal 
 sense. The sentence immediately before proviso (a) in this sub-section 
 supports such a view. In that case the relief to the taxpayer afforded 
 by s. 2 (3), s. 3 (5), s. 4 (5), s. 14 (4) and (5), s. 20 (2), proviso, s. 21 (4), 
 s. 22 (4) and (6), and s. 36, may be considered to be in the nature of an 
 allowance. But the point seems unimportant, as if an appeal in respect 
 to such matters does not lie under the " allowance " sentence of s. 33 (1), 
 it does lie under the " any other matter " sentence. The form of the 
 sentence indicates that an allowance is a thing to be claimed and not to 
 be made if not claimed. The distinction suggested may be important 
 to the taxpayer who may not wish to claim an allowance under s. 23 (1) 
 or s. 25 (4), whereby his original site and capital values will be 
 decreased, or under s. 32 (2), whereby the value of the consideration 
 and the increment value may be increased. 
 
 Any Apportionment of the Value of Land. — Does this mean (in any 
 event it probably includes) apportionment of site value under s. 29 (2), 
 supra, p. 338 ? It is difficult to see what else it can include. 
 
 Or of Duty. — This may be apportioned under s. 3 (1) and may also 
 be consequent on an apportionment of site values between properties. 
 There is practically an apportionment of duty under the concluding 
 sentence of s. 13 (2). 
 
 Or any Assessment or Apportionment of the Consideration on any 
 Transfer or Lease. — U.g., for the purpose of fixing site value under 
 s. 32 (3) {ante, p. 357). 
 
 Against the Determination of any other Matter . . . Act. — With 
 the important exceptions above mentioned, every determination of 
 the Commissioners is open to appeal, whether on a point of disputed 
 fact or disputed amount, or on the ground that the Commissioners are 
 wrong in point of law (see ante, p. 359). * 
 
 * It is thought that there is an appeal on the ground that there is no duty 
 due, and not only as to the amouut due, as is the case under s. 50 of the 
 Succession Duty Act, 1853, and possibly under s. 10 of the Finance Act, 1894. 
 
Appeals. 363 
 
 (a) An Appeal shall not lie against a Provisional Valuation of § 33 (1). 
 the Total or Site Value of any Land except on the Part of a Person 
 who has made an Objection to the Provisional Valuation. — Sect. 27 
 is the part of the Act referred to (see p. 320). The persons who may 
 object to the provisional valuation are (1) the owner (sub-s. (2)); 
 (2) where a lessee with a term of over fifty years unexpired is the' 
 owner, then any person entitled either to the fee simple reversion, or to 
 a leasehold reversion for a term of years exceeding twenty-one, is also an 
 owner, and may object (sub-s. (7) ) ; (3) any person interested in the land 
 not being an owner (sub-s. (5)). (See notes on pp. 325 to 333.) 
 
 The intention is that a person must put his objections before the Appeal by- 
 Commissioners if he intends to appeal from their decision. But there i^te^^g"ted 
 are no automatic provisions securing that notice of the provisional 
 valuation shall be given to all persons interested (see note to s. 27 (5), 
 ante, p. 326). There is therefore all the more reason for immediate 
 action on behalf of persons interested as recommended in the note last 
 referred to. But the referees may hear and receive information from 
 any one interested in the land or in the matter of the appeal, and the 
 Commissioners when they receive notice of an appeal against total or 
 site value on a provisional valuation are to give notice of the appeal to any 
 person from whom a return has been required or who has applied to the 
 Commissioners for a copy of the provisional valuation under s. 2 7 (5) (see 
 rule 11, po%t, p. 378). If, therefore, persons interested object under that 
 sub-section to the pi'ovisional valuation, they are entitled themselves to 
 appeal under s. 33 (1), and to be served by the Commissioners with 
 notice of the appeal of an owner or any other person interested. The 
 service of this notice apparently does not confer an absolute right to be 
 heard by the referee on the appeal. The person served must appear 
 "to the referee to be interested in the land in respect of which an 
 appeal is made, or to be otherwise interested in the matter of the 
 appeal " (see rule 11 (1) ). It also seems that even if a person interested 
 has not made an objection to the provisional valuation, and has not 
 therefore been served by the Commissioners with notice of the appeal 
 under rule 11 (2), he may nevertheless be heard by the referee if he 
 falls within the category of persons referred to in rule 11 (1) by the 
 words above quoted. 
 
 Quaere, must the objection made to the provisional valuation be that Objections 
 which is the subject of the appeal 1 or may an owner or person interested *^ appeals 
 having made an objection on one point appeal on another 1 Common 
 sense is against his right to do so, but the sub-section is not very clear. 
 " An objection " are the words used, not " the objection " in respect of 
 which an appeal is made. Since the foregoing portion of this paragraph 
 was written the rules issued by the Reference Committee under subs. (4) 
 of s. 33 have been published. For rules see post, p. 376. They 
 provide by rule 8 that the appellant shall not, on the consideration of 
 his appeal, be allowed to rely upon any grounds of appeal not specifically 
 
364 Land Clauses of the Finance Act. 
 
 § 33 (1). set out in his notice of appeal, but that the referee may, if he 
 thinks it just under the circumstances, allow the notice of appeal to be 
 amended at any time. The query raised is therefore not answered. It 
 may be that if an objection is taken on one point only, on that point 
 only will an appeal lie. 
 
 An appeal, it seems, would not lie even as regards gross or full site 
 values, if in any case it should be advisable to appeal from them or 
 either of them without appealing from total and assessable site 
 value, unless objection has been made to the provisional valuation : sed 
 qtboere ? 
 
 It appears, as will be seen from the note on the words " the original 
 total value, etc.," in {h) (see next note), that it is not contemplated by 
 the rules of appeal issued by the Reference Committee under sub-s. (5) 
 of this section that a provisional valuation under s. 27 is required by 
 the Act to be made on the occasion of a payment of increment value 
 duty under s. 1 and s. 2 (2). Clause (a) of s. 33 will therefore not 
 apply to an ascertainment of total or site values under (a), {h), (c), 
 and {d) of s. 2 (2), but only to general valuations under s. 26 and s. 28. 
 
 For an analogous provision relating to appeals against poor rates, under 
 which a person cannot appeal to quarter or special sessions from a rate 
 made in conformity with the valuation list, approved by the assessment 
 committee, unless he has first given to that committee notice of objection 
 to the valuation list and has failed to obtain relief, see the Union 
 Assessment Committee Amendment Act, 1864 (27 & 28 Vict. c. 39), s. 1. 
 
 In accordance with this Act. — See s. 27 (2), p. 322, and notes thereon, 
 and also notes on p. 331. Within sixty days after service on him of 
 the copy of the provisional valuation (but quoere as to the time when 
 the appellant is a party interested as distinguished from an owner), or 
 such extended time as the Commissioners may allow, he must give notice 
 to them of objection to the provisional valuation, stating tlie grounds of 
 his objection and the amendment he desires. 
 
 (b) The Original Total Value and the Original Site Value and the 
 Site Value as ascertained under any subsequent Valuation. — For 
 definition or explanation of total value and site value, see s. 25. 
 
 For the original valuation, see s. 26. 
 
 For the procedure to arrive at original total and original site value, 
 see ss. 26 and 27. 
 
 For the subsequent quinquennial site value valuations, see s. 28. 
 
 The ascertainment of site value on an occasion of payment of incre- 
 ment value duty, where that occasion is a sale or lef>se, is probably not 
 referred to in the words " the site value as ascertained under any 
 subsequent valuation." The process of ascertaining site value under 
 s, 2 (2) (a), (b) is not a " valuation " of the total or site values, though 
 it may involve incidental valuations of value added to the site by 
 buildings and expenditure. This opinion, expressed in the first edition 
 
Appeals. ^^^ 
 
 of this work, appears to be in accordance with the rules and forms § 33 (1). 
 issued by the Reference Committee under sub-s. (5) of this section, in 
 which a "provisional valuation" is treated as a valuation in which 
 total value must necessarily be ascertained (see pp. 373 and 378). 
 
 But is the site value of the property which must be found under 
 s. 2 (d), for purposes of ascertaining increment value duty payable by a 
 body corporate or unincoi'porate, on a periodical occasion, comprised in 
 these words'? It is submitted tiiat it is not — and that the language 
 of s. 33 points plainly to the general valuations under ss. 26 and 28. 
 See the last paragraph of s. 25 (4), "any reference, etc." 
 
 Perhaps tlie point may be looked at in another way. Will not deter- 
 mination of site value on every occasion under s. 2 (2) be naturally 
 contemporaneous with assessment, so that clearly no provisional 
 valuation under s. 27 is intended to be made. For these reasons it 
 is thought that there is no substance in the doubts expressed in 
 Parliament as to there being an appeal for the determination of site 
 value under s. 2 (2) (see Parliamentary Debates, July 25, 1911, pp. 1542 
 and 1548.) 
 
 Where there is an Appea under this Act. — For cases where there 
 is no appeal as to the ascertainment of total and site values, see notes 
 on this sub-section, ante, p. 359. 
 
 And shall not be questioned .... Duty. — The ascertainment of 
 original site value, in which that of original total value is a step under 
 s. 26, and of quinquennial site value under s. 28, is the groundwork 
 and basis of increment value duty and undeveloped land duty. It is 
 convenient, therefore, to put these common factors of every assessment 
 under the Act into a category as to appeal by themselves. The " value 
 of the land for agricultural purposes " under s. 26 and s. 28 is not put into 
 the same category (see notes on pp. 312 and 321). 
 
 (2) An appeal under this section shall be referred to 
 such one of the panel of referees appointed under this 
 Part of this Act as may be selected in manner provided 
 by rules under this section, and the decision of the 
 referee to whom the matter is so referred shall be given 
 in the form provided by rules under this section and 
 shall, subject to appeal to the Court under this section, 
 be final. 
 
 An Appeal under this Section.— For some practical notes as to such 
 appeal, see post, p. 371, and ante, p. xxxviii. 
 
 Panel of Referees. — See s. 34 for the persons to compose the panel. 
 The Act appears to contemplate exclusively a non-legal tribunal of 
 appeal in the first instance. Although many difficult points of law 
 
366 Land Clauses of the Finance Act. 
 
 8 33 (2). have arisen, appeals have been singularly few even to referees. Under 
 rule 9a of the Appeal to the Referee Rules {post, p. 378) it is provided 
 that in the event of any question of law being raised by any party 
 to an appeal the referee may, if he thinks fit, state his award in the 
 form of a special case for the opinion of the Court. 
 
 The tribunal is intended to be independent of the Crown. The panel 
 is selected by the Reference Committee, a wholly independent authority 
 (sub-8. (5) ). 
 
 Selected in Manner provided by Rules under this Section. — See 
 
 rule 6 of the rules made by the Reference Committee {post, p. 377). 
 
 Shall be given in the Form provided by the Rules, etc. — This is 
 provided for by rule 9 in the schedule to the rules {post, pp. 378 and 
 379). 
 
 (3) The referee shall determine any matter referred to 
 him in consultation with the Commissioners and the 
 appellant, or any persons nominated by the Commis- 
 sioners and the appellant respectively for this purpose, 
 and may, if he thinks fit, order that any expenses 
 incurred by the appellant be paid by the Commissioners, 
 and that any such expenses incurred by the Commis- 
 sioners be paid by the appellant. 
 
 Any order of the referee as to expenses may be made 
 a rule of the High Court. 
 
 In Consultation with the Commissioners and the Appellant or 
 any Persons nominated by the Commissioners and the Appellant 
 respectively for this Purpose. — The theory of the appeal to a referee 
 is that a question of fact and usually of value is to be determined by an 
 independent valuer. The referee is to be the same kind of person as 
 usually is the arbitrator or uinpire in compensation cases. But the appeal 
 to the referee is not necessarily to be heard with the formalities of an 
 arbitration. It would farther seem that the appeal to a referee is not 
 an arbitration within the meaning of s. 24 of the Arbitration A.ct, 
 1889, so as to cause all the provisions of that Act to apply. This view 
 is apparently taken by the Reference Committee, since certain of the 
 rules (9a and 10, see p. 378) cover the same ground as certain sections 
 (7 {b), and 5 {h) and {d) ) of the Arbitration Act, 1889, and would not 
 be required if that Act applied to the appeal. But, curiously enough, 
 rule 9a speaks of the "award " of the referee, a term not used in the 
 Act or elsewhere in the rules. Tliere seems, however, to be nothing 
 in the section to prevent the formalities of an arbitration being adopted 
 by a referee, except that he appears to have no power to take evidence 
 
Appeals. S67 
 
 on oatb. In any event, the referee must consult with the Commis- § 33 (3). 
 sioners and appellants, or any persons nominated hy them. It is not 
 thought that he could consult separately with either or both of the 
 parties. But this not quite clear. See rule 7 as to procedure before 
 the referee [post, p. 378). 
 
 Thus both parties, the Commissioners and the appellants, may employ 
 land agents or surveyors, solicitors, or counsel to consult with the 
 referees. There seems to be no reason why the section should be 
 considered to authorise only the appointment of a single representative 
 by each side. The form of the proceeding seems to be elastic, and may 
 vary according to the referee's determination (rule 7 (3) ) (see notes on 
 p. xxxviii., ante). 
 
 Order that any Expenses ... be paid, etc. — The word " expenses " 
 is used, and the word "costs " is not used. This is another point of dis- 
 tinction between the referee's tribunal and an ordinary court of law or 
 arbitration. The power is to order that any expenses incurred, etc., 
 be paid. It seems that the referee might order specified costs to be 
 paid as expenses ; and the Commissioners may be ordered to pay 
 the expenses of the appellant. 
 
 The order of the referee as to expenses having been made a rule of 
 court may be enforced by execution as if it were a judgment. See 
 Judicature Act, 1873, s. 100, "'Order' shall include lule," and 
 Order 42, rule 24, Supreme Court Rules. 
 
 The rules contain no provisions relating to costs or expenses. 
 
 A copy of the rules, with some notes thereon, will be found on p. 376. 
 
 (4) Any person aggrieved by the decision of the 
 referee may appeal against the decision to the High Court 
 within the time and in the manner and on the conditions 
 directed by Kules of Court (including conditions enabling 
 the Court to require the payment of or the giving of 
 security for any duty claimed) ; and subsections two, 
 three, and four of section ten of the Finance Act, 1894, 57 & 53 vict. 
 shall apply with reference to any such appeal : 
 
 Provided that where the total or site value as alleged 
 by the Commissioners of the property in respect of which 
 the dispute arises does not exceed five hundred pounds, 
 the appeal under this section may be to the county court 
 for the county or place in which the appellant resides or 
 the property is situate, and this section shall for the 
 purpose of the appeal apply as if such county court were 
 
 c. 30. 
 
36^ Land Clauses of the Finance Act. 
 
 § 33 (4). the High Court, and in every such case any party shall 
 have a right of appeal to the Court of Appeal. 
 
 The Kevenue Act, 1911 (1 Geo. 5, c. 2, s. 7). 
 Right of Com- 7. [It is hereby declared that the Commissioners of 
 Inland Inland Eevenue, if dissatisfied with the decision of a 
 
 TpperiTija^nst i*eferee, have under sub- section (4) of section thirty -three 
 referee" ^^ ^^ ^^® princij)al Act a right of appeal to the High Court 
 
 against the decision as persons aggrieved within the 
 
 meaning of that provision.] 
 
 Any Person aggrieved , . . may appeal. — But there is no appeal 
 from the decision of a referee under s. 25 (3). As to "person aggrieved," 
 see p. 359. 
 
 It is thought that a person aggrieved would include not only an owner 
 and a person interested in the land who had had an opportunity under 
 rule 11 of the rules relating to appeals to a referee (see^os^, p. 378) of 
 putting his case before the referee in writing, etc., but also a person who 
 w^as in fact interested in the land and had not had such an opportunity. 
 But this cannot, of course, be taken as certain till so decided, and in any 
 event, unless such a person had made an objection to a provisional 
 valuation, it seems he could not appeal as to total or site value as found 
 by that valuation (s. 33 (1) (a) ). Clearly a person who could not 
 appeal from the Commissioners by reason of s. 33 (1) (a) might yet be 
 entitled to appeal from the decision of the referee varying the pro- 
 visional valuation. 
 
 It was thought that the Commissioners were not persons "aggrieved " 
 within the meaning of s. 33 (4), and therefore could not appeal against 
 the decision of a referee. At all events the original rules for appeals to 
 the High Court from the referee under this section, made by the most 
 eminent judges and counsel, proceeded on this assumption. This has 
 now been altered by the above section of the Revenue Act, 1911. 
 Further Both the subject and the Commissioners have, under s. 19 of the 
 
 Judicature Act, 1873, as modified by s. 10 (2) of the Finance Act, 1894 
 (see below), applied to the Finance Act, 1910, by this sub-s. (4) of s. 33 
 of that Act, a right of appealing from the High Court to the Court of 
 Appeal. 
 
 Further it seems that either Commissioners or subjects may appeal as 
 of right from the Court of Appeal to the House of Lords (Appellate 
 Jurisdiction Act, 1876, s. 3). 
 
 Including Conditions enabling the Court to require the Pajrment 
 of or the giving of Security, etc. — So that the duty is secured to the 
 Commissioners (if due) without the necessity of their having to sue for 
 it. See rule 14, p. 385, and s. 10 (4) of the Finance Act, 1894 
 (below). 
 
Al PEALS. 369 
 
 Within the Time directed by Rules of Court, . . . and sub- § 33 (4). 
 sections two, three, and four of section ten of the Finance Act, 1894, 
 shall apply.— For the High Court rules and comments see post, p. 382. 
 For the County Court rules, see Appendix, p. 622. 
 
 The sub-sections of s. 10 of the Finance Act are as follows : — 
 
 (2) No appeal shall be allowed from any order, direction, determina- 
 tion, or decision of the High Court in any appeal under this section 
 except with the leave of the High Court or Court of Appeal. Applica- 
 tion must be made in the first instance to the High Court. Probably 
 an appeal to the Court of Appeal would lie from the refusal of the 
 Divisional Court to give leave. 
 
 (3) The costs of the appeal shall be in the discretion of the Court, and 
 the Court, where it appears to the Court just, may order the Com- 
 missioners to pay on any excess of duty repaid by them interest at the 
 rate of three per cent, per annum for such period as appears to the Court 
 just. 
 
 (4) Provided that the High Court, if satisfied that it would impose 
 hardship to require the appellant, as a condition of an appeal, to pay the 
 whole or, as the case may be, any part of the duty claimed by the Com- 
 missioners or of such portion of it as is then payable by him, may allow . 
 an appeal to be brought on payment of no duty, or of such part only of 
 the duty as to the Court seems reasonable, and on security to the 
 satisfaction of the Court being given for the duty, or so much of the 
 duty as is not so paid, but in such case the Court may order interest at 
 the rate of three per cent, per annum to be paid on the unpaid duty so 
 far as it becomes payable under the decision of the Court. 
 
 Where the Total or Site Value as alleged by the Commissioners 
 . . , does not exceed Five Hundred Pounds. — The following points 
 may be noted with respect to the appeal to the county court : — 
 
 (1) It is not obligatory to go to the county court. The appellant 
 may at his option go there or to the High Court. 
 
 (2) The county court having jurisdiction is the court for the county 
 or place in which either (a) the appellant resides, or (b) the property is 
 situate. 
 
 (3) The test of jurisdiction is the allegation by the Commissioners 
 and not the contention of the subject as to the amount of the total 
 or site value. 
 
 (4) The allegation as to total or site value by the Commissioners may, 
 according to the nature of the occasion, be contained either in a pro- 
 visional valuation made under ss. 26 or 28, or under an assessment 
 made xmder ss. 2, 3, 15, 19, 20 (4), 22 (3), 29, or any other section 
 imder which an assessment may be made under the Act of 1910. 
 
 (5) It is thought that where the site value of the property as alleged 
 by the Commissioners does not exceed 500^., then, although the total 
 value exceeds that sum, the appeal may be to the county court, but this 
 is not clear, and several alternative constructions of the limitation are 
 possible. 
 
 N. 24 
 
^70 Land Clauses of the Finance Act. 
 
 § 33 (4). (6) The section is to apply as if "the county court were the High 
 Court " ; for which reason it is thought that ss. (3) and (4) of s. 10 of 
 the Finance Act, 1894, apply (see ante, p. 369). 
 
 (7) It is thought that there is no appeal from the county court to a 
 Divisional Court of the High Court under s. 120 of the County Courts 
 Act, 1888, but only to the Court of Appeal under s. 33 (4) of the Act 
 of 1910, and that either the Commissioners or the subject may appeal. 
 
 (8) It is thought, notwithstanding the application by s. 33 (4) of sub-s. 
 (2) of s. 10 of the Finance Act, 1894, to appeals from the High Court to 
 the Court of Appeal, under the Finance Act, 1910, that, under the con- 
 cluding words of sub-s. (4), there is an appeal as of right to the Court 
 of Appeal, and that sub-s. (2) of s. 10 of the Finance Act, 1894, does 
 not apply ; but this is not clear. Compare s. 10 (5) of the Finance 
 Act, 1894. 
 
 (9) The appeal need not be as to the amount of total or site value. 
 It may be as to a deduction, or a partial or total exemption, or as to 
 anything else as to which there is an appeal under s. 33 (1). Total or 
 site value is only the test of jurisdiction. 
 
 (6) Provision shall be made by rules under this section 
 with respect to the time within which and the manner in 
 which an appeal may be made to a referee under this 
 section, and with respect to the mode in which the 
 referee to whom any reference is to be made is to be 
 selected, and with respect to the form in which any 
 decision of a referee is to be given, and with respect to 
 any other matter for which it appears necessary or 
 expedient to provide in order to carry this section into 
 effect. 
 
 Those rules shall be made by the Eeference Committee, 
 subject to the approval of the Treasury. 
 
 The Eeference Committee for England shall consist of 
 the Lord Chief Justice of England, the Master of the 
 Eolls, and the President of the Surveyors' Institution. 
 
 The Eeference Committee for Scotland shall consist of 
 the Lord President of the Court of Session, the Lord 
 Justice Clerk, and the Chairman of the Scottish Com- 
 mittee of the Surveyors' Institution. 
 
 The Eeference Committee for Ireland shall consist of 
 the Lord Chief Justice of Ireland, the Master of the 
 
Appeal to Keferee. 371 
 
 Kolls in Ireland, and the President of the Surveyors' § 33 (5) 
 Institution. 
 
 The President of the Surveyors' Institution may, if he 
 thinks fit, appoint any person, being a member of the 
 council of that institution and having special knowledge 
 of valuation in Ireland, to act in his place as a member 
 of the Eeference Committee in Ireland. 
 
 By Rules under this Section. — For these rules see post, p. 376. 
 
 Section 34. 
 
 34. — (1) Such number of persons, being persons who § 34 (1). 
 have been admitted Fellows of the Surveyors' Institution, Appointment 
 
 , . .of referees to 
 
 or other persons having experience m the valuation of hear appeals. 
 land as may be appointed for England, Scotland, and 
 Ireland, respectively, by the Eeference Committee, shall 
 form a panel of persons to act as referees for the 
 purposes of this Part of this Act in England, Scotland, 
 and Ireland, respectively, and persons having experience 
 in the valuation of minerals shall be included in each 
 panel. 
 
 Persons having Experience in the Valuation of Land. — Probably 
 the panel will be made up on the basis of a selection for each locality of 
 persons of experience in land values in that locality. It is to be noted 
 that the panel is not necessarily to be confined to surveyors and land 
 agents. For the first panel of referees see the Report of the 
 Commissioners for the year ending 31st March, 1911. 
 
 (2) There shall be paid out of moneys provided by 
 Parliament to every referee appointed under this section 
 such fees or remuneration as the Treasury direct. 
 
 APPEAL TO KEFEREES FROM COMMISSIONERS. 
 
 Note on the Rules relating to Appeals to Referee 
 
 UNDER S. 83 OF THE FiNANCE (1909-10) AcT, 1910. 
 
 (See the rules on p. 376. See also the "Notes on the Practical 
 Working, &c.," ante, p. xxxviii., for a practical note on appeals to 
 a referee. 
 
 These are the Rules which regulate appeals to Referees, 
 i.e., the first of the two successive appeals given by s. 83. 
 
 24—2 
 
372 Land Clauses of the Finance Act. 
 
 § 34 (2). The rules regulating appeals from Keferees to the High 
 Court are given on p. 383. 
 
 The notice Eule 3 (1) provides that the written notice of appeal, 
 
 appea . -y^hich must be sent both to the Commissioners and the 
 Keference Committee, must give " particulars of the 
 grounds of the appeal." The notice must be in the form 
 in the Schedule to the Eules (p. 379), or in a form to the 
 like effect, and forms may be obtained gratis from the 
 Commissioners. Rule 8 provides that " the appellant shall 
 not on the consideration of his appeal be allowed to rely 
 upon any grounds of appeal not specifically set out in his 
 notice of appeal, but the referee may, if he thinks it just 
 under the circumstances, allow the notice of appeal to be 
 amended at any time." It is clear, therefore, that the 
 notice of appeal ought, having especial regard to the word 
 ''specifically " in Rule 8, to be most carefully considered. 
 It must not be assumed that the power of amendment will 
 be exercised by the referee, except on those well-known 
 terms as to costs upon which amendments are allowed in 
 the High Court. A notice of appeal may be withdrawn 
 (r. 3, sub-rule (4) ). 
 
 Times for The times within which a notice of appeal must be 
 
 giving notice, giygn ^j-g stated in Rule 4, and under Rule 5 an absolute 
 discretionary power is given to the referees to extend 
 such times, and such power may be exercised even after 
 the expiration of the prescribed time for appealing. 
 
 The time for giving notice of appeal depends upon 
 whether the appeal relates to total value or site value on 
 a provisional valuation (i.e., Form " A "), or relates to some 
 other matter (i.e., Form " B "). Gross value, as found by 
 the provisional valuation, is almost unimportant (see note 
 on p. 305), but an error in full site value will vitiate 
 assessable site value. With relation to the former class 
 
 Appeal "A." of appeal, '*A" — 
 
 (1) An appellant can never give notice of appeal before 
 the expiration of thirty days after he has^ given notice of 
 objection to the provisional valuation. He must wait 
 and see whether his objection is allowed. 
 
Appeal to Referee. 373 
 
 (2) After the thirty days have expired he can give it § 34 (2). 
 at any time, and without any limit of time ; but if 
 
 (3) The Commissioners give him notice that they do 
 not propose to amend, or further amend, their provisional 
 valuation (as the case may be) in order to meet his 
 objections, then he must give notice within thirty days 
 after the receipt of the Commissioners' notice. 
 
 In all cases not relating to an appeal against total or Appeal " b." 
 site value on a provisional valuation, that is, in case " B," 
 notice of appeal must be given within thirty days after 
 the Commissioners have given notice to the appellant of 
 their decision on the matter in question. 
 
 The reason for the difference in the times of giving 
 notice will be appreciated, if it is remembered that in 
 other cases than a provisional valuation under s. 27 no 
 objections have to be carried in as under that section 
 to the decision of the Commissioners, and there is no 
 condition precedent to an appeal as in s. 33 (1) (a) that 
 the appellant should have carried in such objections. 
 Extensions of time for appealing may be obtained as 
 provided by rule 5. 
 
 Form " A " (p. 379) relates only to appeals against total 
 or site value fixed by a provisional valuation. This is the 
 valuation to be made as a step (a) in the universal valua- 
 tion under s. 26 of all land as on the 30th April, 1909, 
 and (b) in the quinquennial valuation for the purpose of 
 undeveloped land duty under s. 28. Whether the Appeal under 
 occasional valuation made on the occasion or claims tor faiis under 
 increment value duty under ss. 1 and 2 is one which '"^•" 
 involves the making of a provisional valuation under s. 27 
 was thought to be doubtful (see p. 364), but can be con- 
 sidered so no longer. From the perusal of the form 
 annexed to " A " it would appear that the Reference Com- 
 mittee are of opinion that the procedure of s. 27 as to 
 provisional valuations does not apply to the occasional 
 valuation under ss. 1 and 2. The deductions are by that 
 form made from total value, not from the " value of the 
 consideration," " the value of the fee simple," and " the 
 
374 Land Clauses op the Finance Act. 
 
 § 34 (2). principal value of the land," as referred to in s. 2 (2). 
 Incidentally this annexed form is that which it may now 
 be assmned will be used by the Commissioners for the 
 purpose of the provisional valuation. It will be observed 
 that the notice does not require actual figures to be 
 suggested in lieu of those against which the appeal is 
 made, and that it is sufl&cient to object that a figure is 
 excessive or insufficient as the case may be. For the 
 moment ''A" will apparently only be used in appeals 
 from valuations under s. 26. Later questions may arise 
 whether it is to be used on apportionments of site value 
 under s. 29 (2) and (3), and on the periodical occasions 
 for the collection of increment value duty on land held 
 by bodies corporate and unincorporate under s. 1 (c), 
 
 (2) (d) and s. 6 ; but as to the latter case possibly the 
 matter is concluded by the exclusion of appeals under 
 s. 1 (a) and {b), s. 2 (2) (a), (b), and (c), being analogous 
 cases from the use of Form "A." 
 
 Examples of FoHH "B" (p. 381) is the form of an appeal notice in 
 appeal '• B." ^^l other cascs than of an appeal in respect of total or site 
 value on a provisional valuation. Some (amongst many) 
 immediate occasions on which it may be useful are as 
 follows. (1) A vendor or lessor appeals from an excessive 
 assessment of the " value of the consideration " under 
 s. 2 (2), or from an insufficient deduction under s. 25 (4) 
 on a sale or lease, thereby unduly increasing the increment 
 value appearing on the occasion. (2) An heir-at-law or 
 devisee appeals from an excessive valuation of the 
 principal value of the land as ascertained for the purposes 
 of Part I. of the Finance Act, 1894, whereby the incre- 
 ment value duty payable on the death is increased. 
 
 (3) A lessor appeals from the decision of the Commis- 
 sioners as to the value of the benefit which has accrued 
 to him by reason of the determination of the lease on the 
 grounds (amongst others) (a) that the Commissioners have 
 underestimated the "total value" at the time of the 
 original grant of the lease ; or (b) that they have over- 
 estimated the total value of the land at the time the lease 
 
Appeal to Eeferee. 375 
 
 determines. (4) An owner may appeal from the determina- § 34 (2). 
 tion of the Commissioners that his land is liable to un- 
 developed land duty on the ground that it is exempted 
 by one or other of the provisions of s. 17 (3). (5) A pro- 
 prietor working his own minerals may appeal from an 
 assessment of mineral rights duty on the grounds (a) that 
 the rent on which he is assessed by the Commissioners 
 under s. 20 (1) (h) is excessive, or (b) that the substance 
 being worked is one of the substances exempted from duty 
 by s. 20 (5). The foregoing are illustrations only. Form B 
 applies to all appeals except those against total value or 
 site value on a provisional valuation. See p. xxxix., antCf 
 for a suggested form of an appeal under "B." 
 
 Under rule 9a, in the event of any question of law 
 being raised, the referee may, if he thinks fit, state his 
 award in the form of a special case for the opinion of the 
 Court, but he does not appear to be bound to do so. 
 Qucere whether such case will be within 0. 34, r. 7, of the 
 Supreme Court Rules ? " Matter " shall include every 
 proceeding in the court not in a cause " (Judicature Act, 
 1873, s. 100). Rule 10 will be noted, under which 
 the Reference Committee may, in case of the death or 
 incapacity of the referee originally selected, or, if it is 
 shown to the Committee that it is expedient so to do, 
 in any other case, at any time before the decision of 
 an appeal by the referee, revoke the reference to the 
 selected referee, and select another referee to hear the 
 appeal. The last-mentioned ground for this substitution 
 of a referee is doubtless intended to meet such cases 
 (amongst others), as the discovery that the referee 
 originally selected was from his position a person 
 interested in the question at issue, or was likely to be 
 biassed, or the misconduct of the referee, or the existence 
 of some other reason which would in the case of an 
 arbitrator be a ground for his removal. 
 
 It is to be noted that both the Commissioners and the 
 appellant are to furnish the referee on his request with 
 any document or other information which it is in their 
 or his power to furnish (Rule 7 (2) ) . 
 
&76 
 
 Land Clauses of the Finance Act. 
 
 § 34 (2). Kule 11, allowing the views of interested parties, such as 
 (it is thought) mortgagees and remaindermen, reversioners 
 and lessees (where not owners), to be placed before the 
 referee will no doubt be of utility. Its guarded phraseology 
 should be noted, but the interested parties are not limited, 
 it is thought, either to owners within the extended mean- 
 ing of that term in s. 27, or to persons interested who 
 have applied under sub-s. (5) of that section for copies 
 of the provisional valuation. For the position of persons 
 interested, such as are referred to in the rule, see ante, 
 notes on pp. 326, 328, and 363. As to rule 13 and the 
 service of notices, see s. 31 (4), ante, p. 348, and s. 26 of 
 the Interpretation Act, 1889. 
 
 Short title. 
 
 Interpreta- 
 tion. 
 
 Notice of 
 appeal. 
 
 STATUTORY RULES AND ORDERS, 1910. 
 TVT 1339 
 
 No. ::—^r=. 
 
 L. 37 
 LAND VALUES DUTIES. 
 
 generally. 
 
 The Land Values (Reference) Rules, 1910, dated December 5, 1910, 
 made by the reference committee for england under 
 Section 33 of the Finance (1909-10) Act, 1910 (IOEdw. 7, c. 8). 
 
 In pursuance of section thirty-three of the Finance (1909-10) Act, 
 1910, the Reference Committee for England constituted under that 
 section hereby make the following Rules : — 
 
 1. These rules may be cited as the Land Values (Referee) Rules, 1910. 
 
 2. — (1) In these rules, unless the context otherwise requires, — 
 "The Act" means the Finance (1909-10) Act, 1910. 
 " The Commissioners " means the Commissioners of Inland 
 Revenue. 
 
 (2) The Interpretation Act, 1889, applies for the purpose of the 
 interpretation of these rules as it applies for the purpose of the 
 interpretation of an Act of Parliament. 
 
 3. — (1) An appeal to a referee under the Act may be made by 
 sending to the Reference Committee and to the Commissioners, within 
 the time prescribed by these rules, a written notice of appeal showing 
 the matter to which the appeal relates and giving particulars of the 
 grounds of the appeal. 
 
 (2) The notice of appeal shall be in the form set out in the Schedule 
 to these rules, or in a form to the like effect. 
 
 (3) The Commissioners shall cause printed forms of notice of appeal 
 to be furnished gratis to any person who desires to appeal and applies 
 
Appeal to Referee. 377 
 
 for a form eitlier to them or to a district valuer, or to any other person § 34. 
 authorised by the Commissioners to furnish the forms, 
 
 (4) Notice of withdrawal of appeal may be in the form set out in the 
 Schedule hereto. 
 
 4. The following provisions shall have effect as respects the time of Time for 
 
 givinff notice of appeal : — notice of 
 
 ° ° ^^ appeal. 
 
 (1) In the case of an appeal against total value or site value on 
 
 a provisional valuation — 
 
 (a) A notice of appeal shall not be treated as an effective 
 notice of appeal if given sooner than thirty days after 
 notice of objection to the provisional valuation has been 
 given by the appellant ; 
 
 (b) After the expiration of that time notice of appeal 
 may be given at any time unless notice is given by the 
 Commissioners to the objector that they do not propose 
 to amend their provisional valuation, or do not propose 
 to make any further amendment in their provisional 
 valuation to meet his objection, and in that case notice 
 of appeal must be given within thirty days after notice 
 is so given by the Commissioners. 
 
 (2) In the case of an appeal against any assessment of duty, or 
 
 against any refusal of the Commissioners to make any 
 allowance or to make the allowance claimed, or against any 
 apportionment, or against the determination of any other 
 matter by the Commissioners, notice of appeal must be 
 given within thirty days after the Commissioners have 
 given notice to the appellant of their assessment, refusal, 
 apportionment, or determination, as the case may be. 
 5. — (1) The Reference Committee may, on the application of any Extension 
 person desiring to appeal, extend the time for appeal prescribed by the ^^ l™^ ^°^ 
 foregoing rule, as they, in their absolute discretion, think fit, and may by appellant, 
 so extend the time although the application is not made until after the 
 expiration of the time prescribed. 
 
 • (2) Any application for an extension of the time for appeal must be 
 made in writing to the Reference Committee, and must state the 
 grounds of the application, and a copy of the application must be sent 
 to the Commisbioners by the applicant. 
 
 (3) The Reference Committee shall give the Commissioners reasonable 
 opportunity for laying before them in writing any objections which the 
 Commissioners may have to any such application for an extension of 
 time, and shall consider any such objections. 
 
 6. The referee to whom an appeal is to be referred shall be selected Selection of 
 by the Reference Committee, and the Reference Committee shall, as ^'^^^J'^e. 
 soon as they have selected the referee, inform the Commissioners and 
 the appellant of the name and the address of the referee selected. 
 
378 
 
 Land Clauses of the Finance Act. 
 
 § 34. 
 
 Considera- 
 tion of 
 appeal by 
 referee. 
 
 Appellant 
 limited to 
 grounds of 
 appeal. 
 
 Decision of 
 referee. 
 
 Power to 
 select 
 another 
 referee. 
 
 Appearance 
 of third 
 parties. 
 
 7. — (1) The referee selected shall, as soon as may be, proceed with 
 the determination of the appeal, and arrange with the Commissioners 
 and the appellant the time and place for consultation with the 
 Commissioners and the appellant with respect thereto. 
 
 (2) The Reference Committee shall furnish the referee with a copy 
 of the notice of appeal, and the Commissioners and the appellant shall 
 furnish to the referee on his request any document or other information 
 which it is in their or his power to furnish, and which the referee may 
 require for the purpose of the determination of the appeal. 
 
 (3) Subject to the provisions of the Act and of these rules, the 
 proceedings on the consideration of an appeal shall be such as the 
 referee, subject to any special directions of the Reference Committee, 
 may in his discretion direct. 
 
 (4) In this rule any reference to the Commissioners or to the 
 appellant includes a reference to any person nominated by the Com- 
 missioners or the appellant respectively under sub-section (3) of 
 section 33 of the Act. 
 
 8. The appellant shall not, on the consideration of his appeal, be 
 allowed to rely upon any grounds of appeal not specifically set out in 
 his notice of appeal, but the referee may, if he thinks it just under the 
 circumstances, allow the notice of appeal to be amended at any time, 
 
 9. The decision of the referee shall be in the form contained in the 
 Schedule to these rules, or in a form to the like effect, and the referee 
 shall cause copies of his decision to be furnished to the Reference 
 Committee, the Commissioners, and the appellant. 
 
 9a. In the event of any question of law being raised by any party to 
 an appeal the referee may, if he thinks fit, state his award in the form 
 of a special case for the opinion of the Court. 
 
 10. The Reference Committee may, in the case of the death or 
 incapacity of the referee originally selected, or if it is shown to the 
 Committee that it is expedient so to do, in any other case, at any 
 time before the decision of an appeal by a referee, revoke the reference 
 of the appeal to the selected referee, and select another referee for the 
 purpose of determining the appeal. 
 
 11. — (1) On the consideration of any appeal, the referee shall on 
 the application of any person who appears to the referee to be 
 interested in the land in respect of which the appeal is made, or to 
 be otherwise interested in the matter of the appeal, give him an oppor- 
 tunity of putting his case before the referee in writing, and, if necessary, 
 of taking part in any consultation with reference to the appeal. 
 
 (2) The Commissioners, when they receive notice of any appeal 
 against total or site value on a provisional valuation, shall give notice 
 of the appeal to any person from whom a return has been required for 
 the purpose of the valuation, and to any person who has applied to 
 the Commissioners for a copy of the provisional valuation of the land 
 under sub-section (5) of section 27 of the Act. 
 
Appeal to Referee. 
 
 379 
 
 12. The Commissioners shall as soon as may be on receiving notice 
 of the decision of the referee on any appeal make such alterations in 
 the particulars of any valuations, apportionments, reapportionments, 
 assessments, or other documents as may be necessary to carry out 
 the decision of the referee. 
 
 13. Any notice or other document required or authorised to be sent 
 to any person for the purpose of these rules shall be deemed to be 
 duly sent if sent by post addressed to that person at his ordinary 
 address, and the address of the Reference Committee shall for this 
 purpose be — J. Johnston, Esq., Secretary to the Reference Committee, 
 Room 174, Royal Courts of Justice, Strand, W.C. 
 
 14. Any failure on the part of any authority or any person to 
 comply with the provisions of these rules shall not render the pro- 
 ceedings on a reference to a referee, or anything done in pursuance 
 thereof, invalid, unless the referee so direct. 
 
 § 34. 
 
 Alteration 
 of valua- 
 tions, &c., 
 by Com- 
 missioners. 
 
 Provision as 
 to sending 
 of notices. 
 
 Infor- 
 malities not 
 necessarily 
 to invalidate 
 proceedings . 
 
 Schedule. 
 1.— FORMS OF NOTICE OF APPEAL. 
 
 Finance (1909-10) Act, 1910, s. 33. 
 
 Notice of Appeal to Referee against Total or Site Value on a 
 Provisional Valuation. 
 
 To the Reference Committee. 
 
 [^Or, To the Commissioners of Inland Revenue.] 
 
 I hereby give notice that I intend to appeal against (a) the total value and 
 site value fixed on the annexed provisional valuation, on the ground that (a) 
 the items numbered in the annexed provisional valuation are 
 
 excessive and that the items numbered in the annexed provisional 
 
 valuation are insufficient. 
 
 {I) Signed 
 
 Address 
 
 Dated 
 
 (a) If the appeal is against total value only or site value only, or if the ground of appeal is that 
 certain items are excessive only or are insufficient only, the unnecessary words will be deleted. 
 (6) If an agent, the name of and address of the principal on whose behalf he acts must be stated. 
 
 County 
 
 PROVISIONAL VALUATION. 
 
 Parish No. of hereditament 
 
 1. Cross Value. 
 
380 
 § 34. 
 
 Land Clauses of the Finance Act. 
 Deductioks from Gross Value. 
 
 (a) To arrive at Full Site Value. 
 
 
 (b) To arrive at Total Value. 
 
 
 
 
 Difference be- 
 tween Gross 
 Value and Value 
 of the Fee 
 Simple of the 
 Land divested of 
 Buildings, Trees, 
 &c. 
 
 
 3 
 
 Fee Farm Eent, Eent Seek, Quit 
 Eent, Chief Eent, or Eent of 
 Assize 
 
 ID 
 
 
 
 4 
 
 Other Perpetual Eent or Annuity 
 
 
 
 5 
 
 Tithe or Tithe Eent Charge . 
 
 
 2 
 
 6 
 
 Burden or charge arising by opera- 
 tion of Law or imposed by Act 
 of Parliament . . . . i 
 
 
 
 7 
 
 If Copyhold, Cost of Enfranchisement 
 
 
 
 8 
 
 Public Eights of Way or User . 
 
 
 
 9 
 
 Eights of Common .... 
 
 
 
 10 
 
 Easements 
 
 
 
 11 
 
 Eestrictions under Covenant or Agree- 
 ment 
 
 
 Total Deductions 
 
 
 Total Deductions . 
 
 
 FuUi Site Value . 
 
 
 Total Value 
 
 
 Deductions from Total Value to arrive at Assessable Site Value. 
 
 12. Deductions from Gross Value to arrive at Full Site Value 
 (as above) ......... 
 
 
 13. Works executed 
 
 
 14. Capital expenditure 
 
 
 16. Appropriation of Land for streets, roads, open spaces, &c. 
 
 
 16. Eedemption of Land Tax or Fixed Charge 
 
 
 17. Enfranchisement of Copyholds 
 
 
 18. Eelease of Eestrictive Covenants ..... 
 
 
 19. Goodwill or personal elements 
 
 
 20. Cost of clearing Site 
 
 
 Total Deductions 
 
 
 Assessable Site Value 
 
 
Appeal to Keferee. 381 
 
 Special Form for Minerals treated as a Separate Parcel of Land. S 34. 
 
 1. Total Value. 
 
 2. Deductions on account of works executed or expenditure 
 of a capital nature incurred ...... 
 
 Capital Value 
 
 B. 
 
 Finance (1909-10) Act, 1910. 
 
 Notice of Appeal to Eeferee in respect of any Matter other than 
 Total or Site Value on a Provisional Valuation. 
 
 County Parish No. of hereditament 
 
 To the Reference Committee. 
 
 \^0r, To the Commissioners of Inland Eevenue.] 
 
 I hereby give notice of my intention to appeal against (a) 
 The particulars of my grounds of appeal are as follows : — 
 
 (fe) Signed 
 
 Address 
 
 Dated 
 
 (rt) Here insert tlie matter appealed against, e.g., " The assessment of duty under Part I. 
 
 of the Finance Act," "The refusal of the Commissioners to make an allowance in respect of," &c., 
 &c., or " The determination by the Commissioners in respect of the following matter, namely" — 
 
 (b) If an agent, the name and address of the principal on whose behalf he acts must be stated. 
 
 c. 
 
 Finance (1909-10) Act, 1910. 
 
 Notice of Withdrawal of Appeal to referee in Eespect of any 
 
 Matter. 
 
 County Division Number 
 
 To the Reference Committee. 
 \_0r, To the Commissioners of Inland Revenue.] 
 I hereby withdraw my notice of appeal, dated the 19 
 
 against (a) 
 
 {b) Signed 
 
 Address 
 
 Dated 
 
 (a) Here insert the matter appealed against, e.g., " The assessment of duty under Part I. 
 
 of the Finance Act," "The refusal of the Commissioners to make an allowance in respect of, " 
 &c.," &c., or " The determination by the Commissioners in respect of the following matter, 
 namely " — 
 
 (6) If an agent, the name and address of the principal on whose behalf he acts must be stated. 
 
382 Land Clauses of the Finance Act. 
 
 § 34. 2. — Form of Decision of Referee. 
 
 Finance (1909-10) Act, 1910. 
 
 Decision of Eefeeee on Appeax. 
 
 The decision on the appeal in respect of which the annexed notice of 
 appeal has been given is as follows (a) : — 
 
 Signed 
 
 Referee. 
 Dated 
 
 (a) If the notice of appeal is in Form A., the decision should be stated by reierence to the items 
 complained of in the particulars of the grounds of appeal. Any variations in those items, with the 
 consequential alterations of the totals, should be stated. 
 
 If the notice of appeal is in Form B., the decision should follow as far as possible the form of the 
 notice of appeal. 
 
 Pursuant to the powers contained in section 33 of the Finance 
 
 (1909-10) Act, 1910, we have made the above amended rules and 
 
 forms in substitution for the rules and forms dated 25 July, 1910. 
 
 ■ Alverstone, C.J. ; Herbert H. Cozens- Hardy, M.R. ; Leslie R. Vigers. 
 
 5 December, 1910. 
 
 Approved by the Treasury, 
 
 Wedgwood Benn ; Percy H. Illingworth. 
 
 APPEALS FROM REFEREE TO HIGH COURT. 
 
 Notes on the Rules relating to the Appeals from a 
 Referee to the High Court under Section 33 (4). 
 
 (See the Rules on p. 383.) 
 Important features as to these rules are — 
 
 1. There is no appeal from the referee in the case of deductions from 
 total value under s. 25 (3), based on restrictive covenants entered into 
 after April 30, 1909 (see ante, p. 287), but an appeal lies in all other 
 cases from the decision of the referee. 
 
 2. The appeal is heard by a single judge on the Revenue side of the 
 King's Bench Division, but the Court or a judge may order it to be 
 heard by a judge of the Chancery Division, or at the Assizes (rules 5 
 and 6). 
 
 3. Apparently it is assumed that the Commissioners have no power 
 to appeal from the referee. " Any person aggrieved " is assumed under 
 the rules to be any person other than the Commissioners (rules 1 — 5 
 inclusive). But the law has now been altered (by means of a declaratory 
 provision) by the Revenue Act, 1911 (1 Geo. 5, c. 2), s. 7 (see p. 368), 
 which really confers upon the Commissioners the right to appeal agaiust 
 the referee. It is thought that the rules will be altered or amended 
 without delay to provide for the appeal by the Commissioners. 
 
 4. The petition of appeal must be filed within one [calendar*] 
 
 * See Interpretation Act, 1889, s. 3. 
 
Appeal to High Court. 388 
 
 month from the date of the decision of the referee (rule 2), but an § 34. 
 extension of time may be given (rule 11). The appellant is limited to 
 the facts and law alleged in the petition (rule 8). 
 
 5. A copy of the petition must be served on the Commissioners 
 within seven days of the filing. (For service on the Commissioners sec 
 rule 15.) The petition may by lease be amended (rule 12). 
 
 6. Full discovery of documents on both sides is provided for (rule 9), 
 and evidence other than is strictly admissible may be given by leave of 
 the Court under rule 10. 
 
 7. With rule 14 (1) compare Finance Act, 1894, s. 10 (4), and Rule 
 12 of the rules issued thereunder. Rule 14 (1) is authorised by s. 33 (4), 
 and secures the duty. 
 
 8. Quaere whether parties interested in the appeal supporting either 
 the Crown or the appellant can be added to the proceedings under 0. 16, 
 r. 11, and Judicature Act, 1873, s. 100 ? There seems to be no 
 machinery under these rules for enabling them to put their contentions 
 before the Court. 
 
 9. Costs may be given to or against the Crown (16 & 17 Vict. c. 51, 
 s. 50 ; 22 & 23 Vict. c. 21, s. 21; 54 & 55 Vict. c. 39, s. 13). 
 
 STATUTORY RULES AND ORDERS, 1911. 
 No. 14 
 
 L. r 
 SUPKEME COUET, ENGLAND. 
 
 PROCEDURE. 
 
 The Rules of the Supreme Court (Finance (1909-10) Act) 1910, 
 DATED January 16, 1911, regulating Proceedings in Appeals 
 to the High Court in England under section 33 (4) of the 
 Finance (1909-10) Act, 1910 (10 Edw. 7, c. 8). 
 
 1. Any person aggrieved by the decision of a referee under the Appeal to be 
 Finance (1909-10) Act, 1910, who desires to appeal to the High Court by petition, 
 against the decision, shall proceed by filing in the King's Remembrancer's 
 Department of the Central Ofl&ce a petition setting forth specifically the 
 
 several facts and contentions of law upon which he alleges that the 
 decision of the referee was erroneous, and stating an address at which 
 documents may be served upon him. 
 
 2. A petition of appeal under these rules must be filed within one Time for 
 month from the date of the decision of the referee, and a copy of the appealing, 
 petition must, within seven days after the filing of the petition, be 
 
 served by the appellant upon the Commissioners of Inland Revenue. 
 
 3. Within ten days after the service of a copy of the petition upon Notice of ad- 
 the Commissioners of Inland Revenue, the Commissioners shall serve missions by 
 upon the appellant a notice stating whether, and to what extent, they ^^^°° 
 admit the facts stated in the petition. 
 
884 
 
 Land Clauses of the Finance Act. 
 
 § 34. 
 
 Notice to be 
 given by 
 respondents 
 of facts and 
 contentions 
 of law relied 
 on. 
 
 Setting down 
 petition for 
 hearing. 
 
 Power to 
 order petition 
 to be heard in 
 Chancery 
 Division or at 
 Assizes. 
 
 Evidence at 
 heai ing. 
 
 Parties 
 limited to 
 grounds 
 stated in 
 petition and 
 notice. 
 
 Discovery of 
 documents. 
 
 4. — (1) Within twenty-eight days after the service of a copy of the 
 petition upon the Commissioners of Inland Revenue the Commissioners 
 shall serve upon the appellant a further notice stating the facts and the 
 contentions of law upon which they themselves intend to rely at the 
 hearing, and (if they so think fit) requiring the appellant to admit those 
 facts. 
 
 (2) The appellant, if he is so required to admit facts shall, and in 
 any case may, within ten days after service upon him of the notice 
 required to be served by the Commissioners under this rule, serve upon 
 the Commissioners a notice stating whether, and to what extent, he 
 admits the facts stated in the notice served by the Commissioners. 
 
 5. Upon the expiration of ten days after the service of the notice 
 required to be served by the Commissioners under the last preceding 
 rule all matters shall, except to the extent admitted by both parties, be 
 deemed to be at issue, and upon the expiration of seven days after the 
 date on which the matter is deemed to be at issue, the appellant, or the 
 Commissioners, may set the petition down for hearing upon the Revenue 
 side of the King's Bench Division of the High Court. 
 
 6. — (1) The Court or a judge may order that the petition shall be 
 heard before a judge of the Chancery Division of the High Coiirt, the 
 judge to be ascertained by rota in the usual way, or at Assizes. 
 
 (2) Where an order is made that a petition shall be heard at Assizes, 
 Order XXXVI., Rules 22b and 28, of the Rules of the Supreme Court, 
 1883, shall apply, and for the purpose of those Rules as so applied the 
 appellant shall be deemed to be the plaintiff. 
 
 7. Unless by consent, or otherwise ordered, only oral evidence shall 
 be admitted at the hearing. 
 
 8. The appellant shall not without the leave of the Court be entitled 
 to rely upon any facts or contentions of law other than those stated in 
 the petition, and the Commissioners shall not without the leave of the 
 Court be entitled to rely upon any facts or contentions of law other than 
 those stated in the notice required to be served by them under these 
 rules. 
 
 9. — (1) It shall be the duty of the appellant and the Commissioners 
 of Inland Revenue respectively to exchange lists of all documents in 
 their possession relating to the matter at issue, and to give to each other 
 inspection at all reasonable times of any of those documents which may 
 not be protected by any privilege, and, if so required, to provide 
 copies thereof on the usual terms. 
 
 (2) If the Commissioners are dissatisfied with the list so supplied by 
 the appellant they may apply to the Court or a judge for an order for 
 discovery of documents in the same manner and to the same extent as 
 a party to an action in the High Court, but in considering any such 
 application the Court or judge shall take into account the willingness 
 or otherwise of the Commissioners to disclose, or allow inspection of, any 
 documents in their possession. 
 
Appeal to High Court. 885 
 
 10. The Court or a judge may, at any stage of the proceedings, either § 34. 
 
 upon or without the apphcation of either party, order that any material. Admission of 
 
 whether strictly admissible as evidence or not, which in the opinion of certain 
 J, „ -1 1,1- 1 , .1 • , material as 
 
 the Court or judge ought, havmg regard to the question of costs or pHmd facie 
 
 otherwise, fairly to be admitted as prirrid facie evidence of any fact, evidence. 
 
 shall be prima facie evidence of that fact so as to shift the burden of 
 
 proving the contrary on to the other party. 
 
 11. The Court or a judge may extend the time for filing or serving a Extension of 
 petition of appeal, or for serving any notice, under these rules upon such *^"^,^. ^^^ *P: 
 terms (if any) as the justice of the case may require, and any such for serving 
 extension may be ordered although the application for the same is documsnts. 
 not made until after the expiration of the time allowed under these 
 
 rules. 
 
 12. The Court or a judge may at any stage of the proceedings allow Amendment 
 the amendment of the petition, or of any notices under these rules, upon ^^ petition, 
 such terms as the Court or judge may think right. 
 
 13. A petition of appeal under these rules shall be deemed to be a Petition to be 
 pleading within Order XIX., rule 27, of the Rules of the Supreme ^Jf^^^"^ 
 Court, 1883, and that rule shall apply accordingly. Order XIX. 
 
 14. — (1) Where the Commissioners of Inland Revenue claim that Kule 27. 
 any sum is due from the appellant by way of duty they may apply for ^ower to stay 
 an order that proceedings on the appeal shall be stayed until the till duty paid 
 appellant has paid, or has given security for, the duty claimed. o^^ secured. 
 
 (2) Any such application shall be by summons before a judge at 
 chambers, and the Commissioners shall deliver to the appellant, together 
 with the summons, a copy of any afl&davit which they intend to use at 
 the hearing of the summons. 
 
 (3) The judge shall make such order on any such summons as seems 
 to him reasonable in the circumstances of the case, and any order so 
 made may, on a like application made either by the Commissioners or 
 the appellant, be subsequently varied or discharged. 
 
 15. Any notice or other document required or authorised to be served Service of 
 upon or sent to the Commissioners of Inland Revenue under these rules 'iocuments. 
 shall be sufficiently served or sent if sent by post in a prepaid letter 
 addressed to the Solicitor of Inland Revenue, Somerset House, London, 
 
 W.C, and any notice or other document required or authorised to be 
 served upon or sent to an appellant under these rules shall be sufficiently 
 served or sent if sent by post in a prepaid letter addressed to him at his 
 address for service as stated in his petition, and, unless the contrary is 
 proved, any notice or document sent as aforesaid shall be deemed to 
 have been served at the time at which the letter would be delivered in 
 the ordinary course of post. 
 
 16. All affidavits to be used in any proceedings under these rules Affidavits, 
 shall be filed in the King's Remembrancer's Department. 
 
 17. Nothing in these rules shall be construed to affect any right Saving for 
 
 vested in the Crown by virtue of the Royal Prerogative. "^^g^* °^ 
 
 Crown. 
 N, 25 
 
386 
 
 Land Clauses of the Finance Act. 
 
 § 34 
 
 Short title 
 and com- 
 mencement 
 
 18. These rules may be cited as the Rules of the Supreme Court 
 (Finance (1909-10) Act), 1911, and shall come into operation on the 
 nrst day of February, 1911. 
 
 The 16th of January, 1911. 
 
 [Here follow the signatures of the Committee.] 
 
 § 36. 
 
 Exemption 
 for land held 
 by rating 
 authorities. 
 
 SUPPLEMENTAL. 
 Section 35. 
 
 Sects. 35 to 42 contain certain exemptions, complete or partial as the 
 case may be, from the new taxes, and certain miscellaneous and supple- 
 mental provisions, and also definition clauses applicable to England and 
 Ireland on the one hand and to Scotland on the other. 
 
 Sect. 35 exempts land held by a rating authority, meaning thereby 
 any body which has power to raise a rate or administer money raised by 
 a rate, from any duties imposed by the Act. 
 
 Sect. 36 allows a deduction from increment value duty, imdeveloped 
 land duty, and reversion duty in respect of capital sums paid to rating 
 authorities by way of " betterment " and similar charges. 
 
 Sect. 37 confers certain exemptions from reversion duty, undeveloped 
 land duty, and increment value duty on " governing bodies constituted 
 for charitable purposes," to which phrase a very wide meaning is given. 
 
 Similar exemptions are conferred upon societies providing friendly 
 society benefits and registered, or whose rules are registered under, 
 the Friendly Societies Act, and upon companies precluded by their 
 Act or Memorandum from dividing profits. 
 
 Sect. 38 contains certain exemptions from increment value duty, 
 reversion duty, and undeveloped land duty accorded to statutory 
 companies, which latter phrase has a technical meaning attached to it. 
 
 Sect. 39 confers upon trustees and tenants for life a power of charging 
 payments made by them in respect of increment value duty or reversion 
 duty upon the settled property, and confers upon a mortgagee who has 
 paid either duty a corresponding right as to the mortgaged premises. 
 
 Sect. 40 applies the Act with necessary adjustments to copyholds and 
 customary freeholds. 
 
 Sect. 41 is a definition clause, mainly adapted to English and Irish law 
 
 Sect. 42 is a clause of a similar nature adapted to Scotch law. 
 
 35. — (1) No duty under this Part of this Act shall be 
 charged in respect of any land or interest in land held by 
 or on behalf of a rating authority, or any statutory 
 combination representative of two or more local or rating 
 authorities, and any increment value duty in respect of 
 any such land which would have been collected from the 
 
Eating Authorities. 887 
 
 authority (whether on the occasion of the transfer on ^ 
 sale of the land, or any interest in the land, or the grant 
 of a lease of the land or on the periodical occasions 
 provided in this Act) shall, for the purposes of the 
 provisions of this Act as to the collection of increment 
 value duty, be deemed to have been paid. 
 
 No Duty. — The exemption applies to all the four new duties, including 
 the anniial increment value duty on minerals imder s. 22. 
 
 Rating Authority (see sub-s. (2) ). — Amongst such authorities are — 
 Parish Councils. 
 Parish Meetings. 
 Urban District Councils. 
 Boards of Guardians. 
 Rural District Councils. 
 County Councils. 
 Municipal Corporations. 
 London Borough Councils. 
 
 See note on p. 388, " Applicable to public local purposes." 
 
 Or any Statutory Combination representative of Two or more 
 Local or Rating Authorities. — Such as the Metropolitan Water Board 
 (2 Edw. 7, c. 41) ; united districts formed by provisional order under 
 s. 279 of the Public Health Act, 1875 (38 & 39 Vict. c. 55), for sanitary 
 purposes, etc. 
 
 Be deemed to have been paid. — On a sale by a local or rating 
 authority or on the periodical occasion established by ss. 1 (c) and 6, it 
 seems that the calculation or valuation under s. 2 (1) must be made and 
 tlie increment value must be arrived at; the 10 per cent, under s. 3 (5) 
 must be allowed, and increment value duty mvist be calculated as if the 
 exemption established by this section did not exist. The Commissioners 
 having arrived at the amoutit of that increment value duty, an entry 
 will be made in Domesday Book that it is deemed to be paid. If after 
 a sale by the local or rating authority the value recedes and then again 
 advances to a value still not 10 per cent, in excess of the site value on 
 the sale by the rating authority, no increment value duty will be pay- 
 able. The site is franked up to the amount of duty which is deemed to 
 be paid on the sale by the authority. It will be noted that the exemp- 
 tion under this section is complete. It is an exemption as to increment 
 value duty not only on periodical occasions, but on the only other 
 occasions on which increment value duty can become due from such a 
 body, i.e., on occasions arising under sales or leases. In this respect it 
 is contrasted with the limited exemptions from duty on periodical 
 occasions conferred by s. 9 (games), s. 37 (charitable purposes), and 
 s. 38 (statutory companies). It is similar to the exemption conferred 
 
 25—2 
 
388 Land Clauses of the Finance Act. 
 
 § 35. on, or recognised by s. 10 (1) as to, departments of Government. An 
 ingenious suggestion has been made (see Evans and Barton's " Land 
 and Mineral Taxes," p. 185) that the words at the end of sub-s. (1), "for 
 the purposes of the provisions of this Act with respect to collection of 
 increment value duty," prevent the fictitious payment of increment 
 value duty under this section from operating for the purpose of the 
 deduction of five times its amount (under s. 16 (3), see ante, p. 191). 
 from the site value of undeveloped land for the purpose of undeveloped 
 land duty, and from being used by way of set-off" under s. 14 (4) as 
 against reversion duty covering the same period. At p. 82 of that work 
 it is pointed out that the language of s. 4 (4), s. 8 (5), and s. 10, is the 
 same as s. 35, and differs from the language of s. 3 (5) and s. 36, in 
 which it is simply stated that the remitted duty " shall be deemed to 
 be paid," the words "for the purposes, etc.," being omitted. 
 
 It is clear, therefore, that for purposes of increment value duty there 
 must be an original site valuation under s. 26 of land belonging to a 
 rating authority. 
 
 (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, certi- 
 ficate, or other instrument, requiring payment from some 
 authority or officer, is or can be ultimately raised out of 
 a rate as before defined. 
 
 The expression "rate." — The definition is the same as that in the 
 Agricultural Rates Act, 1896 (59 & 60 Vict. c. 16), s. 9. 
 
 Applicable to public local purposes. — These words would exclude 
 for the benefit of the section any bodies having power to apply the 
 proceeds of a rate for the benefit of themselves or their own members ; 
 but if the rates were to be applied solely to promote public objects of 
 the rating body, as to improve a harbour or a dock, it is thought that 
 there would be exemption. 
 
 Though obtained in the First Instance by a Precept, etc. — As the 
 county rate, which is obtained by the county council precept from the 
 local authority, by whom it is actually raised by rate ; or the poor rate 
 which is obtained by the guardians by precept from the borough or 
 urban district council. 
 
Eating Authorities. 389 
 
 Section 36. § 36. 
 
 36. Where in pursuance of any public general or local Deduction 
 Act any capital sum or any instalment of a capital sum ment value 
 has been paid to any rating authority in respect of the toraUng^^ 
 increased or enhanced value of any land due to any r^^pJJ.'toV" 
 improvements made or other action taken by the increase in 
 
 ^ ^ , -^ value. 
 
 authority, the amount of that capital sum or instalment 
 shall be deducted from any increment value of the land 
 for the purposes 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. 
 
 Any Public, General, or Local Act. — Under certain local Acts of 
 Parliament (as to London, see local Acts 58 & 59 Vict. c. 80, s. 36; 
 60 & 61 Vict. c. 252, s. 42; 62 & 63 Vict. c. 266, s. 61 ; 63 & 64 
 Vict. c. 269, s. 52 ; 1 Edw. 7, c. 272, s. 41 ; 2 Edw. 7, c. 219, s. 52; 
 as to Manchester, see 57 & 58 Vict. c. ccix.) sums may become payable 
 to a corporation, county council, or other rating authority as reimburse- 
 ment for improvements executed by that authority which have enhanced 
 the value of the payee's property. For example, assume that the K. 
 improvement in the city of Y. has increased A.'s site value to the extent 
 of 1,OOOZ., and that under the Act authorising the improvement a charge 
 known as a " betterment charge " in favour of the corporation of Y. to 
 the extent of 500/. has arisen, then if A. has paid the 500/., he is 
 entitled to a deduction of that sum from any increment value on which 
 he becomes liable to pay duty. He is not so entitled unless and until 
 he has paid the 500/. He is not entitled to deduct the 500/. from the 
 increment value duty he becomes liable to pay, but only from the 
 amount of increment value on which increment value duty is to be paid, 
 so that his betterment payment of 500/. exempts him to the extent of 
 100/. only. It is in fact treated as if it were an expenditure by himself 
 on the property. Similarly, 500/. may be deducted from the site value 
 for the purpose of the liability to undeveloped land duty under s. 16, 
 ante, p. 180, and from the benefit accruing to a lessor for the purposes 
 of reversion duty (under s. 13, ante, p. 151). 
 
 By s. 58 (3) of the Housing, Town Planning, etc.. Act, 1909 (9 Edw. 7, 
 c. 44), it is provided that " where, by the making of any town planning 
 scheme any property is increased in value, the responsible authority, if 
 
890 Land Clauses of the Finance Act. 
 
 § 36. they make a claim for the purpose within the time (if any) limited by 
 the scheme (not being less than three months after the date when notice 
 of the approval of the scheme is first published in the manner prescribed 
 by regulations made by the Local Covernment Board), shall be entitled 
 to recover from any person whose property is so increased in value one 
 half the amount of that increase." Probably sums paid to the 
 responsible authority {i.e., the local authority) under this sub-section 
 come within the above section. 
 
 Under s. 150 of the Public Health Act, 1875 (38 k 39 Vict. c. 55), 
 where streets in urban districts are not sewered, levelled, paved, etc., to 
 the satisfaction of the local authority, and the owners of the adjoining 
 premises do not comply with the requirements of the local authority, 
 such authority may execute the works in question and may recover the 
 cost from the owners, or may declare the expenses so incurred to be 
 private improvement expenses. Under s. 257 of the same Act the 
 expenses are to be paid, with interest, by the owner at the time when 
 the works are completed, and until so paid are to be a charge on the 
 premises. It seems that such a capital payment would satisfy the 
 conditions of the section under either of the heads "improvements 
 made " or " other action taken," and this would also probably be the case 
 even if the local authority under the last paragraph of s. 257 declared 
 the expenses to be payable by annual instalments. 
 
 Sect. 150 of the Public Health Act, 1875, may be applied to rural 
 districts through the machinery of s. 276 of the same Act. 
 
 Within the same category would be, it is thought, any payment made 
 under s. 12 of the Private Streets Works Act, 1892 (55 & 56 Vict. c. 57), 
 substituted where it applies for s. 150 of the Public Health Act, 1875. 
 Sect. 12 applies s. 257 of the Public Health Act, 1875, to expendi- 
 ture by a local authority in respect of making streets, lighting, 
 sewering, etc. 
 
 Any Capital Sum or Instalment of a Capital Sum. — Under the 
 London Betterment Acts (see above) the charge is an annual sum 
 redeemable on payment of thirty-three times its amount (see London 
 Coimty Council Tower Bridge, etc., Act (58 & 59 Vict. c. xxx., s. 36 (4), 
 (18), (19) ). On redemption, but not, it seems, until redemption, it would 
 fall within this section. In valuing under s 26 for original site value, 
 or under s. 28 for undeveloped land duty, probably the annual payment 
 would be considered to be a fixed charge (see s. 41, post, "The expres- 
 sion 'fixed charge'"). So in arriving at increment value duty under 
 ss. 1 and 2 it will be seen that such a charge would practically make 
 itself felt either by way of diminution in consideration \inder s. 2 (2) [a) 
 and (6), or in diminished principal value under (c), or in diminished 
 total value under (d). But when redeemed it woiild cease to be a fixed 
 charge, though it might in equity be considered to remain in existence 
 for the benefit of the person who had redeemed it, even if he were the 
 owner of the fee simple. It is not, however, thought that a deduction 
 
Betterment, etc., Charges. 891 
 
 of a stim falling under the section as a fixed charge could be made in § 36. 
 ascertaining total value under s, 25 (3) or (4) for the purposes of 
 undeveloped land duty under s. 28, or of reversion duty under s. 13 (2), 
 and then that the same sum covild again be deducted under and by . 
 virtue of this section. 
 
 Betterment charges under the London County Council's Acts before 
 referred to are land charges under the Land Charges Registration and 
 Searches Act, 1888 (58 & 59 Vict. c. cxxx., s. 36 (16) ). 
 
 Rating Authority. — See definition for purposes of s. 35 only, ib., 
 sub-s. (2). 
 
 It is conceived that it is almost impossible for any question to arise 
 under s. 36 as to what is a rating authority having regard to the nature 
 of the section. 
 
 Increased or enhanced Value of any Land due to any Improvements 
 made ... by the Authority. — The charge in the London Acts (see 
 above note) is in respect of " the enhanced market value derived by the 
 said lands from the improvement " after deductions for increased rates 
 and taxes, etc. (58 & 59 Vict. c. cxxx., s. 36 (4) ). 
 
 Or other Action taken by the Authority. — It is suggested that these 
 words are illustrated by the cases referred to (p. 389) of s. 58 (3) of the 
 Housing Town Planning, etc.. Act, 1909, s. 150 of the Public Health 
 Act, 1875, and s. 12 of the Private Streets Works Act, 1892. 
 
 Shall be deducted. — Quaere are the sums referred to in this section 
 sums which if not claimed as deductions on the original site valuation 
 under s. 26 cannot by virtue of s. 12 subsequently be claimed for the 
 purpose of ascertaining the site value of the land on an occasion when 
 increment value duty becomes payable vmder s. 11 There is some 
 argument based on the exact language of the two sections in support of 
 the view that the query should be answered in the negative ; but that 
 argument may be overcome by the absurdity of the consequences if it 
 were held valid. 
 
 Shall be deemed to have been paid. — It is probable that the 
 effect of s. 4 (3) and (4) and s. 6 (4) is to render it unnecessary for a 
 purchaser of land to which this section (36) applies to see that a credit 
 of the duty or the betterment payment is duly entered on the register 
 of the Commissioners. But until the practice is settled he should not 
 assume that such is the case. 
 
 Section 37. 
 
 37. — (1) No reversion duty or undeveloped land duty § 37. 
 under this Part of this Act shall be charged in respect of special pro- 
 land or any interest in land held by or on behalf of any knd held for 
 governing body constituted for charitable purposes while purpoS!\c. 
 
892 Land Clauses of the Finance Act. 
 
 § 37 (1). 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 
 appropriated for charitable purposes (including property 
 appropriated for the purpose of any of the naval or 
 military forces of the Crown), and includes any corpora- 
 tion sole and all universities, colleges, schools, and other 
 institutions for the promotion of literature, science, 
 or art. 
 
 Held by or on behalf of any Governing Body. — That is either by the 
 charitable corporation, company, or body in its own name, or by the 
 governing body of such corporation, company, or body in the names of 
 the governing body, or by trustees on behalf of either corporation, 
 etc., or governing body. The body need not be a body corporate. 
 Apparently the term may include the trustees of an unincorporated 
 charity ; but they must at least be " constituted for charitable pur- 
 poses." Even the trustees of a charitable devise by will or a charitable 
 trust of lands created by deed might, it seems, be a governing body. 
 But this is, of course, only a suggestion. 
 
 The word " held " is a popular not a technical term. No doubt land 
 is " held " for the purposes of a governing body when the body is a 
 cestui que trust of that land. See further note on p. 397, " The 
 expression Governing Body, etc." 
 
 Constituted for Charitable Purposes. — The phraseology of this 
 section must be carefiilly noted, for it appears to conceal some pitfalls. 
 It seems doubtful, notwithstanding the second paragraph of sub-s. (1), 
 whether the mere fact that a governing body holds land upon trust for 
 a charity, or for charitable purposes, entitles it to the benefit of the 
 exemptions. It must be " constituted for charitable purposes." That 
 seems to mean that it must be founded or established to carry out 
 charitable purposes, whether they are the sole purposes for which it is 
 constituted or not, but this does not necessarily mean that to add, after 
 it is first constituted, such purposes to its existing functions would not 
 
Charitable and Similar Exemptions. 898 
 
 confer the benefit of the exemption. The idea of permanency in its § 37 (1). 
 charitable functions seems to be implied in being " constituted " for 
 charitable purposes, but that word, it is thought, does not mean 
 originally constituted. It seems clear that the governing body need 
 not be constituted for charitable purposes only, since by the second 
 paragraph of sub-s. (1) the phrase includes " any person or body of 
 persons who have the right of holding or any power of government of 
 or management over a«y property appropriated," etc. The section does 
 not say, though it probably implies, and the marginal note (which, 
 however, seems not to be part of the Act) supports the implica- 
 tion, that only the property held for the charitable purposes of the body 
 is exempted. 
 
 It is, of course, impossible to discuss at any length in the notes to What are 
 this section what are and what are not charitable purposes. In charitable 
 cases of doubt or difficulty one of the standard works (such as Tudor's 
 Charitable Trusts, 4th edition) must necessai'ily be consulted ; but it 
 must not be assumed, because in particular cases arising on the 
 construction of other statutes or on deeds or wills certain objects 
 or purposes have been held to be or not to be charitable objects and 
 purposes, that therefore the same construction will necessarily be put 
 on the same or similar words in s. 37. Sect. 37 is expressed in language 
 peculiar to itself, and the general objects and scope of the Act of 1910 
 may cause particular words to be interpreted otherwise than in cases 
 decided on the construction of other statutes or other documents. The 
 following notes are therefore written merely for the purpose of drawing 
 attention to what it is thought are the chief considerations arising on 
 the surface of the sections. Charitable purposes are either those Generally, 
 objects mentioned in the preamble to the statute 43 Eliz. c. 4 
 (repealed by the Mortmain and Charitable Uses Act, 1888, the 
 preamble nevertheless being expressly preserved by s. 13 (2)), or 
 such objects as by analogy are deemed to be within its spirit or 
 intendment {Morice v. Bishop of Durham, 10 Vesey, 405). The 
 preamble to the statute of Elizabeth enumerates the following 
 charitable objects : " The relief of aged, impotent, and poor people, 
 the maintenance of sick and maimed soldiers and mariners, schools 
 of learning, free schools and scholars of universities, the repair of 
 bridges, ports, havens, causeways, churches, seabanks, and highways, 
 the education and preferment of orphans, the relief, stock or mainten- 
 ance for houses of correction, marriages of poor maids, supportation, 
 aid and help of young tradesmen, handicraftsmen, and persons decayed, 
 the relief or redemption of prisoners or captives, and the aid or ease of 
 any poor inhabitants concerning the payment of fifteens, setting out 
 of soldiers and other taxes." There are usually said to be four heads 
 of objects considered charitable within the meaning of the statute, 
 namely, (1) the relief of poverty, (2) education, (3) the advancement of 
 religion, and (4) other purposes beneficial to the community not falling 
 
394 
 
 Land Clauses of the Finance Act. 
 
 § 37 (1). 
 
 Gifts for 
 public 
 purposes 
 generally. 
 
 For charit- 
 able purposes 
 generally. 
 
 Charitable 
 purposes 
 under Income 
 Tax Act. 
 
 under any of the preceding heads. These may be conveniently termed 
 "general public purposes" (see Special Commissioners of Income Tax v. 
 Pemsel, [1891] A. C. 531, at p. 583 ; also Tudor on Charities, 4th ed., 
 1906, p. 37). 
 
 Charitable purposes must be of a public character, but a gift for 
 public purposes generally is void for uncertainty. " Where charitable 
 purposes are mixed up with other purposes of such a shadowy and 
 indefinite nature that the Court cannot execute them (such as 
 'charitable or benevolent,' or 'charitable or philanthropic,' or 
 ' charitable or pious purposes '), or where the description includes 
 purposes which may or may not be charitable (such as ' undertakings 
 of public utility '), and a discretion is vested in triistees, the whole gift 
 fails for uncertainty " (see Hunter v. Attorney-General, [1899] A. C. 
 309, per Lord Davey, at p. 323 ; Grimond v. Grimond, [1905] A. C. Sc. 
 124, where the reasons for the rule are stated by Lord Halsbury, L.C., at 
 p. 126; Blair v. Duncan, [1902] A. C. Sc. 37 ; M'Conochie's Trustees v. 
 M'Conochie, [1909] S. C. 1046). On the other hand, a " trust for public 
 works, or objects of pviblic utility at a particular place, is sufficiently 
 certain, definite, and limited to be valid " {In re Allen, Hargreaves v. 
 Taylm; [1905] 2 Ch. 400, per Swinfen-Eady, J., at p. 405). 
 
 But a gift for charitable purposes generally, although uncertain, or to 
 "charitable and deserving objects," is good [Attorney-General v. Herrich, 
 Amb. 712 ; In re Sutton, Stone v. Attorney-General, 28 Ch. D. 464 ; 
 54 L. J. Ch. 613 ; 33 W. R. 519 ; Hays Trustees v. Baillie, [1908] S. C. 
 1224, Ct. of Session ; Paterson's Trustees v. Paterson, [1909] S. C. 485, 
 Ct. of Session) ; and in Mackinnon's Trustees v. Mackinnon, [1909] 
 S. C. 1041, Ct. of Session, a gift of residue "to such charitable or 
 philanthropic institiitions, one or more, in Glasgow or the West of 
 Scotland as my trustees may select as in their opinion the most 
 deserving " was held good as a bequest in favour of charitable institu- 
 tions, and was not void for uncertainty. But see Grimond v. Grimond, 
 J|1905] A. C. 124, in which a similar gift in favour of "charitable or 
 religious institutions and societies " was held void. 
 
 The cases are not, indeed, wholly consistent as to the extent to which 
 other objects not primd facie distinctly charitable can be joined with 
 a trust for charitable purposes generally without rendering the gift void 
 for uncertainty, but the cases in the House of Lords, Hunter v. Attorney - 
 General, Blair v. Duncan, and Grimond v. Grimond, above cited, are at 
 present the ruling authorities. 
 
 " Charitable purposes " under the Income Tax Act (5 & 6 Vict. c. 35, 
 s. 61, No. VI., Schedule A), whereby exemptions are given in respect of 
 the rents of lands " belonging to any hospital, public school, or alms- 
 house, or vested in trustees for charitable purposes, so far as the same 
 are applied to charitable piirposes," are not restricted to the meaning of 
 " relief from poverty," but must be construed according to the legal and 
 technical meaning given to those words by English law (Special 
 
Chabitable and Similar Exemptions. 895 
 
 Commissioners of Income Tax v. Pemsel, [1891] A. C 531 ; B. v. Income § 37 (1). 
 Tax Commissioners, Ex parte University College of North Wales, (1909) 
 78 L. J. K. B. 576 ; 100 L. T. 585). Primd facie the words of 
 s. 37 (1), " land held by or on behalf of any governing body conscituted 
 for charitable purposes while the land is occupied and used by such a 
 body for the purposes of that body," would appear to have the same 
 wide meaning as the words in the Income Tax Acts, but this is not quite 
 clear. The Customs and Inland Revenue Act, 1885 (48 & 49 Vict. As applied to 
 c. 51), s. 11, imposing the corporation duty upon the annual value of corporation 
 property vested in any body corporate or unincorporate, exempts from ^ ^' 
 that duty (sub-s. (2) ) " property which shall be legally appropriated 
 and applied for the benefit of the public at large, or of any county, shire, 
 boroixgh, or place, or the ratepayers or inhabitants thereof, or in any 
 manner expressly prescribed by Act of Parliament, "and sub-s. (3) property 
 which . . . shall be legally appropriated and applied for any piirpose 
 connected with any religioiis persuasion, or for any charitable purpose, 
 or for the promotion of education, literature, science, or the fine arts. 
 In Inland Revenue v. Scott, [1892] 2 Q. B. 152, it was held that the 
 wide meaning of " charitable purposes " as applied to the Income Tax 
 Acts by the decision in Special Commissioners of Inland Revenue v. 
 Pemsel, [1891] A. C. 531 {ante, p. 394), was not applicable to the 
 same words as used in s. 11 (3) of the Inland Revenue Act, 1885, since 
 in the latter Act the words in question were placed "between specific 
 exemptions which, if used in their widest sense, they [i.e., the words 
 * charitable piirposes ') would be sufficient to cover " (see per Lord 
 Herschell at p. 165). The second paragraph of s. 37 (1) might, it is 
 thought, be held to have the same effect in confining the meaning of 
 the words " charitable purposes " in the sub-section to purposes of an 
 eleemosynary nature, as the specific exemptions of the like nature con- 
 tained in s. 11 (2) and (3) of the Customs Act of 1885 had, in Inland 
 Revenue v. Scott, upon the corresponding words in that section. Never- 
 theless, even if this be the construction of the words " charitable 
 purposes" in sub-s. (1) of s. 37, the extension by sub-s. (2) of the 
 exemptions conferred by the section to registered societies, companies, 
 etc., will have the efi^ect of including a large number of the same objects as 
 woTild have fallen under the wider interpretation of the words in question. 
 It may, perhaps, further be noted that the inclusion of " corporations 
 sole " in the expression " governing body, etc.," by the second paragraph 
 of the sub-section is a remote indication that certain ecclesiastical 
 persons holding property for religious purposes, such as rectors and 
 vicars, are intended to be comprised in the expression " charitable 
 purposes." Corporations sole for secular objects are rare (the Sovereign 
 and the Public Trustee are examples). Religious purposes^ if included, 
 would confer exemption on sites of churches and chapels. If religious 
 purposes are included, so likewise may other purposes rot of an 
 eleemosynary character be included. 
 
396 I-AND Clauses of the Finance Act. 
 
 § 37 (1). If the narrow construction of Inland Revenue v. Scott (mpra), and not 
 the wide construction of Inland Revenue v. Pemsel (supra), be adopted as to 
 s. 37, a number of objects already held to be charitable in the wider sense 
 of the term, and which are not either covered by the extension given 
 to the term charitable purposes in the second paragraph of s. 37 (1) or 
 included in sub-s. (2) of the section, will not be entitled to the 
 exemption conferred by that section. Such objects may perhaps be 
 illustrated by such cases as London University v. Yarrow (1 De G. & J. 
 72), where a bequest for an animal sanatorium was held a good charitable 
 bequest; In re Foveaux, Cross v. London Anti- Vivisection Society, 
 [1895] 2 Ch. 501, where an anti-vivisection society was held to be a 
 charity; In re Charlesworth, Robinson v. Cleveland, [1910] W. N. 18), 
 where the gift of a fund to provide clergymen members of a clerical 
 society with a good dinner after quarterly meetings for mutual counsel 
 and the discussion of pi-actical questions connected with their work, was 
 hold by Eve, J., to be a charitable bequest, on the ground that the 
 payment helped to incrcaso tin attendance at the meetings, thus adding 
 to the usefidness and efficiency cf tli3 society. 
 
 While the Land is Occupied ar.d iis d by such Body. — This 
 limitation of the exemption applies only to reversion duty and undeveloped 
 land duty. Occupation as playing fields for a school, or as a college or 
 hospital garden, woiild doubtless be a user ao well as an occupation for 
 the purposes of the body. So if a piece of land is occupied as a lodge 
 or an allotment garden, and as part of his wages or salary by an 
 employee of the body, it is submitted that this is siich an occupation and 
 user as would confer exemption. 
 
 Mere occupation is not enough to secure exemption. There must be 
 user as well. For example, it is submitted that the body may not, 
 while remaining in nominal "occupation, practically treat the land as 
 vacant and intended only for building purposes. It must, it is sub- 
 mitted, be bond fide employed in carrying out the objects of the body. 
 If the land is let on agreement or on lease it is conceived that un- 
 developed land duty is payable. It is submitted that the class of cases 
 illustrated by London and North Western Railway Company v. 
 Buckmaster (L. R. 10 Q. B. 444) and Reg. v. St. Pancras Assessment 
 Committer (2 Q. B. D. 581), in which for purposes of the poor rate 
 persons occupying premises under contracts not of service, over 
 which premises the owners retained control of a more or less defined and 
 extensive nature, have been held not in possession, while the owners 
 have been held in possession, have no application to the kind of occupa- 
 tion and user contemplated by this section. The question to be 
 determined is whether the governing body both occupies and uses the 
 land. If it does not it must pay the duty. Reversion duty is equally not 
 to be charged while the land is occupied and used by that body for the 
 purposes of that body. It is apprehended that this means that if on 
 the determination of a lease the body goes into possession of and uses 
 
Charitable and Similar Exemptions. 397 
 
 the premises they will be exempt fi'om the reversion duty payable on § 37 (1). 
 the determination of that lease. But the duty became charged (s. 13) 
 " on the determination " of the lease, so that it was due before the 
 reversioners had, strictly speaking, any occupation or use of the land. 
 The duty became due at the same moment the right to occupy the land 
 accrued. The intention appearsclear, however, though not well expressed. 
 It is to be noted that there is no exemption under this section from 
 mineral rights duty (s. 20). 
 
 Increment Value Duty shall not be collected on any Periodical 
 Occasion. — -For collection of increment value duty on periodical occasions 
 see s. 1 (c), s. 2 (2) id), and s. 6. The exemption is rather an exemption 
 from occasions for payment of, than from liability to increment value 
 duty, since the duty is to be paid on sale or lease under s. 1 and 
 s. 2 (2) (a) and (6), when of course it must be paid on all increment, so 
 far as actually realised up to date. But the exemption conferred by 
 this sub-section relieves the body from the possibility of paying incre- 
 ment value duty on a value which ultimately is never realised. It thus 
 incidentally relieves the body from the gentle pressure to sell created 
 by the periodical assessment. On the other hand, it may lose a certain 
 amount of the benefit of the 10 per cent, reduction of site value under 
 s. 3 (5), and it may be, therefore, that in some cases it will not be wise 
 in the body to claim exemption at the periodic assessment. 
 
 The exemption from increment value duty exists even if the body is 
 not in occupation and user of the land, as, for example, when it is let 
 by them under such circumstances that undeveloped land duty is being 
 paid by the body. 
 
 Held for the Purposes of such a Body — that is, it is presumed, the 
 charitable, etc., purposes of such a body, since it may be that such a body 
 has non-charitable as well as charitable purposes ; for example, the Royal 
 College of Surgeons (see Re Royal College of Surgeons, [1899] 1 Q. B. 
 871, and compare Inland Revenue Commissioners v. Forrest, (1890) 15 
 A. C. 334). 
 
 Without Prejudice, however, to the Collection of the Duty on any 
 other Occasion. — See note above on words " Increment value duty shall 
 not be collected, etc." Because increment value duty is to be collected 
 on sale and lease, there is no provision in s. 37, as in s. 8 (1), (2), and (5), 
 s. 10, and s. 35, that the duty which is temporarily exempt from 
 collection is to be deemed to be paid. 
 
 The expression '' Governing Body constituted for Charitable 
 Purposes" includes, etc. — See note (p. 392), "Constituted for 
 Charitable Purposes." 
 
 To the above note the following propositions may, it is thought, be 
 added, deducible from the second paragraph of s. 37 (1). 
 
 (1) The governing body may be a single individual, as a trustee May be a 
 appointed by deed or will, and need not in such case be a corporation sole. ^^^^^^ person. 
 
398 
 
 Land Clauses of the Finance Act. 
 
 ,§37(1). 
 
 May not have 
 property. 
 
 May be two 
 bo(fies. 
 
 Powers need 
 not be either 
 exclusive or 
 extensive. 
 
 Meaning 
 oil " appro- 
 priated, etc." 
 
 Land not ex- 
 clusively " ap- 
 propriated, 
 etc." 
 
 Appropriation 
 must be 
 legally 
 binding. 
 
 Religious 
 
 corporations 
 
 Bole. 
 
 (2) Eveu if the governing body have not got the legal estate in them- 
 selves or in a person admittedly a trustee for them, yet if they have the 
 "right of holding," i.e., of bringing a successful action to recover the 
 land, the exemption exists. 
 
 (3) The land may be held by or on behalf of one governing body 
 while another governing body has the power of government of or manage- 
 ment over the lands, and then there is a double ground of exemption. 
 
 (4) The power of government or management of the governing body 
 need not be exclusive or even extensive. A governing body may exist 
 which has only, say, a power of leasing, or of cultivating, It is difficult 
 to see what practical conclusion is likely to flow from this factor of the 
 definition, since in almost all cases it would seem that the remaining 
 rights or powers constituting full ownership would be vested in some 
 other governing body within the section. 
 
 (5) Property appropriated for "charitable purposes " means, in all 
 probability, property the main and chief object of which is charitable 
 purposes (see Writers to the Signet v. Inland Revenue, 14 Sess. Cases, 
 4th Series, p. 34 ; Inland Revenue Commissioners v. Forrest, 1 5 App. Cas. 
 334, both cases on s. 11 (2) of the Customs, etc., Act, 1885, in which the 
 equivalent words are "legally appropriated and applied for . . . any 
 charitable purpose " ; for the sub-section in extenso, see ante, p. 395). 
 
 (6) If, however, the land is not exclusively appropriated for charitable 
 purposes, or is not appropriated in the sense that the main object for 
 its application is charitable, but there are several main objects, as in 
 the Royal College of Surgeons' Case ([1899] 1 Q. B. 871), where 
 one of the objects was the advancement of surgical science, and the 
 other the promotion of the professional interests of surgeons, then it 
 is thought that the principle of that case, also decided on s. 11 (2) of 
 the Customs, etc.. Act, 1885, would be followed, and the exemption 
 would extend only to so much of the property as is in fact appropriated 
 for the charitable purposes. 
 
 (7) Appropriation to a charitable purpose must, it is thought, be a 
 legally binding appropriation, notwithstanding the absence of the word 
 "legally " which is in s. 11 (3) of the Customs Act, 1885. It is not 
 enough to confer exemption that trustees of a property in fact devote 
 some part thereof to charitable purposes, unless the charitable purpose 
 be one of the objects of the trust. 
 
 (8) Whether ecclesiastical corporations sole, as rectors and vicars, hold 
 their glebe lands for "charitable purposes," and so are entitled to the 
 exemption conferred by the sub-section, seems to depend upon whether the 
 wide interpretation of those words (as in Commissioners of Income Tax v. 
 Pemsel, [1891] A. C. 531), or the narrow interpretation (as in Inland 
 Revenue v. Scott, [1892] 2 Q. B. 152) is adopted. See ante, note on p. 395. 
 
 Including Property appropriated for the Purpose of any of the 
 Naval or Military Forces of the Crown. — A bequest to the officers' 
 mess of a particular regiment for the maintenance of a library for the 
 
Charitable and Similar Exemptions. 399 
 
 use of the officers of the mess for ever is apart from this section a vaHd § 37 (1). 
 
 charitable gift {In re Good, Harington v. Watts, [1905] 2 Ch. 60; 74 
 
 L. J. Ch. 512 ; 92 L. T. 796 ; 53 W. R. 476). So is a legacy for the 
 
 mess of a regiment of the Army Reserve [In re Donald, Moore v. 
 
 Somerset, [1909] 2 Ch. 410 ; 78 L. J. Ch. 761 ; 101 L. T. 377). These 
 
 two cases would, it is apprehended, subject to the Mortmain Act, apply 
 
 to a gift of lands for the same purposes. It seems, therefore, that 
 
 apart from the express terms of this section such gifts would (if the 
 
 term " charitable purposes " is used by the section in the wider sense) 
 
 be entitled to the exemptions conferred by it. 
 
 Other Institutions for the Promotion of Literature, Science, or 
 Art. — Former statutes have contained exemptions from taxation of 
 property held for similar purposes. For example, under 6 & 7 Vict. 6 & 7 Vict, 
 c. 36, s. 1, lands, etc., " belonging to any society instituted for purposes ^' ^ • 
 of science, literature, or the fine arts exclusively " are exempted from „ xemption 
 rates, "provided that such society is svipported wholly or in part by 
 annual voluntary contributions, and shall not, and by its laws may not, 
 make any dividend, gift, division, or bonus in money amongst its 
 members." As is at once apparent, there are several important points 
 of difference between s. 1 of this Act and the above section (37 (1) ), 
 and most of the cases in the books relating to the exemption turn upon 
 the subject-matter of such differences, such as the word '* exclusively," 
 the provisions as to voluntary subscriptions, and the prohibition of the 
 division of profits amongst members. The absence in s. 37 (1) of the 
 word " exclusively " as applied to the objects of an institution is 
 rather emphasised by the fact that a governing body under that sub- 
 section includes any body having " the right of holding, or a power of 
 government of or management over any property appropriated for 
 charitable purposes," thus indicating that it is not the nature of the 
 original constitution of the body, but of the trust impressed upon any 
 property held by it which determines the qviestion of exemption. It is, 
 therefore, thought that the principle of such cases as Reg. v. ISt. Martin's in 
 the Fields Overseers (21 L. J. M. C. 53 ; S. C. sub nom. Reg. v. Cockburn, 
 16 Q. B. 480), Reg. v. Brandt (16 Q. B. 462), Reg. v. Institution of 
 Civil Engineers (5 Q. B. 48), and other cases turning on the word 
 " exclusively," does not apply, quite apart from the fact that the 
 language of s. 37 (1) prior to "literature, science, or art" includes in 
 the exemption many institutions not exempted from rates by 6 & 7 
 Vict. c. 36. 
 
 The exemption from the corporation duty imposed by the Customs 48 & 49 Vict, 
 and Inland Revenue Act, 1885 (48 & 49 Vict.c. 51), s. 11 (3), has already ^- ^^'^- \^ ^^^• 
 been referred to (see p. 395, ante). It is as follows : " Property which, or ^^i^_ 
 the income or profits whereof shall be legally appropriated and applied 
 for any purpose connected with any religious persuasion, for any charit- 
 able purpose, or for the promotion of education, literature, science, or 
 the fine arts." The absence of the word "legally" before the word 
 
400 Land Clauses of the Finance Act. 
 
 § 37 (1). " appropriate " in s. 37 (1) of the 1910 Act and its presence in the 1885 
 Act does not appear to create any material difference between the two 
 classes of exemptions. There must be powder to appropriate before it 
 ought to be appropriated in fact, and then it is legally appropriated. The 
 word " exclusively," which is in the 1843 (6 & 7 Vict. c. 36) Act, is neither 
 in the 188.5 nor in the 1910 Act. On the construction of the 1885 Act it 
 has been held by the House of Lords that property which was appropriated 
 and applied substantially for the promotion of a scientific object within 
 s. 11 (3) was entitled to the exemption, although incidentally the 
 action of the society so applying it also benefited the profession to which 
 its members belonged (Inland Revenue v. Forrest, (1890) 15 App. Cas. 
 334, per Lord Macnaghten, at p. 356). On the same statute it was also 
 decided by the Court of Appeal in In re the College of Surgeons^ Case, 
 (1889) 1 Q. B. 871, tiiat in so far as the property of that body was 
 legally appropriated and applied to the promotion of the science of 
 surgery, one of the main objects of the society, it was exempt from 
 duty, but that in so far as it was so appropriated and applied in pro- 
 motion of the interests of those practising surgery as a profession, the 
 other of the society's main objects, it was entitled to no exemption. 
 Probably the two decisions just cited are material to s. 37. 
 17&^18Vict. The Literary and Scientific Institutions Act, 1854 (17 & 18 Vict. 
 ^' '■ _ c. 112), exempts from the Mortmain Act, and affords facilities for the 
 
 from Mort- grant of land to, and the management of land by, certain institutions 
 main Acts. which in s. 33 are defined or described as institutions " for the pro- 
 motion of science, literature, the fine arts, for adult instruction, the 
 diffusion of useful knowledge, the foundation or maintenance of libraries 
 or reading rooms for general use among the members or open to the 
 public, of public museums and galleries of paintings and other works of 
 art, collections of natural history, mechanical and philosophical inven- 
 tions, instruments, or designs." It will be observed that there is no 
 condition that the institution must exist exclusively for the promotion 
 of the objects mentioned, as in s. 1 of the 6 & 7 Vict. c. 36, exempting 
 from rates ; nor are the other conditions of s. 1 repeated in the Act of 
 1854. It has been held that the last-mentioned Act is not confined to 
 institutions of a public or charitable nature, but includes private 
 institutions established for the purposes of the Act (see Russell Literary 
 and Scientific Institution, In re; Figgins v. Baghino, [1898] 2 Ch. 72 ; 
 G7 L. J. Ch. 411 ; 78 L. T. 588— North, J.). The decision just cited 
 seems not wholly irrelevant to the present sub-section, since s. 32 of the 
 Literary, etc., Act, 1854 (17 & 18 Vict. c. 112), contains a definition or 
 description of the governing body of the institution, which like the 
 second paragraph of s. 37 (1) of the Act of 1910 is of a wide and some- 
 what loose character. It is to be noted also that the same institution 
 which in In re the Russell Literary, etc., Institution (supra) was held 
 within the Literary, etc., Act of 1854 (17 & 18 Vict. c. 112) was, on the 
 ground that it was not exclusively devoted to literature, art, or science 
 
science. 
 
 Charitable and Similar Exemptions. 401 
 
 within the meaning of s. 1 of the 6 & 7 Vict. c. 36, held not entitled to Sf 37 (1). 
 the exemption from rates conferred by that section. 
 
 The words " other institutions for the promotion of literature, science, 
 or art " will not, it is submitted, be confined to such institutions as are 
 charitable objects within the usual and wide meaning of that term 
 given to it in Income Tax Commissioners v. Pemsel, [1891] A. C. 531, if 
 in fact there are institutions of such a nature which are not charities 
 (see for a suggested case, where this view might perhaps apply. In re 
 Ogden, Taylor v. Sharp, 25 T. L. R. 382— C. A.). 
 
 Science in the exemption conferred by s. 11 (3) of the Customs, etc. Applied 
 Act, 1885, is not confined to pure or speculative science or science 
 generally, but includes various branches of science [Inland Revenue v. 
 Forrest, [1890] 15 App. Cas. 334). The society claiming exemption in 
 the case cited was the " Institution of Civil Engineers," and the 
 character of the science giving rise to the claim was what is known as 
 " applied science." Probably the same view would be followed in 
 respect to the use of the term in s. 37. 
 
 (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 
 (Consolidation) Act, 1908, or any body of persons incor- 8 Edw. 7, 
 porated 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 Par- 
 liament, and who by their rules make provision for 
 the benefits set out in section eight, sub-section one, 
 of the Friendly Societies Act, 1896, and where the 59&6ovict. 
 contract between the society and the member is of a 
 permanent character. 
 
 This Section shall apply to, etc. — I.e., the exemptions conferred upon 
 " governing bodies " by this section shall apply also to the fee simple of, 
 or any interest in, land held by registered societies and companies 
 " within the meaning of the Companies (Consolidation) Act, 1908." Some 
 bodies will doubtless fall within both sub-ss, (1) and (2). 
 
 N. 26 
 
 C.69. 
 
 c. 25. 
 
402 Land Clauses of the Finance Act. 
 
 § 37 (2)t Registered Societies. — See note on p. 404. 
 
 A Company within the meaning of the Companies (Consolidation) 
 Act, 1908. — See s. 285. " * Company ' means a company formed and 
 registered under this Act or an existing company." " ' Existing com- 
 pany ' means a company formed and registered under the Joint Stock 
 Companies Acts, or under the Companies Act, 1862." " 'Joint Stock 
 Companies Acts' mean the Joint Stock Companies Act, 1856, the 
 Joint Stock Companies Acts, 1856, 1857, the Joint Stock Banking 
 Companies Act, 1857, and the Act to enable joint stock banking 
 companies to be formed on the principle of limited liability, or any 
 one or more of those Acts, as the case may require, but does not 
 include the Act passed in the eighth year of the reign of Her Majesty 
 Queen Victoria chapter one hundred and ten, intituled an Act for the 
 Registration, Incorporation, and Regulation of Joint Stock Companies." 
 
 Incorporated by Special Act. — Note that a company incorporated 
 by Royal Charter is not included in the sub-section. 
 
 If that Company or Body are by their Memorandum or Act precluded 
 from dividing, etc. — The societies principally referred to are those the 
 subject-matter of ss. 19 and 20 of the Companies (Consolidation) 
 Act, 1908. They are companies which have the advantage of limited 
 liability under the Act, the Board of Trade being empowered by 
 licence to direct their registration without the addition of the word 
 " Limited " to their respective names. Leaving out of consideration 
 the many companies, with clearly and purely charitable objects, 
 registered under those sections, such as hospitals and religious 
 missions, institutions of the following characters amongst others are 
 widely so registered i.e., chambers of commerce, commercial exchanges, 
 clubs political and otherwise, professional institutions, such as law 
 societies, accountants' institutes, the Institute of Chemistry, the 
 Institute of Marine Engineers, etc., scientific societies, as tlie Philological 
 Society, the Physical Society of London, etc. 
 
 Associations of the same or kindred nature may of course be incor- 
 porated by special Act as well as under the Companies Acts, and may 
 then be equally entitled to the exemptions conferred by this section. 
 
 In order to obtain the benefit of exemptions under this heading, it is 
 thei'efore necessary for a newly formed body not dividing profit amongst 
 its members either to register under the Companies Act, 1908, or to 
 obtain incorporation under an Act precluding it from dividing profits 
 among its members. 
 
 A necessary condition to the exemption under this section of a limited 
 joint stock company registered under the Companies Act, 1908, if the 
 objects of an association be not clearly charitable within the meaning 
 of sub-s. (1) of this section, is that the company should be precluded by 
 its memorandum from dividing any profit amongst its members. This is 
 not, under s. 20 of the Companies Act, 1908, an essential condition of 
 
Chabitable and Similab Exemptions. 403 
 
 registration without the addition of the word " Limited," though § 37 (2). 
 under sub-s. (2) of that section the Board of Trade may, and does 
 in practice, make it such a condition. 
 
 The position of one of the class of associations referred to, not cliaritable Can the 
 within the meaning of sub-s. (1) of this section, but at the same time not Ki^"i?'^'^I!f 1'™ 
 dividing profits amongst its members, at the passing of this Act regis- comply with 
 tered as a limited company without the addition of the word " Limited," ^ub-s. (2) ? 
 but with a memorandum, which does not in terms preclude the com- 
 pany from so dividing profit, will require serious consideration if it is 
 desired that it should receive the benefits of the exemption conferred 
 by this section. Apparently it must get its memorandum altered by 
 the insertion of such a provision if it is to realise its wish. But is the 
 particular alteration one which it is possible to effect under the Com- 
 panies (Consolidation) Act, 1908? That appears somewhat doubtful. 
 Whether the insertion of a provision precluding the company from 
 dividing profits might in individual cases be brought within s. 9 (1) (a) 
 or (e) of that Act may well be worth consideration. But it is by 
 no means certain that those clauses can always be relied on to obtain 
 the sanction of the Court, which is necessary, for the alteration of 
 the memorandum. If that is the case the association will, it is 
 feared, either lose the benefit of the exemption or have to reconstruct 
 and re-register itself. 
 
 There is, however, no necessary connection between the permitted Word 
 
 registration of a company under the Act of 1908, without the "limited 
 
 1 , . 1 T • 1 >> 1 ^^^ material, 
 
 addition of the word " Limited, and the benefits of this sub-section. 
 
 The company may be registered with the word "Limited" as part of 
 
 its title under the Act of 1908, and yet because by its memorandum it 
 
 is precluded from dividing profits amongst its members it is entitled to 
 
 the benefits of this section. The requirements of the registrar imder 
 
 ss. 19 and 20 of the Act of 1908 for registration without the word 
 
 " Limited " go far beyond the simple prohibition of dividing profits 
 
 amongst members. But, of course, companies prohibited from dividing 
 
 profits almost invariably desire to get rid of the word " Limited," which 
 
 is supposed to import a trading company. 
 
 For the kind of benefit to a member which would apparently not be What are 
 
 illegal under a memorandum or special Act precluding a company from Profits 1 
 
 dividing profits amongst its members, see such cases as Liverpool Library 
 
 V. Corporation of Liverpool, 29 L. J. M. C. 221, and Royal College of 
 
 Music V. Westminster Vestry, [1898] 1 Q. B. 809. Of course the test 
 
 of exemption is the memorandum or Act, and not the practice of the 
 
 company. But the point now being considered is what sort of benefits 
 
 could be allowed to members by the terms of a memorandum or Act 
 
 which also in terms expressly prohibited the division of profits, without 
 
 so cutting down the prohibition as to render it nugatory within the 
 
 meaning of s. 37 (2). 
 
 If the Purposes of the Society, etc., . . . were Charitable 
 
 26—2 
 
404 Land Clauses of the Finance Act. 
 
 § 37 (2). ■ Purposes, — " Charitable purposes," whether the words are used in a wide 
 or in a narrow sense, have exemption under sub-s. 1. Such a society, 
 company, or corporation as is referred to in sub-s. (2), whatever may be 
 its objects, whether charitable or not, is to have the same benefits under 
 the section as if its objects were charitable purposes under sub-s. (1), 
 whatever may be the class of objects included under those words. 
 
 The sub-section clearly does not exempt non-charitable bodies incor- 
 porated by Royal Charter. 
 
 Registered or whose Rules are certified or registered ... in 
 pursuance of any Act of Parliament, — Societies formed under the 
 Industrial and Provident Societies Act, 1893 (56 & 57 Vict, c, 39), 
 ss. 4 — 8, are registered by a registrar of friendly societies, but it is 
 understood that their rules do not usually make provision for the 
 benefits set out in s, 8, sub-s. (1), of the Friendly Societies Act, 1896. 
 Trade unions are registered with the registrars of friendly societies 
 (34 & 35 Vict, c, 31, s. 17) ; and their rules usually make provision for 
 some of such benefits. Building societies under 37 & 38 Vict. c. 42, s. 17, 
 are registered with a registrar of friendly societies, but do not make pro- 
 vision for the benefits referred to. The rules of unincorporated benefit 
 building societies (6 & 7 Will. 4, c. 32, s. 4), loan societies (3 & 4 Vict, 
 c. 110, s. 4), societies instituted for purposes of science, literature, or the 
 fine arts (6 & 7 Vict. c. 36, s. 2), savings banks (39 &, 40 Vict. c. 52), and 
 friendly societies (59 & 60 Vict. c. 25) are certified or registered by a regis- 
 trar of friendly societies in pursuance of Acts of Parliament (see Friendly 
 Societies Act, 1896 (59 & 60 Vict. c. 25, ss. 2 and 4), but none of these 
 societies except friendly societies in the ordinary way provide for the 
 benefits necessar}'^ to bring them within the exemptions conferred by s. 37. 
 
 To obtain exemption under the second paragraph of sub-s. (2) of s. 37 
 it is necessary — 
 
 (1) That either the society or body should be registered, or that its 
 rules should be certified or registered by a registrar of friendly societies 
 in pursuance of an Act of Parliament. 
 
 (2) That its rules should make provision for the benefits set out in the 
 Friendly Societies Acts, 1896, s. 8 (1), and 1908, s. 1 [or some or one 
 of them]. 
 
 (3) That the contract between the society and the member should be 
 of a permanent character. 
 
 Make Provision for the Benefits set out.— Apparently this would 
 mean all the benefits, and the omission of a single benefit would take 
 away the exemption, but it is possible that the section of the Finance 
 Act means either any one of the benefits set out in s. 8 of the Act of 
 1896 (see below), or any class (a, b, c, d, e, or f) of those benefits (see 
 Knowles v. Booth, 32 W. R. 432). 
 
 Sect. 8 of the Friendly Societies Act, 1896, is as follows : — 
 The following societies may be registered under this Act : — 
 (1) Societies (in this Act called friendly societies) for the purpose 
 
Charitable and Similar Exemptions. 406 
 
 of providing by voluntary subscriptions of the members thereof with or § 37 (2). 
 without the aid of donations, for — 
 
 (a) the relief or maintenance of the members, their husbands, wives, 
 children, fathers, mothers, brothers or sisters, nephews or nieces, or 
 wards being orphans during sickness or other infirmity, whether bodily 
 or mental in old age (which shall mean any age after fifty) or in widow- 
 hood, or for the relief or maintenance of the orphan children of members 
 during minority ; or 
 
 (b) insuring money to be paid on the birth of a member's child, or on 
 the death of a member, or for the funeral expenses of the husband, wife 
 or child of a member, or of the widow of a deceased member, or, as • 
 respects persons of the Jewish persuasion, for the payment of a sum of 
 money during the period of confined mourning ; or 
 
 (c) the relief or maintenance of the members when on travel in search 
 of emploj'ment, or when in distressed circumstances, or in case of a 
 shipwreck, or loss or damage of or to boats or nets ; or 
 
 (d) the endowment of members or nominees of members at any age ; or 
 
 (e) the insurance against fire, to any amount not exceeding fifteen 
 pounds, of the tools or implements of the trade or calling of the 
 members. Provided that a friendly society which contracts with any 
 person for the assurance of an annuity exceeding fifty pounds per 
 annum or of a gross sum exceeding two hundred pounds shall not be 
 registered under this Act. 
 
 By s. 1 of the Friendly Societies Act, 1908 (8 Edw. 7, c. 32), it is 
 provided that to the above description of societies the following shall 
 be added after (e) : 
 
 " or (f) guai'anteeing the performance of their duties by officers and 
 servants of the society or any branch thereof." 
 
 Where the Contract between the Society and the Member is of a 
 Permanent Character. — Will these words exclude from the benefit of 
 the section friendly societies which at the end of the year divide up 
 their benefits 1 In the discussions in the House of Commons the 
 Chancellor of the Exchequer (see "Parliamentary Debates, ' September 28, 
 1909, vol. 2, p. 1054) said these words would not exclude dividing 
 societies. The word " permanent " is one of much ambiguity. 
 
 Section 38. 
 
 38. — (1) Neither increment value duty, reversion duty, § 38 (1). 
 nor undeveloped land duty shall be charged in respect of special pro- 
 any land whilst it is held by a statutory company for statutory 
 the purposes of their undertaking and cannot be appro- '^^"^p*^^^^- 
 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. 
 
406 
 
 Land 
 
 Clauses 
 
 OF THE Finance Act. 
 
 § 38 (1). This provision shall not be construed so as to exclude 
 from the benefit thereof land held by a statutory com- 
 pany 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. 
 
 Increment 
 value duty 
 not deemed to 
 have been 
 paid. 
 
 Minerals. 
 
 Neither Increment Value Duty, Reversion Duty, nor Undeveloped 
 Land Duty. — Statutory Gompauies, the definition of which term is 
 contained in sub-s. 4 of the section, would but for this exemption be 
 liable to pay increment value duty on periodical occasions as bodies 
 corporate or unincorporate under s. 1 (c). They would also be liable to 
 reversion duty under s. 13 and to undeveloped land duty under s. 16. 
 They receive, it is presumed, the exemption conferred by this section 
 from the new taxes, because they have no free power of dealing with 
 their land. The assumption appears to be that they are established 
 for the public welfare. They buy land only in pursuance of their 
 statutory duties, and they are obliged to hold it to carry out those 
 duties. If the company can legally use the land for purposes other than 
 its authorised statutory undertaking (which seems impossible), the 
 exemption is at an end. When it sells the land or the land " ceases to 
 be so held," increment value duty is chargeable, but only in a modified 
 form ; see sub-s. (2). The exact meaning of the words in inverted 
 commas is not quite clear. Tliey may refer to leases unconnected with 
 the undertaking and to superfluous lands under s. 127 of the Lands 
 Clauses Act, 1845.* 
 
 The increment value duty collectable under s. 1 (c) and s. 2 (2) (d) 
 on a periodical occasion is not, as is the case with Crown lands (s. 10) 
 and lands held by a rating authority (s. 35), deemed to be paid, but will 
 have to be paid if and when the lands are sold, subject to the special 
 provision of sub-s. (2) of this section as to the original site value. 
 
 As minerals are included in land, a company which imder its special 
 Act and the Railways Clauses or Waterworks Acts had purchased the 
 minerals with the land might have to pay a substantial sum as increment 
 value duty on sale of the laud, and the minerals. But, of course, so long 
 as the minerals are retained by the company for the purposes of its 
 undertaking, they would have the benefit of the exemption of s. 38 (1) ; 
 and even if they were not to be treated as having no value as minerals, 
 by virtue of s. 23 (2), it does not seem probable that the Crown would 
 be entitled to claim duty on them on periodical occasions on the ground 
 that the support afforded by the minerals was not in fact necessary. 
 
 As to lands exempted from increment value duty by the section, no 
 
 * As to what are superfluous lands, see, as leading cases, Bella v. O. E. 
 liiry., 49 L. J. Ex. 197 ; Hooper v. Bourne, 5 A. C. 1 ; Macfie v. Callandtr 
 and Ohan Railway Comj)any, [1898J A. C. 270. 
 
Statutoky Companies. 407 
 
 periodical account under s. 6 (2) need be delivered by the company § 38 (1). 
 (s.6(5)). 
 
 Reversion duty would but for this section be payable on the expira- Reversion 
 tion of a lease, the requisite conditions existing (see ss. 13, 14, and 15), p^gj-^y®'^ 
 the reversion of which the company had purchased for their under- payable, 
 taking. It would be payable not only when the company bought the 
 reversion, and then awaited the natural determination of the lease by 
 effluxion of time before taking possession of the land, but also, subject 
 to s. 3 (2) of the Revenue Act, 1911, whenever the company acquired 
 both lease and reversion, and thus brought about a merger of the term. 
 It will not often happen that a company will lease or be entitled to 
 lease its lands for over twenty-one years so that reversion duty is 
 payable on the determination of the lease ; but such a transaction is 
 conceivable (see Macfie v. Callander and Oban Railway Company, 
 [1898] A. C. 270, in which case, however, the lease was only for five 
 years). It would seem that when the land is within the exemption of 
 this section no accovmt under s. 15 (2) as to reversion duty need be 
 delivered. 
 
 Undeveloped land duty would also be payable by a statutory com- Undeveloped 
 pany, the requisite conditions under s. 16 existing. Railway and other land duty 
 companies often retain land unbuilt upon adjoining their premises for 
 the purpose of future extensions [Brown v. North British Railway 
 Company (8 F. 534, Ct. of Sess.). If such land is in the meantime 
 used or let as agricultural or occupation land, the company might but 
 for this provision have to pay undeveloped land duty. 
 
 A statutory company is not exempted from mineral rights duty. Mineral rights 
 This section seems to give exemption from the annual increment value " ^' 
 duty (s. 22 (3)). 
 
 Held by a Statutory Company. — For definition of statutory company 
 see sub-s. (4). It is thought that land would be " held by a statutory 
 company " for the purposes of its undertaking if it were let by the 
 company to persons for objects naturally and directly in connection 
 with the company's undertaking, as for bookstalls, refreshment rooms, 
 dressing rooms, etc., even if the lease were for more than 14 years. 
 
 For the Purposes of the Undertaking and cannot be appropriated 
 by the Company except to those Purposes. — See s. 2, Lands Clauses 
 Act (England) for a definition of " undertaking." What the undertaking 
 of the company is depends upon its special Act, read in connection 
 with any general Act which it may incorporate [Simpson v. South 
 Staffordshire Water Wcyrhs, 4 De G. J. & S. 679 ; 34 L. J. Ch. 380 ; 
 Metropolitan Water Board v. Neto River Company, 20 T. L. R. 687 — 
 H. L. (E.)). The wide question of ultra vires is therefore involved in 
 the word, as to which to cite a few special cases could only be 
 misleading. But Belts v. Great Eastern Railway, 49 L. J. Ex. 197, 
 may be referred to. 
 
 It is difficvilt to think legally of land held by a statutory company for 
 
408 Land Clauses of the Finance Act. 
 
 § 38 (1). the purposes of its undertaking, which yet can lawfully be appropriated 
 by the company to purposes other than those of its undertaking. The 
 reference may possibly be to superfluous lands, i.e., lands which 
 ought to be sold by the company, and which under s. 127 of the Lands 
 Clauses Act, 1845, vest in the adjoining owners if not sold within 
 the period mentioned in that section. It seems clear that after 
 the period referred to these lands are not held for the purposes of the 
 company, because they are superfluous and do not in law belong to the 
 company (Great Western Railway Co. v. May, L. R. 7 H. L. 283, at 
 p. 298). Whether within the period referred to they could be said to 
 be held for the purposes of the undertaking, since they ought to be sold 
 for the company's benefit, and can be appropriated to purposes other 
 than the purposes of the undertaking is a more difficult question. 
 
 Is sold. — But ceasing of itself will not necessarily cut short the 
 exemption, since the leasing may be for the purposes of the undertak- 
 ing. The words " ceases to be so held " are probably intended to cover 
 the case of a lease which is not for the purposes of the undertaking. 
 
 Or ceases to be so held. — See last note. These words may also be 
 intended to cut short the exemption at the moment when lands enter 
 into the category of "superfluous," i.e., when it becomes clear that 
 the land in question is no longer needed for the undertaking. 
 
 (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. 
 
 Any Returns. — For the return which may be required on the ascer- 
 tainment of original site value, see s. 26 (2), p. 317 ; of original capital 
 value of minerals, see s. 23 (2), p. 251 ; as to undeveloped land on quin- 
 quennial valuations, see s. 28, p. 333 ; as to the account relating to the 
 periodical increment value duty, see s. 6 (2), p. 122. All these returns 
 may be included in the words " any returns." There being no exemp- 
 tion from mineral rights duty, a statutory company working or receiving 
 rent for mines would have to make the return under s. 20 (3). 
 
 Actual Cost to the Company of the Land. — The sub-section seems 
 adapted only to the purchase by the statutory company of land uncovered 
 by buildings. In such a case it is quite easy to understand that the 
 cost of the land should be accepted as the original site value. But land 
 includes buildings unless the contrary intention appears (Interpretation 
 
Statutoey Companies. 409 
 
 Act, 1889, s. 3). It is not thought that there is any such contrary § 38 (2). 
 intention in s. 38. Nor does it seem that the case falls within s. 32 (3) 
 so that the Commissioners could apportion the cost to the company 
 between the site and the buildings. 
 
 And that Cost shall ... be substituted for the Original Site Value 
 of the Land. — Primd facie "the actual cost ... of the land" would, 
 it is apprehended, comprise the cost of the buildings on the land. The 
 purchases of statutory companies are not confined to cleared sites. 
 Suppose that a railway company has statutory power conferred upon it 
 to purchase certain houses to enlarge its station, and does so, but pur- 
 chases a house within its powers, which it does not, in the event, require 
 for the enlargement. It subsequently, under s. 127 (Superfluous Lands) of 
 the Lands Clauses Consolidation Act, 1845, sells the house for not more than 
 it gave for it. It is, of course, clear that the company does not on that sale 
 pay increment value duty. But it seems that the purchaser would 
 usually be able to realise a profit on the sale by himself of that house, 
 it may be of very considerable amount, without becoming liable for 
 increment value duty. The original site value is, under this sub- 
 section, the total value {i.e., cost to the company) of land and house. 
 Before increment value duty is payable the value of the site on the 
 occasion in question must exceed the former total value of the whole 
 property, as evidenced by its cost to the company plus any 10 per cent, 
 allowances under s. 3 (5). It is possible that the words " the actual cost 
 of the land " might mean that the price given by the company for the 
 total hereditament was to be apportioned, so as to fix an amount as the 
 cost of the land. But the difficulties of such a construction are not 
 small. The question, of course, will affect but few properties. 
 
 (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. 
 
 Increment value duty is evidently intended to fall upon vendors. 
 The vendor under ss. 1 (a), 2, and 4 is to pay the duty. This 
 sub-section carries out that intention. Counsel for a claimant is not to 
 be entitled, in addressing an arbitrator, or a jury in a compensation 
 case under the Lands Clauses Acts, to point out that his client will at 
 once have to pay one-fifth part of his net site value increment to the 
 Government. The claimant is not entitled to that amount either (a) on 
 taxation by way of costs, charges, or expenses under s. 82 of the 
 Lands Clauses Act, 1845, or {b) by way of compensation from a jury 
 or arbitrator under that Act. 
 
410 Land Clauses of the Finance Act. 
 
 § 38 (3). For definition of Lands Clauses Acts, see the Interpretation Act, 1889 
 (52 & 53 Vict. c. 63), s. 23. 
 
 (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 carry on any rail- 
 way, canal, dock, water, or other public undertaking, and 
 includes any person or body of persons so authorised ; 
 and the expression ' ' special Act ' ' includes any Provi- 
 sional Order or order having the force of an Act of 
 Parliament. 
 
 Statutory Company. — The company must be authorised (1) by a 
 " special Act " (see below) ; (2) to carry out a public undertaking, and 
 (3) the term " company " includes a single individual or body of 
 persons so authorised but not incorporated. The company may be 
 formed under the Companies Act, 1 908, or any other general Act, but 
 the authority to construct, etc., must be given by a special Act in the 
 wide meaning annexed to that phrase by the section. 
 
 Special Act. — There is no definition in this Act of the phrase " special 
 Act." It is the common legal tenn applied to private Acts of Parlia- 
 ment. In reference to companies and bodies authorised to construct 
 works of public utility, as to which general legislation exists, it means 
 an Act specially relating to that company or body incorporating with 
 or without amendment all or some portions of the general Act. See 
 s. 2 of the Lands Clauses Act, 1845, defining "special Act " in relation 
 to the Act of 1845. See also Craie's Statute Law, 2nd ed., p. 63. 
 
 To construct, work, or carry on, etc. — Companies not authorised by 
 "special Act," including in that term provisional order, and order 
 having the force of an Act of Parliament, but formed under the Joint 
 Stock Companies Acts (see note on p. 402), or incorporated by charter 
 (if any such there be), with powers in their memorandum of association, 
 charter or other governing document, as the case may be, to construct, 
 work, or carry on, etc., a public undertaking of the nature referred to in 
 sub-s. (4), are not entitled to the exemptions conferred by the section. 
 
 Or other Public Undertaking. — Such as a gas or electricity supply, 
 or tramway undertaking. 
 
 Provisional Order or Order having the force of an Act of Parliament. 
 — Most of the Departments of Government, the Local Government Board 
 and Board of Trade more particularly, are now authorised by statutes 
 to make provisional orders. Generally such orders require confirmation 
 by Act of Parliament before they are binding, and this is usually 
 
Statutory Companies. 411 
 
 obtained by embodying them in an omnibus Bill promoted by the § 38 (4). 
 Department making the order. The orders of the Local Government 
 Board relate to matters which involve the acquisition of land mainly by 
 local authorities, as for constituting a local authority the sanitary 
 authority of a port (38 & 39 Vict. c. 55, s. 287). In this case the land 
 acquired for the piirpose in qiiestion will receive the exemption from all 
 the new duties conferred by s. 37. The Board of Trade grants pro- 
 visional orders for, amongst other things, establishing gas and water 
 undertakings (33 & 34 Vict. c. 70 ; 86 & 37 Vict. c. 89, s. 12), tram- 
 way undertakings (33 <fc 34 Vict. c. 78, s. 4), electric light imdertakings 
 (45 <fe 46 Vict. c. 56), both to local authorities and companies. Land 
 acquired by the undertakers to whom such provisional orders are 
 granted, who are local authorities, will of course be exempt under 
 s. 35 as well as under s. 38. 
 
 An order having the force of an Act of Parliament may be made by 
 the Light Railway Commissioners under the Light Railways Act 
 (59 & 60 Vict. c. 48) authorising a light railway. The order requires 
 confirmation by the Board of Trade (s. 8). 
 
 The Eevenue Act, 1911 (1 Geo. 5, c, 2), s. 6. 
 Notwithstanding anything contained in the principal Saving in 
 
 • • At rGspcct or tiiG 
 
 Act, where under the provisions of any lease or agreement payment of 
 
 , , , • 1 1 , increment 
 
 any statutory company are required to pay over any part value duty by 
 of the increment value of any land to His Majesty, or to statutory 
 any person on behalf of His Majesty, or any Department companies, 
 of Government, that part of the increment value shall, 
 for the purposes of the provisions of the said Act as to 
 the collection of increment value duty, be treated as 
 increment value arising in respect of land held by His 
 Majesty. 
 
 Where under the Provisions of any Lease or Agreement. — This 
 
 section was inserted in the Act to meet the special case of the Humber 
 Conservancy Board, who are a statutory company as above defined, and 
 are leaseholders from tlie Crown, imder a 999 years lease, of the 
 foreshore of the Humber estuary. The lease contains a reservation 
 that on any sale of the foreshore a third of the price that is paid is to 
 go to the Board of Trade (see Parliam.entary Debates, House of 
 Commons, Vol. XXIII., No. 38, col. 1175). The effect of this section 
 is to relieve the Conservancy from the payment of increment value duty 
 in proportion to the amount (one-third) of the purchase-moneys which 
 goes to the Government. It is not known whether any other statutory 
 companies are in a position to fall within the section. 
 
412 
 
 Land Clauses of the Finance Act. 
 
 § 39 (1). 
 
 Power to 
 charge duty 
 on land in 
 certain cases. 
 45 & 46 Vict, 
 c. 38. 
 
 FINANCE (1909—10) ACT, 1910. 
 Section 89. 
 
 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 reason- 
 ably incurred in connection with the valuation, and the 
 benefit of any such charge, may be transferred in like 
 manner as a mortgage. 
 
 General note. Analogous provisions of the Finance Act, 1894, s. 9 (5), (6), will be 
 found on p. 107. Whether such provisions relate to increment value 
 duty payable on death appears doubtful. Under sub-s. (6) the tenant 
 for life has a charge for the duty without expressly creating such 
 charge. Under the Finance Act, 1910, the tenant for life, or trustee, 
 in order to obtain a charge, must execute a deed creating such charge. 
 
 Fee Simple of any Land or any Interest in Land ... is Settled 
 Land within the Meaning of the Settled Land Act.— For definitions of 
 fee simple and interest, see s. 41, pp. 446 and 457. Reversions expectant 
 on leases, leaseholds, non-renewable copyholds held for lives (s. 40), 
 undivided shares of freeholds or leaseholds, are examples, not exhaustive, 
 of interests in land which may be "settled land" within the meaning 
 of the Settled Land Act, 1882 (see s. 2 of that Act, Appendix, p. 605). 
 If any of these interests is transferred on sale, or is leased for more 
 than fourteen years, by a tenant for life, or person having the powers of 
 a tenant for life under the Settled Land Act, or by a trustee, a claim for 
 increment value duty may arise. So on the determination of an under- 
 lease {i.e., a lease of land or an interest in land (s. 41) ), or on the deter- 
 mination of a lease of an ixndivided share of land, the reversion in each 
 case being an interest in land which is settled land, one or more of the 
 same pei-sons will be the person who is liable to pay the reversion 
 duty. There is no definition of "interest in land " in the Settled Land 
 
Tkustees and Limited Owners. 413 
 
 Acts. This is perhaps naturally the case where it is not intended, as in § 39 (1). 
 the land clauses of the Act of 1910, to cut down the meaning of the term 
 by excluding a portion of its ordinary content. By s. 2 (3) of the 
 Settled Land Act, 1882, "Land, and any estate or interest therein, 
 which is the subject of a settlement, is for the purposes of this Act 
 settled land, and is, in relation to the settlement, referred to in this Act 
 as the settled land " ; and by sub-ss. (1) and (2) of the same section 
 "settlement" is defined or explained (see p. 605). 
 
 Increment Value Duty or Reversion Duty. — These duties are 
 occasional taxes on capital values, and a tenant for life paying them 
 is given a charge on the land for the amount so paid by him. 
 Undeveloped land and mineral rights duties are levied annually, and 
 are taxes on income, though the amount of undeveloped land duty is 
 determined by capital value ; therefore a tenant for life pays those taxes 
 during his lifetime, and is not entitled to a chai'ge for his payments. 
 Qucere whether s. 39 (1) applies to annual increment duty under s. 22 (3). 
 The question is one of difficulty. 
 
 Or is vested in a Trustee. — The cases covered by this section appear 
 to be three. 
 
 (1) Where the increment value duty or reversion duty is payable 
 by a legal tenant for life or person legally entitled having the 
 powers of a tenant for life in respect of land which is settled land 
 within the meaning of s. 2 of the Settled Land Act, 1882 (see 
 Appendix, p. 605). 
 
 (2) Where the duty in question is payable by a person in whom 
 the land is vested as trustee, and the land is not settled land, 
 as for example where land or an interest in land is devised by 
 will to A. upon trust to sell and divide the proceeds between X., 
 Y., and Z. In this case A. on selling would be liable under s. 4 to 
 pay increment value duty on a sale. He would also be liable to 
 pay reversion duty if a claim arose in respect thereof before the 
 sale. 
 
 (3) Where the land is settled land and is also vested in trustees, 
 as where land is devised or conveyed to A. and B. in fee simple, and 
 so as to vest the legal estate in them, upon trust to pay the rents 
 to X. for life, with remainder upon trust for X.'s children as tenants 
 in common in fee, and with a power of sale given to A. and B. In 
 this case X. is tenant for life within the meaning of the Settled 
 Land Acts and can sell or lease under those Acts. If he does so 
 he must pay increment value duty under s. 4 of the Finance Act, 
 1910. The trustees A. and B., though they receive the purchase- 
 moneys under the Settled Land Act, are not transferors within the 
 meaning of s. 4 (see s. 41, "The expressions 'transferor,' etc."). 
 But the trustees A. and B. may also, with X.'s consent, sell the 
 land (Settled Land Act, 1882, s. 56 (2) ). If they do so, no doubt 
 
414 Land Clauses of the Finance Act. 
 
 § 39 (1). they are transferors within s. 4, and must pay the increment value 
 
 duty. In this case, if reversion duty becomes due either during X.'s 
 
 life or afterwards, and before sale, the trustees would be liable to 
 
 pay it as lessors under s. 15 (1) and the definition of lessor in s. 41 
 
 (see paragraph, "The expression ' lessor' "). 
 
 All these classes of cases are covered by the section. In any case the 
 
 paying person (whether tenant for life or trustee) may charge his actual 
 
 [and prospective] payments in respect of the two duties in question on 
 
 the land (see below). 
 
 The Tenant for Life. — For definition of tenant for life see Settled 
 Land Act, 1882, s. 2 (5), (6), and (7), Appendix, p. 605. It is to be 
 noted that a tenant for life within the meaning of the Settled Land Act 
 may be either legal or equitable. 
 
 Or Persons having the Powers of a Tenant for Life. — For persons 
 having the powers of a tenant for life see the following sections of 
 the Settled Land Act, 1882: ss. 58, 59, 60, 61, 62, 63 (Appendix, 
 p. 606). 
 
 Or the Trustee. — As stated above (see note "or is vested in a 
 trustee "), a trustee may be the person to pay either increment value 
 duty or reversion duty, whether the subject-matter in respect of which 
 the duty is payable is or is not settled land. 
 
 Any Sums. — Any sum or sums. 
 
 He shall be entitled to charge by Deed. — It may be taken for 
 granted that, even if this sub-section had not formed part of the Act, a 
 trustee, and probably a tenant for life, who had properly paid either 
 increment value duty or reversion duty, would have had a lien on the 
 trust estate, whatever might be its form and condition, to recoup himself 
 for that payment. This sub-section, therefore, primd facie gives him 
 only the additional benefit of a charge which can be transferred as a 
 document representing money's worth. 
 
 Any Amount paid by him or which he may then be. or may 
 thereafter become liable to pay in respect, etc. — Thus a tenant for 
 life would be entitled to execute a deed charging generally on the 
 estate — 
 
 (1) All sums which he has already paid either for increment value 
 duty or reversion duty. 
 
 (2) All sums which he is liable to pay at the moment but has not 
 actually paid in respect of such duties. 
 
 (3) All suras which thereafter at any time during his life he may 
 become liable to pay in respect of those duties. Whether the deed of 
 charge could be executed before a liability to make a present payment 
 has actually accrued is perhaps doubtful, but the point is not of real 
 importance. 
 
Tkustees and Limited Ownees. 415 
 
 No question as to interest on such a charge, as to which the section § 39 (1). 
 is silent, would arise during the tenant for life's lifetime, because he is Interest on 
 bound to keep down the interest thereon [Re Hoive's Settled Estates, ^'^^^Se- 
 [1903] 2 Ch. 69), but after his death the payment of interest would 
 seem to be equitable. Interest at 4 per cent, is implied on an equitable 
 mortgage by deposit of title deeds, because such a deposit imports an 
 agreement to execute a legal mortgage of the property comprised in the 
 deeds with interest {In re Kerrs Policy, L. E,. 8 Eq. 331). In In re 
 Drax, Savile v. Drax, [1903] 1 Ch. 781, Cozens-Hardy, L.J., said at 
 p. 796 : " I am not aware of any case in which the Court has refused 
 to give interest on an equitable lien or charge, and I think the view 
 taken by Bacon, V.-C, in Lippard v. RicJcetts, 14 Eq. 291, is the 
 correct one." In that case the Vice-Chancellor held that a charge 
 given by an order of Court silent as to interest nevertheless carried 
 interest, saying that " it seems to follow that when the Court has once 
 decided that there is a charge, the sum charged must bear interest." 
 The case in favour of interest is, it may be, stronger under the language 
 of 8. 9 (6) of the Finance Act, 1894, which gives the payer "the like 
 charge as if the estate duty . . . had been raised by means of a 
 mortgage to him." Probably an express charge of interest by the 
 tenant for life would not aifect the question. 
 
 A trustee who has paid either increment value duty or reversion 
 duty, whether he executes such a charge or not, is, it is thought, 
 entitled to interest on any payment so made by him [Finch v. Prescott, 
 L.R. 17 Eq. 554). 
 
 And the Amount of any Expenditure which he may have reason- 
 ably incurred in connection with the Valuation. — It is not certain 
 whether these words will give the tenant for life all his expenses. 
 The word " valuation " is possibly not the equivalent of "assessment." 
 Would the tenant for life be entitled to the costs of disputing an 
 apportionment which he considered unfair to the settled property ; or 
 of disputing a determination of the Commissioners under s. 2 (2) (a) 
 or (6) as to the value of the consideration or of the fee simple, or in 
 contesting any other point arising in the assessment of the duty but 
 not being strictly a matter of valuation ? 
 
 It is suggested that he would be entitled, and that the word " valua- 
 tion " is here used not in the narrow sense of the ascertainment of gross 
 value, full site value, or total value (under s. 25), but in the wider sense 
 of the whole process by which the amount of the increment value under 
 ss. 1 and 2, or the "value of the benefit accruing to the lessor, etc." 
 under s. 13 (1), is ascertained. It will be noted that the words used are 
 not expenses "of the valuation," but "incurred in connection with the 
 valuation." 
 
 It is probable that the sub-section is not really needed for the 
 reimbursement of either tenants for life or trustees. By s. 21, p. 606, 
 
416 
 
 Land Clauses of the Finance Act. 
 
 § 39 (1). of the Settled Land Act, 1882, capital money arising under the Act, 
 subject to the payment of claims properly payable thereout, and to the 
 application thereof for any special authorised object for which the same 
 was raised, shall, when received, be invested or otherwise applied wholly 
 in one or partly in one and partly in another or others of the following 
 modes, namely {inter alia), " in payment of costs, charges and expenses 
 of or incidental to the exercise of any of the powers, or the execution of 
 any of the provisions of this Act." 
 
 Further, it cannot be doubted that under the ordinary rules or 
 practice of the Chancery Division a tenant for life acting in a matter in 
 which his duties were fiduciary, and a trustee, are entitled to a complete 
 indemnity for all expenditure properly made by them (see Settled Land 
 Act, 1882, s. 53, as to the fiduciary position of a tenant for life). 
 
 " The valuation " must (it is thought) mean the valuation on each 
 occasion when the duty so paid is assessed. It is, however, a possible 
 construction of the section that the words "and the amount of any 
 expenditure which he may have reasonably incurred in connection with 
 the valuation " do not refer to any valuation for the assessment or 
 ascertainment of the duties, but refer to the original site and total 
 valuation under s. 26, But it is thought that this view would not 
 prevail, since the section seems clearly limited to valuations connected 
 with the actual payments of the duties in question. 
 
 For reasons already stated it is not thought that a tenant for life or 
 trustee who acts reasonably for the protection of the estate, and in 
 accordance with the well-established rules of equity, is in any danger of 
 being held not entitled to his expenses incurred in relation to the 
 payment of the duties imposed by the Act. 
 
 And the Benefit of any such Charge may be transferred in like 
 manner as a Mortgage. — So that the transferee of svich a charge would 
 be enabled to take proceedings to enforce it without the necessity of 
 joining the person or the representatives of the person in whose favour 
 the charge was originally created, at all events if the charge were for 
 a sum named in the charge and paid before or on the execution thereof. 
 
 It is thought that the present is the appropriate place for the 
 following note on the position of trustees iu relation to the new duties. 
 
 Sale by 
 trustee. 
 
 Increment 
 value duty. 
 
 NOTE ON THE POSITION OF TRUSTEES IN RELATION TO 
 THE NEW DUTIES. 
 
 Increment Valub Duty. — Salb by Trustees. 
 
 On a sale by a trustee under s. 1 (a), whether the legal estate is vested 
 in him on trust for sale, or he sells under a power of sale contained in a 
 settlement, or as trustee for an infant under s. 60 of the Settled Land Act, 
 1882, increment value duty is payable in the usual way. The trustee 
 is in these cases a transferor under s. 4 (1) and (2). He is liable to pay 
 the duty under sub-s. (1), to present the instrument or reasonable 
 
Note on the Position of Tkustees. 417 
 
 particulars thereof for assessment under sub-s. (2), and in default to § 39 (1). 
 pay the penalty imposed by that sub-section. 
 
 If, however, a trustee merely joins in a conveyance for the purpose of Where trustee 
 conveying any estate, legal or otherwise, vested in him, as where A. is 
 seized in trust for B. in fee simple, and B. sells as equitable owner and 
 receives the purchase-money, A. joining in the transfer to the pur- 
 chaser for the purpose of conveying the legal estate, then under s. 41 
 (see the paragraph commencing " The expressions 'transferor,' etc.") he 
 is not a transferor within the meaning of the Act and is not liable for 
 increment value duty on the occasion of the sale in question. 
 
 So also where the trustees of a settlement, whether acting under the 
 powers of the Settled Land Acts or of a settlement, join in a conveyance 
 by a tenant for life or other owner having the powers of a tenant for 
 life for the purpose only of receiving and giving a receipt for the con- 
 sideration money, they are by virtue of the same paragraph of s. 41 not 
 transferors within the meaning of this Act, and therefore not liable 
 under s. 4 for the increment value duty. 
 
 Turning now to the case of a trustee who is a transferor, it is clear Precautions 
 
 that the probable amount of the liability on a sale for increment value , ^ f '^'^^'^."7 
 . ^ -^ , , trustee paying 
 
 duty is one of the matters which he must take into his general con- increment 
 
 sideration in determining (if he has a discretion) whether he will sell or ^*^"6 duty, 
 
 not, just as he must take the usual expenses of a sale into consideration. 
 
 On selling it will be his duty to take care that appropriate clauses are 
 
 inserted in the contract or conditions of sale, as the case may be, in 
 
 reference to increment value duty. The calculation of increment value 
 
 duty may take some time. Difficulties may arise in assessing the duty ; 
 
 the purchaser may desire to have some say as to the amount of increment 
 
 value duty on the occasion, for he is clearly interested in the question 
 
 of the amoimt then paid. All these matters must be considered by the 
 
 trustee before selling. 
 
 He must at all events guard himself against delay in the completion Must guard 
 
 of the contract through the assessment of increment value duty, that is, he ^S^^^^^ , ® . 7 
 ,,,.-,. •" ' in completion, 
 
 should provide in the contract that the purchaser should not be entitled 
 
 to be discharged in case the completion is delayed, and possibly might 
 also stipulate that the purchaser should pay interest on his purchase- 
 moneys in case of delay, other than that caused by the vendor's wilful 
 default in the payment of increment value duty. He should further 
 stipulate by the agreement, or provide in the conditions of sale, that the 
 purchaser shall be satisfied with the stamp referred to in (b) of s. 4 (3).* 
 He cannot any more than if he w^ere a person selling otherwise than as 
 a trustee agree that the liability to pay the increment value duty shall 
 be taken over by the purchaser, for such an agreement is void under s. 1 
 
 of the Kevenue Act, 1911 (p. 46). Further, it is the duty of the Must claim 
 
 for deduc- 
 * The present obliging practice of Somerset House in quickly placing Stamp (J) tions. 
 of s. 4 (3) on the document may not be permanent when increment becomes more 
 common. 
 
 N. 27 
 
418 
 
 Land Clauses of the Finance Act. 
 
 § 39 (1). 
 
 Must not 
 overstate 
 consideration. 
 
 As to ascer- 
 tainment of 
 gross and full 
 site values. 
 
 The 10 per 
 cent, reduc- 
 tion under 
 8. 3 (5). 
 
 Rights of 
 trustee who 
 has paid 
 increment 
 value duty. 
 
 trvistee to claim for all allowable deductions from the consideration, and 
 the value of the fee simple, as the case may be (s. 2 (2) (a) and (b) ), in 
 respect of expenditure made whether prior to or since April 30, 1909. 
 
 The calculation of deductions is on all " occasions " an entirely new 
 one. Expenditure creating improvements and allowed for as deductions 
 on a former occasion may, on this occasion, be more or less productive 
 than formerly. A trustee must not therefore overlook the fact that an 
 expenditure made by any predecessor in title, but not before allowed, 
 may, and therefore in the case of a trustee must, be specially claimed 
 for, if the increased value has only become evident and therefore capable 
 of deduction since the last occasion on which increment value duty was 
 paid. All deductions formerly allowed will again be claimed for by the 
 trustee, and may be allowed at a greater or less amount. 
 
 Even this statement of the duty of the trustee in relation to 
 deductions does not quite cover the whole position, for it appears that 
 any deduction may be claimed on any occasion, even though it might 
 have been but was not claimed on a former occasion, except a deduction 
 falling under s. 12 (see p. 148), which could have been, but was not, 
 claimed for the purpose of ascertaining the original site value of the 
 land. It would not, however, seem reasonable to expect trustees to 
 inquire into the existence of deductions capable of having been claimed 
 but not actually claimed on occasions previoiis to that on which the 
 trustee is under a liability to pay increment value duty. 
 
 A trustee for sale must also be careful not to overstate in the con- 
 veyance the value of the consideration on the sale, so as unnecessarily to 
 increase the amount of increment value and of increment value duty. 
 
 The amount of increment value duty payable on the occasion of a 
 sale or transfer necessarily involves the ascertainment of gross value and 
 full site value under s. 25 (1) and (2). The remarks subsequently made 
 as to the duty of trustees in relation to the original valuation of the 
 property may be taken as applicable mutatis mutandis to the valuations 
 and calculations made on the occasion of a sale (see p. 421). The trustee 
 should see that the assessment of the Commissioners gives proper credit 
 under s. 3 (1) for the amount of duty paid on previous occasions. The 
 duty is always treated as the excess of site value over the site value on 
 April 30, 1909, less the amount of duty paid [or deemed to have been 
 paid] on previous occasions (s. 2 (2) ; s. 3 (1) ). 
 
 A trustee must take care to see that the 10 per cent, reduction of 
 increment value under s. 3 (5) is duly allowed. He should further 
 consider whether in case the consideration is in the form of a periodical 
 payment he should avail himself of the option to pay by instalments 
 afforded by s. 4 (5) and the regulations issued thereunder (see p. 491). 
 
 A trustee is under s. 39 (1) " 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" increment 
 value duty or reversion duty, and the amount of any expenditure Avhich 
 
Note on the Position of Trustees. 419 
 
 he may have reasonably incurred in connection with the vahiation. In 8 39 (1). 
 
 case of a sale by trustees the increment value duty, even apart from 
 
 this section, may, it is submitted, be paid by them out of the proceeds 
 
 of sale of the land. It would seem to be just as much a part of the 
 
 expense of selling the land as the preparation of the conveyance and the 
 
 ordinary stamp duty. If a trustee or tenant for life does execute a 
 
 charge under s. 39 before selling the land, which, however, seems to be 
 
 a somewhat unnecessary proceeding, such charge is, it is conceived, an 
 
 incumbrance " affecting the inheritance of the settled land " within the 
 
 meaning of s. 21 (2) of the Settled Land Act, 1882, and trustees 
 
 may therefore it is thought apply capital moneys, including those 
 
 arising from the sale of the land in respect of which the increment 
 
 value duty is paid, in discharge thereof (see s. 21 (4), s. 22 (5), Settled 
 
 Land Act, 1882). 
 
 It is submitted with deference that the same is the case even if the 
 formality of executing a charge is not gone through. 
 
 Although s. 39 contains no reference to interest on such a charge, it 
 is conceived that it will carry interest (see note on p. 415). 
 
 It is apprehended that the express power to charge on the land tlie Extent of 
 amoimt of any expenditure which the trustee or tenant for life may charge, 
 have reasonably incurred " in connection with the valuation " does not 
 in any way cut down his right to a full indemnity out of the trust 
 estate for all expenses properly incurred by him in relation to all other 
 matters connected with the new taxation. 
 
 The charging provisions of s. 39 will be used by trustees who pay utilisation of 
 increment value duty on the death of a tenant for life under a will or s- 39. 
 settlement, or who on a sale or lease are content not to repay themselves 
 out of the proceeds of the sale or rent of the land, but to take a charge 
 on other land subject to the same settlement. There are, however, 
 difficulties on the express language of the section as to the right of a 
 trustee to a charge on portion A of land subject to a settlement for 
 duty paid by him on the sale of portion B of the same land and as to 
 the priority of any such charge. But it will not be conceived that there 
 is any doubt that either under the express words of s. 39, or under the 
 rules of the Courts as to the lien of trustees, a trustee who has properly 
 paid increment value duty will be entitled either out of the land itself 
 or the proceeds of sale of such land, or out of the other property subject 
 to the same trusts, to reimburse himself his payment. It is submitted 
 that as to payment of increment value duty a tenant for life is by virtue 
 of s. 53 of the Settled Land Act, 1882, in the same position as a trustee 
 for sale. 
 
 A trustee for sale must consider whether the land is entitled to any 
 one of the various exemptions from increment value duty (see p. 6). 
 
 It may be the duty of the trustee before selling to require under Apportion- 
 s. 29 (2) an apportionment of the original site value, and under s. 3 (1) "^^fi*- 
 an apportionment of any duty previously paid. It is impossible here to 
 
 27—2 
 
420 Land Clauses of the Finance Act. 
 
 § 39 (1). consider the numerous cases under which such a duty might arise. It 
 may also be the duty of the trustee to consider any apportionments of 
 duty made by the Commissioners under s. 3 (1) at the instance of other 
 persons with a view to appealing from the same if they are thought to 
 be unfair to the trust estate. 
 Trustee The special duties of a trustee who is exercising a power of leasing in 
 
 leasing. relation to increment value duty can be sufficiently gathered in outline 
 
 from the foregoing remarks as to sales by trustees. 
 
 Increment Value Duty. — Purchase by Trustees. 
 
 Purchase by a If a trustee in pursuance of his trust purchases property, the question 
 trustee. arises what precautions (if any) he should take to secure that his 
 
 vendor pays increment value duty to the full amount due at the date 
 of the transfer on sale. The amount of increment value duty then 
 payable depends mainly upon the valuations under s. 25 (1) and (2) of 
 gross value and full site value, the estimate of the value of the con- 
 sideration for the transfer under s. 2, and the deductions to be allowed 
 from that value under s. 25 (4). 
 As to the The value of the consideration for the transfer must be stated by 
 
 statement of ^j^g vendor, i.e., the transferor, under s. 4 (2), to the Commissioners. 
 
 the considera- ' ' ' ^ ■" 
 
 tion. Apparently there is nothing in the Act giving the purchaser power to 
 
 inform the Commissioners as to the value of the consideration, so that 
 he seems to have no power to check an under- estimate by the vendor. 
 The gross value and full site value are ascertained by the Commissioners 
 themselves, subject of course to appeal by the vendor. The purchaser 
 appears again to have no locus standi to be heard on the assessment by 
 the Commissioners under s. 2 (2) (a) and {b), involving an application 
 of s. 25. Assuming for a moment that the case is otherwise, then the 
 Must the question arises whether the purchaser, being a trustee, ought to check 
 
 the Commissioners' gross and full site valuations, and also to ascertain 
 that the full value of the consideration has been stated to the Com- 
 missioners. If any duty is placed upon a purchasing trustee in respect 
 of either of these two matters, his position will be very difficult. For 
 the present perhaps the only general advice which can be given him is 
 that he should first ascertain what increment value duty, if any, is 
 proposed to be paid by his vendor, and then, if there is nothing to give 
 him notice that either the consideration has not been fully stated, or 
 that a mistake, prejudicial to the purchaser, has been made in the 
 valuation of gross and full site values, that he need not take any steps 
 in relation to the proposed payment of increment value duty, but may 
 assume that the duty has been fairly assessed. An action by his cestui 
 que trust in the future to render a trustee liable because he did not 
 compel his vendor to pay the full amount of increment value duty, 
 whereby a larger amount of duty remained to be paid out of the trust 
 estate on a future occasion, presents many features of difficulty, and it 
 is not thought that purchasing trustees who act with a reasonable 
 
 valuations be 
 checked ? 
 
Note on the Position of Tbustees. 421 
 
 amount of prudence are incurring any responsibility in relation to the § 39 (1). 
 payment of increment value duty. 
 
 Although s. 4 (4), providing that any duty actually assessed by the ^^ ^^^y 
 Commissioners under the section is on svibsequent occasions where assessed under 
 increment value duty is claimed to be deemed to be paid, would seem s. 4. 
 not to cover a case in which a document has been stamped with the 
 stamp referred to under (6) of s. 4 (3), unless the Commissioners have 
 also assessed the duty (sub-s. (4) ), yet it is thought that the Commis- 
 sioners would not claim, and the Court would probably not enforce any 
 claim by them for duty in respect of which a stamp under (b) had been 
 placed on a document. It is thought that the Commissioners would be 
 considered to have done their duty and made the assessment. It is 
 therefore thovight that a trustee-purchaser may accept safely a document 
 stamped with the stamp referred to under (6). 
 
 Trustee-purchasers must carefully consider the vendor's proposals in 
 the contract or conditions of sale as to payment of increment value duty 
 before they agree to bviy. Whether they should assent to a clause 
 making them pay interest until completion in case of delay (other than 
 that arising from the vendor's wilful default) caused by the assessment 
 of increment value duty should be a matter of careful consideration. 
 
 If such a clause is accompanied by a stipulation on the part of the 
 vendor to fvirnish the Commissioners with all reasonable diligence with 
 such particulars as the Commissioners require to enable them to put the 
 stamp under s. 3 (4) (b) on the conveyance, it is suggested that it could 
 be accepted. 
 
 Valuations — Original (Sect. 26) and Periodical (Sect. 28). 
 The duties of a trvistee in relation to the general valuations under ^^i^^^es as to 
 clauses 26 (original) and 28 (quinquennial) require careful consideration, valuat'^n!*^ 
 The Government valuation will show the four values of the property 
 referred to in s. 25 (1) to (4). The first two values, gross value and full 
 site value, must necessarily be shown, because they are steps in the 
 ascertainment of total value and assessable site value. In order to 
 ascertain these values a return will be required from the ownei's under 
 s. 26 (2), and this return must be properly filled in by the trustees. 
 The unit of valuation is separate occupation. If the owner so requires, 
 any part of any land which is under separate occupation is to be 
 separately valued. The trustees must, therefore, carefully consider this 
 right of the owner to separate valviation. Nevertheless, usually owners' 
 interests do not point to small units of valuation. For the purposes of 
 undeveloped land duty the larger the unit of valuation the better for 
 the owner ; the greater the chance of coming below the 50^. per acre 
 limit and of reducing the average value of the unit valued. For the 
 purpose of increment value duty this is also for the most part the case. 
 The increment on one portion of the property may thus naturally come 
 to be set off against the decrement on another portion in case of a sal© 
 
422 
 
 Land Clauses of the Finance Act. 
 
 As to the 
 estimate of 
 original total 
 or site value. 
 
 § 39 (1). of the whole. But if there has been no decrement on any of the 
 property, then it is immaterial for the purposes of increment value duty 
 whether the property is valued as a whole or in portions. Owners, it 
 will be noted, have now a certain limited power of requiring contiguous 
 land in separate occupations . to be valued as an aggregate (see the 
 Revenue Act, 1911 (1 Geo. 5, c. 2), s. 5). Trustees mvxst consider 
 whether they can utilise this provision (see ante, p. 315). 
 
 The trustees must also consider whether under s. 26 (3) it is advisable 
 for them to furnish to the Commissioners their estimate of the total 
 value or the site value, or both, of the land. If without expert advice 
 as to the value of the land they hesitate to place a value upon it on 
 the original valuation, they must then consider whether from a pecuniary 
 point of view it is worth while incurring the cost of expert evidence. 
 They should, it is tliought, on this point consult such of their cestuis 
 qtie trust as are of full age. It would seem that expenses of the original 
 valuation should not be paid out of income, but out of capital, although 
 in practice if those expenses are slight they will probably be usually 
 paid by trustees out of income. This view, however, must be considered 
 to be simply a suggestion by the writer. 
 
 One consequence of placing an estimate upon the land is that it is 
 quite possible that the owner's estimate will be accepted by the Com- 
 missioners on the original valuation. 
 
 Nevertheless, as the interests of tenant for life and remainderman 
 may not always be identical so far as regards increment value duty and 
 undeveloped land duty, trustees will be cautious in any estimate of 
 value made by them. No rule can be attempted to be laid down as to 
 whether trustees should or should not put an estimate on the land. 
 Whether they shall do so or not must depend on a careful consideration 
 of all the facts. 
 
 Trustees must carefully consider what deductions they propose to 
 
 claim for on the original site valuation (see Form 7, Appendix, p. 514). 
 
 If they fear mainly increment value duty, they will not be specially 
 
 anxious as to claiming for deductions for expenditure previous to 
 
 April 30, 1909. They will wish the original site value to be a high 
 
 one. But of course those deductions can, if claimed on the original site 
 
 valuation, be claimed on all subsequent occasions for payment of 
 
 increment value duty. If, on the other hand, they chiefly fear the 
 
 undeveloped land duty, they will desire a low site value, and will claim 
 
 as on April 30, 1909, for as many deductions as possible. It may, 
 
 however, be pointed out that to elect for a low site value is more risky 
 
 than to elect for a high site value. The original low site value may be 
 
 increased in five years' time on the periodical valuation (under s. 28) for 
 
 the purposes of undeveloped land duty. For the purposes of increment 
 
 value duty it will remain for ever. 
 
 The pro- When the Commissioners have made their provisional valuation under 
 
 visional valua- s. 27 (1) it must carefully be considered by the trustees, and the 
 tion. 
 
 Claim for 
 deductions 
 
Note on the Position of Trustees. 423 
 
 question of expert advice on the subject will again arise. If the trustees § 39 (1). 
 consider it proper to make objections to the provisional valuation, and 
 if these are overruled by the Commissioners, they may have to consider 
 whether an appeal should be made to the referee. The matter must be 
 considered by them on the same lines as they would consider the com- 
 mencement of an action in relation to the trust estate. If their cestuis que 
 trust are all sui juris, and approve an appeal, they will make it with 
 their formal consent. If the consent of all the cestuis que trust in esse 
 and in posse cannot be obtained, then, unless the matter is too clear for 
 any question to be raised in the future, the trustees should, before 
 appealing, obtain the direction of the Court on an originating summons 
 under Order LV., r. 3. Before the trustees think of appealing to the 
 referee they should do their best by negotiation to get the Commis- 
 sioners to alter the provisional valuation. 
 
 If the trustees take only an interest in remainder in the land, they Trustees of 
 should under s. 27 (5) (see note to such section relating to the status of remainder, 
 remaindermen in relation to the valuation, ante, p. 328) apply for a 
 copy of the provisional valuation, and the remarks in the last paragraph 
 will then generally apply to their duties in relation to such valuation. 
 
 Reversion Duty. 
 
 When the reversion expectant on a lease is vested in trustees, and the Trustees' duty 
 lease determines, the trustees should comply with s. 15 (2), and, unless the sion^ty. 
 case is clearly within one of the exemptions referred to on p. 155, should 
 deliver an account to the Commissioners setting forth the particulars of 
 the land and the estimated value of the benefit (if any) accrviing to the 
 lessor by the determination of the lease (see the Form on p. 523) ; and if 
 they do not do so they will incur the penalty enacted by sub-s. (3) of the 
 same section. In such a case they would probably not be entitled to 
 reimburse themselves the penalty out of the trust estate. In the 
 return they must properly and to the best advantage of the trust estate 
 set forth the total value of the land at the time of the original grant of 
 the lease, based on the matters referred to in s. 13 (2). Premiums are 
 sometimes paid on the grant of leases and not mentioned on the face of 
 the leases themselves. Trustees should, if possible (it will generally 
 not be possible), ascertain whether this was the case in respect of the 
 lease in question. With regard to the ascertainment of the total value As to ascer- 
 of the land at the time the lease determines the remarks on p. 421 ^Q^!J{"^^|ye^oQ 
 with reference to the position of the trustees as regards the general determination 
 valuation will mutatis mutandis apply. The trustees will be careful to o^ ^ease. 
 ascertain whether any part of the total value at the expiration of the 
 lease is attributable to works executed, or expenditure of a capital 
 nature incurred, by the lessor during the term of the lease, and they 
 will, of course, deduct any compensation payable by them at its 
 determination (s. 13 (2) ). They should consider whether they are able 
 
424 
 
 Land Clauses of the Finance Act. 
 
 § 39 (1). 
 
 Charge for 
 reversion duty 
 paid by 
 trustee. 
 
 Equitable 
 tenant for 
 life in 
 
 to avail themselves of any of the exemptions from or mitigations of 
 duty contained in s. 14. If they claim exemption on the ground 
 that there was no benefit accruing to them on the determination 
 of the lease, they had better send in the account, setting out the figures 
 upon which they arrived at their conclusion. 
 
 Under s. 39 (1) a trustee who has paid reversion duty is entitled to 
 charge the amount paid by him together with the amount of any 
 expenditure which he may have reasonably incurred in connection with 
 the valuation on the settled land. As to the scope of this power see 
 ante, p. 414. 
 
 Undeveloped Land Duty. 
 
 This duty, being an annual duty, and there being no power in a 
 trustee or tenant for life who has paid it to charge the property with 
 the amount so paid, as in the case of increment value duty or reversion 
 duty under s. 39 (1), it is conceived must be paid by the triistees in 
 whom the land is vested out of income. It will be the duty of the 
 trustees to consider the various exemptions from or mitigations of duty 
 contained in ss. 16, 17, and 18 with a view to claiming the benefit of any 
 of them which may be applicable. 
 
 It has been assumed that trustees in whom land is vested come within 
 the meaning of the expression "owner," which under s. 41 means the 
 person entitled in possession to the rents and profits of the land in 
 virtue of any estate of freehold. In certain cases, however, trustees are 
 justified in placing, and the Court will even order them to place, an 
 equitable tenant for life in possession of the land, so that he, and not 
 the trustees, actually receives the rents and profits (see Be Wythes, West 
 V. Wythes, [1893] 2 Ch. 430 ; Re Bagot, Bagot v. Killoe, [1894] 1 Ch. 
 177 ; Be Newen, Newen v. Barms, [1894] 2 Ch. 297). If a tenant for 
 life is let into possession under such circumstances that the Court would 
 hold that he was entitled to possession (under the cases cited above), 
 it is conceived that he is personally liable for the undeveloped land 
 duty, and that the trustees are not liable ; but this cannot be 
 considered free from doubt. 
 
 If a tenant for life on a sale pays the increment value duty out 
 of his own pocket, the trustees of the settlement will probably be 
 justified in repaying it to him at once out of the proceeds of the 
 property which is paid to them, without his going through the formality 
 of executinga charge under s. 39 (1) (see Settled Land Act, 1882, s. 21 [x) ). 
 
 The same remark is applicable mutatis mutandis to the payment of 
 reversion duty by a tenant for life. 
 
 Mineral Rights Duty. 
 
 This duty also appears to be in the same category with undeveloped 
 land duty. 
 
 If the minerals are being worked by the trustees as proprietors 
 thereof, they must carefully consider the rental value as fixed by the 
 
Note on the Position of Trustees. 426 
 
 Commissioners under s. 20 (2), and apply to its consideration the same § 39 (!)• 
 principles as those which it is suggested on p. 421 they should apply 
 to the consideration of the original valuation by the Commissioners. 
 If they are immediate or intermediate lessors, who themselves pay a 
 rent to a lessor for the minerals, they must of course make any deduc- 
 tions from the rent they pay which under s. 21 {ante, p. 227) they 
 are entitled to make. The annual increment value diity on minerals 
 payable imder s. 22 (3) must in a case where it is payable by trustees 
 be treated on similar principles as mineral rights duty, and the set- 
 off conferred by s. 22 (6) must be claimed. Trustees may have to 
 consider the questions raised (see p. 262) as to whether working alone, 
 no occasion arising under s. 1, gives rise to a claim for this duty. 
 
 Trustees for Charitable Purposes. 
 
 These trustees must, in addition to noting the foregoing remarks, 
 generally avail themselves of the special exemptions conferred upon 
 them by s. 37 (1). 
 
 Trustees for the Purposes op the Settled Land Acts. 
 
 If a tenant for life has executed a charge on the settled property 
 under the provisions of s. 39 (1), it will be the duty of these trustees to 
 satisfy themselves that the charge has been executed to secure duties 
 properly paid by the tenant for life. If in the opinion of the trustees 
 this is not the case, they must dispiite the charge by declining to pay 
 out of capital moneys, and possibly with the consent of the Court, or all 
 their cestui que trusts, by commencing proceedings to set it aside (see 
 notes on p. 421). 
 
 (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. 
 
 A Deed executed, etc. — In order, it may be assumed, that the 
 trustees may have an opportunity of disputing the charge as not 
 warranted by this section. Of course if the trustees of the settlement 
 have themselves sold and executed the charge, this sub-section is not 
 capable of being applied. 
 
 Trustees of the Settlement for the Purposes of the Settled Land 
 Act, 1882. — For the persons who are such trustees, see Settled Land 
 Act, 1882, s. 2 (8), s. 38, s. 63 (1) (Appendix, p. 606); see also Settled 
 Land Act, 1890, s. 16. If there are no such trustees in existence, then 
 new trustees should be appointed either under the instrument creating 
 the settlement, or under the statutory power of s. 10 of the Trustee Act, 
 1893, or by the Court under s. 38 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 
 
426 Land Clauses of the Finance Act. 
 
 § 39 (3). 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. 
 
 Sections 59, 60, and 62 of the Settled Land Act, 1882, are as 
 follows : — 
 
 s. 59. Where a person who is in his own right seised of or entitled 
 in possession to land is an infant, then for the purposes of this Act the 
 land is settled land, and the infant shall be deemed tenant for life thereof. 
 
 s. 60. Where a tenant for life, or a person having the powers of a 
 tenant for life under this Act, is an infant, or an infant would, if he 
 were of full age, he a tenant for life, or have the powers of a tenant for 
 life under this Act, the powers of a tenant for life under this Act may 
 he exercised on his behalf by the trustees of the settlement, and if 
 there are none, then by such person and in such manner as the Court, 
 on the application of a testamentary or other guardian or next friend 
 of the infant, either generally or in a particular instance, orders. 
 
 s. 62. Where a tenant for Kfe or a pei'son having the powers of a 
 tenant for life under this Act, is a lunatic, so found by inquisition, the 
 committee of his estate may, in his name and on his behalf, under an 
 order of the Lord Chancellor or other person instructed by virtue of the 
 Queen's sign manual with the care and commitment of the custody of the 
 persons and estates of lunatics, exercise the power of a tenant for life 
 under this Act; and the order may be made on the petition of any 
 person interested in the settled land, or of the committee of the estate. 
 
 Sections 60 and 62 are in fact the only sections of the three set out 
 which actually relate to the exercise of powers on behalf of infants and 
 lunatics. Sect. 59 makes that to be settled land in the case of an 
 infant which would not except for that section be settled land. 
 Sect. 39 (3) of the 1910 Act in eflFect provides that the powers 
 exercisable by virtue of ss. 60 and 62 of the Settled Land Act, 1882, by 
 the respective persons named in those sections in relation to the settled 
 lands of infants and lunatics, are to include the power conferred txpon 
 trustees and tenants for life by s. 39 (1). 
 
 The question may arise whether s. 62 of the Settled Land Act, 1882, 
 caiTying with it the power conferred by s. 39 (1) of the Act of 1910, is 
 one of the powers which may be exercised by virtue of s. 1 of the Lunacy 
 Act, 1908, by a receiver of the property of a person not found a lunatic by 
 inquisition and mentioned in s. 116 (1) of the Lunacy Act, 1890 (53 & 
 45 Vict. c. 5). It is submitted that it is, notwithstanding that it is a power 
 created subsequently to the Act of 1908, and that In re Baggs, [1894] 
 C. A. 2 Ch. 416, n., and In re De Moleyns, etc., Contract, [1908] 1 Ch. 
 110, are no longer law. An order in lunacy must be obtained for the 
 exercise of such a power as provided by s. 1 of that Act. 
 
 (4) Where the fee simple of any land or any interest 
 
Infants and Lunatics. 427 
 
 in land in respect of which increment value duty or § 39 (4). 
 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. 
 
 In respect of which Increment Value Duty or Reversion Duty is 
 charged is vested in a Mortgagee who is liable to pay.— A 
 
 mortgagee selling under his power of sale, or exercising his leasing 
 powers when in possession, is doubtless a transferor, or lessor, as the 
 ease may be, liable to duty under s. 4 (1). But if he joins in the 
 conveyance with the mortgagor solely for the purpose of conveying the 
 legal estate, and does not receive any portion of the purchase-money, he 
 is clearly not liable for increment value duty as a transferor (s, 41, 
 paragraph "The expression ' transferor,' etc."). If he both conveys the 
 legal estate and receives the pvirchase-moneys, it is still thought he 
 is not liable for increment value duty, but that the mortgagor is alone 
 liable ; but this is not quite clear. 
 
 A mortgagee with the legal estate of the immediate reversion 
 expectant vipon a lease w^hich has determined is probably, under s. 41, 
 paragraph " The expression ' lessor,' etc.," liable to pay the reversion 
 duty. This will be the case whether the reversion is freehold or lease- 
 hold, subject of course to the various conditions limiting liability 
 under s. 14. 
 
 The substance of sub-s. (4) would probably be implied by the 
 Court under existing law without the aid of the sub-sectjon. A 
 mortgagee in possession is, it is thought, liable to pay undeveloped land 
 duty under the definition of "owner" in 8.41. Why then should 
 this sub-section not have been extended to undeveloped land duty 1 It 
 may, it is thought, be assumed that the Court will apply the usual rule as 
 to payments in relation to the security by a mortgagee, and, if a mortgagee 
 is obliged to pay undeveloped land duty, will allow him to add that 
 payment to his mortgage. It is, however, to be noted that undeveloped 
 land duty as well as increment value duty and reversion duty are not 
 charges on the property, but collateral obligations on the person for the 
 time being owner, transferor, or lessor, as the case may be. As, 
 however, the mortgagee, if he be the owner, would be liable to process 
 of execution for the unpaid undeveloped land duty, it is thought that he 
 would be entitled to add it to his debt. 
 
 As to the position of mortgagees generally, see post, p. 452. 
 
 (5) In Scotland, where any person having a limited 
 interest in the land or interest in land in respect of 
 
428 Land Clauses of the Finance Act. 
 
 § 39 (6). 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. 
 
 Section 40. 
 
 § 40. 40. The following provisions shall have effect with 
 
 -*;,ppiica^ion respcct to the application of this Part of this Act to copy- 
 copyholds. holds, including customary freeholds : — 
 
 (1) In the case of copyholds of inheritance, and copy- 
 
 holds held for a life or lives or for years where 
 the tenant has a right of renewal, and customary 
 freeholds — 
 
 {a} The total and site values of the land 
 shall be ascertained as if the land were free- 
 hold 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 ; 
 
 (h) Eeferences 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. 
 
Copyholds. 429 
 
 Copyholds, including Customary Freeholds. — " Copyholds have been § 40- 
 commonly distinguished into two classes, namely, copyholds proper and 
 customary freeholds, being respectively pure copyholds and privileged 
 copyholds. But the distinction between the two is very slight in itself, 
 and is of still lighter practical importance, consisting principally in this, 
 namely, that copyholds proper are held not only according to the custom 
 of the manor {secundum consuetudinem manerii) but also at the will of 
 the lord (ore? voluntatem domint), whereas customary freeholds are held 
 according to the custom of the manor, but are not (or, at least, are not 
 expressed to be) held also at the lord's will ; and to that distinction 
 there are incident some few distinctions of a technical character, relative 
 to pleading and the like. But beyond that there are no grounds of 
 distinction between pure and privileged copyholds when the latter are 
 held by copy of court roll, and pass by surrender and admittance or by 
 deed of grant or bargain and sale and admittance, the freehold, in the 
 case of each, being vested in the lord and not in the tenant " (see Scriven 
 on Copyholds, 7th ed., p. 43). 
 
 In the Case of Copyholds of Inheritance, and Copyholds held for a 
 Life or Lives or for Years where the Tenant has a Right of Reaewal. 
 
 — Copyholds can only exist in lands which are held by copyhold tenants. 
 If the lord of the manor acquires by escheat, forfeiture, purchase, or 
 otherwise the estate of a copyholder, such estate is immediately merged 
 in the lord's estate and extinguished (Burton, § 1341 ; 1 Cruise 6, 
 10, ch. 1, s. 62), that is, it becomes in the hands of the lord a freehold 
 in possession. But the lord may, unless he has once made an alienation 
 of the land as freehold, regrant it as copyhold (Burton, § 1344). This 
 section therefore relates to the application of the Act to copyholds or 
 customary freeholds which are held on copyhold or customary tenure 
 by tenants of the manor. 
 
 Originally all copyholds were estates at will. But by custom in Varieties of 
 almost all manors, copyholds of inheritance, i.e., in (quasi) fee simple or gst^es 
 (quasi) fee tail, exist, and where they exist the tenant has a customary 
 estate analogous to an estate of the same name in lands of freehold 
 tenure, but subject to any special customs of the manor in question. In 
 the absence of any custom to the contrary the lord has the right to all 
 mines and minerals under the land and to all trees and timber growing 
 upon it. But the lord may not enter on the copyhold for the purpose 
 either of opening the mines or cutting the timber. Further, the lord 
 possesses other rights, such as the right to fines on alienation and to 
 heriots on death. Sometimes he has a right to a small rent. These 
 rights to timber, mines, rents, fines, heriots, and other things are the 
 subject-matter of the deduction referred to in sub-s. (1) (a). 
 
 In some manors, however, there exists no custom that copyholds may Tenant right 
 be held for quasi fee simple or fee tail estates. In such manors the ^8*^*^^' 
 place of such estates is taken by renewable life estates known as tenant 
 right estates. By custom the tenant can from time to time compel the 
 
430 
 
 Land Clauses of the Finance Act. 
 
 §40. 
 
 Where the 
 tenant is 
 " owner." 
 
 Unrenewable 
 life copyholds. 
 
 Where copy- 
 holder is 
 owner. 
 
 lord to renew the lives for which the estate is held. These estates are 
 treated for the purposes of the Finance Act, 1910, in the same category 
 with copyholds of inheritance (s. 40 (1) {a}), for clearly if the tenant 
 has a perpetual right of renewal his interest is practically equivalent to 
 such an estate, subject of course to any deduction which should be 
 made from its value on account of the frequent fines which must be 
 paid to the lord on the renewal of the lives. 
 
 In the case of these two classes of copyholds (together with customary 
 freeholds) the copyhold tenant is treated by s. 40 (1) as being in the 
 position of owner for the purposes of this Act (sub-s. (1) (b) ). His 
 position is, it is evident, more analogous to that of an owner of a free- 
 hold than to that of a lessee for a term of less than fifty years to run. 
 But of course the value of the property to him is diminished by the 
 existence of the lord's rights ; and this is expressed by the direction in 
 sub-s. (1) (a) that the original total and site values are to be ascertained 
 as if the land were freehold land, subject to a deduction of the sum 
 which it would cost to enfranchise the land. As the tenant has, under 
 existing statutes, the right to compel enfranchisement, the value so found 
 represents the real value to the tenant of the land (see note on p. 431). 
 
 So far as sub-s. (1) is concerned, the interest of the lord is practically 
 considered to be something in the natui'e of a fixed charge within the 
 meaning of s. 41, as applied to total value by s. 25 (3). Subject to this 
 fixed charge the interests in the copyholds analogous to those in freeholds 
 are treated as the taxable subjects of the duty. 
 
 There is yet a third class of copyhold manor in which neither 
 customary estates of inheritance nor life estates with perpetual rights 
 of renewal are allowed, but where the only interest which a tenant can 
 have is an interest for a life or lives or for years. When that interest 
 once expires, the lord may resume possession of the land and hold 
 the same for his own freehold. The writer does not know whether 
 many instances of this wasteful tenure still remain. It is this third 
 class of cases which is dealt with in sub-s. (2). The tenant's interest is 
 treated as a leasehold interest. If he holds for a life or lives, the length 
 of his term will be ascertained under s. 41, paragraph " The term of a 
 lease." The lord is in fact the substantial owner of the fee subject to 
 the lease to the copyholder. He is, subject as presently mentioned, 
 the owner within ss. 26 and 27. He must make the return required 
 by s. 26, and may require the separate valuation xmder sub-s. (1) of that 
 section, and the joint valuation under s. 5 of the Revenue Act, 1911. He 
 must be served with the provisional valuation under s. 27, and possess 
 the rights of objection and appeal conferred upon owners thereby. 
 
 If the length of the copyholder's term, calculated under the para- 
 graph of s. 41, "The term of a lease," exceeds fifty years unexpired, 
 probably the tenant is the owner, the lord being also the owner by 
 virtue of sub-s. (7) of s. 27 ; but such a state of things is not, it is 
 thought, likely often to exist. 
 
Copyholds. 431 
 
 And Customary Freeholds. — Customary freeholds (see last note) § 40. 
 clearly fall within the category of cases in which the tenant is sub- 
 stantially the owner, and is so treated by s. 40 (1). 
 
 The Total and Site Values shall be ascertained. — See s. 25 as to 
 
 the ascertainment of total and site value. 
 
 As if the Land were Freehold Land. — That is, no deduction will 
 be made under s. 25 (1) from gross value for the fact that the timber 
 belongs to the lord, or that the tenant has to pay fines, and is liable to 
 heriots and other copyhold incidents of tenure. The minerals, if there 
 are any, do not form an element in "gross value," since under s. 23 (2) 
 they are to be treated as a separate parcel of land. The deductions for 
 timber and for fines, etc., are made subsequently to the ascertainment 
 of total and site values under the following words of the sub-section 
 commented on in the next note. 
 
 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. — Enfranchisement of copyholds may take place 
 under the common law, or under the provisions of the Copyhold Act, 
 1894, ss. 1 to 41 inclusive. The former method is effected by a con- 
 veyance of the freehold to the tenant, or by a release to the tenant of 
 all the lord's seignorial rights or interest in the land. Enfranchisement 
 in this method usually arises from a bargain between lord and copy- 
 holder. The consideration, from an economic point of view, would 
 doubtless be the sum which would be paid to the lord if the machinery 
 for compulsory enfranchisement under ss. 1 to 13 of the Copyhold 
 Act, 1894, were put into force. 
 
 It is this last-mentioned svim, together with perhaps the hypothetical 
 expenses of enfranchisement under s. 34 (1) of the Copyhold Act, 1894 
 (57 & 58 Vict. c. 46), which is, it is suggested, the amount of the deduc- 
 tion to be made imder s. 40 (1) (a) of the Act of 1910. Under s. 34 (1) 
 the expenses of a compulsory enfranchisement are to be borne by the 
 person who requires the enfranchisement ; and under s. 34 (3) the 
 expenses of a voluntary enfranchisement are to be borne by the lord and 
 tenant in such proportions as they agree, or in default of agreement as 
 the Board of Agriculture directs. The latter words of s. 40 (1) (a) of 
 the 1910 Act seem to indicate that what is to be deducted is the 
 amount which enfranchisement would cost a tenant, i.e., the owner, who 
 put into force the compulsory sections of the Act. 
 
 Sect. 6 of the Copyhold Act, 1894, points out the matters which the Matters to be 
 valuer or valuers must take into accoiint for the purpose of ascertaining t^-l^en into 
 the compensation for a compulsory enfranchisement, i.e., the facilities enfianchise- 
 for improvements (which copyholders often cannot effect, except by ment. 
 committing waste and incurring a forfeiture), customs of the manor, 
 fines, heriots, reliefs, quit rents, chief rents, the liability to forfeitures, 
 and all other incidents whatsoever of copyhold or customary tenure, 
 
432 Land Clauses of the Finance Act. 
 
 § 40. and all other circumstances affecting or relating to the land included 
 in the enfranchisement, and all advantages to arise therefrom. But no 
 exception or allowance is to be made from the value of the lord's right 
 of escheat, which by s. 21 (1) (b) is preserved to the lord after enfran- 
 chisement. Nor is the lord's right to the minerals and any rights he 
 may have of getting the minerals, limestone, clay, stone, and gravel 
 taken away without his express consent in writing (s. 23 (1) ). As, 
 however, minerals are not included in either gross, full site, total, or 
 assessable site values, as ascertained under s. 25, but are to be valued 
 as a separate parcel of land under s. 25 (2), it seems clear that the 
 absence of any deduction from total and site values on account of 
 minerals does liot affect the question. Difficulties may, however, possibly 
 arise in estimating the total value of copyhold land containing clay, 
 limestone, stone, or gravel, if not minerals, over which the lord may have 
 rights. The provisions of s. 23 (1) of the Copyhold Act, 1894, are not 
 in all respects easy of application to valuations under s. 40 (1) (a) of 
 the Act of 1910, but want of space and the probability that difficulties 
 will not often arise make it advisable not to do more in this place than 
 draw attention to the section referred to. The provisions for the 
 appointment of valuers and an umpire in the case of compulsory 
 enfranchisement, where the lord and tenant do not agree the amount of 
 compensation, are contained in s. 5 of the Copyhold Act, 1894. 
 
 It is submitted that it is a sum hypothetically fixed by such valuers 
 or umpire and adopted by the Board of Agriculture as the basis of 
 the compensation payable under their award of enfranchisement under 
 s. 10 of the Copyhold Act, 1894, together with the expenses of enfran- 
 chisement, payable by the tenant under s. 34 (1), which would be the 
 amount of the deduction to be made under s. 40 (1) («).'•' But it would 
 seem that if the copyholder wishes for a high original site value he 
 need not claim the deduction, and it seems doubtful whether the 
 Commissioners could then make it. The deduction is to be " proved to 
 the Commissioners." 
 
 As assessable site value under s. 25 (4) and site value on an occasion 
 arising for payment of duty under ss. 1 and 2 are arrived at by deducting, 
 as the case may be, from total value and one of the values referred to in 
 s. 2 (a), (b), or (c), taking the place of total value, the difference between the 
 amount of the gross value and full site value, which will include the value 
 of the timber and growth, care must, it is thought, be taken not to deduct 
 any portion of the amount referred to in s. 40 (1) (a) more than once. 
 
 (6) References to the Fee Simple of Land shall be treated as 
 References to the whole Copyhold or Customary Interest or Estate. — 
 There is no real fee simple or fee tail, but only a qttasi fee simple or fee 
 
 * For the matters to be taken into account in fixing the covipensat'ion payable to 
 the lord on the enfranchisement of copyhold lands required under the Lands Clauses 
 Act, 1845, see s. 96 of that Act. It is not thought that the section is applicable 
 by analogy to valuations under the Act of 1910. 
 
Copyholds. 433 
 
 tail in copyholds. Further, the words are intended to cover the case § 40- 
 of copyhold tenements held for lives or years with a perpetual right of 
 renewal (see ante, p. 429). 
 
 (c) Definition of " Owner." — For the words in the general definition 
 of owner (s. 41, p. 458) "person entitled to the rents and profits 
 of the land in virtue of any estate of freehold " will be substituted, in 
 the case of copyholds, " person entitled to the rents and profits of the 
 land as tenant by copy of court roll, or customary tenure." Such a 
 person may be either a quasi tenant for life, in tail, or in fee entitled in 
 possession. 
 
 Paragraph (c) simply adjusts the definition of owner in s. 41 to copy- 
 hold lands. Except by special custom or licence of the lord, a copy- 
 holder may not lease his lands for a longer period than one year, without 
 incurring a forfeiture. Long leases of copyholds are therefore rare, but 
 where there is such a lease with over fifty years unexpired the lessee 
 will be the owner within the meaning of the Land Clauses. 
 
 The position of the lord in relation to copyholds falling within 
 s. 40 (1) appears to be this. He is seised of the freehold of the copy- 
 hold land as distinguished from the minerals. But under s. 40 (1) that 
 copyhold land is apparently to be treated as if it were freehold and the 
 tenant were the owner, subject to a sort of a fixed charge in the lord. 
 The intention seems to be to ignore the lord's seignory altogether in 
 respect of increment duty and not to treat it as land or an interest in 
 land within ss. 1 and 2. But the point is very obscure. 
 
 The property in the minerals is in the lord, who may not get them 
 except by special custom. It is thought that the minerals may be 
 valued as a separate parcel of freehold land under s. 23 (2), but of 
 course subject to the liability of the lords having to pay for the right to 
 work them. If the tenant has by custom a proprietary right in the 
 minerals (see p. 259), it is thought that he must be treated as owner in 
 fee for tlie purpose of increment value duty. 
 
 The copyholder, therefore, in cases falling within s. 40 (1) is liable 
 to pay increment value duty under s. 1, undeveloped land duty under 
 s. 16, and in case the minerals by express custom belong to him, with 
 the power of working and leasing them, probably also to pay mineral 
 rights and annual increment value duty under ss. 20 and 22. It is 
 extremely unlikely that he will be liable to pay reversion duty under 
 s. 13, since he may not lease his lands without licence for more than a 
 year, and buildings are rarely placed on copyhold lands. 
 
 (2) In the Case of Copyhold Land held for a Life or Lives or Years 
 where the Tenant has not a right of Renewal. — In this case the lord 
 of the manor is practically in the same position as the owner in relation to 
 freehold lands. He is so treated by paragraph 2 of s. 40. He cannot be 
 compelled to enfranchise the land (Copyhold Act, 1894, s. 96). He will 
 be liable for increment value duty when an occasion arises in relation to 
 
 N. 28 
 
434 Land Clauses of the Finance Act. 
 
 8 *0- his reversion or interest under s. 1 . Even if the copyholder's estate is for 
 a Ufa or lives, this appears to be the case under the last words of sub-s. (2), 
 notwithstanding that under s. 41 " interest " in relation to land does not 
 include any other interest in expectancy, except " a reversion expectant 
 on the determination of a lease." He also will be liable for undeveloped 
 land duty under ss. 16 and 19, even, it is thought, if the copyhold 
 tenant holds for a life or lives, and would in case the lands were freehold 
 be the owner ; but as to this, refer to the provisions of s. 17 (5) and 
 see the next note. Theoretically he may be liable to reversion duty 
 under s. 13, though it is not probable that the value of the benefit on 
 the determination of the lease which accrues to him will ever be much. 
 People do not build on land held for a life or lives or for a short term 
 of years. 
 
 And the Copyhold Interest were a Leasehold Interest. — Where 
 the copyhold interest is held for a life or lives the length of the term 
 will probably be calculated according to s. 41, paragraph " The term of a 
 lease, etc." Where this term so calculated originally exceeded (but 
 see the note on that paragraph on p. 445) fourteen years, the tenant 
 will have to pay increment valvie duty in relation to his interest on 
 occasions arising under s. 1. If, as is improbable, in any case the term, 
 calculated according to s. 41, paragraph " The term of a lease," should 
 be over fifty years, the tenant will probably be " owner " imder s. 41, 
 and will be liable to the undeveloped land duty, and the lord would 
 not be liable for that duty. 
 
 Section 41. 
 
 This is the definition clause of this Part of the Act so far as it 
 relates to England and Ireland. It also nominally applies to Scotland, 
 but is qualified by the following section (42). 
 
 § 41. 41. In this Part of this Act, unless the context other- 
 
 Definitions 
 
 wise requires — 
 
 The expression **land" does not inchide any incor- 
 poreal hereditament issuing or granted out of the 
 land ; 
 
 Unless the Context otherwise requires. — These words are extremely 
 important and may qualify advantageously what would otherwise be the 
 meaning of the Act. For example see the question raised under 
 8. 27 (5) (ante, p. 326) as to the meaning of the words "person 
 interested " ; see also the question raised on p. 282, and also below, as 
 to whether easements attached to land and enhancing its value for 
 building and other purposes are to be taken into consideration in 
 valuing under s. 25. 
 
Definitions : Incokporeal Hereditaments. 
 
 485 
 
 The expression " Land." — Under the Interpretation Act, 1889 § 41. 
 (52 & 53 Vict. c. 63), s. 3, in every Act passed after 1850, unless the 
 contrary intention appears, the expression " land shall include messuages, 
 tenements, and hereditaments, houses and buildings of any tenure." 
 In In re Danson, deceased, Danson v. Bell (11 T. L. R., p. 455), 
 Mr. Justice Chitty is reported as saying that " in the definition of the 
 Interpretation Act land, to put it shortly, was confined to corporeal 
 hereditaments." But the learned judge may not have meant to exclude 
 from the definition such incorporeal hereditaments as are directly 
 connected with land, as easements, for in his judgment he was negativing 
 a contention that money directed by will to be laid out in the purchase 
 of lands was to be considered land within the meaning of s. 1 of the 
 Accumulations Act, 1892 (55 k 56 Vict. c. 58), as interpreted by s. 3 of the 
 Interpretation Act, 1889. At all events it is clear that by virtue of 
 s. 41 " land " does not include incorporeal hereditaments considered as 
 separate subjects of property. Thus a right of shooting in gross or a 
 right to a pew in church, being incorporeal hereditaments, are not liable 
 to the duties imposed by the Act. 
 
 Land, generally speaking, includes minerals, but in this Act a certain Minerals, 
 amount of " contrary intention " appears. In what places exactly 
 " land " includes minerals can only be ascertained after a careful 
 examination of the context. In valuing land under s. 25, minerals are 
 clearly not included, for by sub-s. (5) of that section " the provisions of 
 this section are not applicable for the purpose of the valuation of 
 minerals " ; and by s. 23 (2) "for the purposes of vahiation minerals 
 are to be treated as a separate parcel of land." 
 
 Land will, of course, include land covered by water within the I^and covered 
 territorial limits of the country ; and though it may be thought ^ ^^ ^^' 
 unlikely, it might be the case that land forming the bottom of a pond 
 might have a value for bviilding purposes and be liable to either incre- 
 ment value duty or undeveloped land duty. So the definition will 
 include land between high and low water marks on the seashore, which 
 always formed part of the realm and of the county to which it was 
 adjacent, but was only made part of the parish by 31 <fe 32 Vict. c. 122, 
 s. 27 ; and will include an estuary. 
 
 Incorporeal Hereditament issuing or granted out of THE Land. — 
 
 What is meant by the "<Ae" ? If "the land " is that being valued under 
 the Act, such incorporeal hereditaments reduce the amount of the total 
 value of the land under s. 25 (3), and are, of course, not included in 
 the land. If the words of the clause simply mean that easements and 
 profits k prendre are not to be taxed as land, the " the " has no force. 
 If they mean that the value of land admittedly to be taxed is not to be 
 increased by the value of easements over neighbouring land, the " the " 
 is thought to be misleading. 
 
 Incorporeal hereditaments are therefore apparently not " land," so as 
 
 28—2 
 
436 
 
 Land Clauses of the Finance Act. 
 
 § 41. 
 
 Easements, 
 etc., increase 
 or decrease 
 the value ? 
 
 to be the subject of taxation apart from the physical or actual land, and 
 they are expressly declared not to be " interests " in land (see definition 
 of "interest," infra, p. 446). Indeed from their nature it is clear that 
 most incorporeal hereditaments cannot be the subject of the new taxes. 
 Neither advowsons, tithes, rights of common, way, water and light, 
 offices, dignities, franchises or rents, can physically be the subject- 
 matter of increment value duty or undeveloped land duty (which are 
 taxes on site values), and reversion duty is not an appropriate tax as to 
 any of them. 
 
 The impoi-tant question, however, remains whether the existence of an 
 easement or profit a prendre over or in the land is a matter which either 
 increases the site value of the dominant or diminishes that of the servient 
 tenement. It is easy to answer the latter alternative of the question. 
 Under s. 25 (3) and (4) it is clear that to the extent to which the 
 easement or profit diminishes the real value of the site to that extent the 
 total and site value are to be considered as diminished. The former 
 alternative of the question is not so easily answered. Assume that 
 to a particular site is attached a right of way, which, if not a way of 
 necessity, is yet a way adding greatly to amenities of the property, or 
 a right to light which may add to the value of the site for purposes 
 of rebuilding. Assume that in another and less probable case the only 
 way to a valuable piece of building land is a way of necessity. Is 
 the site in each case to be valued under s. 25 (2) as entitled, or as 
 not entitled, to the easement ? It is submitted, though the point 
 is not quite clear, that the " site value of the land " means the site 
 value of the land considered as land having the easements attached, 
 which are, in fact, attached to it. The site value is in substance the 
 value which the land might be expected to realise if sold at the time 
 in the open market divested of buildings, machinery, and growing 
 produce, but not without its ordinary natural rights, as that of support, 
 or, it is submitted, without the easements attached to it. If it were 
 otherwise, (1) its value might in some cases be practically destroyed as a 
 taxable entity ; e.g., a right of way might be the only convenient method 
 of approaching the property ; (2) its taxable value would wholly differ 
 from its real value ; and (3) while the site over which the easement 
 existed would be reduced in taxable value by its existence, the site to 
 which the easement was attached would not be increased in value. It 
 is of course evident that the point is one which concerns gross and total 
 values also. As the value of the easements is of course included in 
 (a) the value of the consideration, (6) the value of the fee simple of the 
 land, and (c) the principal value as referred to in s. 2 (2), if such value were 
 not included in gross and total value at the original site valuation xmder 
 s. 25 (1) and (3), then on the first occasion on which increment value 
 duty became payable under s. 2 (2) (a), (b), or (c), there would necessarily 
 be an increase in site value over the original site value by an amount 
 equal to the value added to the site through the existence of the 
 
Definitions : Incoeporeal Hereditaments. 437 
 
 easements, in addition to any other real rise in the site vakie. This would 8 41. 
 of course unduly increase the increment value. Further, a construction 
 of the word land which did not include its easements might in some 
 cases diminish the amount of vmdeveloped land duty. 
 
 There may be cases in which the value of the land is increased by the Abnormal 
 rights attached to the land (usually by special Act of Parliament) to levy p^^®^ °^ 
 market or other tolls ; see the facts of cases such as those isolating to the ^^r .^ . 
 Spitalfields Market, i.e., Horner v. Whitechapel Board of Works (55 bridges. 
 L. J. Ch. 289), Attorney-General v. Horner (55 L. J. Q. B. 193; 11 
 App. Cas. 66), Hm'ner v. Stepney Assessment Committee (98 L. T. 450) ; 
 see also, as to other markets, Roberts v. Overseers of Aylesbury (1 E. & B. 
 423), Ehves v. Payne (12 Ch. D. 468; 48 L. j/ch. 831), Laivrence v. 
 Hitch (37 L. J. Q. B. 209 ; L. R. 3 Q. B. 521), Wilcox v. Steel ( [1904] 
 1 Ch. 212; 73 L. J. Ch. 217), Goldsmid v. Great East&rn Raihvay Co. 
 (25 Ch. D. 511), and the Covent Garden cases, Duhe of Bedford v. 
 Emviett (3 B. & Aid. 360) and Duke of Bedford v. St. Paul's (51 L. J. M. C. 
 41). For the facts of cases relating to tolls derived from bridges or 
 ways, see Royal v. Yaxley (20 W. R. 903), Williams v. Bedminster 
 Assessment Committee (45 L. J. M. C. 117; 34 L. T. 795), Reg. v. 
 Salisbury (Marquis) (8 A. & E. 716; 3 N. & P. 476), and to harbour 
 dues, Stuansea Harbour Trustees v. Sivansea Union (97 L. T. 585). 
 Interesting questions as to the liability of the owners of land on which 
 a market is held, or on which a bridge rests on either side of a stream, 
 and in respect of which the owners receive tolls, may arise in relation 
 to increment value duty. This definition of "land" may then be 
 material. In most cases, however, in modern times the land in 
 question is either owned by a local or rating authority, in which case 
 all the increment value duty becoming due in respect thereof during 
 the ownership of the authority is deemed to have been paid (s. 35), or 
 is owned by a statutory company, in which case increment value duty 
 is not payable till the company sells or " ceases " to hold the land 
 (s. 38 (1) ). In the former case the land in question is morally certain 
 never to leave the ownership of such authority. In the latter case, 
 if there is any transfer on sale from the statvitory company it will 
 usually be under the authority of a special Act of Parliament to another 
 company, in which case such Act will probably deal with the question 
 of increment value duty. If there is no such Act, or such an Act does 
 not deal with the question, the general provisions of this Act must be 
 applied. In this case, as well as in the case of the transfer on sale 
 from a private owner of a market, ferry, bridge, or other right to 
 take tolls, the question will arise whether increment value duty is to be 
 paid in respect of an increment of the land value owing to an increased 
 productivity of tolls arising from the use of the land and not due to 
 the expenditure of the owner, but to the general increase in popula- 
 tion and wealth. But the cases where this will arise will be so rare, 
 and the arguments on the question (especially arising out of s. 25 
 
^38 Land Clauses of the Finance Act. 
 
 § 41. and this paragraph of s. 41) are so speculative, that it is not proposed 
 to disciiss them at this early stage of the new system. 
 
 Springs and Again there may be abnormal cases of increment value arising from 
 
 the discovery on land of mineral springs, or from the fact that the value 
 of land containing lakes or springs always known to exist has suddenly 
 increased because the spring is wanted as water supply. Prima facie it 
 appears that these cases can be treated in the ordinary way and in 
 accordance with both the spirit and the letter of the Land Clauses for 
 purposes of increment value duty. There seems to be no reason why 
 s. 25 (2) should not apply to the valuation of land containing a valuable 
 spring of the kind the subject of the decision in R. v. New Biver Co. 
 (1 M. & S. 503), nor why the proprietor of a Welsh lake who has 
 realised a fortune by selling it to a thirsty midland town, should not pay 
 his increment value duty like the rest of the world. It is not thought 
 that in order to ascei-tain full site value under s. 25 (2) the land must 
 be valued as divested of the spring, which is neither a building nor a 
 thing growing on the land. But greater difl&culty arises as to the 
 undeveloped land duty. Assuming that the land out of which a spring 
 arises is not used in the "industry " (see s. 16 (2) ) of selling water, but 
 is awaiting a purchaser at a price substantially above the agricultural 
 value of the land, it is perhaps a little hard to charge the owner with 
 undeveloped land duty for not building on his spring. 
 
 Shooting and The position as to shooting and sporting rights in respect to the new 
 
 sporting duties appears to be as follows : 
 
 rights. 
 
 These rights considered as independent subjects of property are 
 
 incorporeal hereditaments (Bird v. Higginson, 2 A. & E. 696 ; 4 N. & M. 
 505 ; Eioart v. Graham, 7 H. L. Cas. 331 ; 29 L. J. Ex. 88 ; Webber v. 
 Lee, 9 Q. B. D. 315). A lease for over fourteen years of the shooting or 
 sporting rights over land, apart from the land itself, is therefore thought 
 not to be an occasion for payment of increment value duty (see above 
 paragraph of s. 41). This seems clear. But the real difficulty arises 
 when the questions are asked : (1) Does the existence of valuable 
 sporting rights increase the site value of the land either (a) on the 
 original site valuation or (b) on subsequent site valuations on occasions 
 for payment of increment value duty under s. 1 ? (2) Does it increase 
 the market value of the land " for agricultural pui-poses only " under 
 s. 7 and s. 17 (2)] 
 Not included (a) It is thought that the value of sporting rights {i.e., capacities) must 
 in site value, j^g included in original gross value. In such case (s. 25 (1) ) the land is 
 to be valued " in its then condition." The sporting rights in this case are 
 not an incorporeal hereditament, but are part of the rights of ownership 
 incident to the full ownership of the land. On the other hand the original 
 assessable site value of all land (including agricultural land) is really 
 the value of a cleared site (incompatible with most sporting purposes) 
 ascertained under s. 25 (2), subject to certain deductions. It is there- 
 fore thought that (with certain possible exceptions) the deduction made 
 
Definitions : Shooting and Sporting Rights. 489 
 
 from total value under s. 25 (4) (a) will include the value of the § 41. 
 
 sporting capacities of the land, which are therefore not included in the 
 
 assessable site value (s. 25). The possible exceptions are those in which 
 
 the site is adapted for purposes which might be held to be sporting 
 
 purposes,* as for a race ground, {b) If this is the case it follows, from 
 
 parity of reasoning, that sporting rights will, by virtue of s. 25 (4) (a), 
 
 be deducted from the value of the consideration, etc., on an occasion for 
 
 payment of increment value duty under s. 1 and s. 2, and will therefore 
 
 not form an element in the site value on the occasion in question. If 
 
 this reasoning be correct, increment value duty is not payable on an 
 
 increase in value of the land owing to an increase in value in the 
 
 sporting rights, and in calculating the site value of land under s. 17 (1) 
 
 and (2) for the purposes of undeveloped land duty the value added to 
 
 the land by the sporting rights must be deducted under s. 25 (2) and 
 
 (4) («). (3) The second question, i.e., whether sporting rights are an Sporting 
 
 element which may increase the value of the land for agricultural eights and 
 
 purposes only, involves a consideration of the almost unconstruable value, 
 
 proviso to s. 7 (see note on p, 135). It is suggested that that proviso 
 
 means that if you are considering the question whether the land has any 
 
 higher value than its market value at the time for agricultural purposes, 
 
 you are, svibject as next mentioned, to add the sporting value to the 
 
 purely agricultural value, and treat the aggregate as agricultural value 
 
 only, on which no increment value duty will be payable, until the land 
 
 obtains a higher and non-agricultural value ; in other words, you are to 
 
 value the land as it stands with all its advantages for agriculture and 
 
 sport. But if you find, as in the case of some deer forests, that the 
 
 sporting value in and by itself exceeds the agricultural value in and 
 
 by itself, then you are for purposes of increment value duty to treat 
 
 the land as having a higher value than "its market value at the 
 
 time for agricultural purposes only," The exact amount of the higher 
 
 value is immaterial, the point being that, having got the land out of the 
 
 category of land with " no higher value than its market value at the 
 
 time for agricultural purposes," it becomes liable to increment value 
 
 duty on the increment to the original site value. But even if it is so 
 
 liable the sporting rights do not (if the reasons above submitted under 
 
 the answer to question 1 are valid) form part of the taxable site value, 
 
 and the increment value duty will therefore be levied in the case just 
 
 supposed on purely agricultural value, a really curious and unintended 
 
 result. But it will be remembered that all this is conjecture on a most 
 
 difficult proviso and may be quite mistaken. 
 
 The proviso of s. 7 is not applied to undeveloped land duty by s. 17. Sporting 
 
 As undeveloped land duty is assessed on site value, if the above reason- rights and 
 
 , » . ../.,, .11 undeveloped 
 
 ing is correct, the value of sportmg capacities (with the possible jand duty, 
 
 * Quare whether the definition of rights of sporting in s. 6 (1) of the Rating Act, 
 1874, would be analogically applied to the phrase " sporting purposes " in s. 7 of 
 the Act of 1910 (see p. 135, ante). 
 
440 
 
 Land Clauses of the Finance Act. 
 
 § 41. 
 
 "Land" 
 usually 
 means fee 
 simple. 
 
 exception above referred to) is not a part of the value of the site which 
 is assessed for that duty. The question remains whether the sporting 
 value may be taken into account, in other words, added to the purely 
 agricultui-al value for the purpose of determining under s. 17 (2), " the 
 amount by which the site value of the land exceeds the value of the land 
 for agricultural purposes " ; which amount is the subject matter of the 
 duty. Having regard to the definition of agriculture in s. 41, p. 463, 
 it is thought that the sporting value cannot be taken into account, but 
 must be neglected. 
 
 The definition of land must be read in connection with the definitions 
 contained in the same section of "fee simple" (see p. 457) and of " 'interest' 
 in relation to land " (see p. 446). " ' 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." But it seems tolerably clear that 
 in many cases references in the Act to " land " mean the " fee simple of 
 the land." For example this is the case in ss. 1 and 2 as to the words 
 " the increment value of any land " ; in s. 13 (2) as to the words " the 
 total value (as defined . . .) of the land at the time the lease 
 determines " ; in s. 26 (1) as to the words, " cause a valuation to be 
 made of all land." There may be other examples of the same kind, 
 but, so far as the writer has at present been able to ascertain, the 
 context usually renders the meaning tolerably plain. It is, however, 
 considered advisable to note the fact for possible future use. 
 
 " The expression ' interest ' in relation to land . . . includes a rever- 
 sion expectant on the determination of a lease, but does not include any 
 other interest in expectancy ... or any purely incorporeal heredita- 
 ment " (post, p. 446). A reversion expectant on a lease is an incoi-poreal 
 hereditament, and with a remainder, and an executory interest is by 
 some text-writers distinguished from a purely incorporeal hereditament 
 such as an easement, a profit a prendre, a franchise, etc., by being called 
 a mixed incorporeal hereditament (see Williams' Real Property, 19th ed., 
 pp. 323, 409). The effect of the definition of " interest in relation 
 to land " is, as has been seen, that on the sale of a reversion 
 expectant on a lease, or on the passing on death of such a reversion, or 
 in respect of such a reversion held by a body coi-porate or unincorporate 
 on the happening of a periodical occasion, increment value duty may 
 become payable (see s. 1, ante, p. 2, and note on p. 9, "or of any 
 interest in the land ") ; while on similar occasions such duty is not pay- 
 able in respect of reversions expectant on freehold estates or on 
 remainders and executory interests. 
 
 " Person interested " in land may, however, it is clear, sometimes 
 include the owner in fee simple (s. 25 (4) [b) and (c) ; s. 30 (2) ). 
 
 The expression *' rentcharge " means tithe or tithe 
 rentcharge, or other periodical payment or rendering 
 
Lefinitions : ''Kentcharge." 441 
 
 in lieu of or in the nature of tithe, or any fee § 41. 
 farm rent, rent seek, quit rent, chief rent, rent 
 of assize, or any other perpetual rent or annuity 
 granted out of land ; 
 
 The expression •* Rentcharge " means, etc.— The only two other 
 places in the land clauses of the Finance Act of 1910 in which a direct ' 
 reference to rentcharge occurs are in this section (s. 41). " The 
 expression 'rent' . , . does not include a rentcharge" (see p. 442). 
 " The expression ' fixed charge ' means any rentcharge as defined by 
 this Act," etc., etc. (see p. 456 and note on such paragraph). The point 
 of substance as regards these definitions appears to be that a rentcharge 
 as inclusively defined by this paragraph is a " fixed charge," and 
 being a " fixed charge," the capitalised value thereof is to be deducted 
 (amongst other things) from the " gross value " of land, under s. 25 (3), in 
 order to arrive at the " total value," which is a factor to be ascertained 
 in fixing (a) original site value under ss. 26 and 27 ; (b) site value on a 
 periodical occasion on which increment value duty is payable l)y a body 
 corporate or unincoi-porate under s. 2 (1) (d) ; (c) the value of the benefit 
 accruing to the lessor on which reversion duty is payable under s. 13 (2) ; 
 and the site value on the quinquennial valuation for the purposes of 
 undeveloped land duty under s. 28. 
 
 It is not likely that there will often be any question as to whether a 
 particular sum in the nature of a rentcharge is or is not a fixed charge, 
 the decision of which question depends on the definition of " rent- 
 charge " in this paragraph. 
 
 If a sum charged on the property does not fall within one of the 
 categories of rentcharges enumerated in this paragraph, it still may 
 be a " fixed charge " within the meaning of that term as defined in this 
 section, in which case the result is the same. For this reason it is not 
 proposed to try to elucidate the exact legal signification of the various 
 categories of rent enumerated in the paragraph of s. 41, " The expression 
 ' rentcharge.' " If any question arises thereon, reference will be made 
 to such well-known elementary text-books as Williams and Goodeve on 
 the Law of Real Property, Stephen's Commentaries vol. 1, Smith's 
 Compendivim of the Law of Real and Personal Property, or to Stroud's 
 Judicial Dictionary. 
 
 Perpetual Rent or Annuity. — Must the annuity be perpetual to be a 
 " rentcharge " within the section, or will an annuity for life or lives be 
 a rentcharge ? The grammar of the sentence appears to support the 
 former conclusion. 
 
 Further, it seems probable that perpetual rents and annuities granted 
 out of land are contrasted with life annuities in the valuation scheme of 
 the Act. It is thought that the total value of the land under s. 25 (3) 
 is to be ascertained as if the land were subject to the perpetual rent- 
 charges {i.e., fixed charges (s. 41, p. 456) ) to which it is in fact subject, 
 
442 Land Clauses of the Finance Act. 
 
 § 41. but not to rentcharges or annuities for lives, i.e., jointures and pin-money 
 annuities, which are, it is thought, intended to be treated as incum- 
 brances, i.e., charges on land of annual sums (s. 41, p. 451) not to be 
 deducted in order to ascertain total value. If this view is correct, the 
 annuity to be a " rentcharge " must be perpetual. 
 
 Compare with this definition the definition of a fixed charge in the 
 same section (41) (see p. 456). The grammatical construction of the latter 
 definition, having regard especially to the comma following the first 
 " Act," points to the conclusion that all rentcharges, whether arising by 
 operation of law or imposed by any Act of Parliament, etc., on the one 
 hand, or created by persons interested in the land or in consideration of 
 advances to such persons on the other, are considered to be fixed charges. 
 This question is one of great importance, especially to owners of land in 
 places like Manchester and Liverpool, where much land is conveyed in con- 
 sideration of rentcharges. If such rentcharges are " fixed charges," their 
 capital value mvist be deducted in ascertaining original total and site values 
 under s. 25 (3), (4). In the like case that capital value must also be 
 deducted on the collection of increment value duty on periodical occa- 
 sions from bodies corporate and unincorporate under s. 2 (2) {d). But 
 this strictly grammatical construction of the definition "fixed charge" 
 is open to some doubt. For (1) incumbrances are not to be deducted 
 under s. 25 from total or site value, and the expression " incumbrance " 
 (see p. 451) includes " a charge of . . . [anj annuity, or any capital or 
 annual sum, but does not include a fixed charge as defined by this Act " ; 
 (2) the scheme of the Act appears to be to treat the physical site of the 
 land as the taxable entity (subject to State and communal liabilities 
 and to subtractions from physical ownership in the way of easements 
 and profits a prendre (see s. 25)); (3) if all rentcharges are "fixed 
 charges " the undeveloped land duty may be gravely affected. Land 
 will be sold for rentcharges. (4) Bodies corporate or unincorporate 
 could by creating rentcharges keep down the total value of their land 
 on the periodical occasions for the collection of increment value duty 
 under s. 2 (2) {d) and s. 6 (1). 
 
 Since the first edition of this work, it has become clear that the 
 Revenue Authorities adopt the grammatical construction of the Act 
 with, of course, all its consequences. The subject will not feel inclined 
 to quarrel with that view. 
 
 The expression " rent " has the same meaning as in 
 44 & 45 Vict. \\^Q Conveyancing and Law of Property Act, 1881, 
 
 and does not include a rentcharge ; 
 
 See notes to s. 20 (p. 220), where the reference to the Conveyancing 
 Act is given in full. See also s. 24 (p. 266) for a definition of rent in 
 relation to a mining lease. That " rent " is not used in the Conveyancing 
 Act, 1881, in its strictly legal sense of a rent for which a distress can 
 
Definitions: "Lease." 443 
 
 be made (see Brown v. Peto, [1900] 2 Q. B. 653, C. A., at p. 664). § 41. 
 Keferences in the land clauses of the Finance Act, 1910, to "rent" 
 noniinatini are to be found in s. 13 (2), s. 20 (2), s. 21, s. 22 (3) and (4) 
 (as implied in rental value), s. 24, s. 26 (2), s. 31 (1) and (3), and s. 32 (2). 
 
 The expression " lease " includes an underlease and 
 an agreement for a lease or underlease, 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 expression "Lease." — See the notes on s. 1 (pp. 11 and 12) vmder 
 the heads " Grant ... of any Lease " and "Not being a Lease, etc." 
 
 Includes an Underlease and an Agreement for a Lease or Under- 
 lease.— This is one of the definition clauses in which the qualification at 
 the commencement of the section " unless the context otherwise 
 requires " seems specially necessary to be borne in mind. See the use 
 of the word " lease " in s. 1 (a), where the grant of a lease is contrasted 
 with a contract for the grant of that lease. See also s. 2 (2) {b) and 
 s. 4 (1). Whether the grant of a lease within the meaning of the 
 sections referred to includes a contract to grant a lease, not followed by 
 an actvial lease, is, no doubt, not quite clear. Having regard to s. 4 (2) 
 it is thought that it does include it. See regulation 7, p. 489 ; see also 
 the notes on pp. 74, 77 and 78. 
 
 So the grant of a reversionary lease for over fourteen years does not 
 create or enlarge an existing term, but creates only an interesse termini 
 [Lewis V. Baker, [1905] 1 Ch. 46). It nevertheless amounts to an 
 agreement to grant a lease. In such a case the assessment for incre- 
 ment value duty will afford some points of interest. 
 
 Until the Term becomes vested in some Person free from any 
 Equity of Redemption. — If the mortgagee either of freehold or leasehold 
 land whose mortgage has been made by way of term of years or under- 
 lease respectively has sold under his power of sale, or has foreclosed or 
 has obtained a title under the Statutes of Limitation to the equity of 
 redemption, in all these cases the term becomes an ordinary leasehold 
 subject to some of the usual incidents of leasehold land under the Act 
 of 1910. So long as the term has more than fifty years to run the 
 person in whom it is vested is the " owner," and liable to the undeveloped 
 land duty under s. 16 (see paragraph "The expression owner," s. 41, 
 post, p. 458). Whether the term has more or less than fifty years to 
 run, he is liable to increment value duty on an occasion arising under s. 1, 
 and to reversion duty under s. 13, unless he can claim the benefit of 
 one of the exemptions in s. 14. 
 
444 
 
 Land Clauses of the Finance Act. 
 
 § 41. 
 
 Mortgagee of 
 leaseholds 
 must pay- 
 increment 
 value duty. 
 
 It is thought (see post, p. 452, note on " Position of Mortgagees ") 
 that a mortgagee of freeholds, and of leaseholds where the mortgage is 
 by assignment, who sells under his power of a sale is a transferor within 
 s. 4, and responsible under sub-s. (4) of that section for increment value 
 duty. Even if the mortgage of leaseholds is by way of underlease the 
 same is thought to be the case. It is true that by virtue of this 
 paragraph of s. 41 the sub-leasehold interest of the mortgagee is not a 
 " lease " for the purposes of this Act, but nevertheless it is thought 
 that the mortgagee by demise selling and conveying under his power of 
 sale is the transferor of an " interest in the land " within the meaning 
 of s. 1 (a), and liable to pay increment value duty under s. 4. It is 
 thought that the paragraph of s. 41, "The expression 'lease,' etc.," is 
 given effect to by interpreting it to mean that the creation of a term of 
 years to secure money is not the " grant of a lease " within s. 1 (a) so 
 as to give rise to a claim for increment value duty, but that such 
 a term is nevertheless an interest in land within s. 1 (a). But 
 the point is not clear. No help on the point seems to be afforded by a 
 consideration of the effect of this pai-agraph of s. 41 upon claims for 
 reversion duty under s. 13, since it seems clear from a consideration of 
 ss. 13 to 15 inclusive that there is no intention in these sections to 
 charge that duty on the determination of terms created to secure 
 money. 
 
 Terms to secure money are usually surrendered on the payment of 
 the debt, or if not surrendered, then cease and determine under the 
 Satisfied Terms Act, 1845 (8 & 9 Vict. c. 112), and no question can 
 arise in such cases that by virtue of the definition clause they are not 
 leases within the meaning of ss. 13 to 16. If a term is assigned to a 
 purchaser by the trustees or mortgagees of the term, although it then 
 becomes " vested in some person free from any equity of redemption," it 
 is thought that reversion duty is not payable in the case of its surrender 
 or merger or of its natural expiration by effluxion of time. The 
 only terms of years comprised in s. 13 are, it is thought, those 
 granted at a rent ^^ for a premium. Under the Conveyancing Act, 
 1881 (44 & 45 Vict. c. 41), s. 65 (see p. 604), certain long terms of 
 years, being usually in practice terms originally created for raising 
 money, may be enlarged into estates in fee simple. 
 
 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 
 
Definitions : " Term of a Lease." 445 
 
 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 Term of a Lease. — The duration of a lease is a matter of 
 importance under the Land Clauses, amongst other things for the 
 purpose (1) of ascertaining whether increment value duty is payable 
 under sections 1 to 6 inclusive, that is whether the lease is for a term 
 exceeding fourteen years ; (2) of fixing the proportionate part of the 
 duty to be collected under s. 3 (3) on the grant, transfer, or passing on 
 death of a lease, or in the case of a lease held by a body corporate or 
 unincorporate on the happening of a periodical occasion ; (3) of 
 ascertaining whether a lease has determined under s. 13 (1) so as to 
 give rise to a claim for reversion duty ; (4) of ascertaining whether 
 certain exemptions from the payment of reversion duty conferred by 
 s. 14 (1), (2), and (3), and of undeveloped land duty conferred by 
 s. 17 (5), can be claimed ; (5) of ascertaining the interests of copy- 
 holders for years or lives under s. 40. This category, however, really 
 falls under heads 1 and 2 above ; (6) of ascertaining who is the owner 
 of the lands, so as to be liable, under s. 19, for the undeveloped land 
 duty, and, under s. 26 (2), to make the retvirn for the original valuation, 
 and so as to be entitled to the rights in relation to the provisional 
 valuation conferred by s. 27 (7). 
 
 Where the Lease contains an Obligation to renew the Lease. — It 
 
 seems doubtful whether these words do not govern the whole paragraph, 
 so that there is no definition of the term of a lease, which does not 
 contain an obligation to renew the lease (see note below). 
 
 Be deemed to include the Period for which the Lease may be 
 renewed. — A lease for fourteen years with a covenant by the lessor to 
 renew, if required by the lessee, for a further period of seven years is 
 therefore a lease for twenty-one years and an occasion for payment of 
 increment value duty. It matters not that the lease is in fact not 
 renewed. A lease for twenty-one years with power to the lessee to 
 determine at the end of fourteen years is thought also to be a lease for 
 over fourteen years. See Bird v. Baker (1858), 1 E. & E. 12 ; also 
 note on p. 12, ante. 
 
 And in the Case of a Lease for Life or Lives. — The meaning of this 
 sentence appears not to be clear. Are the words " and in the case of a 
 lease for life or lives " down to the second " granted " all governed by the 
 earlier words of the sentence, " where the lease contains an obligation to 
 renew the lease " 1 It is thought that on a strict construction they are, 
 
446 Land Clauses of the Finance Act. 
 
 § 41. and that there is no express direction for translating the term of a lease 
 for life or lives into years, except in cases where the lease contains an 
 obligation to renew the lease. This seems to be the case (1) from the 
 grammatical construction of the sentence, and (2) from the fact that 
 the last words of the paragraph, " and a lease renewed," etc., like the 
 first, seem to confine the paragraph to leases containing obligations to 
 renew. Probably the Court would apply the same method of calculation 
 in cases where there is no obligation to renew as in cases where there is 
 such an obligation, on the ground that the Legislature could not have 
 intended two different methods of calculation with respect to similar 
 things. 
 
 The perplexities of the paragraph appear to arise (1) from the fact 
 that two separate definitions or explanations are intermingled — (a) that 
 of the term of any lease ; (b) that of the basis upon which the length 
 of a lease for life or lives is to be calculated ; and (2) from the fact that 
 the existence of a lease for life or lives not containing a covenant to 
 renew is (it would seem) not under contemplation. 
 
 Equal to the Mean Expectation of Life. — Probably the Northampton 
 Mortality Tables (see p. 62), adopted in the rules made under s. 3 (2) 
 and (3) will be adopted by the Courts generally for calculating the term 
 of a lease for life. For purposes of (1) the amount of increment value 
 duty under s. 3 (3); (2) liability to reversion duty under s. 14 (3); 
 and to undeveloped land duty under s. 19, the actual duration of the 
 life or lives would seem to be immaterial. 
 
 Be deemed to be determined. — So as, e.g., to give rise to a claim 
 for reversion duty under s. 13 (see p. 151). See also s. 14 (2) {ante, 
 p. 166), which provides {inter alia) that reversion duty shall not be 
 charged on the determination of a lease the original term of which did 
 not exceed twenty-one years ; and s. 17 (5) {ante, p. 201), which 
 provides that where agricultural land is held under a lease made before 
 April 30, 1909, undeveloped land duty shall not be charged during the 
 original term of the lease. In each of these cases the original term 
 includes a renewed term granted under a covenant binding on the 
 grantor to renew. 
 
 The expression " interest " in relation to land includes 
 any undivided share in a fee simple in possession 
 and includes a reversion expectant on the determina- 
 tion of a lease, but does not include any other 
 interest in expectancy or an incumbrance as defined 
 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 
 
Definitions: "Interest" in Land. 447 
 
 years not exceeding fourteen years or any tenancy § 41. 
 which is, or is deemed to be, subject to statutory 
 conditions under the Land Law (Ireland) Acts ; 
 
 The Expression "Interest" in relation to Land includes. — The ' 
 
 word " interest " in relation to land is an important feature of the taxing 
 clauses. Under ss. 1 and 2 increment value duty is payable on the 
 transfer on sale and the passing on death of an " interest in land," 
 and also in the case of a body corporate or unincorporate on periodical 
 occasions in respect of such an " interest." Subsequent sections of the 
 Act (3, 4, 5, and 6) contain provisions relating to the assessment and 
 collection of duty in respect of " interests in land." Other sections 
 contain express exemptions of interests in land from taxation (ss. 9, 10, 
 11, 35, 37). Certain sections, it is thought, impliedly, though not in 
 express terms, exempt interests in land from taxation (ss. 7, 8, 38). 
 
 But all the duties created by the Act appear to be charged in respect " Land" 
 of the " land," and not in respect of interests in the land ; and by " the ^^ans 
 land " it is thought (though it is not expressly stated) is meant the 
 unincumbered fee simple in possession of the land (see s. 1 as to incre- 
 ment vakie duty; s. 13 (1) as to reversion duty; s. 16 (1) as to 
 undeveloped land duty). In relation to increment value duty there 
 must be a separate assessment of the proportion of the duty payable in 
 respect of an " interest " in the land (ss. 1, 2 (2) (a), 3 (1) (4)). In 
 relation to reversion duty, where the reversioner has only a leasehold 
 interest, which is an " interest " in land, the amount of the duty is reduced 
 as mentioned in s. 13 (2). In relation to undeveloped land duty, which 
 is an annual duty, the whole duty is paid by a tenant for life, or tenant 
 in tail in possession, who has not the fee simple of but an interest in 
 the land (see paragraph in this section (s. 41), "The expression 
 ' owner ' "). 
 
 Logically, no doubt, the definition of fee simple should have preceded Meaning of 
 that of interest. Fee simple {see post, p. 457) "means the fee simple "^i^terestm 
 in possession not subject to any lease, but does not include an undivided land." 
 share in a fee simple in possession." It is thus, strictly speaking, an 
 inclusive as well as an exclusive definition. The definition of " interest 
 in relation to land " is an exclusive definition in so far as it in terms 
 excludes certain specific things which are usually in law termed 
 interests in land from the purview of the term as used in this Act. 
 Whether the phrase " person interested" in the land is to be confined 
 ro persons not excluded by the definition of " interest " in s. 41 is 
 doubtful (see note to s. 27 (5), ante, p. 326). On the whole it is thought 
 that the term should not be so confined. It seems at all events clear 
 that " person interested," as used in s. 25 (4) (b) and (c) and s. 30 (2), 
 includes the person entitled to the " fee simple " as defined by s. 41. 
 
 It is difficult to say what is the exact meaning of this phrase 
 " interest" in relation to land as used in the Act of 1910. " Interesse 
 
448 
 
 Land Clauses of the Finance Act. 
 
 §41. 
 
 Interests in 
 land under 
 Mortmain 
 Act. 
 
 Under 
 Statute of j 
 Frauds. 
 
 Under Dower 
 Act. 
 
 Analogies 
 of foregoing 
 statnt^ 
 thougiit 
 inapplicable. 
 
 is vulgarly taken for a terme or chattle reall, and more particularly for 
 a future tearme, in which case it is said in pleading that he is possessed 
 de interesse termini. But ex vi termini in legall ixnderstanding, it 
 extendeth to estates, rights and titles, that a man hath of, in, to or out 
 of lands ; for he is truly said to have an interest in them ; and by the 
 grant of totum interesse suum in such lands, as well reversions as 
 possessions in fee simple shall pass." Coke upon Littleton, 345 b. It 
 is on the whole thought probable that " interest in land " is confined 
 to actual estates or interests in the land, siich as those referred to in the 
 passage from Coke upon Littleton. 
 
 " Interests in land " were forbidden by the Mortmain Act (9 Geo. 2, 
 c. 36), repealed by the Mortmain Act, 1888 (41 & 42 Vict. c. 9), but 
 substantially re-enacted as to land and " interests in land," to be given 
 by will to charitable iises (ss. 4, 10 (i. & ii.) ). Under this provision 
 Metropolitan Consolidated Stock has been held an interest in land, the 
 governing local authority of London being owners of land, and the stock 
 being charged on those lands {Cluf v. Cluff (1876), 2 Ch. D. 222; In 
 re Crossley, Birrell v. Greenhoiigh, [1897] 1 Ch. 928). A legacy payable 
 out of real and personal estate {Walmsley \. Rice, 29 S. J. 256), an 
 equitable interest in money secured by mortgage of real estate [Re 
 Watts, 29 Ch. D. 947), and a share of the proceeds of realty to be sold at 
 a future date [Brook v. Badley, L. R. 3 Ch. App. 672) have all been 
 held interests in land within the Mortmain Acts, and void as gifts to a 
 charity by will. 
 
 Under s. 4 of the Statute of Frauds (29 Car. 2, c. 3) a contract for 
 the sale of lands, tenements, or hereditaments, " or any interest in oi 
 concerning them," must be in writing. Under this section a debenture 
 of a company, creating a floating security on its land [Driver v. Broad, 
 [1893], 1 Q. B. 744), * a debt charged on land [Jarvis v. Jarvit, 63 
 L. J. Ch. 10 ; 69 L. T. 412), and sporting rights ( Webber v. Lee, 9 Q. B. D. 
 315) have been held interests in land. 
 
 Under the Dower Act, 1833 (3 & 4 Will. 4, c. 105), s. 9, it has been 
 held that a gift to a widow of the income of a sum to arise from the sale of 
 real estate is a gift of an " interest in land " so as to bar the widow's 
 claim to dower [In re Thom/is, Thomas v. Howell (1886), 34 Ch. D. 
 166). 
 
 Other statutes and cases could be referred to in which an " interest 
 in land " has been construed to extend to an interest in money to arise 
 from or secured on land. But enough has been written to prove that 
 there is ample authority for holding that " interest in land " has a very 
 wide meaning in law, and may under various statutes include an interest 
 in the proceeds of sale of lands. 
 
 Nevertheless it is thought that this wider construction of the term 
 " interest in land " will not be contended for by the Crown and would 
 not be adopted by the Courts. If it is asked why it is so thought, it 
 
 * But see now the Companies Consolidation Act, 1908, s. 93 (1) (iv.) contra. 
 
Definitions: "Interest" in Land. 449 
 
 may be admitted that the answer is not easy, and perhaps not wholly § 41t 
 satisfactory. It is really grounded on the fact that unless " interests in 
 land " are confined to the definite and well-recognised estates and terms 
 in land the Act is absolutely unworkable. 
 
 Assume that land is devised to trustees upon trust to sell and divide 
 the proceeds amongst such of the children of A., a deceased person, as 
 shall attain the age of twenty-five years, and that the will contains the 
 usual power to postpone the sale at the discretion of the trustees. The 
 power of sale will, it is conceived, last at least until the youngest child 
 attains the age of twenty-five years, and possibly much longer [In re 
 Cotto7i's Trustees and School Board for London (1882), 19 Ch. D. 624 ; 
 In re Jump, Galloway v. Hope, [1903] 1 Ch. 129 ; In re Lord Sudeley, 
 and Baines d- Co., [1894] 1 Ch. 334 ; In re Horsnail, Womersley v. 
 Horsnail, [1909] 1 Ch. 631). As soon as any child attains twenty-one, 
 that child can transfer on sale its contingent share, and as soon as the 
 child attains twenty-five, its vested share in the proceeds of sale. The 
 reader has only to try to apply the provisions of ss. 1, 2, and 3, and the 
 Commissioners' rules under s. 3 {ante, p. 53), to transfers on sale or 
 passings on death of the children's shares to be convinced that to hold 
 such shares to be an "interest" in land within the Finance Act, 1910, 
 would be to make increment value duty an unworkable tax. Incre- 
 ment value duty will, it is submitted, be payable when the trustees sell 
 the land, and not when the beneficiaries die or sell their interests in the 
 proceeds of sale of the land. For these reasons, which might of course 
 be greatly amplified, it is thought that the term " interest " in land will 
 not be extended to interests in the proceeds of the sale of lands. 
 
 It is thought, however, that equitable estates and interests in the land 
 itself, whether they be for life, in tail, or in fee, as distinguished from 
 such interests in the proceeds of sale of the land, would be " interests 
 in land." It is of course implied that such equitable interests should 
 not be remainders, or executory interests, or reversions expectant upon 
 freehold estates. 
 
 It is, however, clear that as '* interest in relation to land " does not 
 include an incumbrance, and an incumbrance includes, amongst 
 other things, " a lien and a charge of a portion, annuity, or any capital 
 or annual sum" (s. 41), many things held under the former Acts already 
 referred to to be " interests in land " are expressly excluded from being 
 considered such under the Act of 1910. 
 
 Undivided Share in a Fee Simple in Possession.— It is material in 
 relation to calculation and collection of increment value duty (see 
 ss. 2, 3, and 4) to note that an undivided share of land in fee 
 simple in possession is not land, but an interest in land. A fortiori an 
 undivided share in a leasehold is an interest in land. 
 
 A Reversion expectant on the Determination of a Lease but not 
 any other Interest in expectancy. — Therefore (a) on the sale or passing " 
 N. 29 
 
450 Land Clauses of the Finance Act. 
 
 § 41. on death of a reversion expectant on an estate for life or in tail, (b) on 
 the sale or passing on death of any remainder or executory interest, 
 (c) or as to such reversions, remainders and executory interests held 
 by bodies corporate or unincorporate on periodical occasions, increment 
 value duty will not be payable under s. 1. 
 
 It has been suggested in the notes to s. 27 (5) {ante, p. 326) that the 
 words " any person interested " in that sub-section, under which such a 
 person, not being an owner, may apply for a copy of the Commissioners' 
 valuation before it is finally settled, and then may give notice of 
 objection, is not to be limited or interpreted by this paragraph of s. 41 
 so as to exclude a remainderman for life or in tail or fee from objecting 
 to the original valuation, but the point is by no means clear, though it 
 may be expected that the Revenue authorities will take the broader and 
 more equitable view of s. 27 (5). It seems clear that the term " person 
 interested" in the land is sometimes so used as to include a person 
 entitled to the fee simple as defined by s. 41 (see s. 25 (4) {b) and (c) ; 
 s. 30(2)). 
 
 Interest in expectancy is not defined in this Act. For the definition 
 in the Finance Act, 1894, s. 22 (1) {j), see post, p. 600. 
 
 Or an Incumbrance as defined by this Act. — See the definition of 
 incumbrance by the next paragraph of s. 41. The effect of the 
 words commented on appears to be that the transfer on sale, i.e., 
 ordinary transfer, or the passing on death, or holding on a periodical 
 occasion by a body corporate or unincorporate of a mortgage or other 
 incumbrance as defined below is not an occasion for the payment of 
 increment value duty, because such an incumbrance is not an " interest in 
 the land " within the meaning of s. 1. Of course the creation of a 
 mortgage or other incumbrance is not an occasion for payment of 
 increment value duty, since it is not made so by s. 1. But the fact that 
 an incumbrance is not an interest in land does not, it is submitted, 
 affect the question of the liability of a mortgagee transferor to pay 
 increment value duty on selling under his power of sale (s. 4), or of a 
 mortgagee to pay reversion duty when he is the reversioner on the 
 determination of the lease, or undeveloped land duty when he is in 
 possession. In these cases he is taxed not as inciimbrancer, but as 
 transferor (s. 4, ante, p. 72), reversioner, i.e., lessor (s. 13 (1), ante, 
 p. 155, and s. 41, paragraph "The expressions 'lessor,' etc.," post, 
 p. 461), or owner (s. 19, ante, p. 203, and s. 41, paragraph "The 
 expression 'owner,'" post, p. 458). See further the note "On the 
 position of mortgagees, etc.," post, p. 452. 
 
 Or any fixed Charge as defined by this Act. — Consult the definition 
 of " fixed charge," post, p. 456. The significance of these words 
 commented on appears to be that the sale, or passing on death, or 
 holding on periodical occasions by bodies corporate, etc., of rent- 
 charges and other fixed charges affecting land does not give rise to any 
 
Definitions: "Interest" in Land. 461 
 
 claim for increment value duty under s. 1 . Possibly the words are really § 41. 
 
 not necessary, since rentcharges and probably all other fixed charges 
 being interests in land under the general law are " purely incorporeal 
 hereditaments," and expressly exempted from taxation under the first 
 paragraph of s. 41, as well as under this paragraph. 
 
 Purely Incorporeal Hereditament. — E.g., rights of shooting and of 
 common, the right to a pew, all other easements and profits a prendre. 
 The word "purely" is used to distinguish all other incorporeal 
 hereditaments from reversions, remainders, and executory interests, 
 which are said to be of a mixed nature. 
 
 Or any Leasehold Interest under a Lease for a Term of Years not 
 exceeding Fourteen Years. — By these words it is understood that the 
 test of whether a leasehold is or is not an " interest " in land is not what 
 is the length of the unexpired term, but what was the length of the 
 term when originally created. It is thought that the words '* not 
 exceeding fourteen years " qualify the words " term of years," and not 
 the words " any leasehold interest." If the term when originally granted 
 was not more than fourteen years in duration, then even if thirteen years 
 are still unexpired, those thirteen years are not an " interest " in land. 
 If the term as originally granted was ninety-nine years, and one day 
 remains unexpired, that one day is an " interest " in land. Sed qucere. 
 
 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 ; 
 
 This definition is the same as the definition of " incumbrance " in the 
 Conveyancing Act, 1881, s. 2 (vii.) down to and including the words 
 " annual sum." It is not an exclusive definition, and does not, therefore, 
 exclude other things not mentioned from being held " incumbrances." 
 
 The Expression " Incumbrance." — The only references in the Land 
 Clauses to incumbrances under that designation are those contained in 
 s. 25 (1), valuation " free from incumbrances " ; s. 32 (2), ** covenant to 
 discharge an incumbrance as part of the consideration " ; s. 41, 
 paragraph " The expression 'interest,'" which "does not include . . . 
 an incumbrance as defined by this Act." 
 
 It seems clear that for the purpose of ascertaining the amount of each 
 of the duties, increment value duty, reversion duty, undeveloped land 
 duty, and mineral rights duty, incumbrances on the land, or on interests 
 in the land, are to be disregarded (see s. 25 (1) in arriving at gross 
 total and site values). 
 
 "Incumbrance," it is submitted, includes an equitable mortgage by 
 
 29—2 
 
462 Land Clauses of the Finance Act. 
 
 § 41. deposit of title deeds. As to whether a liability to repair a highway 
 ratione tenurce is an incumbrance within s. 21 (ii.) of the Settled Land 
 Act, 1882, see In re Stamford and Warrington's {Earl) Settled Estates, 
 [1911] 1 Ch. 648. Possibly under this Act it is a fixed charge (see p. 449). 
 
 Includes a . . . charge of . . . [an] Annuity or Annual Sum. — 
 A rentcharge is a charge of an annuity or annual sum on land, and 
 would therefore appear to be an incumbrance. Incumbrances are not to 
 be deducted in arriving at any of the four values in s. 25, and therefore 
 it is submitted that rentcharges are not to be deducted, except such rent- 
 charges as are "fixed charges" within the meaning of this section (41) 
 (see p. 456). Those, it is possible (but not probable), are only " rent- 
 charges arising by operation of law, etc." See the note to the 
 "expression 'rentcharge'" {ante, p. 441). That "fixed charges" are 
 to be deducted see s. 25 (3) {ante, p. 287). 
 
 NOTE ON THE POSITION OF MORTGAGEES IN RELATION 
 TO THE NEW DUTIES. 
 
 Objection to Valuation. 
 
 It is not clear that a mortgagee, whether in possession or not, is 
 entitled to object to the original provisional valuation of the Commis- 
 sioners and to appeal from the original valuation as made by them. 
 That depends upon whether the mortgagee is a " person interested 
 in the land " within the meaning of s. 27 (5). Under the defini- 
 tions clause, 8. 41, "'interest' in relation to land . . . does not 
 . . . include any . . . incumbrance as defined by this Act." It is 
 understood that the words " persons interested " in sub-s. (5) 
 of s. 27 are interpreted by the Revenue authorities so as to include 
 mortgagees, and that in fact mortgagees are always allowed to be 
 heard on the provisional valuation. 
 
 Increment Value Duty. 
 
 1. Increment value duty is not payable on a mortgage (s. 1). 
 
 2. Neither is it payable on a transfer of mortgage {ibid.). 
 
 3. Where a mortgagee of freeholds, or by assignment of leaseholds. 
 Exercising sells under his power of sale he is a transferor within the 
 power of sale. meaning of s. 4, and is responsible for increment value 
 
 duty under sub-s. (4) of that section. Whether a mortgagee 
 by demise is so liable is discussed on p. 444, ante. See 
 note on paragraph " The expression ' lease.' " It is thought 
 that he is liable. That a mortgagee is liable for increment value 
 duty appears to be the case, even though the consequence is 
 that the payment of increment value duty makes his security 
 insufiicient. Blackacre, belonging to A., and being building land, 
 may have an original site value on April 30, 1909, of 1,000/., and 
 on April 30, 1912, a real site value, not ascertained, indeed, under 
 
Note on Position of Mortgagees. 468 
 
 the Act, since no occasion has arisen for such ascertainment, of § 41. 
 
 2,000^. On that day B. may lend A. on mortgage of Blackacre 
 
 1,500^. There is a slump in building land in the neighbourhood, 
 
 and on April 30, 1913, the site value of Blackacre has receded in 
 
 value to 1,500^. B. on that date sells under his power of sale at 
 
 1,500^. Allowing the 10 per cent, imder s. 3 (5) on 1,000^., and 
 
 there being no other deduction claimable, B., it is thought, must 
 
 pay increment value duty on 400^., that is 80^., notwithstanding 
 
 that his security is thereby made deficient. Supposing that A. 
 
 died on April 29, 1913, just before B. sold, B.'s position would, 
 
 it seems, have been practically the same. It is at least probable 
 
 that the Crown would have had a first charge on the property 
 
 for the increment value duty due on A.'s death, taking precedence 
 
 of B.'s mortgage by virtue of s. 9 (1) of the Finance Act, 1904, 
 
 applied to increment value duty by s. 5 of the 1910 Act. See 
 
 note on p. 105. The moral is that, in advancing money on 
 
 property which has risen in value since the last occasion on 
 
 which increment value duty was paid, mortgagees must take 
 
 into account the Crown's prior claim for increment value duty. 
 
 4. If a mortgagee being in possession leases under s. 18 of the Leasing. 
 
 Conveyancing Act for a period exceeding fourteen years, he is 
 a lessor within s. 4, and under subs. (4) of that section is liable 
 for the increment value duty. 
 
 5. If he joins with the mortgagor in conveying the property to a Joining in 
 
 purchaser, then (even if he receives the purchase-money or a part conveyance. 
 
 of it) he is not liable to pay increment value duty as a transferor 
 
 under s. 4 (see s. 41, definition of " transferor "). It is perhaps not 
 
 quite clear on the definitioii of " transferor " whether a mortgagee, 
 
 who both conveys and actually receives the purchase-money, is 
 
 not a transferor, but it is thought that he is not. 
 
 6. On the death of a mortgagee who has not foreclosed, increment Death. 
 
 value duty, it is submitted, is not payable, but it is payable on 
 the death of a mortgagor. An incumbrance is not an interest in 
 land (see s. 41, paragraph " The expression ' interest,' " p. 446). 
 
 7. A mortgagee who has foreclosed is, of course, the owner, and on 
 
 a sale, or lease, by him, or on his death, increment value duty is 
 payable. 
 
 8. The same is the case where the mortgagee has acquired a title 
 
 under the Statutes of Limitations. 
 
 Reversion Duty. 
 
 1. A mortgagee would seem to be a lessor within the meaning of s. 13 As a lessor, 
 (see definition of "lessor " in s. 41). "The expression ' lessor ' 
 includes the person for the time being entitled to the reversion, 
 whether freehold or leasehold, expectant on the determination of 
 the lease." He would seem to be so even if he has not gone into 
 
454 
 
 Land Clauses of the Finance Act. 
 
 § 41. 
 
 Limitation 
 of liability. 
 
 possession. Certainly, if he has gone into possession, he will be 
 so. Even if he is the mortgagee of a leasehold reversion by way 
 of demise, he is, within the definition clause, s. 41, "the person 
 for the time being entitled to the leasehold reversion expectant 
 on the determination of the lease." (See note on p. 444.) 
 If the reversion has been mortgaged to him before April 30, 1909, 
 and he has foreclosed before the lease on which the reversion is 
 expectant determines, he is not liable to pay reversion duty in 
 excess of the amount by which the total value of the land as 
 ascertained under s. 25 at the time of the determination of the 
 lease exceeds the amount payable under the mortgage at the 
 date of the foreclosure (s. 14 (5)). [See comments on this 
 sub-section, p. 173.] 
 
 Undbvelopbd Land Duty. 
 
 Freeholds. This is payable under s. 19 by the owner. Under s. 41 "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 underlease, shall be 
 deemed to be the owner instead of the person entitled to the 
 rents and profits as aforesaid. It is possible that a mortgagee in 
 possession of a freehold estate is the " owner," and liable under 
 s. 19 to pay undeveloped land duty. This, however, must not be 
 absolutely assumed, because it certainly seems that the scheme of 
 the Act relating to the duty is to make the owner in the ordinary 
 and non-legal sense of the word the person liable to pay undeveloped 
 land duty. Further, it is against this view that s. 39 (4), which 
 gives a mortgagee who has paid or is liable to pay increment value 
 duty or reversion duty power to charge the same on the land, does 
 not extend to undeveloped land duty. Nevertheless, as the duty 
 is nowhere made a charge upon the land, it is difficult to see how 
 the Crown is to recover the duty in case the mortgagor disappears, 
 and the mortgagee neither forecloses nor sells, nor acquires a title 
 under the Statute of Limitations. 
 Leaseholds. The remarks in the last paragraph are mutatis mutandis applicable to 
 
 a mortgage by assignment of leaseholds with a term unexpired of more 
 than fifty years. But they are not applicable to a mortgage by demise 
 of leaseholds. Under such a mortgage the lands are not " let on lease " 
 (see above definition of " owner ") to the mortgagee. A lease " 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 " (s. 41, p. 443). But if the mortgagee in possession is not 
 the owner it would seem that the mortgagor must be. But the mort- 
 gagor is not entitled in possession, or indeed at all, to the rents and 
 
Note on Position of Mobtgagees. 455 
 
 profits (see the definition). Still he is the lessee under the lease, and § 41. 
 this may be sufficient to make him " owner " under the definition. 
 
 The mortgagee is from the date of the mortgage entitled in law to 
 possession of the mortgaged estate, even although the mortgage money 
 has not become due {Rogers v. Grazebrook, 8 Q. B. 895 ; see also 
 Cundiff V. Fitzsimmons, [1911] 1 K. B. 513). If the words "entitled 
 in possession" in the definition of "owner" mean "entitled to 
 possession," it is conceivable that a mortgagee could be liable for this 
 duty even before taking possession. It is, however, thought that a 
 mortgagor would be the person entitled in possession until the mortgagee 
 had actually taken possession, or at all events had given notice of his 
 intention to do so. 
 
 Mineral Kights Duty. 
 
 A problem similar to the last arises upon this duty. Under s. 20 (4) 
 it is payable by the " proprietor of the minerals where the pro- 
 prietor is working the minerals, and in any other case by the im- 
 mediate lessor of the working lessee." The "proprietor" by s. 24 
 means " the person for the time being entitled in possession to the 
 minerals or to the rents and profits thereof.'' If the mortgagee has 
 gone into possession and is himself working the minerals, or is 
 receiving the mineral rent from the working lessee, he is (possibly) 
 liable for mineral rights duty, either as proprietor, or as the 
 " immediate lessor of the working lessee." 
 
 Power of Adding to Security. 
 
 Under s. 39 (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 is 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 (see note on p. 427). 
 
 It will be observed that there is no mention in this sub-section of Land duty, 
 either undeveloped land duty or mineral rights duty, both of which, 
 if the view above taken as to the position of a mortgagee is correct, he 
 may possibly in certain circumstances have to pay. It is submitted that 
 under the ordinary practice or law of the Chancery Division all sums 
 properly paid by a mortgagee in respect of any of the duties imposed 
 by the Act may be added to his security in the usual way. 
 
 The position of an equitable mortgagee will, of course, be different Equitable 
 from that of a legal mortgagee, and will depend to some extent upon mortgagee, 
 the manner in which the mortgage is created ; but may be worked out 
 in detail by the practitioner. At all events it seems clear that an 
 equitable mortgagee by deed exercising his power of sale will be a 
 transferor and liable for increment value duty. 
 
 In case of realisation of a mortgage security under order of the 
 Court it will probably be the practice of the Court to provide for the 
 
466 Land Clauses of the Finance Act. 
 
 § 41. payment of increment value duty. It is, of course, the interest of the 
 purchaser to see that one of the three stamps mentioned in sub-s. (3) 
 of s. 4 is on the conveyance, but this may not be considered as 
 absolving the Court from seeing that the duty is paid. In relation 
 to the increment value duty payable by bodies corporate or unincorporate 
 on periodical occasions, this has in all probability been already provided 
 for by s. 20 of the Customs and Inland Revenue Act, 1885 (48 & 49 
 Vict. c. 51), incorporated in this Act by s. 6 (3). (See Appendix, p. 613.) 
 
 But does not include a Fixed Charge. — Fixed charge is defined in the 
 next paragraph. " Incumbrance " is contrasted with " fixed charge " 
 under the Land Clauses, since " total value," the importance of which 
 in the valuation scheme has been pointed out {ante, p. 288), is ascertained 
 under s. 25 by dedvicting from gross value (amongst other things) the 
 capital value of the fixed charges on the land, but not the incumbrances 
 on the land. 
 
 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 " Fixed Charge " means, etc. — The only references in 
 the Land Claiises to fixed charges are (a) in s. 25 (1), where the word 
 " charge " would probably include a fixed charge ; (b) in s. 25 (3), under 
 which the capital value of " fixed charges " is to be deducted (inter alia) 
 from gross value in order to ascertain total value ; (c) in s. 25 (4) (d), 
 under which sums paid for the redemption of fixed charges are to be 
 deducted from total value, in order to ascertain assessable site value ; 
 (d) in s. 30 (1), in which they are probably included in the words 
 " deductions allowed in determining any value " which are to be 
 recorded by the Commissioners ; (e) in s. 41, paragraphs " The 
 expression ' interest ' " and " The expression ' incumbrance.' " 
 
 Any Rentcharge as defined, etc. — See note on p. 441. 
 
 Any Burden or Charge arising by Operation of Law or imposed by 
 any Act of Parliament. — A " betterment " charge before payment 
 would be a charge imposed by Act of Parliament (see s. 36 and note). 
 Charges obtained by, or vested in, local authorities on lands and houses 
 for road making, and other works under the Public Health Act, 1875 
 (see s. 257), and local Acts, are other examples of charges falling within 
 the defiuitiou. The charge need not be an aunual one. 
 
lien. 
 
 construction. 
 
 Definitions: Fixed Charge. 457 
 
 Charges under the various Drainage and Improvement Acts (27 & 28 § 41. 
 Vict. c. 114, 33 & 34 Vict. c. 56, 34 & 35 Vict. c. 84, 62 & 63 Vict. Charges 
 c. 46, and others), under which money may be advanced for the purpose of under Drain- 
 the drainage or other improvement of estates, and is charged on the land improvement 
 by way of rentcharge lasting for a limited period, are probably within Acts. 
 the last words of the paragraph and are not " fixed charges." 
 
 Mortgages by a tenant for life imder the powers of the Settled Land Mortgages 
 Acts, i.e., Act of 1882 (45 & 46 Vict. c. 38), ss. 5, 18, 24 (4), 47 ; Act of Land'^A^ts"^'^ 
 1890 (50 & 51 Vict. c. 30), s. 1 1, are probably also not fixed charges. 
 
 A trustee's lien on land for costs, charges, and expenses is a more Trustee's 
 disputable matter, but it is thought that it is not a fixed charge. But, 
 possibly all incumbrances within the meaning of the definition of 
 incumbrance in s. 41 are excluded from fixed charges. If that be the 
 case, then such sums as charges under the Agricultural Holdings Act, 
 1883 (46 & 47 Vict. c. 38), s. 30, and the Copyhold Act, 1894 (57 & 58 
 Vict. c. 46), ss. 36 to 40 inclusive, would be excluded from the definition 
 of fixed charges. 
 
 It must be admitted that in applying to the valuation section (s. 25) Difficulties of 
 the definitions respectively of "rentcharge," "incumbrance," and 
 " fixed charge " a good many questions of difficulty will arise. Perhaps 
 this general statement may be accurate. Burdens and charges (including 
 portions and jointure rentcharges) which are, or are akin to, mortgages 
 may not be deducted (s. 25 (1)). Perpetual rentcharges, and charges 
 which are imposed by law apart from the voluntary action of the parties, 
 appear to be fixed charges and capable of deduction. But it is felt that 
 this is the very roughest method of summarising the paragraphs in 
 question. Although no fixed charges are included in the word 
 " incumbrances," yet some things which are usually considered incum- 
 brances may possibly be fixed charges, e.g., a rentcharge granted out 
 of land as a security for money. 
 
 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 ; 
 
 Fee Simple . . . not subject to any Lease. — The qualified meaning 
 of " fee simple " is of great importance in construing the statute. Refer 
 to ss. 1, 2, and 3, where there are constant differences of wording 
 according as the " fee simple of" or merely an " interest in " the land is 
 the subject of the enactment. See notes to s. 41, paragraphs " The 
 expression 'land,' " ante, p. 434 ; " The expression 'interest ' in relation 
 to land," ante, p. 446. For application of the words " fee simple " to 
 copyhold lands see s. 40 [b), ante, p. 428. 
 
 It seems clear that a sale, a lease, or a devise of his share of the fee 
 
458 Land Clauses of the Finance Act. 
 
 § 41. simple by a joint tenant or a tenant in common gives rise to a claim for 
 duty only in respect of the interest sold, leased, or devised (s. 3 (3) ). 
 
 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 
 and 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 underlease, shall be deemed 
 to be the owner instead of the person entitled to 
 the rents and profits as aforesaid ; 
 
 The expression '* Owner." — For definitions of owners in other 
 
 statutes see the Public Health Act, 1875 (38 & 39 Vict. c. 55), s. 4 ; 
 
 the Poor Rate Assessment and Collection Act, 1869 (32 &. 33 Vict. 
 
 c. 41), s. 20 ; the London Building Act, 1894, s. 5 (29) ; the Public 
 
 Health (London) Act, 1891, s. 141 ; the Lands Clauses Act, 1845, s. 3 ; 
 
 the Railway Clauses Consolidation Act, 1845, s. 2 ; the Housing of the 
 
 Working Classes Act, 1890, s. 29 ; and other Acts. 
 
 When owners The only tax imposed by the Land Clauses upon " owners " noniinatim 
 
 taxed as such. ^^ ^j^^ undeveloped land duty (s. 19). Increment value duty is payable 
 
 by the transferor of land, or an interest in land, who may not be the 
 
 owner, but a mortgagee, or a lessee for a term with less than fifty years 
 
 to run, etc. (s. 4 (1) ). It is payable on the passing on death of land or 
 
 an interest in land, but again the person to pay is not necessarily the 
 
 " owner." So reversion duty is payable by a lessor who may have a 
 
 term of only twenty-one years and a day (s. 14 (2) ). Further, mineral 
 
 rights duty is payable not only by a " proprietor," a word which has 
 
 almost the same meaning in relation to minerals as " owner " in 
 
 relation to other land (compare s. 24, paragraph " The expression 
 
 * proprietor,' " ante, p. 265, with the paragraph of s. 41 under comment), 
 
 but also by lessees with less than a term unexpired of fifty years 
 
 (s.20(4)). 
 
 Importance of Nevertheless, as will be seen from the following references to the use 
 
 operative ^° in the Land Clauses of the word "owner," the definition of "owner" 
 
 clauses. affects all land to which those clauses apply. 
 
 (a) Sect. 8. Exemption of small houses and properties in owners' 
 occupations. Note special extension by sub-s. (4) of the term 
 " owner " for purposes of this section. 
 
 (b) Sect. 18. Exemption of small holdings occupied and 
 cultivated by owners from undeveloped land duty. Similar special 
 extension of term "owner" for purposes of this section. 
 
 (c) Sect. 19. Undeveloped land duty payable by owners. 
 
 (d) Sect. 26 (2). Owners of land to make returns on original 
 
Definitions : *' Owner." 459 
 
 valuation (sub-s. 2) ; may require separate valuation of any part of § 41. 
 any land under separate occupation (sub-s. (3) ) ; may require joint 
 valuation of land in separate occupation under certain limited 
 circumstances (Revenue Act, 1911, s. 5, ante, p. 315); and may 
 furnish estimates of value (s. 26 (3) ). 
 
 (e) Sect. 27. Right of owners to object to provisional valuation 
 and extension of definition of owner for the purposes of the 
 section (sub-s. (7) ). 
 
 (f) Sect. 28, which applies to the quinquennial valuation for 
 the purposes of undeveloped land duty the provisions of ss. 26 and 
 27, but probably not those of s. 5 of the Revenue Act, 1911 (p. 315). 
 
 (g) Sect. 31 (4), relating to service of notices, etc., on owners, 
 (h) Sect. 40 (1) (c), svibstituting a definition of " owner " in 
 
 relation to copyholds for that contained in this paragraph. 
 
 A person may be the " owner " to-day because his lease has fifty years Shifting of 
 and one day unexpired, but to-morrow he will have ceased to be the ownership, 
 owner, because his lease has only fifty years to run. 
 
 The following is a comparison between the respective legal positions of Comparison 
 a lessee with, say, a term of forty-nine years to run, who is not an owner, between legal 
 and the person entitled to the fee simple in reversion who is the owner, owners and 
 
 (1) The owner can, but the lessee cannot, on the original valua- lessees not 
 tion (? as to whether the last sentence of s. 26 (1) applies to quin- 
 quennial valuations under s. 28) require land held under one occupa- 
 tion to be split up for purposes of valuation. 
 
 (2) The owner is always bound to furnish the particulars referred 
 to in s. 26 (2) ; the lessee only if he receives rent. If he only pays 
 rent he must comply with s. 31 (1). 
 
 (3) The owner can, but the lessee cannot, require the joint 
 valuation of contiguous property under the limitations of s. 5 of 
 the Revenue Act, 1911 (p. 315). Probably the section in question 
 refers only to the original site valuation and not to the quinquennial 
 valuation for undeveloped land duty. 
 
 (4) The owner is entitled, but the lessee is not entitled, to furnish 
 to the Commissioners his estimate of total or site value, which must 
 be considered by the Commissioners in making their valuation 
 (s.26(3)). 
 
 (5) The owner is, but the lessee is not, liable to undeveloped 
 land duty (s. 19). 
 
 (6) The provisional valuation must be served on the owner of 
 land (s. 27 (1) ), but on a lessee only if his term comes within 
 sub s. (7). In other cases he must apply himself for a copy of the 
 provisional valuation under sub-s. (5). 
 
 (7) Notices may be served on both owners and lessees in the 
 same manner (s. 31 (4) ). 
 
 (8) Both are probably persons interested within the meaning of 
 s. 25 (4) {h) and (c), and s. 30 (2). 
 
460 
 § 41. 
 
 Position of 
 reversioner 
 who is not 
 owner. 
 
 Land Clauses of the Finance Act. 
 
 (9) Both may be persons aggrieved within the appeal section 
 (s. 33). 
 
 (10) Each must pay increment value duty on occasions arising 
 under s. 1 in respect of his interest in the land. 
 
 (11) Each maybe liable to reversion duty (s. 13 (2)), and to 
 mineral rights duty (s. 20 (4) and 21). 
 
 The position of the person entitled to the fee simple reversion 
 expectant on a term with more than fifty years to run (the lessee under 
 which is therefore the owner) appears to be as follows, (a) He has an 
 interest in land on the sale or passing on death of which increment 
 value duty is payable (see s. 41, paragraph " The expression ' interest,' " 
 ante, p. 446). (b) He is not liable for undeveloped land duty (s. 19). 
 (c) He cannot require separate valuation under s. 26 (1), or joint 
 valuation under s. 5 of the Revenue Act, 1911 (p. 315). (d) As he 
 receives rent he is bound to make the return referred to in s. 26 (2). 
 (e) He is not entitled to have his estimate of the value of the land 
 considered under s. 26 (3). (f) He is an owner within the meaning of 
 s. 27 as to service of and objection to provisional vahiation, by virtue 
 of sub-s. (7) of that section, (g) He is a person interested within 
 s. 25 (4) {b) and (c), and s. 30 (2). (h) He may be a person aggrieved 
 within s. 33 (1). (i) He may become liable to reversion duty (s. 13 (2) ). 
 (j) He may be liable to mineral rights duty (s. 21), and annual increment 
 value duty (s. 22 (3) ). 
 
 Illustrations. 
 
 Equitable 
 tenant for 
 life or years. 
 
 1. On January 1, 1870, A., the owner in fee of Blackacre, leases it 
 to B. for ninety-nine years. On January 1, 1880, B. subleases to C. 
 for the residue of the term of ninety-nine years, less one day. On 
 January 1, 1912, C. is the owner. He has on that day a term 
 unexpired of fifty-seven years, less one day. 
 
 2. Referring to example No. 1, on January 1, 1919, the term having 
 on that day not more than fifty years to run, A. becomes and is 
 thenceforward the "owner." 
 
 3. A., the tenant for life of a settled estate, demises Blackacre to B. 
 for thirty-five years. A. is the owner. 
 
 In the case where there is an equitable tenant for life or years in 
 actual possession, the legal estate being vested in trustees, it appears 
 doubtful who is the owner. The analogy of the meaning of owner in 
 the Public Health Act, 1875 (38 & 39 Vict. c. 55), s. 4, does not help to 
 any conclusion, since the definition in s. 4 of that Act expressly includes 
 agents and trustees. On the whole it is thought that the tenant 
 for life is the owner in such a case, but the opinion is hazarded without 
 complete confidence. Supposing the trust is of such a nature that the 
 equitable tenant for life is entitled to be put into possession and is so 
 put by the trustees, and is himself receiving the rents and profits and 
 
Definitions : Owneb. 461 
 
 managing the property, who in such a case is the owner within the Act? § 41. 
 It is suggested that the tenant for life is in that position. (See cases cited 
 on p. 424.) As to mortgagees being owners, see p. 454. Compare 
 Tottenham Local Board v. Williamson (1893), 62 L. J. Q. B. 322, noting 
 difference between s. 4 of the Act of 1875 and this paragraph. 
 
 Let on Lease. — See definition of " lease " {stipra, p. 443). 
 
 The expressions "lessor" and "lessee" include an 
 underlessor and underlessee; and the expression 
 " lessor " includes the person for the time being 
 entitled to the reversion, whether freehold or 
 leasehold, expectant on the determination of the 
 lease ; and the expression " lessee " includes execu- 
 tors, administrators, and assigns of the lessee ; 
 
 Compare this paragraph with the paragi'aphs of the same section 41 
 commencing "The expression 'lease'" (ante, p. 443), "The term of a 
 lease " (ante, p. 444), " The expression ' interest ' " (ante, p. 446), " The 
 expression 'owner'" (ante, p. 458). From these various paragraphs, 
 read with the operative clauses of the Act, it is clear (a) that increment 
 value duty is payable on the grant, transfer on sale, and passing on 
 death of leases or underleases, and on periodical occasions in respect of 
 the holding of leases or underleases by bodies corporate or unin- 
 corporate (see ss. 1 to 6 inclusive) ; (b) that reversion duty is payable 
 by the reversioner for the time being, on the determination of either a 
 lease or underlease, under s. 13, subject of course to the exemptions 
 conferred by s. 14 ; (c) that undeveloped land duty is payable by a 
 lessee or underlessee when such person is an "owner" (s. 19) ; (d) that 
 mineral rights duty and annual increment value duty may be payable 
 by lessors or underlessors (s. 20 (5), s. 21, s. 22 (5)) ; (e) that in all 
 these cases the heirs, executors, administrators, or assigns, as the case 
 may be, stand in the shoes of and are entitled to the rights and subject 
 to the obligations of the original lessor and lessee. In the case of the 
 " lessor " the words " the person for the time being entitled to the 
 reversion " meet the case of a settled reversion, and in the case of the 
 lessee the word "assigns " meets the case of the settlement of the lease. 
 
 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 conveying any estate vested in them as 
 trustees or incumbrancers, or of acknowledging the 
 
462 Land Clauses of the Finance Act. 
 
 § 41. receipt of the consideration money, or of giving 
 
 consent, and sections fifty-nine, sixty, and sixty- 
 45 & 46 Vict. two of the Settled Land Act, 1882 (which relate to 
 
 <^-^^- the exercise of pov^ers on behalf of infants and 
 
 lunatics) shall apply 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 expressions "Transferor" and "Lessor" do not include, etc. 
 — A trustee or mortgagee in whom a legal estate is outstanding, and 
 who joins to convey it to a purchaser, on a sale by the persons 
 beneficially entitled to the property, whether the instrument under 
 which the legal estate was vested in him is that immediately under 
 which the vendors derive title, or an earlier instniment, is not a 
 transferor, and is not liable to pay increment value duty under s. 4 (1). 
 A mortgagee under an existing mortgage who joins in a conveyance by 
 the mortgagor is not a transferor, even although, it is submitted, he 
 receives the purchase-moneys in discharge or part discharge of his debt. 
 
 The trustees of a settlement, whether acting imder the powers of the 
 Settled Land Acts or of the settlement itself, who merely join for the 
 purpose of receiving and acknowledging the receipt of purchase-moneys, 
 are not transferors or lessors (see further notes to s. 39, p. 412). A 
 tenant for life who joins in a conveyance by trustees under powers in a 
 will or settlement for the purpose of testifying his consent to the sale, 
 as required by the teims of the power or of s. 56 of the Settled Land 
 Act, 1882, is not a transferor. 
 
 Similar examples might of course be given in respect to leases. 
 Where the exercise of the leasing powers conferred upon a mortgagor 
 by s. 18 of the Conveyancing Act, 1881, is made, as is often the case, 
 subject to the consent in writing of the mortgagee, it is submitted that 
 the giving of such consent will not make the mortgagee a lessor within 
 the meaning of s. 4 of the Act of 1910. 
 
 And Sections fifty-nine, sixty, and sixty-two of the Settled Land 
 Act, 1882, . . . shall apply. — For these sections see ante, p. 426, and 
 the note thereon. The effect of the words commented upon is to give 
 the trustees of the settlement, or if there are none, then the person 
 appointed by the Court (subject to the directions of the Court) in the 
 case of the land of an infant, and the committee of the estate in the 
 case of the land of a lunatic, the same powers in relation to the exercise 
 of the powers of an owner under this Act as such persons have in 
 relation to the powers of a tenant for life under the Settled Land Acts. 
 In other words, the persons who in the case of infants and lunatics have 
 
Definitions : Transferor, etc. 463 
 
 under the Settled Land Acts certain powers of exercising the powers of ,§41. 
 those Acts are to exercise the owner's powers under the 1910 Act. An 
 owner's powers are, however, very limited under the 1910 Act. His 
 obligations are more evident than his powers, and the paragraph does 
 not state that the persons in question are subject to his obligations. 
 Little practical difficulty, however, need be feared, since where the 
 duties of the owner, i.e., to pay undeveloped land duty (s. 19) and to 
 make the return under s. 26 (2), are not enforceable against trustees of 
 an infant's land, they can probably in almost all cases be carried out 
 under the direction of the Court in proper proceedings. The powers 
 of owners under the Land Clauses are really ancillary to their obliga- 
 tions. The express powers conferred by the Act upon " owners " 
 nominatim appear to be limited to (a) requiring a separate valuation of 
 part of land in a separate occupation (s. 26 (1) ), and joint valuation 
 under s. 5 of the Revenue Act, 1911 ; (b) requiring the owner's 
 estimate of site or total value to be considered by the Commissioners in 
 making their valuation (s. 26 (3) ) ; (c) making objections to the 
 provisional valuation (s. 27). But of course there may be many other 
 unexpressed rights or powers which naturally arise from the implied 
 limitations of an owner's duties, or from rights conferred in the statute 
 upon classes of persons which necessarily include owners, such as 
 the right to obtain particulars of the Commissioners' records under 
 s. 30 (2), or the right to appeal as a person aggrieved under s. 33. 
 Only experience of the working of the Act can show how far either from 
 the point of view of the interests of the Crown or of the subject the 
 working arrangements in relation to the taxation of infants' and lunatics 
 land are satisfactory. 
 
 It is a little difficult to see why this clause relating to infants' and 
 lunatics' land is tacked on to the paragraph " The expression ' trans- 
 feror,' " etc., with which it appears to have little in common. 
 
 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. 
 
 The Expression "Agriculture." — References to " agriculture " will be 
 found in s. 16 (2) (p. 181), s. 25 (4) {b) (p. 294), and the paragraph 
 commencing " Where any works," etc. (p. 295). 
 
 The sections of the Land Clauses relating to agricultural land are as 
 follows : — 
 
 Sect. 7 (p. 130), giving exemption from increment value duty to 
 agricultural land having no higher value than it market value for 
 agricultural purposes. 
 
464 Land Clauses of the Finance Act. 
 
 § 41. Sect. 8 (2) (p. 138), wholly exempting small agricultural holdings in 
 
 the owner's occupation from increment value duty. 
 
 Sect. 14 (2) (p. 166), exempting land being agricultural land at the 
 determination of a lease from reversion duty. 
 
 Sect. 16 (2) (p. 181), providing in effect that buildings for the pur- 
 poses of agriculture, other than dwelling-houses, glasshouses, or green- 
 houses, do not, like buildings, for the purposes of any other business, 
 trade, or industry, exempt the land from liability to undeveloped land 
 duty, and similarly use for agriculture does not, like use for any other 
 business, trade, or industry, confer such exemption. 
 
 Sect. 17 (1) and (2) (p. 194), providing that undeveloped land duty is 
 only to be charged on agricultural land of which the site value exceeds 
 50^., and then only on the amount by which the site value of the land 
 exceeds the value of the land for agricultural purposes. 
 
 Sect. 17 (5) (p. 201), giving an owner exemption from undeveloped 
 land duty on agricultural land during tenancies existing at the passing 
 of the Act, until the owner (landlord) is able to determine such 
 tenancies. 
 
 Sect. 18 (p. 203), giving complete exemption from undeveloped land 
 duty to small agricultural holdings occupied by their owners. 
 
 Sect. 25 (4) (p. 294), excepting from the expenditure for the purposes 
 of business, trade, or industry, the value of which may be deducted 
 from total value in order to arrive at " assessable site value," expendi- 
 ture for the purpose of agriculture, except so far as such expenditure 
 has improved the value of the land as building land, or for the pui-pose 
 of any business, trade, or industry other than agriculture. 
 
 Sect. 26 (1) (p. 309), requiring, on the original valuation of agricul- 
 tural land, that its value shall be found for agricultural purposes where 
 that value is different from its site value. 
 
 Includes, etc. — The first point to consider is what land is " agricultural 
 land " under the Land Clauses. Clearly the definition is not an 
 exclusive definition. There is no statutory definition of agriculture in 
 the Interpretation Act, 1891. The following are definitions contained 
 in two of the most recent authoritative dictionaries. 
 
 The science and art of cultivating the soil, including the allied 
 
 pursuits of gathering in the crops, and rearing live stock, tillage, 
 
 husbandry, farming in the widest sense ; (b) restricted to tillage 
 
 (rare). (Murray's New English Dictionary, Clarendon Press, 1888.) 
 
 The art or science of cultivating the ground, including the 
 
 harvesting of crops, and the rearing and management of live stock, 
 
 tillage, husbandry, farming. (Webster's International Dictionary, 
 
 Bell & Co., 1890.) 
 
 Coupling these dictionary definitions with the above paragraph of 
 
 s. 41, it seems clear that agricultural land not only includes land 
 
 employed in tillage, in which sense the term " agricultural land " appears 
 
Definitions : Ageiculture. 465 
 
 to be used in the Agricultural Holdings Act, 1908 (8 Edw. 7, c. 28) § 41. 
 (see s. 48, paragraph " Holding "), but also land employed in 
 "agriculture" in the wider sense as defined or explained by the 
 dictionary quotations. 
 
 It is not thought that the definitions contained in the following 
 statutory provisions throw much light upon the meaning of the term 
 "agricultural land " in the Act of 1910, since the object and scope of 
 the Acts from which they are taken are dififerent from those of the 
 Finance Act, 1910. 
 
 Sect. 22 (1) {g) of the Finance Act, 1894 (57 & 58 Vict. c. 30), 
 provides : " Unless the context otherwise requires . . . ' agricul- 
 tural property' means agricultural land, pasture and woodland, 
 and also includes such cottages, farm buildings, farmhouses, and 
 mansion houses (together with the lands occupied therewith), as 
 are of a character appropriate to the property." 
 
 Sect. 16 of the Agricultural Rates Act, 1896 (59 & 60 Vict. c. 16), 
 provides : " That unless the context otherwise requires . . . the 
 expression 'agricultural land' means any land used as arable, 
 meadow or pasture ground only, cottage gardens exceeding one 
 quarter of an acre, market gardens, nursery grounds, orchards or 
 allotments, but does not include land occupied together with a 
 house as a park, gardens, other than as aforesaid, pleasure grounds 
 or any land kept or preserved mainly or exclusively for purposes 
 of sport or recreation, or land used as a racecourse." 
 
 Sect. 61 (1) of the Small Holdings and Allotments Act, 1908 
 (8 Edw. 7, c. 36), provides : " That for the purposes of this Act the 
 expressions ' agriculture ' and ' cultivation ' shall include horticulture 
 and the use of land for any purpose of husbandry, inclusive of 
 the keeping or breeding of live stock, poultry, or bees, and the 
 growth of fruit, vegetables, and the like." 
 
 The Use of Land as Meadow, etc. — The words of the paragraph 
 " includes the use of land as meadow," etc., point to the conclusion that 
 only land actually used or employed in agriculture is agricultural land. 
 If this is the case, a vacant piece of grass land, available for pasture, 
 but not used as such, with a value for building purposes of over 50^. 
 per acre, considerably in excess of its value as pasture land, will not, 
 under s. 17 (2), be entitled to exemption from undeveloped land duty 
 up to its value for purposes of pasture only. 
 
 A question may arise as to whether the partial exemption conferred 
 by s. 17 (2) from undeveloped land duty can be claimed for lands used 
 as a park, in respect of which complete exemption cannot be claimed 
 under s. 17 (3) (a), {b), or (4). The park, whilst contributing to the 
 amenities of the mansion, may also be profitably employed in pasturing 
 cattle. It is not thought that in order to secure the exemptions 
 conferred on agricultural land by ss. 7 and 17 the primary object of 
 
 N. 80 
 
466 Land Clauses of the Finance Act. 
 
 § 41. the user need be the expectation of or desire to make profit out of the 
 agricultural use of the park, and accordingly it is thought that the 
 principle of the decision in In re Wallis, Ex parte Sully (L. R. 14 Q. B. D. 
 950), in which case the occupier of a residential property, who engaged in 
 farming for his pleasure, and carried on the same at a profit, though 
 not with a view to a profit, was held not to be carrying on " a trade or 
 business" within the meaning of s. 44 of the Bankruptcy Act, 1883, 
 even though he sold his surplus produce after supplying his household, 
 has no application to the present Act. The motive of the owner or 
 occupier is under the Act of 1910, it is conceived, quite unimportant, 
 and the actual use of the land is the determining factor. For this 
 reason it is thought that the question of the claim to partial exemp- 
 tion in respect of park land, based on its being agricultural land, will 
 always be a question of evidence turning on the point whether in fact 
 there was a real bond fide agricultural use. It is suggested that it is 
 not a question whether the agricultural use is of less importance 
 than the use for the amenities of the house, so that, if that be the case, 
 the exemption cannot be claimed, but simply whether there is a real 
 agricultural use. It is quite admitted that this will leave open a number 
 of difficult questions. 
 
 Where, however, an agricultural use of the land is really incidental 
 to the main use of the property, as where live stock are put on golf 
 links to keep down the grass, it is thought that the land could not be 
 called " agricultural land." 
 
 For the difficult question as to whether the " market value of the 
 land at the time for agricultviral pui-poses only," under s. 7, and the 
 "value of the land for agricultural purposes," under s. 17 (2) respectively, 
 include in those values the value of the buildings for agricultural 
 purposes on the land referred to, see a note to s. 7 (p. 131). 
 
 Or Orchard. — A more difficult question is raised by the word 
 ** orchard." It is of course clear that an orchard detached from a house, 
 which is cultivated as an orchard, is agricultural land. But a question 
 may be raised as to whether an orchard attached to a house, the fruit of 
 which is not sold by the occupier, but is consumed by his household, or 
 given away, is " agricultural land " so as to be entitled to the partial 
 exemption conferred by s. 17 (2). It must be assumed, of course, that 
 complete exemption cannot be claimed for the orchard, under s. 17 (4), 
 as being "land not exceeding an acre in extent occupied together with 
 a dwelling-house." It is further probable that an orchard is not land 
 "being a garden or pleasure grounds," so as to fall within the five-acre 
 exemption of the same sub-section. Is it nevertheless entitled to 
 exemption by the effect of s. 41 1 Or does such a case as Viger v. Dudnmn 
 (L. R. 6 C. P. 470 ; 7 C. P. 72) apply to it 1 In that case pasture lands 
 were made practically exempt from a modvis commuting tithes under a 
 private Act until "converted into tillage," and then were made 
 subject to a substantial rent in lieu of tithe. A house was built on 
 
Definitions : Agriculture. 467 
 
 the land, and a garden and orchard made on the field, and it was held § 41. 
 
 by the Covirt of Common Pleas aji^^'^tn Exchequer Chamber that the 
 
 land had not been converted into " tillage," Willes, J., in his judgment, 
 
 which was approved by the Exchequer Chamber, saying that the 
 
 " gardens and orchards " were no more than the reasonable accessories 
 
 of such a house as that now in question, and not to be classed amongst 
 
 such gardens and orchards as might constitute an employment of the 
 
 land for agricultural purposes. " They are not for example like a 
 
 market garden . . . the garden and orchard were mere accessories of 
 
 the house." It is submitted, thoiigh the matter is one of difficulty, 
 
 that the actual use and employment of the land are the determining 
 
 consideration, and that if there is a bond fide cultivation of an orchard 
 
 for the purpose of growing fruit, the land is by virtue of s. 41 made 
 
 within the meaning of the Act agricultural land, notwithstanding 
 
 that the fruit is not sold for profit, and that the orchard adds, and was 
 
 made for the purpose of adding, to the amenities of the house. 
 
 Or Woodland. — By the term " woodland " is understood to be meant 
 land on which trees or underwood are cultivated for the purpose of 
 producing a profitable commodity ; see Harrison v. Harrison, 28 Ch. D. 
 220; Bashwood V. Magniac, [1891] 3 Ch. 306. It is suggested that 
 it is quite immaterial whether in fact there is or is not a profit on the 
 operations, or even whether the cultivation is carried on partly because 
 it adds to the amenities of the residence. 
 
 The Rating Act, 1874 (37 & 38 Vict. c. 54), which contains in 
 ss. 3, 4, 5, 10, and 12 certain provisions with regard to the rating of 
 land used for "a plantation or wood, or for the growth of saleable 
 underwood," does not, it is thought, throw any light upon the question 
 as to what must be the nature of the " woodland," and of the cultivation 
 applied to it in order to bring it within the definition of agricultural 
 land in s. 41. 
 
 Or for Market Gardens, Nurser-y Grounds. — The position of land 
 used for market gardens or nursery grounds appears to be as follows. 
 Being agricultural land, increment value duty is by virtue of s. 7 not 
 chargeable on an occasion arising under s. 1, so long as the land in 
 question has no higher value than its market value at the time for 
 agricultural purposes only. But directly the land reaches such higher 
 value, increment value duty becomes payable as from the original site 
 valuation. 
 
 Illustrations. 
 1. The original site valuation of Whiteacre, a pasture field, is 
 200^., which is its value as agricultural land. After April 30, 1909, it 
 is converted into a market garden, and then on January 1, 1912, 
 it is sold. The site value on the occasion of the sale is 300^., 
 which is in fact its then market value for the purposes of a market 
 garden, i.e., "for agricultural pui-poses only." In other words, 
 
 30—2 
 
468 
 
 Land Clauses of the Finance Act. 
 
 § 41. 
 
 Market 
 gardens and 
 undeveloped 
 land duty. 
 
 no larger sum than 300^. would be realised on the sale of White- 
 acre without restrictions, other than those implied by law, as to 
 the uses to which it may be put. Increment value duty is not 
 payable on this sale. 
 
 2. On Januaiy 1, 1915, Whiteacre is again sold, and this time 
 its site value is found to be 500^. The additional 200^. is obtained 
 since it is thought that Whiteacre is now within the area of 
 building land, that is, has a value " higher than its market value 
 at the time for agricultural purposes only." Increment value duty 
 is therefore payable on this sale, but it is payable (leaving out of 
 consideration for simplicity of illustration's sake the 10 per cent, 
 allowance under s. 3 (5) ) on 300/., being the increment value 
 calculated on the original agricultural site value, and not on 200/., 
 the excess of building over agricultural site value. 
 As to undeveloped land duty, the position of market gardens is as 
 follows. So long as the site value of the land does not exceed 50/. per 
 acre, undeveloped land duty is not payable (s. 17 (1) ). It may be that 
 the true agricultural value is 40/. per acre, and that there is a site 
 value for building pui-poses of 50/. per acre. Nevertheless there is 
 complete exemption from the duty. If the site value of the market 
 garden exceeds 50/. per acre, then undeveloped land duty is charge- 
 able upon the amount by which the site value of the land [unrestricted 
 as to its use] exceeds the value of the land for agricultural 
 purposes (s. 17 (2) ). It is thought that the last-mentioned "value" is 
 meant literally, and that the comparison is of site value with the value, 
 not the site value of the land for agricultural purposes. 
 
 Illustrations. 
 
 (a) The original site value of Whiteacre, a pasture field, is 200/., 
 which is its value as agricultural land. After April 30, 1909, it is 
 converted into a market garden, and on April 30, 1914, at the 
 first quinquennial valuation under s. 28, its value as a market 
 garden, i.e., its value for agricultural purposes only, is 400/. It 
 would not sell for more than 400/. [i.e., its site value does not 
 exceed that sum) for building purposes. Undeveloped land duty 
 is not payable on Whiteacre. 
 
 (b) On April 30, 1919, the occasion of the next quinquennial 
 valuation, the site value of Whiteacre is 800/. Its value as a 
 market garden has, however, gone up to 500/., owing to the same 
 advance of the neighbouring town, which gave it a building value 
 in excess of its market garden value. Undeveloped land duty is 
 payable on 300/., i.e., " on the amount by which the site value of 
 the land exceeds the value of the land for agricultural purposes." 
 
 The foregoing remarks and illustrations will show that it is thought 
 that the increased value of land for market garden and for all other 
 agricultural products arising from a growth of population and the 
 
Definitions : Agriculture. '469 
 
 extension of towns is an increase in agricultural values, which, instead § 41. 
 of increasing the liability of land to undeveloped land duty, has the 
 contrary effect and serves to decrease that liability by limiting the 
 margin between agricultural and building values. Thereby the liability 
 for undeveloped land duty (s. 17 (2) ), but not for increment value duty 
 (s. 7), is reduced. 
 
 There can, it is thought, be no question that the land on which glass- Glasshouses, 
 houses and greenhouses, whether actually buildings or not, are erected S'^ ^ '^ • 
 or placed in connection with market gardens is agricviltural land, and as 
 such entitled to the limited exemptions of s. 7 and s. 17 (2). The case 
 of Smith V. Richmond ( [1899] A. C. 448), in which the House of Lords 
 held that glasshouses, if buildings, must under the Agricultural Rates 
 Act, 1896, be rated as buildings, and not as "agricultural land," which 
 expression included (as in the Finance Act, 1910) market gardens and 
 nursery grounds, has, it is submitted, no bearing on the Act of 1910. 
 The object of the Agricultural Rates Act was to differentiate rating as 
 between agricultural land and buildings whether agricultural buildings 
 or buildings not agricultural (see s. 5). If the authority of cases decided 
 on other Acts of Parliament with objects not similar to the Finance Act, 
 1910, be of value, Purser v. Worthing Local Board (18 Q. B, D. 818) may 
 be referred to. The Public Health Act, 1875 (38 & 39 Vict. c. 55), 
 s. 211, sub-s. 1 {b), provides that occupiers of "land used as arable, 
 meadow, or pasture ground only, or as woodlands, market gardens or 
 nursery grounds," etc., are to be assessed for the general district rate at 
 one-fourth only of the net annual value, and not as other hereditaments 
 at their full net annual value. In Purser v. Worthing Local Board it was 
 held that the greenhouses occupied by a market gardener and nursery- 
 man, covering about one and a quarter acres of land, constituted a 
 market garden or nursery ground within the meaning of s. 211 (1) (6). 
 " I think that the land is not the less used as a market garden because 
 these glasshouses have been placed upon it" {per Lord Esher, M.R., in 
 the Couit of Appeal, 18 Q. B. D. at p. 822). 
 
 It will not be forgotten that the erection of glasshouses or green- Exempted 
 houses exempts the land on which they stand (whether agricultural or from unde- 
 not) from undeveloped land duty (s. 16 (2) ). The point is therefore jut^^ ^° 
 only of importance in relation to increment value duty, and possibly in 
 relation to reversion duty. If, contrary to the view here taken, land on 
 which glasshouses and greenhouses stand is not agricultural land, incre- 
 ment value duty will be payable on any increase in value, whether the 
 actual value of the land at the time when the occasion happens does, or 
 does not, exceed its vahie for agricultural purposes only. In such a case 
 no deduction could be made for expenditure in improving the quality of 
 the soil (s. 25 (4) {b) ). Reversion duty might also in a proper case be 
 payable, since the exemption conferred upon land which is at the time 
 of the determination of the lease agricultural land (s. 14 (2) ) could not 
 be claimed. But for the reasons already stated it is submitted that 
 land covered by greenhouses or glasshouses is agricultural. 
 
470 Land Clauses of the Finance Act. 
 
 § 41. The question already discussed on pp. 128 and 459, whether the value 
 
 of agricultural land within the meaning of s. 7 (exemption from increment 
 value duty of agricultural land) includes the value of the buildings, 
 arises in an acute form in the case of glasshouses and greenhouses. If 
 the buildings are to be valued along with the soil the area of exemption 
 will be greatly extended. It may well be that the agricultural value of 
 the land is more than doubled by the inclusion in its value of the 
 buildings. 
 
 See the Agricultural Holdings Act, 1908, s. 48, for an unilluminating 
 definition of " market garden." 
 
 Allotments. — Definitions of or references to allotments are contained 
 in various Acts of Parliament. By s. 31 of the General Inclosure Act, 
 1845 (8 & 9 Vict. c. 118), in enclosing waste land the Commissioners 
 may require as one of the terms of enclosure " the appropriation of such 
 an allotment for the labouring poor as the Commissioners shall think 
 necessary." 
 
 The Allotments Act, 1887 (50 & 51 Vict. c. 48) (now repealed by the 
 Small Holdings and Allotments Act, 1908, s. 62), limited allotments to be 
 provided thereunder to one acre (s. 7 (3) ), and enacted that the expres- 
 sion "allotment" should include a field garden (s. 17). 
 
 Under the Allotment and Cottage Garden (Compensation for Crops) 
 Act, 1887 (50 & 51 Vict. c. 26), s. 4, " allotment " means " any parcel of 
 land of not more than two acres in extent held by a tenant under a 
 landlord and cultivated as a garden or as a farm, or partly as a garden 
 and partly as a farm." 
 
 The Allotment Rating Exemption Act, 1891 (54 & 55 Vict. c. 33), 
 s. 2, contains a definition almost identical with the last-mentioned Act. 
 
 Under the Small Holdings and Allotments Act, 1907 (7 Edw. 7, c. 54), 
 s. 21 (1), five acres are to be substituted for one acre in s. 7 (3) of the 
 Allotment Act, 1887, as the limit of the extent of an allotment which 
 may be held by one person. 
 
 Under the Small Holdings and Allotments Act, 1908 (8 Edw. 7, c. 36), 
 s. 27 (3), the limitation of allotments to five acres is repeated, but with 
 an exception, and it is again enacted (s. 6 (1) ) that " allotment " shall 
 include a field garden. 
 
 Under the Housing and Town Planning Act, 1909 (9 Edw. 7, c. 44), 
 s. 73 (4), the expression allotment means any allotment set out as a fuel 
 allotment or a field garden allotment under an Inclosure Act. 
 
 It is not thought that the term " allotment " is confined to any one 
 of the specific statutory definitions which have been referred to. 
 Probably any piece of land, whatever may be the area, cultivated with 
 a view of obtaining produce therefrom by members of the labouring 
 classes or persons in allied positions would be held an allotment. 
 Whethersuch a piece of land cultivated by persons not of the labour- 
 ing or allied classes would be considered an allotment may be doubted 
 (see Cooper v. Pearse, [1896] 1 Q. B. 562). But it might be agricultural 
 
Definitions : Agriculture. 471 
 
 land, even though it was not an allotment. The point is hardly likely § 41. 
 to arise. The probable object of the insertion of the word "allotment" 
 in clause 41 is to signify that allotments of the various natures referred 
 to are not prevented from being considered agricultural land because 
 they are allotments. 
 
 Section 42. 
 42. In the application of this Part of this Act to § 42. 
 Scotland, unless the context otherwise requires : — Application 
 
 ^ of Part I. to 
 
 (1) The expression "land" does not include teinds, 
 titles or offices of honour, or any servitude, 
 superiority, 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 pur- 
 pose of section thirty-one of this Act includes 
 feu duty and ground annual ; 
 
 The expression "rentcharge" 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 include teinds, servitude, superiori- 
 ties, any interest in expectancy, whether vested 
 or not, heritable securities, 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 
 
 Scotland. 
 
472 Land Clauses of the Finance Act. 
 
 & 42. 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 accord- 
 ingly; 
 
 "Servitudes" shall be substituted for "ease- 
 ments " 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 of 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 
 57 & 58 Vict. (4) of section ten of the Finance Act, 1894, as 
 
 applied with reference to any such appeal the 
 said judges shall be substituted for the High 
 Court, and 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 case shall be final. 
 
 (2) Any order of a referee as to expenses shall be 
 enforceable as a recorded decree arbitral. 
 
 (3) Subsection (2) of section two of this Act shall be 
 construed as if after paragraph (d) thereof the 
 
 c. 30. 
 
Definitions : Scotland. 473 
 
 following paragraph were added (that is to § 42. 
 
 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 consideration for such grant or creation, 
 by way of feu duty, ground annual or other- 
 wise. 
 
 Where increment value duty falls to be collected 
 on a feu contract or feu charter or a contract of 
 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 instru- 
 ment, and the expressions ''transfer" and 
 " transfer on sale " shall be construed accord- 
 ingly. 
 The expressions " lessor " and " lessee " include a 
 sub-lessor and sub-lessee and the heirs, executors, 
 administrators, 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 instrument 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 Com- 
 missioners 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. 
 
474 Land Clauses of the Finance Act. 
 
 Part III. 
 Death Duties. 
 
 Sects. 55, 56, and 59 to 62 inclusive contain certain provisions 
 relating to death duties which affect increment value duty payable 
 on death. 
 
 Section 65. 
 
 § 55. 55. — For the purpose of any claim to relief from estate 
 
 Limitation of (j^tv Under subsectiou (2) of section five or subsection 
 
 relief from '' . ••iai*'i 
 
 estate duty in (1) of scctiou twcnty-onc 01 the principal Act, in the 
 3ed ° case of persons dying on or after the thirtieth day of 
 property. April, nineteen hundred and nine, payment of or liability 
 to duty, whether the payment was made or the liability 
 attached before, on, or after that date, shall not be 
 deemed to be a payment of or liability to duty in 
 respect of settled property if the payment was made 
 or the liability attached in respect of an interest in 
 expectancy in any property on the death of a person 
 other than the settlor. 
 
 See note on p. 67 as to the bearing of this section on increment 
 value duty. 
 
 Section 56. 
 
 § 66. 56. — (1) The Commissioners may, if they think fit, on 
 
 rransferVnd ^^^ application of any person liable to pay estate duty or 
 in satisfaction settlement cstatc duty or succession duty in respect of 
 
 of estate duty, "^ j l 
 
 settlement any real (including leasehold) property, accept in satis- 
 or succession f actiou of the wholc or any part of such duty such part 
 '*^' of the property as may be agreed upon between the 
 
 Commissioners and that person. 
 
 (2) No stamp duty shall be payable on any conveyance 
 or transfer of land to the Commissioners under this 
 section. 
 
 (3) The Commissioners may hold any property 
 transferred to them under this section and shall deal 
 with it in such manner as Parliament may hereafter 
 determine. 
 
 * The Finance Act, 1894. 
 
Death Duties. 476 
 
 Whether this section applies to increment value duty or not depends § 56. 
 upon whether it is a provision as to the assessment, collection, or recovery 
 of estate duty under the Finance Act, 1894 (see s. 5 of the 1910 Act 
 and notes on pp. 91 and 119). It is thought that it is such a provision. 
 
 Section 59. 
 
 59. — (1) In the case of a person dying on or after the § 59. 
 thirtieth day of April, nineteen hundred and nine, the Provision as 
 period preceding the death of the deceased before which dispositions 
 a disposition purporting to operate as an immediate gift 
 inter vivos must have been made, or a surrender, assur- 
 ance, divesting, or disposition must have been made or 
 effected, in order that the property taken under the 
 disposition, or affected by the surrender, assurance, 
 divesting or disposition, may not be included as property 
 passing on the death of the deceased, shall be three years 
 instead of twelve months before the death, and accord- 
 ingly paragraph {a) of subsection (2) of section thirty- 
 eight of the Customs and Inland Eevenue Act, 1881 (as 
 amended by section eleven of the Customs and Inland 
 Revenue Act, 1889, and applied by paragraph (c) of sub- 
 section (1) of section two of the principal Act),* sub- 
 section (3) of section two of the principal Act,* and 
 section eleven of the Finance Act, 1900, shall be read as 
 if three years were substituted for twelve months : 
 
 Provided that this section shall not apply to any gift 
 inter vivos, surrender, assurance, divesting, or disposition 
 made or effected before the thirtieth day of April, nineteen 
 hundred and eight, or made or effected for public or 
 charitable purposes. 
 
 This section is material to the subject of increment value duty, 
 because it alters one of the events upon which a claim for that duty 
 arises on death. It has already been seen (see notes to s. 1, p. 19) that 
 certain gifts of a voluntary nature {e.g., voluntary transfers or surrenders 
 of land) made by a person within twelve months preceding his death 
 give rise to a claim by the Crown on his death for increment value duty 
 from the donees. That period of twelve months is by this section 
 extended to three years. But under the proviso gifts made before 
 April 30, 1908, are exempted from the burden of this section ; that 
 * The Finance Act, 1894 (see Act of 1910, s. 96 (3) ). 
 
476 Land Clauses of the Finance Act. 
 
 § 59 (1). is, after the expiration of twelve months from the gift the donees 
 are safe from any claim for increment value duty arising from the death, 
 after that period, of the donor. If the donor dies within twelve months 
 from the date of the gift, the donees are liable to such a claim under the 
 law as existing before the Finance Act, 1910. 
 
 Further gifts made or effected for public or charitable purposes 
 whether made before or after April 30, 1908, are wholly unaffected by 
 this section. In respect to them the law remains as enacted by the 
 statutory provisions mentioned in the text, as applied by ss. 1 and 2 
 of this Act (see pp. 2 and 18) ; that is, if the donor dies within twelve 
 months from making them they are liable to increment value duty. 
 
 " Public purposes " has, it seems, a wider signification than " chari- 
 table purposes," and may include objects which are not charitable 
 (see Thomson v. Shakespe-ar, 29 L. J. Ch. 276 ; In re Nottage, Jones v. 
 Palmer, [1895] 2 Ch. 649 ; and note on charitable purposes, ante, p. 392). 
 For the purpose of calculating the increment value duty on such gifts 
 it is thought that tha site value must be taken as at the date of the 
 death (Finance Act, 1894, s. 7 (5) ), and not at that of the gift. 
 
 ('2) So much of paragraph {c) of subsection (1) of 
 section two of the principal Act^' and this section as makes 
 gifts inter vivos property which is deemed to pass on the 
 death of the deceased shall not apply to gifts which are 
 made in consideration of marriage, or which are proved 
 to the satisfaction of the Commissioners to have been 
 part of the normal expenditure of the deceased, and to 
 have been reasonable, having regard to the amount of 
 his income, or to the circumstances, or which, in the case 
 of any donee, do not exceed in the aggregate one hundred 
 pounds in value or amount. 
 
 Shall not apply to Gifts which are made in Consideration of 
 Marriage. — It had been held that even gifts made in consideration of 
 marriage were, in case of the donor's death within twelve months, liable 
 to estate duty by virtue of the paragraph referred to {Attoimey-General 
 v. Holden, [1903] 1 K. B. 832). 
 
 The application of this state of the law to increment value duty would 
 but for this sub-section be that if a father, on the marriage of his son, 
 voluntarily transferred an estate to trustees upon trust for his son and 
 the son's wife and children, and died at any time within three years after 
 the transfer, the estate would be property passing on the death of tlie 
 father within the meaning of paragraph (c) of sub-s. (1) of s. 2 of the 
 Finance Act, 1894, and liable as well under that Act to estate duty as 
 
 ♦ The Finance Act, 1894. 
 
Death Duties. 477 
 
 under ss. 1 and 2 of this Act to a claim for increment value duty. This § 59 (2). 
 sub-section renders the subject-matter of such gifts free of claims for 
 duty under both Acts. A gift, including a transfer of land, if made in 
 consideration of marriage, is not now liable to estate duty or increment 
 value duty if the donor dies the day after making it. It is immaterial 
 whether the gift is made by one of the consorts or by a third party. 
 
 (3) Where property taken under such a disposition or 
 affected by such a surrender, assurance, divesting, or 
 disposition as aforesaid is deemed to be property passing 
 on the death of the deceased by reason only that the 
 property was not, as from the date of the disposition, 
 surrender, assurance, or divesting, retained to the entire 
 exclusion of the deceased or a person who had an estate 
 or interest limited to cease on the death of the deceased, 
 and of any benefit to him by contract or otherwise, the 
 property shall not be deemed to pass on the death of the 
 deceased if subsequently, by means of the surrender of 
 the benefit reserved or otherwise, it is enjoyed to the 
 entire exclusion of the deceased or such other person as 
 aforesaid, and of any benefit to him by contract or other- 
 wise, for such period preceding the death of the deceased 
 as is provided by this section. 
 
 The case contemplated might conceivably affect the subject of incre- 
 ment value duty, and an illustration may therefore be given to show 
 the meaning of the sub-section. 
 
 A. transfers by deed an estate to his son B., but remains in possession, 
 and keeps for his own (A.'s) use the rents and profits. On A.'s death a 
 claim would arise under s. 2 (1) (c) of the Finance Act, 1894, 
 incorporating s. 38 of the Customs and Inland Revenue Act, 1881, as 
 amended by s. 11 of the Customs and Inland Revenue Act, 1889, and 
 s. 11 of the Finance Act, 1900, for estate duty, and under s. 1 (b) of 
 this Act (incorporating s. 2 (1) (c) of the Finance Act, 1894, with its 
 amended incorporations) for increment value duty. If, however, after 
 receiving the rents A., at least three years before his death, gave thenx 
 up to B., whether, it is thought, by formal deed, or simply by not taking 
 them, and in either case allowing B. to take them for his own benefit, 
 so that B. enjoyed the whole benefit of them for that period "to the 
 entire exclusion of A.," this sub-section would apply, and the property 
 would not be deemed to pass on A.'s death, and no claim would there- 
 fore arise on that occasion for either estate duty or increment value duty. 
 
478 
 
 Land Clauses of the Finance Act. 
 
 § 69 (3). 
 
 § 60. 
 
 Amendment 
 as to value 
 of property. 
 
 Repealed 
 proviso. 
 
 See further for the application of this sub-section to s. 11 of the Finance 
 Act, 1900, ante, p. 475, and note thereon. See also the notes to s. 1, 
 ante, pp. 18 and 19). 
 
 Section 60. 
 
 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. 
 
 Subs. (5) of s. 7 of the Finance Act, 1894 (the principal Act), is as 
 follows : — 
 
 s. 5. The principal value of any property shall be estimated to be the 
 
 price which, in the opinion of the Commissioners, such property would 
 
 fetch if sold in the open market at the time of the death of the deceased. 
 
 \_Provided that, in the case of any agricultural property where no part of 
 
 the principal value is due to the expectation of an increased income from, 
 
 such property, the 'principal value shall not exceed twenty-five times the 
 
 annual value as assessed under Schedule A, of the Income Tax Acts after 
 
 making such deductions as have not been allowed in that assessment and are 
 
 allowed under the Succession Duty Act, 1853, and making a deduction 
 
 for expenses of management not exceeding 5 per cent, of the annual value so 
 
 assessed.'] 
 
 This proviso affects the method of valuing purely agricultural land 
 
 (i.e., land where no part of the principal value is due to the expectation 
 
 of an increased income from such property) for estate duty ; but because 
 
 such land " has no higher value than its value for agricultural purposes 
 
 only " (see s. 7), it does not affect valuation on death under ss. 2 (2) (c) 
 
 and 5, so far at least as increment value is concerned. 
 
 See also the Finance Act, 1911 (1 & 2 Geo. 5, c. 48), as to the 
 principal value of cottages, post, p. 621. 
 
 (2) In estimating the principal value of any property 
 under subsection (5) of section seven of the principal 
 Act, in the case of any person dying on or after the 
 thirtieth day of April, nineteen hundred and nine, the 
 Commissioners shall fix the price of the property accord- 
 ing to the market price at the time of the death of the 
 deceased, and shall not make any reduction in the 
 estimate on account of the estimate being made on the 
 assumption that the whole property is to be placed on the 
 market at one and the same time : 
 
 Provided that where it is proved to the Commissioners 
 
Death Duties. 479 
 
 that the value of the property has been depreciated by § 60 (3). 
 reason of the death of the deceased, the Commissioners 
 in fixing the price shall take such depreciation into 
 account. 
 
 In estimating the Principal Value. — This sub-section applies to 
 valuations for increment value duty under s. 2 (2) (c) and s. 5 as well 
 as to valuations for estate duty. Does it mean that if, in fact, the whole 
 of the property is, under the express directions of the will, sold at once, 
 at prices less than would have been realised by a gradual realisation, 
 estate duty and increment value duty are to be paid on the hypothetical 
 prices which might have been obtained by a gradual sale 1 It is thought 
 not ; and that the sub-section relates only to cases where the property 
 has not been sold. For the " principal value " see note on sub-s. (1) of 
 this section. 
 
 Where it is proved . . . that the Value of the Property has been 
 depreciated by reason of the Death of the Deceased. — It is not 
 thought that this sub-section has in substance much bearing upon 
 increment value duty, since if any personal element of value is included 
 in total or principal value under one of the valuations referred to in 
 s. 2 (2) (c) and (d), then by virtue of s. 25 (4) (d), the words " goodwill 
 or any other matter which is personal to the owner, etc.," the value of that 
 element must, apart from this sub-section, be deducted. But of course 
 care will be taken not to deduct the value of such things twice over, 
 i.e., once in ascertaining principal value under s. 2 (2) (c), and again 
 in the deductions which must be made under the concluding words of 
 s. 2 (2), incorporating s. 25 (4), in order to arrive at site value. The 
 sub-section may be more important in relation to estate duty than to 
 increment value duty. 
 
 (3) An appeal shall not lie under section ten of the 
 principal Act, whether as originally enacted or as applied 
 by any other enactment, where the question in dispute is 
 a question of the value of any real (including leasehold) 
 property, but if any person is aggrieved by the decision 
 of the Commissioners as to the value of any such property, 
 he may appeal against the decision in manner prescribed 
 by Part I. of this Act, and the provisions as to appeals 
 under that part of this Act shall apply accordingly. 
 
 The effect of this sub-section is to substitute the provisions of this 
 Act (s. 33) for those of s. 10 of the Finance Act, 1894, in all questions 
 relating to the valuation of real or leasehold property under that Act. 
 An intermediate appeal, i.e., to a referee, is added by this Act to the 
 direct appeal to the High Court under the Act of 1894. 
 
480 
 
 Land Clauses of the Finance Act. 
 
 § 61. 
 
 Special pro- 
 visions with 
 respect to 
 certain 
 classes of 
 property. 
 
 § 62. 
 
 Deduction of 
 amount paid 
 for increment 
 value duty 
 from value 
 of estate for 
 purposes of 
 estate duty. 
 
 § 91. 
 
 Payment of 
 half the pro- 
 ceeds of the 
 duties on 
 land values 
 for benefit 
 of local 
 authorities. 
 
 Section 61. 
 
 61. — (1) Notwithstanding anything in the last preceding 
 section, the proviso to subsection (5) of section seven of 
 the principal Act shall continue to apply to the valuation 
 of property consisting of a tenancy from year to year, 
 including any tenancy which is, or is deemed to be, 
 subject to statutory conditions under the Land Law 
 (Ireland) Acts, and for determining the gross value or the 
 net value of property for the purpose of section sixteen of 
 the principal Act. 
 
 There is, of course, no increment value duty payable in respect of 
 tenancies from year to year. Sect. 16 of the Finance Act, 1894, 
 relates to the duty payable on small estates (see note on p. 112). 
 
 Section 62. 
 
 62. Where increment value duty is to be collected on 
 the occasion of the death of 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 purposes of estate duty under sub- 
 section (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. 
 
 This section relates rather to the subject of estate duty than to 
 increment value duty. 
 
 Section 91. 
 
 91. — (1) There shall be charged on and paid out of the 
 Consolidated Fund or the growing produce thereof a sum 
 equal to one half of the net proceeds of the duties on land 
 values under Part I. of this Act (including mineral rights 
 duties). 
 
 (2) The sums so charged shall be carried to a separate 
 account, to be established under regulations made by the 
 Treasury for the purpose, and, subject to such regulations 
 as may be made by the Treasury in respect of accounts, 
 
rules and 
 regulations 
 before Par- 
 ament. 
 
 Statutory Rules, etc. 481 
 
 audit, and accumulation of moneys standing to the § 91 (S) 
 account, be appropriated for the benefit of local authori- 
 ties in the United Kingdom in such manner as Parliament 
 may hereafter determine. 
 
 Note on s. 91. — This section is suspended as from the date of the 
 Act of 1910 by s. 16 of the Revemie Act of 1911 (1 Geo. 5, c. 2) (see 
 p. 588), until Parliament shall otherwise determine, but not beyond the 
 31st day of March, 1914. 
 
 Part VIII. 
 
 Section 93. 
 
 § 93. 
 
 93. — (1) All rules and regulations made by the Treasury Layin- of 
 
 or by the Commissioners of Inland Eevenue or by the 
 Commissioners of Customs and Excise under this Act }^ 
 
 lUi 
 
 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 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. 
 
 The following is a list of the Rules and Regulations already made 
 under the Finance Act, 1910, affecting the subject of the new land 
 taxation, and the reference to the page of this work where each set of 
 such rules or regulations is printed : — 
 
 (1) Rules under s. 3 (2) as to the collection of increment value dutyon'the 
 
 occasion of the transfer on sale or passing on death of the fee simple 
 of any land, or on any periodical occasion in the case of land held 
 in fee simple by a body corporate or unincorporate {ante, p. 63). 
 
 (2) Rules under s. 3 (3) as to the collection of increment value duty on the 
 
 grant of a lease or on the transfer on sale 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 {ante, p. 53). 
 
 (3) Regulations under s. 4 (2) for the presentment to the Commissioners 
 
 on the occasion of any transfer on sale or the grant of a lease 
 exceeding fourteen years of the instrument by which the transfer or 
 lease is effected or agreed to be effected, or reasonable particulars 
 thereof, for the purpose of the assessment of duty thereon {post, 
 p. 487, Appendix\ 
 N. 31 
 
482 Land Clauses of the Finance Act. 
 
 § 93 (1). (4) Regulations under s. 4 (5) providing, in addition to the regulations 
 referred to under sub-s. (2) of the same section, for dispensing with 
 the presentation of any instrument or particulars thereof, where the 
 information can be obtained as mentioned in the sub-section, and for 
 the payment of increment value duty by instalments where in the 
 case of any lease or transfer, on sale, the consideration is in the form 
 of periodical payments, etc. {}iost, p. 491). 
 
 (5) Eegulations under s. 4 (6) as to the return of increment value duty on 
 
 the ground that the transaction in respect of which it was paid has 
 never been carried into execution {jiost, p. 491). 
 
 (6) Eules under s. 33 (4) made by the Eule Committee of the High Court 
 
 regulating the appeal from the referee to the High Court {ante, 
 p. 383). 
 
 (7) Eules under s. 33 (4) made by the Eule Committee of the county 
 
 courts regulating appeals from the referee to those courts (Appendix, 
 p. 622). 
 
 (8) Eules under s. 33 (5) to be made hj the Eefeience Committee subject 
 
 to the approval of the Ti'easiuy regulating appeals from the 
 Commissioners to a referee {ante, p. 375). 
 
 It is of course clear that all rules and regulations made either by the 
 Commissioners, the Reference Committee, or the Riile Committee must be 
 authorised by the Act. It could not be contended that any authorities 
 have power to dispense with or abrogate the profusions of the Act 
 intentionally, and, if so, they cannot dispense with them per incuriam 
 (see per Farwell, L.J., in Sadler v. Whiteman, [1910] 1 K. B. 868, C. A., 
 at p. 888). The case cited was one in which certain regulations of 
 the Commissioners of Inland Revenue respecting the registration of 
 money-lenders made under s. 3 of the Money-lenders Act, 1900 (63 & 
 64 Vict. c. 51), were referred to as relaxing the stringency of the 
 provisions of s. 2 of that Act. It is true that the actual decision of the 
 Coiirt of Appeal has since been reversed b}' the House of Lords ( [1910] 
 W. N. 193), but the dictum remains unaffected by that reversal and is 
 of general application. This principle applies with equal force to any 
 case in which rules may exceed a statutory power by making the 
 burden on the subject heavier than is authorised by the Act (see also 
 King v. Henderson, [1898] A. C. 720, a decision of the Privy Council, 
 for a case in which a procedure rule was held ^dtra vires the statutory 
 power). 
 
 It may perhaps be that Regulation No. 7, made under s. 4 (see 
 Appendix, p. 489), requiring an agreement for a lease or particulars 
 thereof to be presented for stamping with the increment value duty stamp, 
 "without waiting for the actual lease," is not authorised, and that 
 s. 4 (2) (see ante, p. 74) confers an option upon the subject of presenting 
 either agreement for lease, or the lease, or reasonable particulars of 
 either. 
 
 Since the foregoing note was written the decision of Mr. Justice 
 Warrington in Burghes v. Att<yrney-General ([1911] 2 Ch. 139) has 
 been delivered, and hag been affirmed by the Court of Appeal, W. N., 
 
General. 483 
 
 1911, p. 231. From such decision it appears that Form " No. 8," § 93 (1). 
 issued by the Commissioners under s. 31 (1) (see Appendix, p. 537), 
 with its accompanying note of instructions, is ultra vires and void and 
 need not be complied with (see note on this case, ante, p. 347). 
 
 For the construction of statutory rules and powers see the Interpreta- 
 tion Act, 1889 (52 k 53 Vict. c. 63), ss. 31 and 32, which are as follows :— 
 
 s. 31. Where any Act, whether passed before or after the commence- 
 ment of this Act, confers power to make, grant, or issue any instrument, 
 that is to say, tiny Order in Council, order, warrant, scheme, letters 
 jDatent, rules, regulations, or bye-laws, expressions used in the instru- 
 ment, if it is made after the commencement of this Act, shall, unless 
 the contrary intention appears, have the same respective meanings as in 
 the Act conferring the power. 
 
 s. 32. — (1) ^Yhere an Act passed after the commencement of this 
 Act confers a power or imposes a duty, then, unless the contrary 
 intention appears, the power may be exercised and the duty shall be 
 performed from time to time as occasion requires. 
 
 (2) Where an Act passed after the commencement of this Act confers 
 a power or imposes a duty on the holder of an office, as such, then, 
 unless the contrary intention appears, the power may be exercised and 
 the duty shall be performed by the holder for the time being of the 
 office. 
 
 (3) Where an Act passed after the commencement of this Act confers 
 a power to make any rules, regulations, or bye-laws, the power shall, 
 unless the contrary intention ajipears, be construed as including a 
 power, exerciseable in the like manner and subject to the like consent 
 and conditions, if any, to rescind, revoke, amend, or vary the rules, 
 regulations, or bye-laws. 
 
 (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 Commissioners to reassess the duty in accordance 
 with any rule or regulation which may be substituted for 
 the annulled rule or regulation. 
 
 Section 94. 
 
 94. If any person for the purpose of obtaining any § 94. 
 allowance, reduction, rebate, or repayment in respect of Penalty for 
 any duty under this Act, either for himself or for any statement or 
 other person, or in any return made with reference to any Ifr^"^*^ 
 duty under this Act, knowingly makes any false statement 
 or false representation, he shall be liable on summary 
 
 31—2 
 
484 
 
 Land Clauses of the Finance Act. 
 
 § 94. conviction to imprisonment for a term not exceeding six 
 months with hard labom\ 
 
 § 95. 
 
 Provision as 
 to assess- 
 ments, pay- 
 ments, etc. 
 made on 
 account of 
 duty before 
 passing of 
 Act. 
 
 Section 95. 
 
 95. — (1) All assessments or charges made or other 
 things done before the passing of this Act with a view to 
 the collection of any duty imposed by this Act shall have 
 the same force and effect as if this Act had been in 
 operation at the time when the assessment or charge was 
 made or other thing done. 
 
 (2) Any payments made before the passing of this Act 
 on account of any duty imposed thereby, and any 
 payments of drawback made on account of any such duty 
 which would have been proper payments on account of 
 duty or proper payments of drawback if this Act had been 
 in force at the time, shall be deemed to be payments 
 properly made under this Act, and if treated as such 
 before the passing of this Act shall be deemed to have 
 been properly so treated. 
 
 (3) The liability of any person to pay any sum on 
 account of any duty imposed by this Act shall not be 
 affected by the fact that he has, before the passing 
 of this Act, paid either directly or by way of deduction 
 any such sum if the sum so paid has been subsequently 
 refunded to him, and any such sum may without 
 prejudice to any other remedy be recovered as a debt due 
 to His Majesty. 
 
 (4) Where any deduction which would have been a 
 legal deduction if this Act had been in force has been 
 made on account of any duty imposed by this Act, and 
 the sum deducted has subsequently been made good by 
 the person making the deduction, that person shall not 
 be prevented from again making the deduction. 
 
 In such a case, and also in a case where a person 
 could have made a legal deduction if this Act had been 
 in force on account of any duty imposed by this Act, 
 
General. . 485 
 
 but has not made it, the person who has made or could § 96 (4). 
 have made the deduction, as the case may be, shall be 
 entitled, if there is no future payment from which the 
 deduction may be made, to recover the sum as if it were 
 a debt due from the person to whom the original deduction 
 has been made good or as against whom the deduction 
 could have been originally made. 
 
 (5) Any reference in this section to a duty imposed by 
 this Act includes a reference to a duty increased by this Act. 
 
 Section 96. 
 
 96. — (1) The Acts specified in the Sixth Schedule to § 96. 
 this Act are hereby repealed to the extent mentioned in 
 the Third column of that Schedule. 
 
 There appear to be no repeals by the Sixth .Schedule whicli aftect the 
 subject of this work. 
 
 (2) Any reference to " the Commissioners " in Part II., 
 Part VI., or Part YII. 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 
 Commissioners of Inland Revenue. 
 
 (3) Part III. of this Act shall be construed together 57 & 58 vict. 
 with the Finance Act, 1894. ^- =^'^- 
 
 (4) Part IV. of this Act shall be construed together with 5 & <; vict. 
 the Income Tax Acts, 1842 and 1853, and any other ^'e^&nvict. 
 enactments relating to Income Tax, and those enactments ^- "^^• 
 
 and Part IV. of this Act are in this Act referred to as 
 the Income Tax Acts. 
 
 (5) Part V. of this Act shall be construed together oi&55 vict. 
 with the Stamp Act, 1891. ''• •^'"^• 
 
 (6) Part VI. of this Act, so far as it relates to duties 39 & 40 vict. 
 of Customs, shall be construed together with the Customs 
 Consolidation Act, 1876, and the Acts amending that Act, 
 
 and Parts II. and VI. of this Act, so far as they relate 
 to duties of Excise, shall be construed together with the 
 
486 Land Clauses of the Finance Act. 
 
 § 96 (6). Acts which relate to the duties of Excise and the 
 management of those duties. 
 
 (7) This Act may be cited as the Finance (1909—10) 
 Act, 1910. 
 
 Schedules 1 to 5 are concerned with various duties imposed by the 
 Finance Act, 1910, not affecting the subject of this work. 
 
 SIXTH SCHEDULE. 
 
 Enactmexts Repealed. 
 
 There are no enactments repealed by the Schedule Avhich affect the 
 subject of this work. 
 
487 
 
 KEGULATIONS. 
 
 EEGULATIONS OF COMMISSIONERS.* 
 
 FINANCE (1909—10) ACT, 1910, 
 
 Increment Value Duty. 
 
 Regulations made hy the Commissioners of Inland Revenue under 
 
 Section 4. 
 
 See p. 85, ante. 
 * And for notes on these Regulations, see 2)osf, p. 493. 
 
 PllESEXTATION Or INSTRUMENTS. 
 
 (1) Having regard to the provisions of the Pinauce (1909 — 10) Act, 19lO, 
 with respect to Increment Value Duty, it is necessary that, on the occasion 
 of any transfer on sale of the fee simple of any land or of any interest in 
 land, in pursuance of any contract made after the commencement of the Act, 
 or on the grant, in pursuance of any contract made after the commencement 
 of the Act, of any lease of any land, for a term exceeding fourteen years, 
 the transferor or lessor shall present to the Commissioners of Inland Eevenue 
 the instrument by means of which the transfer or the lease is effected or 
 agreed to be effected, or reasonable particulars thereof, for the purpose of 
 the assessment of Increment Value Duty thereon. The land in question is 
 only such as is situate within the United Kingdom. (Where a building is 
 used for the purpose of separate tenements, flats or dwellings, the grant of 
 a lease, or the transfer on sale of any lease, of any such separate tenement, 
 flat, or dwelling, will not be an occasion requiring presentation of the 
 instrument. — Section 11.) 
 
 These regulations do not apply in the case of the grant of a Mining Lease, 
 as to which reference should be made to the special provisions contained in 
 the Act. 
 
 (2) Under arrangements made by the Commissioners the instrument, or 
 the required particulars thereof, may be presented at any of the following 
 Stamp Ofiices : — 
 
 London (Somerset House, Wellington Street Entrance, or Telegraph 
 
 Street, E.C.). 
 Edinburgh (Waterloo Place). 
 Dublin (Custom House and Four Courts). 
 
488 
 
 Land Clauses of the Finance Act. 
 
 Birmingliam, The Office of the Collector of Customs and Excise. 
 
 Bolton , , 
 
 Bradford ,, 
 
 Brighton ,) 
 
 Bristol , , 
 
 Cardiff 
 
 Derby ,» 
 
 Hull 
 
 I^eeds , , 
 
 Leicester , , 
 
 Liverpool , , 
 
 Manchester ,, 
 
 Newcastle-on-Tync ,, 
 
 Nottingham 
 
 Portsmouth ,, 
 
 Sheffield 
 
 Southampton ,, 
 
 Sunderland , , 
 
 Swansea , , 
 
 Wakefield 
 
 Wolverhamp ton , , 
 
 York 
 
 Glasgow , , 
 
 Belfast , , 
 
 Cork , , 
 
 The forms I.V.D. (A) and I.V.D. (B) referred to in these Eegulatious may 
 be obtained at any of the above-mentioned offices, at any local Stamp Office, 
 and at or through any Money Order Office authorised to transact Inland 
 Eevenue business. 
 
 Sec \K 4;)3. (3) If the instrument itself be presented the presentation should take 
 
 place, if possible, after execution h/ the transferor or lessor. The instrument 
 must be accompanied either by a copy, or by an abstract such (but containing 
 the further particulars required) as is presented with an instrument lodged 
 for adjudication under Section 12 of the Stamp Act, 1891. The abstract 
 should set out fully, for purposes of identification, the description of the 
 property sold or leased, and if the instrument contains or refers to a plan, a 
 copy of such plan should be furnished. A fuU statement should be made of 
 any easements or reservations affecting the land, of any covenant restricting 
 its use, and of any agreement or obligation to repair, or to pay outgoings. 
 Any covenant or undertaking or liability to discharge any incumbrance, and 
 any covenant or undertaking to erect buildings or to expend any sums upon 
 the property, should be set out in full. If the easement, covenant, etc., is 
 set forth in some other document than the instrument itself, that document 
 should be presented as well. The official form I.V.D. (A) of application for 
 an increment value duty stamp, duly filled up and signed, should also be 
 lodged. The official fonn of abstract I.Y.D. (B) can be used if desired. 
 
 (4) The instrument, the abstract, and the form I.V.D. (A), when presented, 
 wUl be retained by the proper Ofiicer of the Commissioners for examination, 
 a ticket being given, by way of receipt, to the person presenting them. 
 
 See p. 497. (5) Assuming that the various documents or papers so presented are 
 
 found on examination to contain the particulars necessary for the purpose 
 
Regulations under s. 4 (I.V.D.). 489 
 
 of enabling the Commissioners to assess the duty, and that if security, as 
 hereafter mentioned (par. 14), has been required, such security has been 
 given, the instrument will be impressed with one of the stamps (o), {!>), (r) 
 mentioned in Section 4 (3) of the Finance (1909 — 10) Act, 1910, and will be 
 returned on presentation of the ticket after the expiration of the time 
 mentioned therein. These stamps are :— 
 
 either («) a stamp denoting that the increment value duty has been 
 
 assessed by the Commissioners and paid in accordance with the 
 
 assessment : 
 or (b) 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 ((•) a stamp denoting that upon the occasion in question no increment 
 
 value duty was payable. 
 
 (6) Where an instrument is so stamped it will, notwithstanding any 
 objection relating to Increment Value Duty, be deemed to be duli/ stamped 
 so far as respects that duty. But unless so stamped the instrument cannot, 
 except in criminal proceedings, be given in evidence, or be made available 
 for any purpose whatever. 
 
 (7) The Act (Sect. 4 (7)) provides that where any agreement for a transfer, See p. 494. 
 or agreement for a lease, is stamped with one of the special stamps provided, 
 
 it will not be neceasary to stamp in a similar manner any conveyance, assign- 
 ment, or lease made subsequently to and in conformity with the agreement. 
 But, if desired, a corresponding stamp will be impressed on the convej^ance, 
 assignment, or lease, on presentation of both instruments at the selected 
 Office. Similarly a duplicate of any instrument which has been stamped in 
 accordance with the above section will be impressed with a corresponding 
 stamp on both documents being produced at the Office for the purpose. 
 
 If, however, an agreement for a transfer is intended to be followed shortly 
 by an actual conveyance, the Commissioners will not require the agreement, 
 or particulars thereof, to be presented under these Eegulations, but will 
 accept the in-esentation in diie coiu'se of the actual conveyance, or particulars 
 thereof, as a compliance with the provisions of the Act. But an agreement 
 for a lease, or particulars thereof, should be presented without waiting for 
 the actual lease. 
 
 (8) The fact that an instrument has been presented under these regu- 
 lations, and stamped with the appropriate stamp as regards Increment Value 
 Duty, will not in any way affect the liability of the instrument to the 
 ordinary Stamp Duty imposed by the Stamp Act, 1891, or any amending 
 Act. It will be necessary therefore that the instrument, if not drawn on 
 material duly stamped, be presented within thirty days of execution, to be 
 impressed with the proper ordinary Stamp Duty. (Stamp Act, 1891, 
 Section 15.) Should, however, the transferor or lessor desire to have this 
 duty impressed at the same time as the stamp for Increment Value Duty, so 
 as to avoid the necessity for a second presentation of the instrument, he 
 should pay the amount of the duty when presenting the instrument, 
 abstract, etc., at the Stamp Office selected. 
 
 (9) In the case of instruments lodged at the Head Office in London, 
 Edinburgh, or Dublin, for adjudication under Section 12 of the Stamp Act, 
 
490 Land Clauses of the Finance Act. 
 
 1891, the application for an Increment Value Duty Stamp may be made at 
 the same time, the application form I.V.D. (A) being accompanied by a 
 separate copy or abstract of the instrument, any abstract to contain a full 
 statement as regards easements, covenants, etc. The Increment Value Duty 
 Stamp will then be impressed when the instrument is stamped with the 
 adjudication stamp. 
 See p. 491. (10) Notwithstanding the exemptions from Increment Value Duty 
 
 contained in Section 7 (Agricultural land). Section 8 (Small houses and 
 properties in owner's occupation), and Section 35 (Land held by Rating 
 Authorities), it will be necessary to present to the Commissioners any 
 conveyance on sale, or lease for a term exceeding 14 years, of land of the 
 description mentioned in those Sections, as the instrument will not be duly 
 stamped unless it bears one of the special Increment Value Duty stamps 
 mentioned in paragraph 5. 
 
 Presextation of Particulaes. 
 
 (11) If the instrument itself be not presented by the transferor or lessor 
 for the purpose of the assessment of Increment Value Duty thereon, 
 reasonable particulars tIie7'eo/,iii the form of the various documents mentioned 
 in paragraph 3, must be furnished by him. Such particulars can be lodged 
 at any of the Offices mentioned in paragraph 2, and a receipt will be given 
 therefor. The transferor or lessor should at the same time lodge the form 
 I.V.D. (A) duly filled up. 
 See p. 494. (1^) The presentation of such particulars, in lieu of the instrument itself, 
 
 will free the transferor or lessor from liability to the fine imposed by 
 Section 4 (2) of the Finance (1909—10) Act, 1910. But the instrument will 
 not be "duly stamped" until it bears, in addition to the ordinary Stamp 
 Duty to which it is liable, one of the special stamps relating to Increment 
 Value Duty mentioned in paragraph 5. Provided, however, the necessary 
 particulars, as above, have been furnished by the transferor or lessor, the 
 appi'opriate stamp will be impressed at any future date, if the instrument 
 and the receipt for the particulars are lodged for the requisite length of time 
 at the Head Office for England, Scotland, or Ireland, as the case may be. 
 
 Presentation at Other Offices. 
 
 (13) Where it is not possible or convenient to present the instrument or 
 the required particulars at one of the stamp offices mentioned in paragraph 2 it 
 will be open to the transferor or lessor to lodge the various documents 
 (including Form A) at the local Stamp Office, or at any Money Order Office 
 authorised to transact Inland Eevenue business, with a request that they 
 may be forwarded to the Head Office, in the same way as documents 
 requiring to be stamped with the ordinary Stamp Duties may now be lodged. 
 In such cases the examination of the documents will be made at the Head 
 Office only, where any Increment Value Duty will be assessed, and in due 
 course the conveyance or lease or agreement, stamped as regards such duty, 
 will be returned to the Stamp or Post Office for delivery to the transferor or 
 lessor on his personal application for it. 
 
 Payment of Increment Value Duty. 
 
 See p. 494. (14) If on the presentation of an instrument or of particulars thereof, 
 
 the Commissioners have reason to consider that the occasion is one on which 
 
Regulations under s. 4 (I.V.D.). 491 
 
 a claim to Increment Value Duty has arisen, they may require security for 
 the payment of duty, and in such a case the stamp refen-ed to in paragraph 5 
 will not be impressed until the required security has been given. 
 
 (15) On an assessment of Increment Value Duty being made by the 
 Commissioners, notice of such assessment will be given in writing to the 
 transferor or lessor at the address furnished by him on form I.V.D. (A), 
 and payment will be required in accordance with the terms of such notice. 
 
 (16) In the case of any lease or transfer on sale where the consideration See p. 495. 
 is in the fonn of a periodical jmyment, the Commissioners may, if they think 
 
 fit, allow paj-ment of the Increment Value Duty assessed to be made by 
 instalments in accordance with the following regulations : - 
 
 (I.) Where the consideration consists wholly of a periodical payment, 
 The duty shall be payable bj^ five equal annual instalments, and the 
 first instalment shall fall due one year after the date of the grant 
 of the lease or the transfer of the interest, and the subsequent 
 instalments on the same date in each siiccessive year. 
 
 (II.) Where the consideration consists partly of a lump sum payment 
 and partly of a periodical payment, 
 
 (a) There shall become due and payable at the date of the transfer or 
 grant of the lease an amount bearing to the whole duty to be 
 collected the same proportion as the lump sum bears to the total 
 present value of the consideration calculated on the 4 per cent, 
 tables. 
 
 (?)) The balance shall be payable by instalments of the same amounts 
 and at the same times as if the periodical payment constituted 
 the whole of the consideration, and the balance were the whole 
 of the Increment Value Duty to be collected. 
 
 (III.) In any case in which the person liable to the payment of any 
 Increment Value Duty may and does elect to pay such duty by instal- 
 ments, he shall furnish security to the satisfaction of the Commissioners 
 for the payment of the whole amount of the duty payable. 
 
 (IV.) If any person, on being required by the Commissioners to furnish ' 
 
 such securitj'^ fails to do so within two months he shall forfeit his right to 
 pay the duty by instalments, and the whole of the duty shall be deemed to 
 be due on the expiration of two months from the date on which notice was 
 given by the Commissioners of their requirement. 
 
 (V.) If any instalment remains unpaid for a period of thirty days after 
 it falls due, or if the person liable to the payment dies or becomes bank- 
 rupt, the whole balance of the duty unpaid shall forthwith become due and 
 payable. 
 
 (VI.) For the purposes of these rules the term " interest in land" shall 
 be deemed to include the " fee simple of the land." 
 
 (VII.) Where the duty due on the grant of a lease is payable by instal- 
 ments, and the lease is determined before all such instalments have fallen 
 due, the instalments which have not fallen due will be remitted, and in that 
 case the amount of duty which, under Section 4 of the Finance (1909 — 10) 
 Act, 1910, is deemed to have been paid, will be reduced by the amount of 
 the instalments so remitted. 
 
 (17) In any case where Increment Value Duty shall have been paid under See p. 495. 
 the provisions of Section 4 of the Finance (1909 — 10) Act, 1910, but the 
 
492 Land Clauses of the Finance Act. 
 
 transaction in respect of which the duty shall have been paid was subsequent! j- 
 not earned into execution, the dut\' will be returned to the transferor or lessor 
 on his making written application to the Commissioners, the application 
 being supported by a statute rj' declaration setting forth the circumstances 
 under which the repajTnent is claimed. The application must be made 
 within two years after the paj-ment of the duty. In any case in which 
 arrangements have been made for payment by instalments, the two years 
 will run from the date on which the last instalment was paid. 
 
 COKEESPONDENCE . 
 
 (IS) Should occasion arise for coiTespondence in connection with the 
 presentation of an instrument or the delivery of particulars, the letter should 
 be addressed to the Secretary, Inland Eevenue, Somerset House, London, 
 W.C. ; or to the Comptroller of Stamps and Taxes, Edinburgh, or to the 
 Comptroller of Stamps and Income Tax, Dublin, as the case maj' be, the 
 envelope being marked in the left-hand corner " Increment Value Duty." 
 
 SCOTLAND. 
 
 (19) In Scotland, paragraphs 1 to 15 of the above Eegulations shall not 
 applj' to instruments presented for registration in the General Register of 
 Sasines or in ar\j Burgh or other local register, and in lieu thereof the 
 following regulations shall apply: — 
 
 (i.) W/tere an iiistriimerd * is i/resented for registration in the Genera? 
 R-yider of Sasines or in the Burijh or other heal register it shall not 
 be 7iecessarg for the traniferor or lessor or other accoiintuhle partg ti> 
 preient such, instrument to the Commissioners or furnish them ivith 
 " reasonable particulars " thereof. 
 
 (ii.) Nothing in these Eegulations shall affect the liability of the instru- 
 ment to the ordinary stamji duty imposed by the Stamp Act, 1891, or 
 any amending Act. 
 
 (iii.) Where the Commissioners have reason to consider that the occasion 
 is one on which a claim to Increment Value Duty has arisen, thej' 
 may require security for the payment of the dutj". 
 
 (iv.) On an assessment of Increment Value Duty being made by the 
 Commissioners, notice of such assessment will be given in writing 
 to the transferor or lessor and payment will be required in accordance 
 with the terms of such notice. 
 
 lEELAND. 
 
 (20) In view of the special i>rovisions of Section 4 (5) of the Finance 
 (1909—10) Act, 1910, and of the arrangements and Eegulations made there- 
 under, conveyances on sale of lands to which the Land Purchase {Ireland) 
 
 * Observe that (a) "Instrument" means any instrument executed on the 
 occasion of a transfer on sale of land or interest in land or the grant of any 
 lease for a term exceeding 14 years or any feu of land or the creation of any 
 ground annual ; and that {b) the expression '• transferor " includes the person 
 by whom or on whose behalf a feu is granted or a ground annual created 
 {see Section 42 (3)). 
 
Note on Regulations under s. 4 (I.V.D.). 498 
 
 Ads apply will, on presentation to the Eegistrar of Titles in the ordinary- 
 course, and subject to the provisions contained in paragraph 14 of these 
 Eegulations, be impressed with the appropriate stamp denoting that the 
 necessary particulars have been delivered to the Commissioners. 
 
 With the above exception, these Eegulations will apply in Ireland to all 
 conveyances on sale and leases exceeding 14 years. 
 
 xVUTHOR'S NOTE ON FOREGOING REGULATIONS. 
 
 (The figures refer to the number of the regulations.) 
 
 (3) The object of the requirements of No. 3 with its form I.V.D. (B), 
 p. 49G, is that the land and also the " value of the consideration " for the 
 transfer may be ascertained (see s. 2 (2) (a) and (Jj) ). Increment value 
 duty is payable on the difference between the site value on the day of 
 the transfer on sale and the original site value on April 30, 1909 (s. 2). 
 The value on the former day depends in the case of a sale of the fee 
 simple in possession on the consideration for the sale given by the 
 purchaser (subject to deductions). [lb) The vendor, ivho has to 
 present the document or particulars thereof, is interested in keeping 
 down the site value on the sale. He wants to pay as little increment 
 value duty as possible. On the other hand, the purchaser wants the 
 vendor to pay as much increment value duty as possible, because there 
 will then be less for him to pay on a future occasion. Under 
 regulation 3 the vendor is required to give all such information as is 
 referred to in the form I.V.D. (B) and is applicable to the subject- 
 matter. Apparently a purchaser has no opportunity of checking the 
 vendor's statements to the Commissioners. Take for example item No. 8 
 on I.V.D. (B) (see p. 498). A purchaser may agree, as part of the 
 bargain, to make the whole of a road half a mile long ou part of the 
 purch.ased land between the rest of the land he is buying and land 
 retained by the vendor. This would add some thousands of pounds to 
 the " value of the consideration," and perhaps to the increment value ; 
 for in such an instance we are dealing with the kind of land which is 
 the precise subject intended to be hit by the new taxation. Sooner 
 or later this added value of the land will be hit by increment value 
 duty. If the vendor does not pay to-day the purchaser must pay when 
 he sells. Notwithstanding s. 32 (2), it may well be that an agreement 
 similar to the one referred to ought to be deemed part of the con- 
 sideration on the sale (see the notes to s. 32, ante, p. 350). Whether 
 that be so or not, it is clear that purchasers are interested in seeing 
 that the full consideration they are giving is disclosed to the Commis- - 
 sioners. As to the full statement referred to in (3) of the covenants 
 affecting the property, and as to the plan, see the Circular Letter of the 
 Commissioners dated July, 1910 (post, p. 538), modifying the apparent 
 requirements of the regulation. Only those covenants which have 
 directly influenced the consideration need be set forth, and a plan is 
 only to be required where the description given in the instrument is not 
 
494 Land Clauses of the Finance Act. 
 
 sufficient to enable the property to be identified. Where a plan is 
 required a rough tracing showing the boundaries of the property will 
 suffice. The Commissioners seem to be of opinion that it is their duty 
 to estimate the value of the whole consideration, whatever it may be, 
 and no doubt this would be one way of settling a difficult question. 
 
 (5) Stamp (b) is in practice usually compressed, and the assessment 
 (if any) takes place later. Credit if in effect given to the vendor for any 
 duty which may be payable. Occasionally stamp (c) is impressed. 
 
 (7) Apparently the Commissioners adopt the view that they are 
 entitled, under s. 4 (1), if they so desire, to require an agreement, 
 intended to be followed by a conveyance, or other operative document 
 to be presented for stamping under subs. (3) of that section ; but 
 they are content to waive their right in this respect, except as to 
 leases. It is believed to be doubtful whether this view is correct, 
 and whether the true construction of sub-s. (1) does not give an 
 option to the subject of presenting either agreement or subsequent 
 conveyance, or leases, or particulars of either. 
 
 (10) Purchasers should see that vendors comply with this regulation 
 (see note on p. 76, ante). 
 
 (12) The case contemplated is presentiition of the " reasonable par- 
 ticulars" under s. 4 (2) and regulation (11), the operative document not 
 being left with the Commissioners to be stamped witli one of the stamps 
 referred to in sub s. (3). The consequence is that there is no liability 
 to the penalty under sub-s. (2), but that the document until stamped is 
 inadmissible in evidence by virtue of s. 4 (3). It may under this rule 
 be stamped at any subsequent 'time. 
 
 (14) As no increment value duty can be assessed until after the 
 original site valuation of most properties is completed, this regulation 
 may be a somewhat serious matter, but is clearly within the powers of 
 the Commissionei-s (s. 4 (3) (h) ). 
 
 On some sales since April 30, 1910, increment value duty will be 
 payable in respect of increment value which has accrued since April 30, 
 1909. In such case, a vendor should take care that all the deductions 
 which he is allowed under the Act (s. 25) to make are now claimed for. 
 The form just issued, I. V.D. (B) (p. 496), does not appear to provide for 
 such claims. The deductions will be in respect of expenditure whether 
 made before or since April 30, 1909. Expenditure prior to April 30, 1909, 
 ought to have been claimed for on the original site valuation, and, if not 
 then claimed for, cannot be claimed for on an occasion for paj'ment of 
 increment value duty (s. 12), unless indeed the value added by that 
 expenditure did not accrue until after April 30, 1909. In the latter 
 case it is thought that that added value can be claimed, notwithstanding 
 that no claim was made on the original site valuation. 
 
 Expenditure since April 30, 1909, not claimed on one occasion for 
 payment of increment value duty can yet be claimed on later occasions. 
 Purchasers whether before or after the original site value is fixed should 
 
Note on Eegulations under s. 4 (I.V.D.). 495 
 
 therefore take ca,re to obtain from their vendors all such information 
 as will enable them to make a claim for full deductions on the general 
 valuations under ss. 26 and 28 on any later occasion when increment 
 value duty may be payable. The vendor seems to be under no implied 
 obligation to furnish this information. Contracts for the sale of 
 building land should therefore contain a provision binding the vendor to 
 furnish, and to verify, all such information as is in his power, and as 
 the purchaser may reasonably require for any site valuation. Existing 
 owners, indeed, will frequently have to apply to former owners [and 
 pay] for this information. 
 
 Probably the Commissioners will give notice to the vendor in any 
 case in which they "have reason to consider that the occasion is one on 
 which a claim for increment value duty has arisen" within the meaning 
 of the above regulation, but nevertheless neither vendors nor purchasers 
 should lose sight of the question of duty in entering into the contract. 
 
 (16) See note to s. 4 (5), p. 87. This and the following regulation 
 (17) are in pursuance of s. 4 (5). 
 
 (17) See note to s. 4 (6), p. 88. 
 
 Forms under s. 4 (I.V.D.). 
 
 Form I.V.D. (A) . 
 
 FINANCE (1909—10) ACT, 1910. 
 
 INCEEMENT VALUE DUTY. 
 
 Statement to be furnished on Application for one 
 
 of the Stamps mentioned in Sect. 4 of the Finance 
 
 (1909-10) Act, 1910. 
 
 To be filled in by the Marking 
 Official only. 
 
 Name of Stamp 
 Office. 
 
 Serial Letter 
 
 and Number of 
 
 Case. 
 
 Note.— The Instrument itself (if possible, executed by the Transferor or 
 Lessor) and also a Copy or a sufficient Abstract thereof must accompany 
 this Application. If an Abstract be furnished, it should contain a full 
 description of the property. A copy of any plan should be furnished. 
 A full statement should be made of any easements or reservations 
 affecting the land, of any covenant restricting its use, and of any 
 agreement or obligation to repair, or to pay outgoings. Any covenant 
 or undertaking, or liability to discharge any incumbrance, and any 
 covenant or undertaking to erect buildings, or to expend any sums 
 upon the property, should be set out in full. If the easement, covenant, 
 etc., is set forth in some other document than the instrument itself, 
 that document should be presented as well. The official form of 
 abstract I.V.D. (B) can be used if desired. 
 
496 
 
 Land Clauses of the Finance Act. 
 
 Date of Application 
 
 Xame and Address of Solici- 
 tor, Agent, or Applicant, 
 which should also be writ- 
 ten on the endorsement 
 of the Abstract or Copy 
 before presentation 
 
 Name and Address of Trans- 
 feror or Lessor 
 
 
 Description and Date of the 
 Instrument 
 
 
 Names of Parties to the 
 Instrument 
 
 1 1st Part 
 j 2nd Part 
 ] 3id Part 
 
 *DECLAEAT10N. 
 
 I {or we) herebj^ declare that the particulars given in the 
 Copy or Abstract are true and correct to the best of my 
 (o?- our) knowledge and belief. 
 
 (Signature) . 
 
 ♦ To be signed by the Transferor or Lessor or by his Solicitor or Agent. 
 
 Note. — It is open to the Transferor or Lessor, in lieu of presenting the 
 Instrument itself to be stamped under Sect. 4, to present reasonable 
 particulars thereof. The particulars required will be the same as those 
 necessary if the Instrument itself is presented. Presentation of par- 
 ticulars will relieve the Transferor or Lessor from liability to fine ; but 
 the Stamp "Particulars Delivered" will not be given unless and until 
 the Instrument itself, accompanied by the official receipt for the 
 particular?, is presented for the piu-pose at the HEAD OFFICE in 
 London, Edinburgh or Dublin, as the case may be. 
 
 Form— I.V.D. (B) . 
 
 Serial Letter ) 
 and No. ) 
 
 FINANCE (1909—10) ACT, 1910. 
 
 INCREMENT VALUE DUTY. 
 
 On flie 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 for a tenn exceeding 
 fourteen years, the following particulars, as far as they are applicable, are 
 required to be furnished to the Commissioners of Inland Eevenue in accord- 
 ance with the provisions of Section 4 of the Finance (1909—10) Act, 1910. 
 
Forms under s. 4 (I.V.D.). 497 
 
 Description of Instrument pre- 
 sented ..... 
 Date of Instrument 
 
 [ Parish or Place 
 Situation of Land < 
 
 { County . 
 
 3. Names, addresses and descriptions 
 of parties. 
 
 Vendor (or Lessor) 
 Purchaser (or Lessee) . 
 Sub-Purchaser (if any) 
 
 Consideration. 
 
 To be set out in detail with 
 full particulars of : — 
 
 (a) Any Capital payment 
 
 (b) Any Mortgage or other 
 debt, and state whether 
 to be released or cove- 
 nanted to be paid . 
 
 (c) Any periodical payment 
 Trent charges, &c.). (See 
 also No. 14) . 
 
 {d) Any term surrendered . 
 (e) Any land surrendered or 
 
 (/) Covenants 
 
 (1) to redeem charges . 
 
 (2) to make any outlay 
 on or in respect of 
 the property whether 
 upon buildings or 
 otherwise 
 
 {g) Any other consideration, 
 including reference to any 
 law suit or dispute com- 
 promised, etc. . 
 
 Parcels. 
 
 The description should be an 
 exact copy from the deed, and 
 should set forth any dimensions 
 given as well as the " General 
 words " relating to the particular 
 appurtenances. In all cases the 
 description here given should, in 
 conjunction with the plan, if any, 
 be sufficient to enable the situa- 
 tion and boundaries of the land 
 to be identified .... 
 
 (If the space allowed is not 
 sufficient, the description can be 
 given on a separate sheet of paper.) 
 
 32 
 
498 Land Clauses of the Finance Act. 
 
 6. Plan. 
 
 Where there is a plan a Copy 
 thereof should he furnished 
 
 7. Exceptions and Eeservations. 
 
 These should he set out 
 in detail, particularly where 
 minerals, sporting rights, timber, 
 easements, etc., may be reserved 
 
 8. Covenants by the purchaser or 
 lessee to build or improve pro- 
 perty, or to form, make, maintain 
 or contribute towards cost of 
 roads, should be recited 
 
 9. Eestrictions. 
 
 Any restrictions whatever 
 which may be considered to affect 
 the market value of the interest 
 created or transferred should be 
 set out in detail, including : — 
 (a) Building restrictions 
 (6) Building line — position of 
 (c) Any restrictions as to user 
 of premises, e.g., a cove- 
 nant to use for only one 
 trade in the case of busi- 
 ness premises, or to use 
 as a private dwelling only 
 in a business neighbour- 
 hood, or not to convert 
 into a shop without pay- 
 ment of a fine 
 
 10. Easements, Eights of Common, 
 etc. 
 
 These should be refeiTed to 
 where they exist, and all latent 
 defects should be disclosed . 
 
 11. Any other Covenant or Condition 
 affecting the value of the interest 
 created or transferred . 
 
 12. Names and addresses of Solicitor 
 and Surveyor .... 
 
 Additional particulars to be furnished on the grant or on an agreement 
 for the gi-ant of any lease for a term exceeding fo\irteen years, or au 
 assignment thereof. 
 
 13. Habendum. 
 
 (o) Date of commencement of 
 term 
 
FOBMS UNDER S. 4 (I.V.D.). ^99 
 
 (6) Term granted 
 (c) Any powers of renewal or 
 extension .... 
 {d) Any powers to determine 
 
 14, Eents. 
 
 All rents reserved should be 
 fully stated, also annuities, dower, 
 existing rent charges, and appor- 
 tioned rent charges, peppercorn 
 rents, abated rents or penalties 
 reserved ..... 
 
 15. Lessee's or Transferee's Covenants. 
 The following Covenants 
 should be recited : — 
 
 (a) To pay oiitgoings . 
 
 (b) To repair or maintain 
 property. 
 
 (c) To insure — Who pays 
 premiums and for what 
 amount are premises in- 
 sured or to be insured . 
 
 16. Lessor's or Transferor's Covenants. 
 Covenants bearing on the 
 following should be recited : — 
 Payment of outgoings . 
 . Improvement or maintenance 
 of property 
 Insurance — Who pays pre- 
 miums and for what 
 amount are premises in- 
 sured or to be insured 
 
 I hereby certify to the correctness of the above statements. 
 
 Solicitor to the Transferor or Lessor. 
 Address 
 
 day of 191 . 
 
 32—2 
 
APPENDIX OF THE PEINCIPAL 
 PUBLISHED FOKMS.* 
 
 (Up to January, 1912.) 
 
 NOTES ON FOKM 4— LAND. 
 
 (For the Form see p. 504). 
 
 The first, " Form 4— Land," is the return to be made 
 under s. 26 (2), see p. 317, by owners of land and 
 persons receiving rent in respect of any land. The 
 Form has been the subject of much heated controversy. 
 Though it has probably now been served on all owners, 
 its materiality will not be exhausted till all the valuations 
 have been finally settled. It is therefore retained with 
 the original notes thereon. There has already been one 
 decision {Dyson v. Attorney -General, [1911] 1 K. B. 410 ; 
 W. N. 1911, p. 232) upon this form, for the facts of and 
 comment upon which see post, p. 610). The particulars 
 required by paragraph (p), sub-heads 2 to 6, may often 
 be difficult to give. Many, perhaps most, owners do 
 not accurately know to what easements or rights their 
 property is subject, and indeed never will know until 
 after litigation on the subject. A town house, in a 
 terrace, is probably subject to easements of light and 
 support in favour of adjoining or adjacent buildings, 
 but obviously the owner does not want to admit, and 
 ought not to be required in any return to admit, that 
 such is the case. Further a high original site value is, 
 in the case of " developed " land, a buffer against claims 
 for increment value duty, and the admission of ease- 
 ments on the property would tend to depress original 
 site value. Having regard to these two sets of con- 
 siderations, owners are advised to reply to (p) (2) to 
 
 * The numbering of the Forms is entirely a matter of the internal 
 regulations of its own business by the Inland Revenue ; and so far as the 
 public is concerned is quite unsystematic and meaningless. Most of the 
 forms are only " published " in the sense that they are issued to persous 
 liable to make returns under the Act. 
 
Notes on Form 4. 501 
 
 (5) inclusive, in cases where they cannot clearly deny 
 the existence of the rights referred to, with caution, as 
 for example by saying that probably or possibly ease- 
 ments, or public rights of such and such a nature, might 
 be claimed by such and such persons or by the public, 
 but that they are not admitted and would be resisted. 
 
 (q) must be answered, and if the property included in the 
 return was only a portion of a larger property it must be 
 so stated. In such a case the information would not be 
 of much value, because there seems to be no obligation 
 to describe the other property or its value. 
 
 As to (u) under "II. — Additional Particulars"; in 
 cases where it is quite clear that neither increment 
 value duty or undeveloped land duty are likely to be 
 payable, as where the property is agricultural land, 
 under the value of 501. per acre, with no prospect 
 of building value in the future, or is small house 
 property in a declining neighbourhood, the owner 
 may of course quite safely put his own value on 
 the property, so far as relates to the two taxes in ques- 
 tion. But if he puts too high a value on it, the record 
 will stand, when a claim is made on his death for estate 
 duty ; and also if the property should ever become liable 
 to reversion duty. If he puts too low a value on it, 
 he may find that estimate a disadvantage on a sale to 
 a public authority. If on the other hand increment 
 value duty or undeveloped land duty is likely to be 
 payable in the future, it may be wiser in many 
 cases to leave the Commissioners to put their own 
 estimate on the property, and then to appeal from that 
 estimate if not satisfactory. But this should not be 
 accepted as a general rule for action without careful con- 
 sideration of each individual case. These are some of 
 the factors which will bear on the situation. Unde- 
 veloped land duty may be paid for a period approximately 
 between eight and nine years before the total amount 
 so paid, wath interest, equals the increment value duty 
 on a 20 per cent, rise in site value. A tenant for life 
 
502 Land Clauses of the Finance Act. 
 
 who is an owner may fear undeveloped land duty, and 
 not care about increment value duty, which may be paid 
 after his death, and then will be paid out of capital. A 
 remainderman may hold exactly converse views as to the 
 two taxes. An estimate by an owner not plainly unfair is 
 not unlikely to be accepted. The Revenue authorities are 
 very busy just now. In cases of doubt it is better not to 
 furnish an estimate. No general advice on the subject 
 is worth much, and particular circumstances could only 
 be discussed at length disproportionate to this note. 
 
 As to (v), if the owner desires to keep his site value 
 down, he should apply for the form (No. 7) referred to 
 in (v), (See later for this form.) It will usually be 
 desirable in the case of undeveloped land to utilise this 
 form where deductions can be claimed for, since the 
 effect of the deductions will be to diminish the site value 
 for purposes of undeveloped land duty, and the same 
 deductions can be claimed for on an occasion for payment 
 of increment value duty. 
 
 As to (tv), see explanatory summary, p. cxii., and 
 Commentary, p. 251. If there are minerals, it must 
 certainly not be assumed that they have no capital 
 value. That will only increase any increment value duty 
 which may be payable in the future ; but neither must a 
 value lightly be placed upon them, for there is estate 
 duty to be considered. 
 
 In this return, if the owner so desires it, he can call 
 upon the Commissioners to value separately any part of 
 any land in a separate occupation (see " Instructions for 
 Making Returns," No. 5, p. 609). There are cases in 
 which such a power might usefully be exercised; but 
 as a rule, the greater the unit of assessment, the 
 better for the taxpayer. The decrement of one part 
 of the unit may reduce the increment of another part. 
 The high value of Blackacre exposing it to undeveloped 
 land duty may be neutralised by the low value of 
 Whiteacre. Further, under s. 29(2), either the person 
 entitled to the fee simple of the land, or to an interest in 
 
Notes on Fokm 4. 503 
 
 any land, may at any future time require an apportionment 
 of original site value. Owners had therefore better " wait 
 and see " before accepting the invitation to require 
 land in one occupation to be split up for purposes of 
 valuation. 
 
 It has now been provided by the Kevenue Act, 1911 
 (1 Geo. 5, c. 2), s. 2, that the Commissioners may on 
 the request of the owner of any pieces of land, etc., which 
 are contiguous, and which do not in the aggregate exceed 
 one hundred acres in extent, value those pieces of land 
 together, although those pieces of land are under separate 
 occupation, if they are satisfied that in the special 
 circumstances of the case it is equitable to do so. Any 
 such valuation may be made, although any of the pieces 
 of land have been valued before the passing of the 
 Kevenue Act, 1911, if the requisition for the valuation is 
 made by the owner wdthin three months after the passing 
 of that Act, and in that case any valuation previously 
 made is to be of non-effect. For a full explanation and 
 comments upon this section see 'ante, p. 315. 
 
504 
 
 Land Clauses of the Finance Act. 
 
 REFERENCE : to be 
 quoted in all com- 
 munications. 
 
 FOKM 4.— LAND.* 
 DUTIES ON LAND VALUES. 
 
 (Finance (1909-10) Act, 1910.) 
 
 Eeturn to be made by an Owner of Land or by any Person 
 Eeceiving Rent in Eespect of Land. 
 
 (Penalty for failure to make a due Return, not exceeding £50.) 
 
 Reference to 
 the accom- 
 panying 
 Sheet of 
 Instructions 
 (Form 2— 
 Land). 
 
 See 
 
 Instruction 
 
 2. 
 
 See 
 
 Instruction 
 
 3. 
 
 See 
 
 Instruction 
 
 4. 
 
 Particulars 
 extracted 
 from the 
 
 Rate Books. 
 
 /Parish 
 
 Number of Poor 
 Rate . • . 
 
 Name of Occu- 
 pier . 
 
 Description of 
 Property . 
 
 Situation of Pro- 
 perty 
 
 Estimated extent 
 
 Gross Estimated 
 Rental (or Gross 
 Yalue in Valua- 
 tion List*) 
 
 I Rateable Value . 
 
 (* Applicable to the Metropolis only.) 
 
 This space is not for the use of the 
 person making the Return. 
 
 Acres 
 
 Roods 
 
 IMPORTANT. — As the Land is to he valued as on 30th April, 
 1909, the particulars should be furnished , so far as jMSsible, with 
 reference to the circumstances existing on that date. 
 
 Particulars required by the Commissioners which must be 
 furnished so far as it is in the power of the person making 
 the Return to give them. 
 
 (a) Parish or Parishes in 
 which the Land is situated 
 
 * For notes on this form see p. 500, ante, and note on Dyson v. Attomey- 
 Oeneral, [1911] 1 K. B. 410 ; W. N. 1911, p. 232, jjost, p. 510. 
 
Form 4. 
 
 505 
 
 Reference to 
 the accom- 
 panying 
 Sheet of 
 Instructions 
 (Form 2 — 
 Land). 
 
 
 
 
 See 
 Instruc- 
 tions 1 and 
 3. 
 
 Instruction 
 9. 
 
 See 
 
 Instruction 
 
 2. 
 
 (6) Name of Occupier 
 
 (c) Christian Name and Sur- 
 name and full postal address of 
 the person making the Eeturn . 
 
 (d) Nature of Interest of the 
 person making the Eeturn in 
 the Land : — 
 
 (1) Whether Freehold, Copy- 
 hold, or Leasehold. 
 
 (2) If Copyhold, name of the 
 Manor. 
 
 (3) If Leasehold, (i.) term of 
 lease and date of commence- 
 ment (including, where the 
 lease contains a covenant for 
 renewal, the period for which 
 the lease may be renewed), and 
 (ii.) name and address of lessor 
 or his successor in title . 
 
 (e) Name and precise situa- 
 tion of the Land 
 
 ( / ) Description of the Land, 
 with particulars of the build- 
 ings and other structures (if 
 any) thereon, and the purposes 
 for which the property is used. 
 (House, Stable, Shop, 
 Farm, &c.) 
 
 ((/) Extent of the Land, if 
 known. 
 
 (A) If the Land is let by the 
 person making the Eeturn, 
 state : — 
 
 (i.) Whether let under Lease 
 
 or Agreement, or 
 (ii.) If there is no Lease or 
 written Agreement, 
 whether let by the 
 Year, Quarter, Month, 
 or Week. 
 
 3(i.) 
 
 3(ii.) 
 
 Acres. 
 
 Roods. 
 
 Perches. 
 
 Yards. 
 
 (i-) 
 (ii.) 
 
506 
 
 Land Clauses of the Finance Act. 
 
 Reference to 
 
 
 
 the accom- 
 
 (A) If the Land is let by the 
 
 
 panying 
 Sheet of 
 
 person making the Eeturn, 
 
 
 Instructions 
 
 state : — continued. 
 
 
 (Form 2— 
 Land). 
 
 (iii.) If let under Lease or 
 
 
 Agreement — 
 
 
 
 (a) Term for which 
 
 (iii.) (a) 
 
 
 granted 
 
 
 
 (6) Date of commence- 
 
 (&) 
 
 
 ment of term 
 
 
 
 (c) Whether granted 
 
 (c) 
 
 
 for any considera- 
 
 
 
 tion in money, paid 
 
 
 
 or to be paid by 
 
 
 
 the Tenant, in 
 
 
 
 addition to the 
 
 
 
 Eent reserved,* or 
 
 
 
 {d) Upon any condi- 
 
 (d) 
 
 
 tion as to the 
 
 
 
 Tenant lajTJtig out 
 
 
 
 money in Build- 
 
 
 
 ing, Bebuilding, 
 
 
 
 or Improvements.* 
 
 
 
 (iv.) Amount of Yearly Eent 
 
 (iv.) £ 
 
 
 receivable . 
 
 
 
 (* If so, give full particulars.) 
 
 
 
 (i) If the person making the 
 
 
 
 Eetum is also the Occupier, 
 
 
 
 state the Annual Value ; i.e., 
 
 
 
 the Sum for which the Pro- 
 
 Annual Value £ 
 
 
 perty is worth to be Let to a 
 
 
 
 Yearly Tenant, the Owner 
 
 
 
 keeping it in repair. 
 
 
 
 {Ti) Amount of Land Tax (if 
 
 £ 
 
 
 any) and by whom borne 
 
 borne by 
 
 
 [1) Amount of Tithe Eent- 
 
 £ 
 
 
 charge, or of any payment in 
 
 
 
 lieu of Tithes, for the year 1909, 
 
 
 
 and by whom borne 
 
 borne by 
 
 
 (m) Amount of Drainage, or 
 
 £ 
 
 
 Improvement Eate, or of any 
 
 
 
 similar charge, and by whom 
 
 
 
 borne 
 
 borne by 
 
 
 {n) Whether all usual Ten- 
 
 
 
 ants' Eates and Taxes are borne 
 
 
 
 by the Occupier, and, if not, by 
 
 
 
 whom. 
 
 
Form 4. 
 
 507 
 
 Reference to 
 the accom- 
 panying 
 Sheet of 
 Instructions 
 (Form 2— 
 Land). 
 
 See In- 
 structions 
 
 page 1, 
 footnote t. 
 
 (o) By whom is the cost of 
 Eepairs, Insurance, and other 
 expenses necessary to maintain 
 the Property, borne ? 
 
 (p) Whether the Land is 
 subject to any : — 
 
 (i.) Fixed Charges (exclu- 
 sive of Tithe Eent- 
 charge entered in 
 space {I)), and, if 
 so, the Annual 
 Amount thereof, 
 (ii.) Public Eights of Way 
 (lii.) Public Eights of User 
 (iv.) Eight of Common 
 (v.) Easements affecting 
 
 the Land 
 (vi.) Covenant or Agree- 
 ment restricting the 
 use of the Land, 
 and, if so, the date 
 when such Cove- 
 nant or Agreement 
 was entered into or 
 made. 
 (Full particulars should be 
 given in each case.) 
 
 Instruction 
 5. 
 
 (q) Particulars of the last 
 sale (if any) of the Land within 
 20 years before 30 April, 1909, 
 and of Expenditure since the 
 date thereof : — 
 
 (i.) Date of Sale 
 (ii.) Amount of Purchase- 
 money and other con- 
 sideration (if any), 
 (iii.) Capital Expenditure 
 upon the Land since 
 date of Sale. 
 
 Annual Amount £ 
 
 Date when made 
 
 (r) Observations, with de- 
 scription, extent, and precise 
 situation of any part of the 
 Land which the Owner requires 
 to be separately valued. 
 
 (s) If the person making the 
 Eeturn desires that communi- 
 cations should be sent to an 
 Agent or Solicitor on his behalf, 
 the name and full postal address 
 of such Agent or Solicitor. 
 
 (i.) 
 (ii.) 
 
 (iii.) 
 
508 
 
 Land Clauses of the Finance Act. 
 
 Reference to 
 
 
 the accom- 
 
 
 panying 
 
 
 Sheet ol 
 
 
 
 
 luSDruci/ioiis 
 (Form 2— 
 
 
 
 Land). 
 
 * {t) (i.) Does the person mak- 
 
 (i.) 
 
 
 ing the Eeturn own 
 the minerals com- 
 
 
 See 
 
 
 Instruction 
 6. • 
 
 prised in the Land? 
 (ii.) If so, state: — 
 
 (a) Whether the mine- 
 
 
 
 (ii.) (a) 
 
 
 rals were, on 30 
 
 
 
 April, 1909, com- 
 
 
 
 prised in a mining 
 
 
 
 lease or being 
 
 
 
 worked by the 
 
 
 
 proprietor. 
 
 
 
 {b) Whether the mine- 
 
 ii) 
 
 
 rals are now com- 
 
 
 
 prised in a mining 
 
 
 
 lease or being 
 
 
 
 worked by the pro- 
 
 
 
 prietor. 
 
 
 
 (iii.) If not, state the name 
 
 (iii.) 
 
 
 and address of the 
 
 
 
 proprietor of the 
 
 
 
 minerals. 
 
 
 
 (* Minerals not comprised in a 
 
 
 
 mining lease or being worked, are 
 
 
 
 to be treated as ha\'ing no value as 
 
 
 
 minerals, unless the proprietor of the 
 
 
 
 minerals fills up space («■) below.) 
 
 
 
 I hereby declare that the foregoing particulars are in every 
 
 
 respect fuUy and truly stated to the best of my judgment and 
 
 
 belief. 
 
 
 Dated this day of 191 . 
 
 
 ( Signature of person 
 
 
 ( making the Eeturn. 
 
 
 ( Eank, Title, or 
 ( Description. 
 
 
 
 II. Additional particulars which may be given, if desired. 
 
 
 (m) Value of the Land as de- 
 
 
 
 fined in Instruction 7, and 
 
 
 
 estimated by the Owner, with 
 
 
 
 particulars how arrived at : — 
 
 
 See In- 
 structions 
 
 (i.) Gross Value . 
 (ii.) Full Site Value . 
 
 1.) £ 
 ii.) £ 
 
 7, 8, and 9. 
 
 (iii.) Total Value . 
 
 (iii.) £ 
 
 
 (iv.) Assessable Site Value . 
 
 (iv.) £ 
 
 
 (v.) Particulars how Values 
 
 (V.) 
 
 
 arrived at * . 
 
 
 
 (♦ May be given on a separate sheet 
 
 
 
 of paper, if desired.) 
 
 
Form 4. 
 
 509 
 
 Reference to 
 the accom- 
 panying 
 Sheet of 
 Instructions 
 (Form 2— 
 Land). 
 
 See In- 
 structions 
 7, 8, and 9. 
 
 See In- 
 structions 
 6 and 10. 
 
 (v) If the Owner does not 
 desire to furnisli Ms estimate 
 of the Value of the Land, but 
 intends to claim a Site-value 
 deduction under Instruction 7 
 (iv.), (a), (6), (c), or {d), or 
 under Instruction 9 (i.), (a), 
 the intention should be stated. 
 A form will then be sent in due 
 course for particulars of the 
 claim to be given. 
 
 {w) Nature, and estimate of 
 the Capital Value of any 
 minerals not comprised in a 
 mining lease and not being 
 worked, which have a value as 
 minerals. 
 
 Nature 
 
 Capital Value £ 
 
 -Signature 
 -Date. 
 
 DUTIES ON LAND VALUES. 
 
 Instructions for Making Returns on Form 4 (being the last 
 PRBCBDiNQ Form). 
 
 I. — Instritctions relating principally to particulars which it is compulsory 
 
 to furnish. 
 
 1. The persons who are required to make this return are (a) the 
 owner of the land, and (b) any person receiving rent in respect of the 
 land. 
 
 The expression " owner " means the person entitled in possession 
 to the rents and profits of the land in virtue of any estate of free- 
 hold, 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 
 underlease, is deemed to be the owner instead of the person entitled 
 to the rents and profits as aforesaid. 
 
 2. The expression " land " includes all buildings and other structures 
 thereon, and all minerals, on, in, or under the surface of the land. 
 
 3. If any person who is not the owner of land, or a person receiving 
 rent, is called upon to make a return, he should return the form to the 
 officer named in the notice, stating the nature and extent of his own 
 interest in the land, and the name and address of the owner, or of the 
 
510 Land Clauses of the Finance Act. 
 
 person to whom he pays rent. If any person called upon to make a 
 return is unable to give all the information required, he should furnish 
 all the particulars which it is in his power to give, and insert the words 
 " Not known " in the spaces which he is unable to fill up. 
 
 4. If any piece of land under one occupation extends into two or more 
 parishes, separate returns may, if the owner thinks fit, be made for the 
 parts lying within each parish, or, one return^ relating to the whole 
 of the land, may be made in the parish in which the greater part of the 
 land is situate. In the latter case, notes should be made on the forms 
 
 for the other parish or parishes afi"ected, " Included in return for 
 
 parish " (stating the name of the parish in which the inclusive return 
 has been made). 
 
 5. Attention is called to the fact that the owner has the option of 
 requiring the Commissioners to value separately any part of any land. 
 In cases in which it is desired to exercise this option, particulars of the 
 division requited should be entered in the space for " Observations " on 
 the form of return. 
 
 6. For the purposes of valuation, minerals are to be treated as a 
 separate parcel of land ; but where the minerals are not comprised in a 
 mining lease, or being worked, they are to be treated as having no value 
 as minerals, unless the proprietor of the minerals, in his return, specifies 
 the nature of the minerals and his estimate of their capital value. 
 
 II. — Instructions relating principally to particulars which the ovmer 
 may furnish, if he thinks Jit. 
 
 7. If the owner desires to furnish his estimate of the total value and 
 the assessable site value of the land, the value to be returned is not 
 merely the value of the interest or share belonging to the person making 
 the return, but the whole value of the land, that is, the aggregate value 
 of all the interests therein, subject only to the limitations specified 
 below. 
 
 Here follow ss. 25, 12, 40, and 23. 
 
 DYSON V. THE ATTORNEY-GENERAL, 
 [1911] 1 K. B. 410; W. N. 1911, p. 232.* 
 
 Jteturn under Form 4 — To whom Return should be made — Requisition 
 
 (i) whethtr authorised or not? — Action against Attorney -General as 
 
 representing the Crown — Declaratory Judgment— Rules of Supreme Court, 
 
 1883, Order xxv., rr. 4, 5. 
 
 This was an action in the King's Bench Division for a declaration that 
 
 the Commissioners had no right to require the above-mentioned Form 4 
 
 to be delivered by the owner to one Hugh Bateson, their " appointed 
 
 officer," on the ground that the Act requires the return to be furnished 
 
 to the Commissioners themselves, that the requisition (i) contained in 
 
 such form, i.e., " If the person making the return is also the occupier 
 
 ♦ For Form 4 see p. 504, and notes thereon, p. 500. 
 
Form 4 : Dyson v. Attorney-General. 511 
 
 state the annual value, i.e., the sum for which the property is worth to 
 be let to a yearly tenant, the owner keeping it in repair," was ultra 
 vires the powers of the Commissioners under s. 26 (2), and unauthorised ; 
 and that the full period of thirty days of his service for answering 
 had not been allowed in the notice. The claim alleged that the 
 Commissioners had threatened to enforce the penalty for non- 
 compliance with the notice. The A.-G. took out a summons under 
 Order 25, rule 4, to strike out the claim as disclosing no reasonable 
 cause of action. The Master struck out the claim, and Lush J. 
 affirmed this decision. The Court of Appeal (the Master of the 
 Kolls and Fletcher Moulton and Farwell, L.JJ.) unanimously reversed 
 this decision. The main point argued was whether the Attorney- 
 General could be sued in such an action as representing the 
 Crown. The Master of the Rolls in his judgment said : " It has been 
 settled for centuries that in the Court of Chancery the Attorney- 
 General might in some cases be sued as a defendant repi-esenting the 
 Crown, and that in such a suit relief could be given against the Crown." 
 The learned judge then referred to Laragoity v. Attorney -General 
 (2 Price, 172) and Deare v. Attorney -General (1 Y. & C. Ex. 197), and 
 based his judgment that the action would lie against the Attorney- 
 General mainly on the subsequent case of Hodge v. Attorney -General 
 (3 Y. & C. 342). He was further of opinion that a declaratory jvidg- 
 ment might be given against the Attorney-General under Order 25, 
 rule 5. Whether it ought to be given in the present case was, however, 
 a matter not to be dealt with on interlocutory application. It was 
 pre-eminently one for the trial. The judgment of Lord Justice Fletcher 
 Moulton was mostly based on the fact that Order 25, rule 4, was 
 intended to be only " very sparingly used, and rarely, if ever, excepting 
 in cases where the action is an abuse of legal procedure." Stated in 
 another way at p. 419 the learned judge thought that that procedure 
 could not be used " excepting in cases where the cause of action was 
 obviously and almost incontestably bad." The learned Lord Justice 
 also appeared to be of opinion that the Attorney-General could be 
 sued as representing the Crown. Lord Justice Farwell was clearly 
 of opinion that the Attorney-General was a proper defendant, and on 
 the ground of convenience or inconvenience he was of opinion that 
 "the convenience in the public interest is all in favour of providing 
 a speedy and easy access to the Courts for any of His Majesty's subjects 
 who have any real cause of complaint against the exercise of statutory 
 powers by Government departments and Government officials, having 
 regard to the growing tendency to claim the right to act without regard 
 to legal principles and without appeal to any Court." The learned 
 judge then added : "I will quote the Lord Chief Baron in Deare v. 
 Attorney -General : 'It has been the practice, which I hope never will be 
 discontinued, for the officers of the Crown to throw no difficulty in the 
 way of proceedings for the purpose of bringing matters before a Court 
 
512 Land Clauses of the Finance Act. 
 
 of justice when any real point of difficulty that requires judicial decision 
 has occurred.' I venture to hope that the former salutary practice may 
 be resumed. If ministerial responsibility were more than a mere 
 shadow of a name, the matter would be less important, but as it is, the 
 Courts are the only defence of the liberty of the subject against 
 departmental aggression." 
 
 This decision appears to cover the following points : (1) That 
 Order 25, rule 4, permitting the striking out the claim as disclosing no 
 reasonable cause of action, ought not to be used unless the claim is 
 obviously and almost incontestably bad. This is only confirmatory of 
 former decisions. (2) That that was not the case in relation to the two 
 claims made by the plaintiff as to the person to whom the return should 
 be furnished or as to requisition (i) of Form 4. (3) That the Attorney- 
 General was rightly sued as representing the interest of the Crown. 
 (4) That an action against the Attorney-General asking for a declaration 
 might be a convenient form of raising the legal point as to whether 
 the return required was authorised by the statute, and that the subject 
 is not necessarily obliged to wait until he is sued for a penalty for 
 non-compliance with the return. 
 
 In Burghes v. Attorney-General, [1911] 2 Ch. p. 139 (see ante, p. 347)> 
 this decision was followed as to the above points, provided (3) and (4) 
 and Form 8 was declared invalid on the ground referred to on p. 347. 
 Dyson v. Attorney -General was tried before Mr. Justice Horridge, before 
 whom it was not argued but who pro forma gave judgment that the 
 notice was illegal and unauthorised, and that the plaintifi" was not 
 bound to comply with it. 
 
 On appeal (W. N., 1911, p. 232), after affirming their previous views 
 as to the points numbered (3) and (4) above referred to, it was 
 unanimously held by the Court of Appeal (1) that the direction to 
 make the return to Hugh Bateson did not invalidate the notice, but 
 (2) that requisition (i) was unauthorised and rendered the whole form as 
 addressed to an owner who was also the occupier invalid, and (3) that 
 inasmuch as the statutory period of thirty days within which to make 
 his return had not been allowed to the plaintiff he was under no 
 obligation to comply with any of the requisitions of the forms ; at the 
 same time (W. N. 1911, p. 231) the decision of Mr. Justice Warrington 
 in Burghes v. Attorney-General was affirmed on the grounds (1) that 
 the full period of thirty days was not allowed after service for answer 
 by the notice, and (2) on the grounds notwithstanding (1) and (2) in the 
 judgment referred to on p. 347, ante. 
 
 It seems clear that Dyson v. Attorney-General affects only owner 
 occupiers. Further, it is thought that a person who has made his returns, 
 without objecting to a requisition declared unauthorised by either case 
 a^d not-withstanding that the full period for reply has not been allowed 
 by the notice, has waived any informality and cannot object even to the 
 provisional valuation on the ground of such informality. 
 
Form 7 — Land. 513 
 
 NOTE ON FORM 7. 
 
 (For Form see p. 514.) 
 
 This is the form referred to in " Form 4 — Land," ante, 
 under head " IL Additional Particulars, &c." It is only 
 to be used when the owner desires to keep down site value ; 
 as to this see ante, p. xxxiii. to xxxv., Introduction. But 
 it should generally be used, since it must be remembered 
 that deductions where applicable which he can claim 
 now, but does not claim, can never be claimed on any 
 occasion of the payment of increment value duty. If 
 an owner built a sea wall five years ago, although little 
 benefit may have accrued up to 30th April, 1909, yet 
 unless he claims now for that little benefit, it may be 
 that on the construction of the Act he will not be 
 entitled, on any occasion when increment value duty 
 is payable, to claim any deduction at all, although by 
 that time the sea wall may have added tenfold to the 
 value of his land. He should at least claim a nominal 
 deduction for the wall. This rule does not, however, 
 apply to the quinquennial assessments under s. 28 for 
 undeveloped land duty. For further comments on this 
 point see notes on s. 12, p. 149. 
 
 This is the form which gives practical effect on a 
 general valuation to the deductions under s. 25 (4) (b), 
 {c) and (d) (see p. 294 and notes on the sub-section). 
 
 Note that there is no limit of time backwards within 
 which expenditure must have been made to give rise 
 to a deduction, and that expenditure by predecessors in 
 title can be claimed. Note also that it is not the sum 
 expended, but the value added by the expenditure which 
 determines the amount of the deduction. 
 
 N. 
 
 08 
 
514 
 
 Land Clauses op the Finance Act. 
 
 REFERENCE : 
 to be quoted in all 
 communications. 
 
 FOKM 7.* 
 DUTIES ON LAND VALUES. 
 
 [Finance (1909-10) Act, 1910.) 
 
 Claim for Site Vaxue Deductions. 
 
 Particulars to be furnished by an Owner of Land, or person receiving 
 Eent in respect of Land, who desires to claim deductions in aniving at the 
 Assessable Site Value of the Land. 
 
 IMPORTANT.— As the Land is to be valued as on 30th April, 1909, the 
 particulars should be furnished, as far as possible, with reference to the circum- 
 stances existing on that date. 
 
 Attention is directed to the sections of the Finance (1909-10) Act, 1910, on 
 the attached sheet. 
 
 When completed, the claim should be delivered or sent in the accompanying 
 franked envelope to the District Valuer 
 
 1. Name, description, and precise 
 situation of the Land 
 
 
 
 Acres. 
 
 Roods. 
 
 Perches. 
 
 Yards. 
 
 2. Extent of the Land, if known . 
 
 
 
 
 
 3. If the particulars given under 
 heads (1) and (2) are not sufficient to 
 identify the Land, 
 
 (a) Annex a plan of the Land, 
 
 or, 
 (i) Quote the number or numbers 
 of the Land on the 25 inch 
 Ordnance Survey Map, or, 
 (c) If it is desired to identify the 
 Land on an official plan, 
 the desire should be in- 
 dicated here 
 
 
 4. Particulars and amounts of any 
 deductions not specified below which 
 are claimed for the purpose of arriv- 
 ing at the Assessable Site Value. 
 
 [Note.— Particulars of deductions 
 claimed under section 25, sub- 
 sections 2 and 4 (a) of the Finance 
 (1909-10) Act, 1910 (set out on the 
 attached sheet), may be conveniently 
 inserted here.] 
 
 For note see p. 513. 
 
Form 7. 
 
 515 
 
 5. Portion of the Total Value directly attributable to — 
 (a) Works Executed : — 
 
 Date when 
 Executed. 
 
 By whom 
 
 executed and 
 
 nature of his 
 
 interest in the 
 
 Land. 
 
 Particulars of Works. 
 
 Amount 
 
 Expended on 
 
 Works. 
 
 Value directly 
 
 attributable 
 
 thereto. 
 
 
 
 
 £ 
 
 £ 
 
 (b) Expenditure of a capital nature (including Expenses of Advertise- 
 ment) : — 
 
 Date of 
 
 Expenditure. 
 
 By whom 
 
 executed and 
 
 nature of his 
 
 interest in the 
 
 Land. 
 
 Particulars of Expenditure. 
 
 Amount 
 Expended. 
 
 Value directly 
 
 attributable 
 
 thereto. 
 
 
 
 
 £ 
 
 £ 
 
 6. Portion of the Total Value directly attributable to the Appropriation 
 of any Land or to the Gift of any Land for Streets, Eoads, Paths, Squares, 
 Gardens, or other Open Spaces for the use of the public : — 
 
 Date. 
 
 Name of person making 
 
 the Appropriation or 
 
 Gift and nature of his 
 
 interest. 
 
 Particulars of Appropriation or Gift. 
 
 Value directly 
 
 attributable 
 
 thereto. 
 
 7. Portion of the Total Value directly attributable to- 
 (a) Expenditure on Redemption of Land Tax :^ 
 
 Date of 
 Redemption. 
 
 Number of Redemp- 
 tion Contract. 
 
 Amount of Land Tax 
 redeemed. 
 
 Amount of 
 
 Redemption 
 
 Money. 
 
 Value directly 
 
 attributable 
 
 thereto. 
 
 
 
 £ 
 
 s. 
 
 d. 
 
 £ 
 
 £ 
 
 33—2 
 
516 
 
 Land Clauses of the Finance Act. 
 
 (h) Expenditure on Redemption of any Fixed Charge : — 
 
 Date of 
 Redemption. 
 
 Particulars of Charge redeemed. 
 
 Amount of 
 
 Redemption 
 
 Money. 
 
 Value directly 
 
 attributable 
 
 thereto. 
 
 
 
 £ 
 
 £ 
 
 (c) Expenditure on Enfranchisement of Copyhold Land or Customary 
 Freeholds : — 
 
 Date of 
 
 Cost of Enfranchisement. 
 
 Value directly 
 
 attributable 
 
 thereto. 
 
 Enfranchisement. 
 
 Particulai-s. 
 
 Amount. 
 
 
 
 £ 
 
 £ 
 
 (d) Expenditure on effecting the Release of any Covenant or Agree- 
 ment restricting the use of the Land which may be taken into 
 account in ascertaining the Total Value of the Land : — 
 
 Date when 
 Covenant or 
 
 Agreement 
 entered into. 
 
 Date of Release 
 
 of Covenant 
 or Agreement. 
 
 Particulars of Covenant 
 or Agreement. 
 
 Amount of 
 Expenditure. 
 
 Value directly 
 
 attributable 
 
 thereto. 
 
 
 
 
 £ 
 
 £ 
 
 (c) Goodwill, or any other matter which is personal to the Owner, 
 Occupier, or other person interested for the time being in the 
 Land : — 
 
 PARTICULARS. 
 
 Value directly 
 
 attributable 
 
 thereto. 
 
Form 7. 
 
 517 
 
 8. Sums which it would be necessary to expend in order to divest the 
 Land of Buildings, Timber, Trees, or other things of which it is to be taken 
 to be divested for the purpose of arriving at the Full Site Value from the 
 Gross Value of the Land, and of which it would be necessary to divest the 
 Land for the purpose of realising the Full Site Value ; — 
 
 PARTICULARS. 
 
 Amount. 
 
 9. If the Land is Copyhold or Customary Freehold Land : — 
 
 (a) Name of the Manor 
 
 (b) Date of birth of Copyhold Tenant 
 
 (c) Date of last Admittance ... 
 
 (d) Customs of Manor, viz. 
 
 Incidents of 
 Tenure. 
 
 PARTICULARS. 
 
 When 
 payable. 
 
 Amount. 
 
 Fines 
 
 Heriots ... 
 Quit Eents 
 
 
 
 & 
 
 s. 
 
 d. 
 
 Other Incidents of Tenure, with particulars and amounts of any money 
 payments : — 
 
 (e) Estimated Cost of Enfranchisement : — 
 
 PARTICULARS OF ITEMS. 
 
 Estimated Cost. 
 
 
 £ 
 
 Total Estimated Cost of Enfranchisement 
 
 
518 
 
 Land Clauses of the Finance Act. 
 
 10. Undeveloped Land Duty. — Additional particulars of Expenditure 
 (if any) incurred by the Owner of any Land included in any scheme of land 
 development, or by his predecessors in title, with a view to the development 
 of the Land or to its use for any business, trade, or industry other than 
 agriculture, on Eoads (including paving, curbing, metalUug, and other 
 works in connection with Eoads) or Sewers (Section 16). 
 
 Precise Situation of 
 Land included in 
 
 Scheme of 
 Development.* 
 
 Area of Land 
 
 included in 
 
 Scheme of Land 
 
 Development. 
 
 Date of 
 Expenditure. 
 
 Nature and Particulars 
 of Expenditure. 
 
 Amount of 
 Expenditure. 
 
 Acres. 
 
 R. 
 
 P. 
 
 Y. 
 
 
 
 
 
 
 
 
 
 
 A plan should be annexed, if possible. 
 
 I hereby declare that the foregoing particulars are in every respect fully 
 and truly stated to the best of my judgment and belief. 
 
 ( Signature of person making 
 
 I the Eeturn. 
 
 Bank, Title, or Description. 
 
 j- Address. 
 
 Then follow extracts from the Finance (1909-10) Act, 
 1910, being sections 12, 16, 25, and 40. 
 
FOBM 5. 
 
 519 
 
 NOTE ON FORM 6. 
 
 (See Form below.) 
 
 This is the form in which the return under s. 20 (3) see p. 225. 
 by a proprietor of minerals being worked, or a person 
 to whom rent is paid in respect of any right to work 
 minerals, or of any mineral way-leave, must be made. 
 
 The objective of the form is mineral rights duty. But 
 surely "K" is a mistake. The reduction referred to is 
 allowed by s. 22 (4), and has nothing to do with mineral 
 rights duty, but only with the annual increment value 
 duty payable under s. 22 (3). The somewhat analogous 
 reduction as to mineral rights duty is allowed by the 
 Proviso to s. 20 (1), and may be claimed under L. ii. d. 
 
 For the form as to unworked minerals, to be made by 
 a person not owner of the surface, see jmst, p. 533, Form 6. 
 
 FORM 5. 
 
 DUTIES ON LAND VALUES. 
 
 {Finance (1909-10) Act, 1910.) 
 
 Mineral Eights Duty. 
 
 For the Financial Year 1909-10 {Ut April, 1909, to 3Ut March, 1910). 
 
 Eetum to be made by a Proprietor of Minerals wbicb are being worked, or 
 by any person receiving rent in respect of any right to work Minerals or of 
 any Mineral Way leave. 
 
 (Penalty for failure to make a due Eeturn, not exceeding £o0.) 
 
 Reference to 
 the 
 
 Instructions 
 printed on 
 p. 522, post. 
 
 See In- 
 structions 
 3, and 4 (i), 
 (k), and (1). 
 
 Particulars 
 extracted 
 from the 
 
 Eate Books. 
 
 Parish 
 
 Number of Poor 
 Eate 
 
 Name of Occupier 
 
 Description of 
 Property . 
 
 Situation of Pro- 
 perty. 
 
 Estimated extent 
 
 Gross Estimated 
 Eental (or Gross 
 Value in Valua- 
 tion List*). 
 
 Eateable Value . 
 Applicable to the Metropolis only. 
 
 (a) Parish or Parishes to 
 which the Mineral Eights and 
 Wayleaves extend . 
 
 {b) Name and Address of 
 W or king Lessee 
 
 This space is not for the use of the person 
 making the Return. 
 
 Acres 
 
 Eoods 
 
520 
 
 Land Clauses of the Finance Act. 
 
 Reference to 
 the 
 
 Instructions 
 printed on 
 p. 522, post. 
 
 (c) Christian Name and Siir- 
 name and full postal address of 
 the person making the Eeturn 
 
 
 See In- 
 structions 
 1 and 2. 
 
 (d) Nature of Interest of the 
 person making the Eeturn in 
 the Mineral Eights and Way- 
 leaves: — 
 
 (1) Whether Freehold, Copy- 
 hold, or Leasehold . 
 
 (2) If Copyhold, name of the 
 Manor 
 
 (3) If Leasehold, (i.) term of 
 lease and date of commence- 
 ment (including, where the 
 lease contains a covenant for 
 renewal, the period for which 
 the lease may be renewed), 
 and (ii.) name and address of 
 lessor or his successor in title. 
 
 
 
 1 
 2 
 
 3 (i.) 
 
 3(ii.) 
 
 
 (e) Name, and precise situa- 
 tion of the Land to which the 
 Mineral Eights extend . 
 
 
 
 (/) Nature of the Minerals 
 to which the rights relate, and 
 character of any Wayleaves 
 included in the Eeturn . 
 
 
 See 
 
 Instruction 
 
 5. 
 
 
 
 
 
 {g) Superficial extent of the 
 Land to which the Mineral 
 Eights relate .... 
 
 Acres. 
 
 Roods. 
 
 Perches. 
 
 Yards. 
 
 
 
 
 
 
 
 {h) (i.) Whether the right to 
 work the Minerals 
 is the subject of a 
 Mining Lease . 
 (ii.) If so— 
 
 (a) Term for which 
 granted 
 
 (b) Date of com- 
 mencement of term . 
 
 (c) Amount of 
 yearly Eent in respect 
 of Mineral Eights and 
 Wayleaves paid by the 
 Working Lessee in 
 the last working year. 
 
 {d) Particulars of 
 any deduction from 
 the rent paid by the 
 Working Lessee, 
 claimed under Instruc- 
 tion 4 (c) . . 
 
 (i.) 
 
 (ii.) 
 (a) 
 
 (i) 
 
 See 
 
 Instruction 
 
 4. 
 
 
 (0 
 (d) 
 
 £ 
 
 
 
Form 5. 
 
 521 
 
 Reference to 
 the 
 
 Instructions 
 printed on 
 p. 522, post. 
 
 (i) If the Minerals are being 
 worked by the proprietor, 
 state : — 
 
 (i.) Quantity or Quantities, 
 by the customary 
 measure, of the 
 minerals gotten in the 
 last working year 
 (ii.) Eate of rent and 
 royalty customary in 
 the district, 
 (iii.) Whether the minerals 
 were comprised in a 
 mining lease or being 
 worked by the proprie- 
 tor on 30th April, 1909 
 
 (i-) 
 
 
 See 
 
 [nstruction 
 
 4. 
 
 
 
 (ii.) £ ». d. per 
 (iii.) 
 
 
 (k) Particulars and amount 
 of any money expended by the 
 Lessor within the preceding 
 fifteen years in boring or other- 
 wise proving the minerals 
 
 
 
 {I) Observations . 
 
 
 
 (m) If the person making the 
 Return desires that communi- 
 cations should be sent to an 
 Agent or Solicitor on his behalf, 
 the name and full postal address 
 of such Agent or Solicitor 
 
 
 I hereby declare that the foregoing particulars are in every respect 
 fully and truly stated to the best of my Judgment and belief. 
 
 Dated this day of 191 . 
 
 Signature of person 
 making the Eeturn. 
 
 Eank, Title, or 
 Description. 
 
r- < 
 
 522 Land Clauses of the Finance Act. 
 
 The Instructions below are attached to Form 5 just set out. 
 
 DUTIES ON LAND VALUES— MINERAL RIGHTS DUTY. 
 
 Instructions for making Returns. 
 
 1. The persons who are required to make this return are (a) the 
 proprietor of minerals which are being worked, and (b) every person to 
 whom any rent is paid in respect of any right to work minerals or of 
 any mineral way-leave. 
 
 The expression "proprietor" means the person for the 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 possessioia of land 
 comprised in a lease for any long term of years to which section G5 of 
 the Convejancing Act, 1881, applies. 
 
 2. If any person, who is not a proprietor of minerals, or a person to 
 whom rent is paid in respect of any right to work minerals, or of any 
 mineral way-leave, is called upon to make a return, he should return the 
 form to the officer named in the notice, stating the nature and extent 
 of his own interest (if any) in the minerals, and the name and address 
 of the proprietor of the minerals, or of the person to whom he pays 
 rent. If any person called upon to make a return is unable to give all 
 the information required, he should furnish all the particulars which it 
 is in his power to give, and insert the words "Not known" in the 
 spaces which he is unable to fill up. 
 
 3. If the land to which the mineral rights extend is situate in two or 
 more parishes, a return, relating to the whole of the mineral rights, 
 should be made in the parish in which the greater part of the land is 
 situate, and notes should be made on the forms for the other parish or 
 
 parishes affected, '''■ Included in return for ■ parish " (stating the name 
 
 of the parish in which the inclusive return has been made). 
 
 4. Here follows the substance of s. 20 (1), (2), and (5), 
 and certain relevant portions of s. 24, inter alia. 
 
 (k) Minerals which are being won for the purpose of being imme- 
 diately worked are to be deemed to be minerals which are being 
 worked. 
 
 (1) Minerals are to be deemed to be comprised in a mining lease if the 
 right to work the minerals is the subject of a mining lease, or if the 
 minerals are being worked under the terms of such a lease, although the 
 lease has expired. 
 
 5. Mineral Rights Duty is not chargeable in respect of common clay, 
 common brick clay, common brick earth, or sand, chalk, limestone, or 
 gravel. 
 
Eeversion Duty Forms. 523 
 
 EEYEKSION DUTY FOKM. 
 
 This is a form to be filled in by the lessor on the Seep. i76. 
 determination of the lease pursuant to sections 13 and 15 
 of the Act of 1910. The obligation of the lessor is to 
 "deliver an account . . . setting forth the particulars of 
 the land and the estimated value of the benefit accruing to 
 the lessor by the determination of the lease " (s. 15 (2) ). 
 The particulars required belovi^ are doubtless a liberal 
 interpretation of the requirements of the section. But 
 they probably do not go further than the Act authorises, 
 except that it is difficult to see how No. 9 is authorised, 
 especially since the repeal by the Revenue Act, 1911, 
 s. 3, of s. 14 (3) of the Finance Act, 1910. The account 
 must be an intelligible account, and must (it is thought) 
 contain all such particulars as are necessary to enable 
 the Commissioners to make their own calculations. If 
 it is determined that a claim for duty cannot be resisted, 
 no good object would appear to be served by not using 
 this form. Perhaps the reason why it is not numbered 
 is because it is not thought to be obligatory. For a 
 further note as to answering this Form, see ante, " Notes 
 on the Practical Working of the Land Clauses," p. xxxv. 
 
 FORM. 
 
 (Finance (1909-10) Act, 1910.) 
 
 Account to be Rendered by the Lessor on the Determination of 
 THE Lease of any Land in respect of which Reversion Duty is 
 Payable. 
 
 (1.) Parish or Parishes in which the 
 Land is situated. 
 
524 
 
 Land Clauses of the Finance Act. 
 
 (2.) Precise situation of the Land. 
 
 (3.) Christian name and Surname 
 and full postal address of the 
 person making the retui'n. 
 
 (4.) Term for which the lease was 
 granted. 
 
 (5.) Date of comnnencement of term. 
 
 
 (6.) Date of determination of the 
 lease. 
 
 
 (7.) Amount of yearly rent reserved 
 under the lease. 
 
 
 (8.) — (a) Whether granted for any 
 consideration in money 
 paid by the Lessee in 
 addition to the rent 
 reserved or 
 (b) Upon any condition as to 
 the lessee laying out 
 money in building, re- 
 building or improve- 
 ments. If so, give 
 particulars. 
 
 (a) 
 
 (9.)— If a new tenancy has been 
 created state — 
 (aj The term. 
 (6) The rent reserved, 
 (c) Any other consideration. 
 
 
 (10.) Estimated total value of the 
 land at the time of the 
 original grant of the lease. 
 This value is to be ascertained 
 on the basis of the rent 
 received and payments made 
 in consideration of the lease. 
 (See sec. 13 (2).) 
 
 
 (11.) Estimated total value of the 
 land at the determination of 
 the lease. (See sec. 25 (3).) 
 
 
Kevebsion Duty. 
 
 525 
 
 (12.) Whether any deduction is 
 claimed in respect of — 
 
 (a) Any part of the total 
 
 value which is attri- 
 butable to any works 
 executed or expendi- 
 ture of a capital nature 
 incxirred by the lessor 
 during the term of the 
 lease or 
 
 (b) Any compensation pay- 
 
 able by the lessor at 
 the determination of 
 the lease. 
 [Full particulars of any such 
 
 claims to deduction should 
 
 be given.] 
 
 (a) 
 
 ib) 
 
 (13.) Estimated value of the benefit 
 accruing to the lessor by the 
 determination of the lease. 
 
 (14.) Nature of interest of the person 
 making the return in the land. 
 
 (a) 
 
 Whether freehold, copy- 
 hold or leasehold. 
 
 (a) 
 
 
 If leasehold, term of 
 lease and date of com- 
 mencement (including 
 where the lease con- 
 tains a covenant for 
 renewal, the period for 
 which the lease may 
 be renewed). 
 
 If dependent on life, the 
 present age of the 
 person on whose life 
 the interest is depen- 
 dent, and if dependent 
 on more than one life, 
 the present age of the 
 youngest of the persons 
 on whose life it is 
 dependent. 
 
 
 (15.) Whether any exemption or 
 
 
 allowance is claimed under 
 
 
 section 14 of the Finance Act. 
 
 
 If s 
 
 50, full particulars must be 
 
 
 given. 
 
 
 Here follow the sections of the Finance (1909-10) Act, 
 1910, which relate to Reversion Duty, i.e., sections 13, 
 14, 15, and 25. 
 
526 Land Clauses of the Finance Act. 
 
 ''FOEM 3.— LAND."— STATUTORY COMPANIES. 
 NOTE ON FORM. 
 
 (For Form see p. 527.) 
 See p. 405. The foUowing form is that in which Statutory 
 
 Companies which by s. 38 are to a certain extent 
 exempted from increment value duty, undeveloped land 
 duty, and reversion duty, are required to make their 
 return under the provisions of that section (see notes to 
 s. 38, p. 405). Sub-s. 2 of s. 38 provides that "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 which cost shall for the purposes 
 of this Part of this Act be substituted for the original 
 site value of the land." 
 
 The information required by the form appears for 
 the most part to be necessary for the purpose of enabling 
 the Commissioners to determine whether the exemption 
 conferred by s. 38 is applicable. The Commissioners 
 might not, it is true, be able to enforce a penalty for failure 
 to furnish some of the required information. But, if the 
 information were not furnished in answer to this return, 
 it might have to be furnished as a defence to proceedings 
 for the recovery of the penalty at much greater cost to the 
 company. It is, therefore, clear that no useful purpose can 
 be served by a refusal to furnish the information required. 
 
 DUTIES ON LAND VALUES. 
 
 REFERENCE: to be 
 
 NOTICE TO MAKE RETURNS. Tun^^tionf "°'"' 
 
 Statutory Companies — Instructions for making 
 Returns — Form 3. 
 
 1. This return is to be made by a Statutory Company being the 
 owner of laud, or receiving any rent in respect of land. 
 
 Here follow definitions of " Statutory Company " (s. 38 (4) ) and 
 " owner " (s. 41). 
 
 2. The expression " land " includes all buildings and other structures 
 thereon, and all minerals on, in, or under the surface of the land. 
 
Form 3. 
 
 527 
 
 3. If any Statutory Company who are not the owner of land, or 
 receiving rent in respect of land, are called upon to make a return, the 
 form should be returned to the officer named in the notice, and the 
 nature and extent of the interest of the Company in the land, and the 
 name and address of the owner, or person to whom rent is paid, should 
 be stated. If any Statutory Company called upon to make a return 
 are unable to give all the information required, they should furnish all 
 the particulars which it is in their power to give, and insert the words 
 "Not known" in the spaces which they are unable to fill up. 
 
 4. If any piece of land under one occupation extends into two or 
 more parishes, it is desirable that separate returns should, if possible, 
 be made for the parts lying within each parish. Where, however, this 
 is not practicable, one return, relating to the whole of the land which 
 cannot be subdivided, may be made in the parish in which the greater 
 part of the land is situated. In the latter case, notes should be made 
 on the forms for the other parish or parishes affected, " Inclvded in return 
 
 for parish'''' (stating the name of the parish in which the inclusive 
 
 return has been made). 
 
 Here follow ss. 23 (2), 12, and 23 (1). 
 
 FOKM 3.— DUTIES ON LAND VALUES.* 
 
 {Finance (1909-10) Act, 1910.) 
 
 Eetuen to be made by a Statutory Company being the Owner of 
 Land held for the Purposes of the Undertaking of the 
 Company. 
 
 (Penalty for failure to make a due Eeturn, not exceeding £oO.) 
 
 Reference 
 
 to the 
 
 Instructions 
 
 printed on 
 
 pages 526 
 
 and 527, 
 
 ante. 
 
 Instruction 
 2. 
 
 /Parish 
 
 Number of Poor 
 Eate . 
 
 Name of Occu 
 pier . 
 
 Description of 
 Property . 
 
 Situation of Pro 
 perty 
 
 Estimated extent 
 
 Gross Estimated 
 Eental (or Gross 
 Value in Valua- 
 tion List*) 
 VEateable Value . 
 
 (* Applicable to the Metropolis only.) 
 
 Particulars 
 extracted 
 from the 
 
 Eate Books. 
 
 This space is not for the use of the person 
 making the Return. 
 
 Acres 
 
 Eoods 
 
 IMPORTANT. — As the Land is to be valued as on 30th April, 
 1909, the particulars should be furnished, so far as possible, with 
 reference to the circumstances existing on that date. 
 
 * See note on Form on p. 526. 
 
528 
 
 Land Clauses op the Finance Act. 
 
 Reference 
 
 to the 
 
 Instructions 
 
 printed on 
 
 pages 526 
 
 and 527, 
 
 ante. 
 
 Instruction 
 4. 
 
 Instruc- 
 tions 1 and 
 3. 
 
 I. Particulars required by the Commissioners, which must be 
 furnished so far as it is in the power of the Company to give 
 them. 
 
 (a) Parish or Parishes in 
 which the Land is situated. 
 
 (b) Name of Occupier. 
 
 (c) Full name of the Statutory 
 Company, and Christian Name 
 and Surname, Description, and 
 full postal address of the 
 responsible officer of the Com- 
 pany making the Return. 
 
 {(l) Nature of the under- 
 taking of the Statutory Com- 
 pany. 
 
 (e) Reference to Special Act, 
 Provisional Order, or Order 
 having the force of an Act 
 of Parliament, under which 
 the Statutory Company were 
 authorised to construct, work, 
 or carry on their under- 
 taking. 
 
 (/) Nature of Interest of 
 the Statutory Company in the 
 Land : — 
 
 (1) Whether Freehold, Copy- 
 hold, or Leasehold. 
 
 (2) If Copyhold, name of the 
 Manor. 
 
 (3) If Leasehold, (i.) term of 
 lease and date of commence- 
 ment (including, where the 
 lease contains a covenant for 
 renewal, the period for which 
 the lease may be renewed), and 
 (ii.) name and address of lessor 
 or his successor in title. 
 
 1 
 2 
 3(i.) 
 
 3(ii.) 
 
FOKM 3. 
 
 529 
 
 Reference 
 to the 
 
 
 printed on 
 
 pages 526 
 
 and 527, 
 
 ante. 
 
 {g) Name and precise situa- 
 tion of the Land. 
 
 
 
 
 
 (h) Description of the Land, 
 with particulars of the buildings 
 and other structures (if any) 
 thereon. 
 
 
 See 
 
 Instruction 
 
 2. 
 
 
 
 
 
 (i) Extent of the Land. 
 
 Acres. 
 
 Roods. 
 
 Perches. 
 
 Yards. 
 
 
 
 
 
 
 
 (k) Is the whole of the Land 
 held by the Company for the 
 purposes of their undertaking !" 
 
 
 
 (/) If not, ^ive particulars as 
 to use, situation, and extent of 
 any part not so held. 
 
 
 
 (m) Give particulars as to 
 use, situation, and extent of any 
 Land included under head {I), 
 which is held by the Company, 
 and which is intended to be 
 ultimately appropriated for the 
 purpose of works forming or to 
 form part of the Company's 
 undertaking, but, pendiag the 
 carrying out of those works, is 
 used for other purposes. 
 
 
 
 (?i) Can the Land be appro- 
 priated by the Company except 
 to the purposes of their under- 
 taking ? 
 
 
 
 (o) Actual cost to the Com- 
 pany of the Land. 
 
 £ 
 
 
 * (jo) (i.] Do the Company 
 own the minerals comprised in 
 the Land ? 
 
 (* Minerals not comprised in a mining 
 lease or being worked are to be 
 treated as having no value as minerals, 
 unless the proprietor of the minerals 
 fills up space (r) below.) 
 
 
 See 
 
 Instruction 
 
 5. 
 
 (i-) 
 
 
 
 34 
 
530 
 
 Land Clauses of the Finance Act. 
 
 Reference 
 
 to the 
 
 Instructions 
 
 printed on 
 
 pages 526 
 
 and 527, 
 
 ante. 
 
 (ii.) If SO, state — 
 
 (a) Whether the minerals 
 were on 30th April, 
 1909, comprised in a 
 mining lease or being 
 worked by the pro- 
 prietor ? 
 
 (i) "Whether the minerals 
 are now comprised in 
 a mining lease or 
 being worked by the 
 proprietor ? 
 (iii.) If not, state the name 
 and address of the 
 proprietor of the 
 minerals. 
 
 (ii.) (a) 
 
 
 ib) 
 (iii.) 
 
 See 
 
 Instruction 
 
 6. 
 
 {q) Observations : — 
 
 
 
 
 
 I hei-eby declare that the foregoing particulars are in every 
 respect fully and truly stated to the best of my judgment and 
 belief. 
 
 Dated this day of 191 . 
 
 ( Signature of the person 
 ( making the Eeturn. 
 
 ■Rank, Title, or Description. 
 
 
 n. Additional particulars which may be given, if desired. 
 
 
 {r) Nature, and estimate of 
 the Capital Value of any 
 minerals not comprised in a 
 mining lease and not being 
 worked, which have a value as 
 minerals. 
 
 
 See 
 Instruc- 
 tions 5 and 
 7. 
 
 Nature 
 
 
 Capital value, £ 
 
 
 Siemature. 
 
 
 
 Dat^. 
 
FoEM 6. 531 
 
 NOTE ON FOEM 6. 
 
 (See Form, p. 533.) 
 
 This is the return which an owner of unworked and see p. 317. 
 unleased minerals, who does not also own its surface, is, 
 as an owner of land, required to make under s. 26 (2). 
 It must also be made, if required by the Commis- 
 sioners, by " any person receiving rent in respect 
 of any" minerals, that is, it is understood, by such 
 persons as trustees, mortgagees, receivers appointed by 
 the court, committees of a lunatic. Whether the words 
 include mere agents is doubtful, but they would 
 include leaseholders whose unexpired term is less 
 than 60 years. Leaseholders whose unexpired term 
 exceeds 50 years come within the category of owners 
 (see s. 41). This, it must be noted, is the return which 
 is to be made in respect of minerals which are neither 
 worked nor in lease. It is the correlative of Form 5 
 (see ante, p. 619), which is the return to be made in 
 respect of minerals either in lease or being worked. 
 The same person is, as the Act is interpreted, apparently 
 termed the owner of the minerals so long as they are 
 unworked and unleased, and the proprietor of the minerals 
 when they are either worked or leased. It is thought 
 that this form is wholly intra vires. 
 
 M- 
 
532 Land Clauses of the Finance Act. 
 
 FORM 6.— DUTIES ON LAND VALUES. 
 
 DUTIES ON LAND VALUES— UNWORKED MINERALS. 
 
 Instructions for making Returns. 
 
 I. Instructions relating p^'incipally to particulars which it is compulsory/ 
 to furnish. 
 
 1. The person required to make this return is the owner of the 
 mineral rights. If the minerals are comprised in a mining lease or are 
 being worked, no return in respect thereof is required to be made on 
 this form. 
 
 Here follows definition of " owner " (s. 41). 
 
 2. The expression " land " includes all minerals on, in, or under the 
 surface of the land. 
 
 3. If any person who is not the owner of mineral rights is called 
 upon to make a return, he should return the form to the officer named 
 in the notice, stating the nature and extent of his own interest in the 
 mineral rights, and the name and address of the owner. If the 
 minerals are comprised in a mining lease, or are being worked, he 
 should return the form to the ofl&cer with a note to that effect, when 
 the appropriate form for making a return will be sent to him. If any 
 person called upon to make a return is unable to give all the informa- 
 tion required, he should furnish all the particulars which it is in his 
 power to give, and insert the words " Not known " in the spaces which 
 he is unable to fill up. 
 
 4. If the land to which the mineral rights extend is situate in two or 
 more parishes, separate returns may, if the owner thinks fit, be made 
 in respect of the mineral rights relating to land lying within each 
 parish, or, one return, relating to the whole of the mineral rights, may 
 be made in the parish in which the greater part of the land is situate. 
 In the latter case, notes should be made on the forms for the other 
 
 parish or parishes affected, " Included in return for parish" (stating 
 
 the name of the parish in which the inclusive return has been made). 
 
 Here follows s. 23 (2). 
 
 II. Instructions relating principally to particulars which the owner 
 may furnish, if he thinks fit. 
 
 Here follow ss. 23 (1) and 12. 
 
Form 6. 
 
 588 
 
 FOEM 6.— DUTIES ON LAND VALUES. 
 
 (See note on p. 531.) 
 
 Return to be made by an Owner of Mineral Eights who is not 
 THE Owner (as defined in the Finance (1909-10) Act, 1910) of 
 the Surface of the Land to which the Mineral Eights extend. 
 
 (Penalty for failure to make a due Eeturn, not exceeding £50.) 
 
 Reference 
 
 to the 
 
 Instructions 
 
 printed on 
 
 page 532, 
 
 ante. 
 
 See 
 
 Instruction 
 
 2. 
 
 Instruction 
 3. 
 
 Instruction 
 4. 
 
 See 
 Instruc- 
 tions 
 1 and 3. 
 
 Particulars 
 extracted 
 from the 
 Eate Books, 
 and relating 
 to the Pro- 
 perty to 
 which the 
 Mineral 
 Eights 
 extend. 
 
 /Parish 
 
 Number of Poor 
 Eate 
 
 Name of Occu- 
 pier 
 
 Description 
 Property . 
 
 Situation of Pro- 
 perty 
 
 Estimated extent 
 
 Gross Estimated 
 Eental (or Gross 
 Value in Valua- 
 tion List)* 
 
 \Eateable Value . 
 
 (•Applicable to the Metropolis only.) 
 
 This space is not for the use of the person 
 making the Return. 
 
 Acres 
 
 Eoods 
 
 IMPORTANT. — As the Minerals are to he valued as on 30^/i April, 
 1909, the particulars should he furnished, as far as possihle, tuith 
 reference to the circumstances existing on that date. 
 
 Particulars required by the Commissioners, which must be 
 furnished so far as it is in the power of the person making 
 the Eeturn to them. 
 
 (a) Parish or Parishes in 
 which the Land to which the 
 Mineral Eights extend is 
 situated 
 
 {h) Christian Name and Sur- 
 name and full postal address of 
 the person making the Eeturn. 
 
 (c) (i.) "Whether the Interest 
 of the person making 
 the Eeturn, in the 
 Mineral Eights, is a 
 Freehold Interest . 
 
 {<^) (i-) 
 
634 
 
 Land Clauses of the Finance Act. 
 
 Reference 
 
 to the 
 
 Instructions 
 
 printed on 
 
 page 532, 
 
 ante. 
 
 (ii.) If not, give full particu- 
 lars of the interest of the 
 person making the Eeturn, 
 and state the name and 
 address of the owner of 
 the Freehold of the 
 Mineral Eights. 
 
 {d) Name, and precise situa- 
 tion of the Land to which the 
 Mineral Eights extend. 
 
 (e) Superficial extent of the 
 Land to which the Mineral 
 Eights relate. 
 
 (/) Whether the Mineral 
 Eights have any value.* 
 
 (* Minerals not comprised in a mining 
 lease or being worked are to be treated 
 as having no value as minerals, unless 
 the proprietor of the minerals fills up 
 space (k) below.) 
 
 {g) Particulars of the last 
 Sale (if any) of the Mineral 
 Eights, within 20 years before 
 30th April, 1909 :— 
 (i.) Date of Sale 
 (ii.) Amount of Purchase- 
 money and other con- 
 sideration (if any) 
 
 {h) Observations. 
 
 (i) If the person making the 
 Eeturn desires that communi- 
 cations should be sent to an 
 Agent or SoHcitor on his behalf, 
 the name and full postal address 
 of such Agent or Solicitor. 
 
 (ii.) 
 
 Acres. 
 
 Roods. 
 
 Perches. 
 
 Yards. 
 
 I hereby declare that the foregoing particulars are in every 
 respect fully and truly stated to the best of my judgment and 
 belief. 
 
 Dated this day of 191 . 
 
 ( Signature of the person 
 
 I making the Eeturn. 
 
 ( Eank, Title, or Descrip- 
 
 \ tion. 
 
Form 6. 
 
 635 
 
 Reference 
 
 to the 
 
 Instructions 
 
 printed on 
 
 page 532, 
 
 ante. 
 
 See 
 Instruc- 
 tions 
 5, 6, and 7. 
 
 II. — Additional particulars which may be given, if desired. 
 
 {k) Nature, and estimate of 
 the capital value of any 
 minerals not comprised in a 
 mining lease and not being 
 worked, which have a value as 
 minerals. 
 
 Nature 
 
 Capital Value £ 
 
 .Signature. 
 Date. 
 
636 Land Clauses of the Finance Act. 
 
 FORM 8 AND ACCOMPANYING CIRCULAR. 
 
 (For Form, see p. 537.) 
 
 This is a circular and form issued by the Commissioners 
 in pursuance of their power under s. 31 (1) (see ante, 
 p. 346) to require every person who pays rent in respect 
 of any land, and who as agent for another person receives 
 any rent in respect of any land, to furnish to them 
 within thirty days the name and address of the person to 
 whom he pays or on behalf of whom he receives the 
 rent. For a note on the sub-section and on the case 
 of Burghcs v. Attorney -General, [1911] 2 Ch. 139 ; W. N. 
 1911, p. 231, in which it was held that the notice and 
 form were ultra vires and unauthorised by s. 31 (1), see 
 ante, p. 347. 
 
 NOTICE ACCOMPANYING FORM 8. 
 
 REFERENCE : 
 
 DUTIES ON LAND VALUES. '^o'.Z^lfJnf 
 
 NOTICE TO FURNISH INFORMATION. 
 
 Inland Revenue, 
 
 Somerset House, 
 London, W.C, 
 
 , 1910. 
 
 To 
 
 Sir, 
 
 With reference to the provisions of the Finance (1909-10) Act, 1910, 
 I am dii'ected by the Commissioners of Inland Revenue to require you to 
 furnish within thirty days from this date (I.), the name and address of every 
 person to whom you pay rent in respect of any land situate within, or partly 
 
 within, the parish or place of , and (II.) the name and address of every 
 
 person on behalf of whom you, as agent, receive any rent in respect of any 
 land situate within, or partly within, the aforesaid parish or place. 
 
 'The expression "land" includes all buildings and other structures thereon, 
 and all minerals on, in, or under the surface of the land. 
 
 Forms are provided on the other side in which the required information 
 should be inserted. When completed, the returns should be forwarded 
 in the accompanying franked envelope to the appointed officer. 
 
 Any person ivho is required to furnish the information specified above and 
 wilfully fails to do so within the time limited in this notice, is liable to a 'penalty 
 not exceeding 501. 
 
 I am. Sir, 
 
 Your obedient Servant, 
 
 F. Atterbuet, 
 
 Secretary. 
 
Form 8. 
 
 537 
 
 I.- 
 
 FORM 8.— LAND.* 
 
 (This is issued under s. 31 (1).) 
 
 -Form to be filled up by every Person who pays Eent in respect 
 or ANY Land within the aforesaid Parish or Place. 
 
 Note. — If you do not pay rent in respect of any land you should insert 
 the word " Nil " on this form and sign the declaration below. It is not 
 sufficient to leave this space blank. 
 
 Names of persons to whom 
 rent is paid. 
 
 Addresses of persons to whom 
 rent is paid. 
 
 Descriptions and precise situa- 
 tions of the lands in respect 
 of which rent is paid. 
 
 II. — Form to be filled up by every Person who as Agent for 
 another Person receives any Eent in respect of any Land 
 within the aforesaid Parish or Place. 
 
 Note. — If you do not receive any rent as agent for another person you 
 should insert the word "Nil" on this form, and sign the declaration 
 below. It is not sufficient to leave this space blank. 
 
 Names of persons on whose 
 behalf rent is received. 
 
 Addresses of persons on whose 
 behalf rent is received. 
 
 Descriptions and precise situa- 
 tions of the lands in respect 
 of which rent is received. 
 
 I hereby declare that the foregoing particulars are in every respect fully 
 and truly stated to the best of my judgment and belief. 
 
 Dated this 
 
 day of 
 
 191 
 
 Signature. 
 
 Address. 
 
 * See note on p, 536. 
 
5S8 Land Clauses of the Finance Act. 
 
 CIRCULAKS TO SOLICITORS ISSUED BY THE 
 COMMISSIONERS RELATING TO THE PAY- 
 MENT OF INCREMENT VALUE DUTY. 
 
 L 
 
 Finance (1909-10) Act, 1910. 
 
 Increment Value Duty. 
 
 See pp. 94 and The Commissioners of Inland Revenue desire to call 
 the attention of Solicitors to the provisions of s. 5 of the 
 above Act relating to the assessment, collection and 
 recovery of Increment Value Duty in respect of land or 
 any interest in land passing on death. 
 
 The Commissioners are anxious to make the procedure 
 as simple as possible and they have decided not to 
 require Executors and others to render in the first 
 instance a separate account for the purposes of Increment 
 Value Duty. 
 
 The necessary valuations will be made by reference to 
 the affidavit and accounts furnished for Estate Duty 
 purposes and a further account for the purpose of 
 Increment Value Duty will only be called for in cases 
 where there is a prima facie liability to that duty. 
 
 By order of the Commissioners, 
 
 F. Atterbury, 
 Secretary. 
 Inland Revenue, 
 
 Somerset House, 
 
 London, W.C. 
 July, 1910. 
 
Circulars of Inland Ke venue. 539 
 
 II. 
 
 Finance (1909-10) Act, 1910. 
 Increment Value Duty. 
 
 With reference to the Kegulations made by the Com- see p. 493. 
 missioners of Inland Revenue under s. 4 of the Finance 
 (1909-10) Act, 1910, it has been brought to the notice 
 of the Commissioners that Regulation 3 has, in some 
 quarters, been interpreted as requiring in every case the 
 delivery of a full statement of any covenants affecting 
 the property, whether contained in the instrument itself 
 or not. The intention of the Regulation, however, is 
 that only such covenants as may have directly influenced 
 the consideration for the transaction should be set forth. 
 In other cases a statement that the covenants have had 
 no influence in fixing the consideration, or that they are 
 the usual covenants for the benefit of the property, will 
 be sufficient. 
 
 The Commissioners have decided to refrain from 
 insisting in every case on a strict compliance with that 
 portion of Regulation 3 which relates to the production 
 of plans, and to require a plan to be supplied only in 
 those cases where the description given in the instrument 
 is not sufficient to enable the property to be identified. 
 Where a plan is required, a rough tracing showing the 
 boundaries of the property will suffice. 
 
 By order of the Commissioners, 
 
 F. Atterbury, 
 Seoi'etary. 
 Inland Revenue, 
 
 Somerset House, 
 
 London, W.C. 
 July, 1910. 
 
540 Land Clauses of the Finance Act. 
 
 FORM 8a.— LAND. 
 
 Seep. 346. The following notice and form are issued under 
 
 s. 31 (1). They are confined to rent paid or received in 
 respect of minerals and mineral wayleaves. The form 
 should be read in connection with Form 8 (see p. 537), 
 issued under the same section, in relation to land other 
 than mineral rights. Its object is to find out, either from 
 a lessee who pays a mineral rent or from an agent who 
 receives such a rent for a lessor, the name and address 
 of the lessor, in order that the latter may be called upon 
 to pay the mineral rights duty under s. 20. 
 
 The notice and form are somewhat ambiguous. It 
 appears from the notice that the return required, No. 1, 
 amounts to a roving inquiry as to the name and address 
 of any person to whom any rent in respect of any 
 mineral rights and wayleaves (not specified) is paid. If 
 this is the true construction of the notice and form, this 
 requirement would seem to be bad under Mr. Justice 
 Warrington's decision in Burghes v. Attcrney-General 
 (Times, May 10, 1911 ; W. N., May 20, 1911, p. 122 * ; see 
 ante, p. 347), that a notice under the section ought to be 
 confined to land specifically referred to. The second 
 requirement of the notice and form seems not to come 
 within this decision, being confined to the receipt of rent 
 in respect of certain specified land. It is possible that 
 the description of the mineral rights, etc., might be set 
 out in return No. 1 by the Commissioners before the 
 notice and form were served. If that were done, it would 
 perhaps be that Form 1 and the notice would be valid, 
 the notice so far as regards 1 being read (notwithstand- 
 ing the punctuation) as applying only to the specific 
 mineral rights mentioned. 
 
 * Now reported in [1911] 2 Ch. 139, and aflarmed by the Court of Appeal, 
 See W. N. 1911, p. 231. 
 
Form 8a. 
 
 541 
 
 FORM 8a. 
 
 (See note on p. 540.) 
 
 DUTIES ON LAND VALUES. 
 
 NOTICE TO FURNISH INFORMATION. 
 Mineral Rights Duty. 
 
 BEFERBNCB : 
 to be quoted in all 
 communications. 
 
 Inland Revenue, 
 
 Somerset House, 
 
 London, W.O. 
 
 191 
 
 To 
 
 Sir, 
 
 With reference to the provisions of the Finance (1909-10) Act, 1910, 
 I am directed by the Commissioners of Inland Revenue to require you to 
 furnish within thirty days (I.), the name and address of every person to 
 whom you pay rent, and (II.) the name and address of every person on 
 behalf of whom you, as agent, receive any rent in respect of the mineral 
 rights and wayleaves shown overleaf. 
 
 When completed, the return should be forwarded in the accompanying 
 franked envelope to the appointed officer. 
 
 Any person who is required to furnish the information indicated above and 
 wilfully fails to do so within thirty days is liable to a penalty not exceeding 501. 
 
 I am. Sir, your obedient Servant, 
 
 F. Atterbury, 
 
 Secretary, 
 
 I. — Form to be filled up by every Person who pays Rent in respect 
 of any Mineral Rights or Wayleaves. 
 
 Note. — If you do not pay rent in respect of any mineral rights or way- 
 leaves you should insert the word " Nil " on this form, and sign the 
 declaration below. It is not sufficient to leave this space blank. 
 
 Names of persons to whom 
 rent is paid. 
 
 Addresses of persons to whom 
 rent is paid. 
 
 Descriptions and precise situa- 
 tions of the lands to which the 
 mineral rights and wayleaves 
 extend, and in respect of which 
 rent is paid. 
 
.542 
 
 Land Clauses of the Finance Act. 
 
 II. — FOEM TO BE FILLED UP BY EVEEY PERSON WHO AS AgENT FOB ANOTHER 
 
 Person receives any Pent in respect of any Mineral Eights or 
 Wayleaves within the aforesaid Parish or Place. 
 
 Note. — If you do not receive any rent as agent for another person you 
 should insert the word " Nil " on this form, and sign the declaration 
 below. It is not sufficient to leave this space blank. 
 
 Names of persons on whose 
 behalf rent is received. 
 
 Addresses of persons on whose 
 behalf rent is received. 
 
 Descriptions and precise situa- 
 tions of the lands to which the 
 mineral rights and wayleaves 
 extend, and in respect of which 
 rent is received. 
 
 I hereby declare that the foregoing particulars are in every respect fully 
 and truly stated to the best of my judgment and belief. 
 
 Dated this 
 
 day of 
 
 191 
 
 ^Signature. 
 Address. 
 
Substituted Site Value. 
 
 543 
 
 FOEMS 43, 44, and 45. 
 
 The following three Forms, 43, 44, and 45, relate to 
 the substituted site value under s. 2 (8) of the Finance 
 (1909-10) Act, 1910, and s. 2 of the Kevenue Act, 1911 
 (see ante, pp. 41 and 44). They sufficiently explain 
 themselves. 
 
 FOKM 43.— LAND. 
 
 DUTIES ON LAND VALUES. 
 Finance (1909-10) Act, 1910. 
 
 REFERENCE : 
 
 To be quoted in all 
 
 communications. 
 
 Sir, 
 
 ,191 
 
 With reference to the provisional valuation of the above-named here- 
 ditament, I am directed by the Commissioners of Inland Eevenue to inform 
 you that the site value to be substituted for the original site value for the 
 purposes of increment value duty under s. 2 (3) has been estimated as 
 follows : — 
 
 Particulars of transfer or mortgage 
 prior to April 30th, 1909 
 
 Site value based thereon . 
 
 I am. Sir, 
 
 Your obedient Servant, 
 
 District Valuer. 
 
 FOKM 44.— LAND. 
 
 DUTIES ON LAND VALUES. 
 
 Finance (1909-10) Act, 1910. 
 
 Sir, 
 
 REFERENCE : 
 
 To be quoted in all 
 
 communications. 
 
 .191 
 
 With reference to the particulars of the sale given in reply to question {q) 
 in the return on Form 4 — Land, rendered in respect of the above-named 
 hereditament, I am directed by the Commissioners of Inland Eevenue to 
 enquire whether it is desired to have a site value based upon the considera- 
 tion for the sale in question substituted for the original site value for the 
 purposes of increment value duty under s. 2 (3). 
 
 I am, Sir, your obedient Servant, 
 
 District Valuer. 
 
544 Land Clauses of the Finance Act. 
 
 Note. — Sect. 2 (3) enacts as follows : — 
 
 " Where it is proved to the Commissioners on an application made for the 
 purpose within the time fixed by this 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 day of April, nineteen hundred and nine, exceeded the 
 original site value of the land as ascertained 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 provisions 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." 
 
 FOKM 45.— LAND. 
 
 DUTIES ON LAND VALUES. 
 
 Finance (1909-10) Act, 1910. 
 
 District Valuer's Office, 
 
 Valuation Department, 
 
 Inland Ee venue. 
 
 191 
 
 Sir, 
 
 Parish. 
 
 Eeference No. 
 
 I am in receipt of your communication of the with respect to the 
 
 above provisional valuation, wherein you state that the property comprised 
 
 therein has been the subject of a within twenty years before April 30th, 
 
 1909, at a higher figure than that shown in the provisional valuation, and 
 that you wish to take advantage of the power given under the Act to 
 substitute for the original site value a site value based upon this amount for 
 the purpose of increment value duty. 
 
 I shall be glad, therefore, if you will arrange to attend at this office 
 
 by appointment to produce the deed of in question to enable your 
 
 claim to be considered. 
 
 I am. Sir, 
 
 Your obedient Servant, 
 
 Valuer. 
 To 
 
Forms 36, 36. — Provisional Valuation. 646 
 
 FORM 35.— DUTIES ON LAND VALUES. 
 
 CIRCULAR LETTER ENCLOSING PROVISIONAL 
 VALUATION. 
 
 For some remarks on and advice in respect to the 
 provisional valuation see the ''Notes on the Practical 
 Working of the Land Clauses," ante, p. xxxii. 
 
 For the provisional valuation and notes in respect 
 thereto see s. 27, p. 320. 
 
 FINANCE (1909-10) ACT, 1910. 
 DuTiBS ON Land Values. 
 
 To 
 
 BEFBRENCB : 
 
 To be quoted in all 
 
 communications. 
 
 of 
 
 Date , 1911. 
 
 Sir, 
 
 By direction of tlie Commissioners of Inland Revenue I herewith send 
 you a copy of their provisional valuation of the land mentioned therein, 
 which has been made under the provisions of the Finance (1909-10) Act, 
 1910. 
 
 If the land or any interest in the land has been sold or mortgaged at 
 any time within twenty years before April 30th, 1909, and the site value at 
 the date of the sale or mortgage estimated by reference to the amount of 
 the consideration or the amount secured by the mortgage exceeded the 
 original site value on April 30th, 1909, the site value so estimated may be 
 substituted for the original site value for the purposes of increment value 
 duty. If you desire to avail yourself of this provision, full particiolars of 
 the sale or mortgage should be furnished without delay. 
 
 If you consider that the total or site value, as stated in the provisional 
 valuation, is not correct, you may, with a view to an amendment of the 
 provisional valuation, within sixty days of the date on which the copy of 
 the provisional valuation is served, give to the undersigned notice of 
 objection, stating the grounds of your objection and the amendment you 
 desire. If the provisional valuation is amended so as to be satisfactory to 
 all persons making objections, the total and site value as stated in the 
 amended valuation will be adopted as the original total and the original 
 site value for the purposes of Part I. of the Act. 
 
 The Act provides that if the provisional valuation is not amended by the 
 Commissioners so as to be satisfactory to any objector, that objector may 
 give notice of appeal under the Act with respect to the valuation. 
 
 Section 33 enacts as follows : — 
 
 "An appeal shall not lie against a provisional valuation made by the 
 Commissioners of the total or site value of any land except on the part of a 
 
 N. 35 
 
546 
 
 Land Clauses of the Finance Act. 
 
 person who has made an objection to the provisional valuation in accordance 
 with this Act." 
 
 By order of the Commissioners of Inland Revenue, 
 
 Address. 
 
 FOKM 36.— LAND. 
 
 FINANCE (1909-10) Aot, 1910. 
 Duties on Land Values. 
 
 Provisional Valuation. 
 
 District Valuer. 
 
 The name of the parish 
 and number of the 
 hereditament should 
 be quoted in all com- 
 munications. 
 
 Description of property 
 
 House, 36, Blank Street, Preston. 
 
 Situation 
 
 County, Lancaster. Parish, Preston (South). 
 No. of hereditament. 
 
 Name of occupier 
 
 Thomas Wilson. 
 
 Extent 
 
 Acres 
 
 Eoods 
 
 Perches 
 
 Yards 
 
 The Commissioners of Inland Eevenue have caused to be made the 
 following provisional valuation of the land described above : — 
 
 Obiginal Gross Value . . 
 
 1,500. 
 
 Deductions from Gross Value. 
 
 (o) To arrive at Full Site 
 Value. 
 
 (5) To arrive at Total Value. 
 
 
 1,100 
 
 % 
 
 H 
 
 Fee farm rent, rent 
 seek, quit rent, 
 chief rent, or rent 
 of assize. 
 
 £ 
 
 Chief rent 
 of £5 = 
 £120. 
 
 Public rights of 
 way or user. 
 
 £ 
 
 Difference between 
 gross value and 
 value of the fee 
 simple of the land 
 
 Other perpetual rent 
 or annuity. 
 
 
 Bight of com- 
 mon. 
 
 
 Tithe or tithe rent- 
 charge. 
 
 
 Easements. 
 
 
 ings, trees, etc. 
 
 Burden or charge 
 arising by operation 
 of law, or imposed 
 by Act of Parlia- 
 ment. 
 
 
 Restrictions 
 under cove- 
 nant or agree- 
 ment. 
 
 £100. 
 Covenant 
 not to use 
 as shops. 
 
 
 If copyhold, cost of 
 enfranchisement. 
 
 
 Total deduc- 
 tions. 
 
 £220. 
 
 Original full 
 Bite value, £ 
 
 400 
 
 Original Total Value £ 
 
 1,280. 
 
Forms 35, 36. — Provisional Valuation. 
 
 Deductions from Total Value to arrive at Assessable Site Value. 
 
 647 
 
 Deductions from gross 
 value to arrive at full 
 site value (as above) 
 
 £ 
 1100 
 
 Enfranchisement of 
 copyholds 
 
 £ 
 
 Works executed 
 
 
 Eelease of restrictive 
 covenants 
 
 
 Capital expenditure 
 
 
 Goodwill or personal 
 elements 
 
 
 Appropriation of land for 
 streets, roads, open 
 spaces, &c. 
 
 
 Cost of clearing site 
 
 
 Eedemption of land tax 
 or fixed charge 
 
 5 
 
 Total deductions 
 
 1105 
 
 Original Assessable Site Value £ 
 
 175. 
 
 Value of agricultural land for agricultural purposes 
 where different from assessable site value £ 
 
 
 Given under my hand this day of 
 
 1911. 
 
 I Valuer appointed by the 
 
 ( Commissioners of Inland Eevenue. 
 
 District. 
 
 35—2 
 
548 
 
 Land Clauses of the Finance Act. 
 
 rOUE PEE CENT. TABLES. 
 
 See pp. 52 to ^^ ^ per cent. Tables for the purchasing of leases, estates, or annuities 
 61. (refeiTed to in r. 1 (4) of the Eules made by the Commissioners under s. 3, 
 
 flub-ss. (2) and (3), of the Finance (1909-10) Act, 1910). 
 
 Years. 
 
 Years' 
 Purchase. 
 
 Years. 
 
 Years' 
 Purchase. 
 
 Years. 
 
 Years' 
 Purchase. 
 
 1 
 
 •962 
 
 35 
 
 18-665 
 
 69 
 
 23-330 
 
 2 
 
 1-886 
 
 36 
 
 18-908 
 
 70 
 
 23-395 
 
 3 
 
 2-775 
 
 37 
 
 19-143 
 
 71 
 
 23-466 
 
 4 
 
 3-630 
 
 38 
 
 19-368 
 
 72 
 
 23-516 
 
 6 
 
 4-452 
 
 39 
 
 19-584 
 
 73 
 
 23-573 
 
 6 
 
 5-242 
 
 40 
 
 19-793 
 
 74 
 
 23-628 
 
 7 
 
 6-002 
 
 41 
 
 19-993 
 
 76 
 
 23-680 
 
 8 
 
 6-733 
 
 42 
 
 20-186 
 
 76 
 
 23-731 
 
 9 
 
 7-435 
 
 43 
 
 20-371 
 
 77 
 
 23-780 
 
 10 
 
 8-111 
 
 44 
 
 20-549 
 
 78 
 
 23-827 
 
 11 
 
 8-760 
 
 45 
 
 20-720 
 
 79 
 
 23-872 
 
 12 
 
 9-385 
 
 46 
 
 20-885 
 
 80 
 
 23-915 
 
 13 
 
 9-986 
 
 47 
 
 21-043 
 
 81 
 
 23-957 
 
 14 
 
 10-563 
 
 48 
 
 21-195 
 
 82 
 
 23-997 
 
 15 
 
 11-118 
 
 49 
 
 21-341 
 
 83 
 
 24-036 
 
 16 
 
 11-652 
 
 60 
 
 21-482 
 
 84 
 
 24 073 
 
 17 
 
 12-166 
 
 51 
 
 21-617 
 
 85 
 
 24-019 
 
 18 
 
 12-659 
 
 52 
 
 21-748 
 
 86 
 
 24-143 
 
 19 
 
 13-134 
 
 53 
 
 21-873 
 
 87 
 
 24-176 
 
 20 
 
 13-590 
 
 54 
 
 21-993 
 
 88 
 
 24-207 
 
 21 
 
 14-029 
 
 55 
 
 22109 
 
 89 
 
 24-238 
 
 22 
 
 14-451 
 
 56 
 
 22-220 
 
 90 
 
 24-267 
 
 23 
 
 14-857 
 
 57 
 
 22-327 
 
 91 
 
 24-295 
 
 24 
 
 16-247 
 
 58 
 
 22-430 
 
 92 
 
 24-323 
 
 25 
 
 15-622 
 
 59 
 
 22-528 
 
 93 
 
 24-349 
 
 26 
 
 15-983 
 
 60 
 
 22-623 
 
 94 
 
 24-374 
 
 27 
 
 16-330 
 
 61 
 
 22-715 
 
 95 
 
 24-398 
 
 28 
 
 16-663 
 
 62 
 
 22-803 
 
 96 
 
 24-421 
 
 29 
 
 16-984 
 
 63 
 
 22-887 
 
 97 
 
 24-443 
 
 30 
 
 17-292 
 
 64 
 
 22-969 
 
 98 
 
 24-465 
 
 31 
 
 17-588 
 
 66 
 
 23-047 
 
 99 
 
 24-485 
 
 32 
 
 ■ 17-874 
 
 66 
 
 23-122 
 
 100 
 
 24-50 
 
 33 
 
 18-148 
 
 67 
 
 23-194 
 
 
 
 34 
 
 18-411 
 
 68 
 
 23-264 
 
 
 
 N.B. — To ascertain the " proper proportion " multiply the annuity by the 
 number of years' purchase and treat it as the numerator of a fraction of 
 which twenty-five years' purchase of the same annuity is the denominator ; 
 or, and this is simpler, take the number of years' purchase of the unexpired 
 interest as the numerator, and twenty-five as the denominator. This 
 fraction of the increment value on the occasion will give the proportion of 
 the duty to be paid in respect of the interest. 
 
549 
 
 APPENDIX OF STATUTES/ 
 
 FINANCE (1909—10) ACT, 1910. 
 (10 Edward 7, o. 8.) 
 
 An Act to grant certain Duties of Customs and Inland Revenue A.D. 1910. 
 (including Excise), to alter other Duties, and to amend the Law 
 relating to Customs and Inland Revenue (including Excise), and to 
 make other financial provisions. [29th April, 1910.] 
 
 Most Gracious Sovereign, 
 
 We, Your Majesty's most dutiful and loyal subjects the Commons of 
 the United Kingdom of Great Britain and Ireland in Parliament 
 assembled, towards raising the necessary supplies to defray Your 
 Majesty's public expenses, and making an addition to the public 
 revenue, have freely and voluntarily resolved to give and grant unto 
 Your Majesty the several duties herein-after mentioned ; and do there- 
 fore most humbly beseech Your Majesty that it may be enacted, and be 
 it enacted by the King's most Excellent Majesty, by and with the 
 advice and consent of the Lords Spiritual and Temporal, and Commons, 
 in this present Parliament assembled, and by the authority of the same, 
 as follows : — 
 
 PART I. 
 
 Duties on Land Values. 
 
 Increment Value Duty. 
 
 1. Subject to the provisions of this Part of this Act, there shall be Duty on 
 charged, levied, and paid on the increment value of any land a duty 
 called increment value duty, at the rate of one pound for every complete 
 five pounds of that value accruing after the thirtieth day of April nine- 
 teen hundred and nine, and — 
 
 (a) on the occasion of any transfer on sale of the fee simple of the 
 land or of any interest in the land, in pursuance of any 
 contract made after the commencement of this Act, or the 
 grant, in pursuance of any contract made after the commence- 
 ment of this Act, of any lease (not being a lease for a term of 
 years not exceeding fourteen years) of the land ; and 
 
 * The pages indicated in the margin refer to the commentary on the 
 Act in the text. 
 
 increment 
 value. 
 
 P. 1. 
 
550 
 
 Land Clauses of the Finance Act. 
 
 57 & 58 Vict, 
 c. 30. 
 
 48 & 49 Vict, 
 c. 51. 
 
 Definition of 
 
 increment 
 
 value. 
 
 Pp. 25, 27. 
 
 P. 27. 
 
 57 k 58 Vict. 
 C.30. 
 
 (b) on the occasion of the death of any person dying after the 
 
 commencement of this Act, where the fee simple of the land or 
 any interest in the land is comprised in the property passing on 
 the death of the deceased within the meaning of sections one 
 and two, sub-section (1) (a), (b), and (c), and sub-section three, 
 of the Finance Act, 1894, as amended by any subsequent 
 enactment ; and 
 
 (c) where the fee simple of the land or any interest in the land is 
 
 held by any body corporate or by any body unincorporate 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, on such 
 periodical occasions as are provided in this Act, 
 
 the duty, or proportionate part of the duty, so far as it has not been 
 paid on any previous occasion, shall be collected in accordance with the 
 provisions of this Act. 
 
 2. — (1) For the purposes of this Part of this Act the increment value 
 of any land shall be deemed to be the amount (if any) by which the 
 site value of the land, on the occasion on which increment value duty is 
 to be collected as ascertained in accordance with this section, exceeds 
 the original site value of the land as ascertained in accordance with the 
 general provisions of this Part of this Act as to valuation. 
 
 (2) The site value of the land on the occasion on which increment 
 value duty is to be collected shall be taken to be — 
 
 (a) where the occasion is a transfer on sale of the fee simple of the 
 
 land, the value of the consideration for the transfer ; and 
 
 (b) where the occasion is the grant of any lease of the land, or the 
 
 transfer on sale of any interest in the land, the value of the fee 
 simple of the land, calculated on the basis of the value of the 
 consideration for the grant of the lease or the transfer of the 
 interest; and 
 
 (c) where the occasion is the death of any person, and the fee simple 
 
 of the land is property passing on that death, the principal 
 value of the land as ascertained for the purposes of Part I. of 
 the Finance Act, 1894, and where any interest in the land is 
 property passing on that death the value of the fee simple of 
 the land calculated on the basis of the principal value of the 
 interest as so ascertained ; and 
 {d) where the occasion is a periodical occasion on which the duty is 
 to be collected in respect of the fee simple of any land or of any 
 interest in any land held by a body corporate or unincorporate, 
 the total value of the land on that occasion to be estimated in 
 accordance with the general provisions of this Part of this Act 
 as to valuation ; 
 
 subject in each case to the like deductions as are made, under the 
 
Finance (1909—10) Act, 1910. 551 
 
 • general provisions of this Part of this Act as to valuation, for the 
 purpose of arriving at the site value of land from the total value. 
 
 (3) Where it is proved to the Commissioners on an application made P. 41. 
 for the purpose within the time fixed by this section that the site value 
 of any land at the time of any transfer on sale of the fee simple of the 
 laud or of any interest in the land, which took place at any time within 
 twenty years before the thirtieth day of April, nineteen hundred and 
 nine, exceeded the original site value of the land as ascertained 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 provisions 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 General pro- 
 on the increment value of any land, such an amount of duty shall be "^i^ions as to 
 deemed to be unsatisfied as the Commissioners determine, after giving increment 
 credit for the amount of duty paid on previous occasions. The Com- '^alue duty, 
 missioners 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 occasion of the P. 50. 
 transfer or passing on death of the fee simple of any 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 P. 51, 
 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 Commissioners 
 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. 
 
 (4) Where on the occasion of the death of any person the property p. 65. 
 
552 
 
 Land Clauses of the Finance Act. 
 
 Pp. 68, 239. 
 
 P. 70. 
 
 P. 72. 
 
 Collection 
 
 and recovery 
 
 of duty in 
 
 cases of 
 
 transfers and 
 
 leases. 
 
 Pp- 74, 487 to 
 
 499. 
 
 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 increment 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 collec- 
 tion of increment value duty, and the amount of duty to be collected 
 shall be remitted in whole or in part accordingly. 
 
 A.ny 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 collection 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 land or of 
 any interest in land, or on the grant of any lease of any land for a term 
 exceeding fourteen years, increment value duty shall be assessed by 
 the Commissioners 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 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 by means of which the transfer or the 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 
 
Finance (1909—10) Act, 1910. 668 
 
 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 conviction or order of a court of summary 
 •jurisdiction under this provision may appeal therefrom to a court of 
 quarter sessions. 
 
 (3) Any such instrument shall not, for the purposes of section P. 79. 
 fourteen of the Stamp Act, 1891, and notwithstanding anything in section 54 & 55 vict. 
 twelve of that Act, be deemed to be duly stamped unless it is stamped — c. 39. 
 
 (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, notwithstanding 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 P. 83. 
 be a debt due to the Crown from the transferor or lessor, as the case 
 
 may be, and for the purpose of calculating 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 pp. 35, 491 
 the mode in which any instrument is to be presented to them in order "^94. 
 
 to be dealt with under this section, and for dispensing with the pre- 
 sentation of any instrument, or particulars thereof, in cases where arrange- 
 ments 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 
 consideration is in the form of a periodical payment ; and the Commis- 
 sioners shall deal with any instrument presented to them and allow 
 payment by instalments in accordance with those regulations. The 
 regulations shall provide that where the 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 instalments so remitted. 
 
 (6) In any case where increment value duty shall have been paid pp_ gg 492. 
 
554 
 
 Land Clauses of the Finance Act. 
 
 Pp. 89, 494. 
 
 Collection 
 and recovery 
 of duty in 
 case of death. 
 57 & 58 Vict. 
 c. 30. 
 
 Pp. 90 to 121, 
 
 P. 121. 
 
 Collection 
 and recovery 
 of duty in 
 case of pro- 
 perty held 
 by bodies 
 corporate or 
 unincor- 
 porate. 
 48 & 49 Vict. 
 c. 51, 
 P. 122. 
 
 P. 124. 
 
 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 Avith 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 deceased's estate, and shall be 
 collected upon an account to be delivered by the personal representa- 
 tive, 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 unincorporate, 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. 
 
 (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 incre- 
 ment 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 
 
Finance (1909—10) Act, 1910. 556 
 
 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 incremeut value duty assessed by the Commissioners on an P. 128. 
 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 p. 129. 
 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 
 subsequent 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 agricul- Exemption 
 tural land while that land has no higher value than its market value at ^ "n"°d 
 the time for agricultural purposes only : Pd 130 439 
 
 Provided that any value of the land for sporting purposes, or for 463. 
 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 Exemption 
 value of any land, being the site of a dwelling-house, where immediately of small 
 before the occasion on which the duty is to be collected the house was, properties 
 and had been for twelve months previously, used by the owner in owner's 
 thereof as his residence, and the annual value of the house, as •^'^^^P^^ion. 
 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 P. 138. 
 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 
 
556 
 
 Land Clauses of the Finance Act. 
 
 p. 139. 
 
 p. 140. 
 
 Special pro- 
 vision for 
 increment 
 value duty 
 in the case 
 of land used 
 for games 
 and recrea- 
 tion. 
 
 P. 141. 
 
 Provision as 
 to Crown 
 lands, etc. 
 
 P. 144. 
 
 10 Geo. 4, 
 c. 50. 
 8 Edw. 7, 
 c. 48. 
 P. 146. 
 
 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 who 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 dwelliug-house. 
 
 (5) Any increment value duty which would, but for this section, be 
 charged shall, for the purpose of the provisions of this Act as to the 
 collection of the duty, be deemed to have been paid, 
 
 9. Increment value duty shall not be collected on any periodical 
 occasion in respect of the fee simple of, or any interest in, any land 
 which is held by any body corporate or unincorporate, without any view 
 to the payment of any dividend or profit out of the revenue thereof, 
 bona fide for the purpose of games or other reci'eation, if the Commis- 
 sioners 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 triist 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 provisions 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 enact- 
 ment exempting from stamp duty any document made or executed on 
 behalf of, or for the purpose of, the Cr or any Government 
 
Finance (1909—10) Act, 1910. 667 
 
 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, Special pro- 
 flats, or dwellings, the grant of a lease of any such separate tenement, ^^^^^8^^ ^^ ° 
 flat, or dwelling, and the transfer on sale or passing on death of any p j^^ 
 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 Provision as ' 
 purpose of ascertaining the site value of any land on any occasion on y*^ V?^^ 
 which increment value duty becomes payable if the deduction is one p , .g 
 which could have been, but was not, claimed for the purpose of ascer- 
 taining the original site value of the land. 
 
 Reversion Duty. 
 
 13. — (1) On the determination of any lease of land there shall be Reversion 
 charged, levied, and paid, subject to the provisions of this Part of this ^^^ 
 Act, on the value of the benefit accruing to 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 P. 156. 
 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 laud at the time 
 the lease determines, 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 purchased before Exemptions 
 the thirtieth day of April, nineteen hundred and nine, the lease on which ^™-" rever- 
 
658 Land Clauses of the Finance Act. 
 
 sion duty, the reversion is expectant determines within forty years of the date of 
 and allow- ^j^g purchase, no reversion duty shall be charged under this Part of this 
 p , g^ 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. 
 p. 166. (2) No reversion duty shall be charged on the determination 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 number of years. 
 p jg7^ [(3) Where a lease of any land is determined before the expiration of 
 
 Kepealed by the term of the lease by agreement between the lessor and the lessee, 
 1 Geo. 5, c. 2, 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 Com- 
 missioners shall 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 deter- 
 mined, 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.] 
 P. 170. (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 the 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. 
 P. 172. (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. 
 
 P. 174. 18.— (1) Reversion duty shall be recoverable from any lessor to whom 
 
 Recovery of *' 
 
Finance (1909—10) Act, 1910. 669 
 
 any benefit accrues from the determination of a lease as a debt due to reversion 
 His Majesty, but shall rank pari passu with all other debts due from ^^^y- 
 such lessor. 
 
 (2) Every lessor shall, on the determination of a lease on the deter- Pp- 176, 52 3. 
 mination of which reversion duty is payable under this section, deliver 
 
 an account to the Commissioners setting forth the particulars of the land 
 and the estimated value of the benefit accruing to the lessor by the 
 determination of the lease. 
 
 (3) If any person who is under an obligation to deliver an account P. 177. 
 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 under this section, and a like penalty for 
 every three months after the first month during which the failure 
 continues. 
 
 (4) Section seventeen of the Customs and Inland Revenue Act, 1885 48 & 49 Vict. 
 
 c 61, 
 (which relates to the power to assess duty according 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, there shall Duty on 
 be charged, levied, and paid for the financial year ending the thirty-first und^v^lo^ d 
 day of March, nineteen hundred and ten, and every subsequent financial land, 
 year, in respect of the site value of undeveloped land a duty, called P. 180. 
 undeveloped land duty, at the rate of one halfpenny for every twenty 
 shillings of that site value. 
 
 (2) For the purposes of this Part of this Act, land shall be deemed to P. 181. 
 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 green- 
 houses), or 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 expira- 
 tion 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 
 
 {S) Where the owner of any land included in any scheme of land 
 development shows that he or his predecessors in title have, 
 
560 
 
 Land Clauses of the Finance Act. 
 
 p. 191. 
 
 p. 193. 
 
 p. 194. 
 
 Exemptions 
 from unde- 
 veloped land 
 duty, and 
 allowances. 
 
 P. 194. 
 
 P. 196. 
 
 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 expendi- 
 ture, or if after the date of the expenditure the land having been 
 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 afore- 
 said the expenditure has been iu 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 undeveloped 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 
 
Finance (1909—10) Act, 1910. 561 
 
 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 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 deter- 
 mined 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 subsection 
 shall be final and not subject to any appeal. 
 
 (4) Undeveloped land duty shall not be charged on the site value of ^- 200. 
 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 Commissioners 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 
 Commissioners may determine. 
 
 N. 36 
 
662 
 
 Land Clauses of the Finance Act. 
 
 p. 201 
 
 p. 203. 
 
 Exemption 
 of small 
 holdings 
 from unde- 
 Teloped land 
 duty. 
 
 Recovery of 
 undeveloped 
 land duty. 
 
 P. 203. 
 
 (5) Where agricultural land is at the time of the passing of this 
 Act held under a tenancy originally created by a 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 agi'eement 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 provision to continue after the earliest 
 date after the commencement 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 Commissioners 
 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. 
 
 P. 209. 
 
 P. 217. 
 
 Mineral Rights Duty and Provisions as to Minerals. 
 
 20. — (1) There shall be charged, levied, and paid for the 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 working lessee in the last 
 working year in respect of that right ; and 
 
 (b) Where minerals are being worked by the proprietor thereof, the 
 
Finance (1909—10) Act, 1910. 
 
 563 
 
 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 proprietor 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 customary in the district if the expenditure had been 
 borne by the lessee. 
 
 (3) Every proprietor of any minerals and every person to whom any Pp. 223, 519. 
 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 Commissioners and P. 225. 
 shall be payable at any time after the first day of January in the year 
 
 for which the dut\ 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 working lessee. 
 As between the immediate lessor and the working lessee, the duty shall 
 be borne by the immediate lessor, 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 P. 226. 
 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 Deduction 
 rights duty, and is himself a lessee of the right to work the minerals or ^^ case of 
 of the wayleave in respect of which the duty is paid, shall be entitled intermediate 
 
 36—2 
 
564 
 
 Land Clauses of the Finance Act. 
 
 leases of 
 minerals. 
 
 P. 227. 
 
 P. 228. 
 
 P. 229. 
 
 P. 229. 
 
 P. 230. 
 
 Special pro- 
 visions as to 
 increment 
 value duty and 
 reversion duty 
 in the case 
 of minerals 
 worked or 
 leased. 
 
 P. 233, 
 
 P. 235. 
 
 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 woi'k 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 substi- 
 tution 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 determination 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 case of any 
 minerals which were, on the thirtieth day of April, 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 
 
Finance (1909—10) Act, 1910. 665 
 
 taken to be the sum (if any) by which, in each year during which the 
 lease continues 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 comprised 
 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 P. 240. 
 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, l\ 241. 
 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 P- 242. 
 value duty in pursuance of this pi'ovision 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. 
 
 (7) Where minerals cease to be comprised in a mining lease or to be P 244. 
 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 P- 244. 
 from mineral rights duty under this Act. 
 
 23.— (1) For the purposes of this Part of this Act, the total value of Application 
 minerals means the amount which the fee simple of the minerals, if ^s to total °^ 
 sold in the open market by a willing seller in their then condition, and site value 
 might be expected to realise, and the capital value of minerals, means ° "iinerals. 
 the total value, after allowing such deductions (if any) as the Commis- 
 sioners 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 
 
566 
 
 Land Clauses of the Finance Act. 
 
 p. 251. 
 
 p. 254. 
 
 P. 255. 
 
 Definitions 
 for purpose 
 of mineral 
 provisions. 
 
 P. 265, 
 
 44 & 45 Vict. 
 c. 41. 
 
 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 day 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 tinae 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. 
 
 (4) 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 
 
 24. For the purpose of the provisions of this Act as to minerals — 
 
 The expression "proprietor" means the person for the 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 yeai-s 
 to which section sixty-five of the Conveyancing and Law of 
 Property Act, 1881, 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 tlie 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, workiug, getting, making 
 merchantable, carrying away, or disposing of, mines and minerals, 
 
Finance (1909—10) Act, 1910. 567 
 
 or purposes connected 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 P. 267. 
 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 wayleaves the lessee who is 
 in actual enjoyment of the wayleave, 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 Commissioners; 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 wayleave" means any wayleave, airleave, 
 water-leave, or right to use a shaft granted to or enjoyed by a 
 working lessee, whether above or under ground, for the purpose of 
 access to or the conveyance of the minerals, or the ventilation or 
 drainage of his mine or otherwise in connection with the working 
 of the minerals. 
 
 Where any minerals are at any time being worked by means of 
 any colliery, mine, qiuxrry, or open working, all the minerals which 
 belong to the same proprietor, if the minerals are being worked by 
 the proprietor, or which the lessee has power to work if the minerals 
 are being worked by a lessee, and which would, in the ordinary 
 course of events, be worked by the same colliery, mine, quai'ry, or 
 open working, shall be deemed to be minerals which are being 
 worked at that date. 
 
 Minerals which are being won for the purpose of being 
 immediately worked shall be deemed to be minerals which are 
 being worked. 
 
 Minerals shall be deemed to be comprised in a mining lease if 
 the right to work the minerals is the subject of a mining lease, or 
 if the minerals are being worked under the terms of such a lease, 
 although the lease has expired. 
 
 Where the circumstances of a district are such that in the 
 opinion of the Commissioners it is impracticable to fix any sum 
 which satisfactorily represents a rent customary in the district, the 
 rent which would be paid under similar circumstances and ordinary 
 conditions elsewhere than in the district shall be substituted for 
 the rent customary in the district. 
 
568 Land Clauses of the Finance Act. 
 
 Valuation for Purposes of Duties on Land Values. 
 
 Definition 23. — (1) For the purposes of this Part of this Act, the gross value 
 
 of values ^f ]g^j-,(j nieaiis the amount which the fee simple of the land, if sold at 
 
 of land. , , , .,,. T, . . , ,. . 
 
 T^ ^r,^ „„_ the tmie ni the open market by a willing seller in its then condition, 
 Pp. 272, 295. , ^ , ;: T 1 , . . 
 
 free from incumbrances, and from any burden, charge, or restriction 
 
 (other than rates or taxes) might be expected to realise. 
 
 Pp. 283, 295, (2) The full site value of land means the amount which remains after 
 deducting from the gross value of the land the difference (if any) 
 between that value and the value which the fee simple of the land, if 
 sold at the time in the open market by a willing seller, might be 
 expected to realise if the laud were divested of any buildings and of 
 any other structures (including fixed or attached machinery) on, in, or 
 under the surface, which are appurtenant to or used in connection with 
 any such buildings, and of all growing timber, fl^lit trees, fruit bushes, 
 and other things growing thereon. 
 
 Pp. 287, 295. (3) The total value of land means the gross value after deducting the 
 amount by which the gross value would be diminished if the land were 
 sold subject to any fixed charges and to any public rights of way or any 
 public rights of user, and to any right of common and to any easements 
 aftecting the land, and to any covenant or agreement restricting the 
 use of the land entered into or made before the thirtieth day of April, 
 nineteen hundred and nine, and to any covenant or agreement restricting 
 the use of the land entered into or made on or after that date, if, in the 
 opinion of the Commissioners, the restraint imposed by the covenant or 
 agreement so entered into or made on or after that date was when 
 imposed desirable in the interests of the public, or in view of the 
 character and surroundings of the neighbourhood, and the opinion of 
 the Commissioners shall in this case be subject to an appeal to the 
 referee, whose decision shall be final. 
 
 Pp. 294, 295. (4) The assessable site value of land means the total value after 
 deducting — 
 
 (a) The same amount as is to be deducted for the purpose of arriving 
 
 at full site value from gross value ; and 
 
 (b) Any part of the total value which is proved to the Commissioners 
 
 to be directly attributable to works executed, or expenditure of 
 a capital nature (including any expenses of advertisement) 
 incurred bona fide by or on behalf of or solely in the interests of 
 any person interested in the land for the purpose of improving 
 the value of the land as building land, or for the purpose of 
 any business, trade, or industry other than agriculture ; and 
 
 (c) Any part of the total value which is proved to the Commissioners 
 
 to be directly attributable to the appropriation of any land or 
 to the gift of any land by any person interested in the land for 
 the purpose of streets, roads, paths, squares, gardens, or other 
 open spaces for the use of the public ; and 
 
Finance (1909—10) Act, 1910. 569 
 
 (d) Any part of the total value which is proved to the Commissioners 
 
 to be directly attributable to the expenditure of money on the 
 redemption of any land tax, or any fixed charge, or on the 
 enfranchisement of copyhold land or customary freeholds, or 
 on effecting the release of any covenant or agreement restricting 
 the use of laud which may be taken into account in ascertaining 
 the total value of the land, or to goodwill or any other matter 
 which is personal to the owner, occupier, or other person 
 interested for the time being in the land ; and 
 
 (e) Any sums which, in the opinion of the Commissioners, it would be 
 
 necessary to expend in order to divest the land of buildings, 
 
 timber, trees, or other things of which it is to be taken to be 
 
 divested for the purpose of arriving at the full site value from 
 
 the gross value of the land, and of which it would be necessary 
 
 to divest the land for the purpose of realising the full site 
 
 value. 
 
 Where any works executed or expenditure incurred for the purpose of 
 
 improving the value of the land for agriculture have actually improved 
 
 the value of the land as building land, or for the purpose of any 
 
 business, trade, or industry other than agriculture, the works or 
 
 expenditure shall, for the purpose of this provision, be treated as having 
 
 been executed or incurred also for the latter purposes. 
 
 Any reference in this Act to site value (other than the reference to 
 the site value of land on an occasion on which increment duty is to be 
 collected) shall be deemed to be a reference to the assessable site value 
 of the land as ascertained in accordance with this section, 
 
 (5) The provisions of this section are not applicable for the purpose P. 304. 
 of the valuation of minerals. 
 
 26. — (1) The Commissioners shall, as soon as maybe after the passing Valuation 
 of this Act, cause a valuation to be made of all land in the United of land for 
 Kingdom, showing separately the total value and the site value respec- j^^f.^ 
 tively of the land, and in the case of agricultural land the value of p. 309. 
 the land for agricultural purposes where that value is different from 
 the site value. Each piece of land which is under separate occupation, 
 and, if the owner so requires, any part of any land which is under 
 separate occupation, shall be separately valued, and the value shall 
 be estimated as on the thirtieth day of April, nineteen hundred and 
 nine. 
 
 (2) Any owner of land and any person receiving rent in respect of any p 3^^ ^qq 
 land shall, on being required by notice from the Commissioners, furnish 510, 513, 522. 
 to the Commissioners a return containing such particulars as the Com- 
 missioners may require as to the rent received by him, and as to the 
 ownership, tenure, area, character, and use of the land, and the con- 
 sideration given on any previous sale or lease of the land, and any other 
 matters which may properly be required for the purpose of the valua- 
 tion of the land, and which it is in his power to give, and, if any owner 
 
670 Land Clauses of the Finance Act. 
 
 of land or person receiving any rent in respect of the land is required 
 by the Commissioners to make a return under this section, and fails to 
 make such a return within the time, not being less than thirty days, 
 specified in the notice requiring a return, he shall be liable to a penalty 
 not exceeding fifty pounds to be recoverable in the High Court. 
 
 P. 319. (3) Any owner of land may, if he thinks fit, furnish to the Commis- 
 
 sioners his estimate of the total value or site value or both of the land, 
 and the Commissioners, in making their valuation, shall consider any 
 estimate so furnished. 
 
 Ascertain- 27. — (1) The Commissioners shall cause a copy of their provisional 
 
 ment of the valuation of any land to be served on the owner of the land, and, unless 
 original site , • ■• . , , . . , , . . -i i i 
 
 value of land, objection is taken to the provisional valuation in manner provided by 
 
 Pp. 320, 545. this section, the values shown in the provisional valuation shall be 
 adopted as the original total value and the original site value respectively 
 for the purposes of this Part of this Act. 
 
 P. 322. (2) If the owner considers that the total or site value, as stated in 
 
 any provisional valuation, is not correct, he may, with a view to an 
 amendment of the provisional valuation, within sixty days of the date 
 on which the copy of the provisional valuation is served, or such 
 extended time as the Commissioners may in any special case allow, give 
 to the Commissioners notice of objection to the provisional valuation, 
 stating the grounds of his objection and the amendment he desires, and, 
 if the Commissioners amend the provisional valuation so as to be 
 satisfactory to all persons making objectiona, the total and site value as 
 stated in the amended valuation shall be adopted as the original total 
 and the original site value for the purposes of this Part of this Act. 
 
 p. 324. (3) The Commissioners may amend any provisional valuation, 
 
 whether objected to or not, before it is finally settled, and the amended 
 provisional valuation shall be deemed to be a provisional valuation for 
 the purposes of this section. 
 
 P. 325. (4) If the provisional valuation is not amended by the Commissioners 
 
 so as to be satisfactory to any objector, that objector may give a notice 
 of appeal under this Act with respect to the valuation, but, if no such 
 notice is given, the total and site value as stated in the provisional 
 valuation, subject to such amendments as may be made by the Com- 
 missioners in order to meet objections, shall be adopted as the original 
 total and the original site value respectively for the purposes of this 
 Part of this Act. 
 
 P. 326. (5) Any person interested in the land, not being an owner, may 
 
 apply to the Commissioners for a copy of the provisional valuation of 
 the land before it is finally settled, and shall then have the same right 
 of giving notice of objection and of appealing as the owner, 
 
 P. 329. (6) Where the value to be adopted as the original total or the 
 
 original site value of any land for the purposes of this Part of this Act 
 has not been finally settled at the time when any duty under this Part 
 of this Act becomes leviable, any duty under this Part of this Act shall 
 
Finance (1909—10) Act, 1910. 571 
 
 be assessed as if the values as shown in the provisional valuation, or, if 
 the provisional valuation has been amended by the Commissioners, as 
 shown in the valuation as so amended, were the values adopted as the 
 original total and site values for the purposes of this Part of this Act, 
 and, on the values to be adopted being finally settled, if it is found that 
 the amount which should have been paid as duty exceeds that actually 
 paid, the excess shall be deemed to be arrears of the duty, except so far 
 as any penalty is incurred on account of arrears, and, if it is found that 
 the amount which should have been paid as duty is less than that 
 actually paid, the difference shall be repaid by the Commissioners. 
 
 (7) Where a lessee is the owner of the land within the meaning of P. 330. 
 this Act, this section shall apply as if any person entitled to the fee 
 simple reversion or to a leasehold reversion for a term of years exceed- 
 ing twenty-one were the owner as well as the lessee. 
 
 28. For the purpose of obtaining a periodical valuation of undeveloped Periodical 
 land the Commissioners shall, in the year nineteen hundred and four- ^^ We^ooed 
 teen and in every subsequent fifth year, cause a valuation to be made of land, 
 undeveloped land showing the site value of the land as on the thirtieth P. 333. 
 day of April in that year, and, for the purpose of ascertaining the value 
 at that time, the provisions of this Act as to the ascertainment of value 
 shall apply for the purpose of ascertaining value on any such periodical 
 valuation as they apply for the purpose of ascertaining the original value : 
 
 Provided that if on any such periodical valuation the valuation of 
 any undeveloped land which is liable to undeveloped land duty is for 
 any reason begun but not completed in the year of valuation, the 
 Commissioners may complete the valuation after the expiration of the 
 year of valuation, subject to an appeal under this Act. 
 
 29. — (1) Any duty under this Part of this Act may be assessed on or P. 335. 
 
 in respect of any such pieces of land whether under separate occupation Assessment 
 . , , ^ . . a 1 ■ 1 ^ of dutj' on 
 
 or not, as the Commissioners think fit. separate par- 
 
 (2) The Commissioners shall make such apportionments and re-appor- eels of land 
 tionments of any original site value or any site value fixed on a tkmment^of 
 periodical valuation as they consider necessary for the purpose of the valuation, 
 collection or assessment of increment value duty or undeveloped land P. 338. 
 duty, or which they may be required at any time to make on the 
 application of any person entitled to the fee sim^jle of any land or to an 
 
 interest in any land. 
 
 On any such apportionment or re-apportionment for the purpose of 
 the collection of increment value duty on the occasion of the transfer on 
 sale of the fee simple of the land or any interest in the land, or on the 
 occasion of the grant of any lease of the land, the consideration for the 
 transfer, or for the grant of the lease, shall be treated as one of the 
 matters to which regard must be had in making the apportionment or 
 re-apportionment. 
 
 (3) The provisions relating to the procedure on the valuation of land P. 3i2. 
 for the purposes of this Part of this Act shall apply with respect to the 
 
572 
 
 Land Clauses of the Finance Act. 
 
 p. 343. 
 
 p. 344. 
 
 Duties of 
 Commis- 
 sioners as 
 to keeping 
 records and 
 giving in- 
 formation. 
 
 P. 345. 
 
 Information 
 as to names 
 of owners 
 of land. 
 
 Pp. 346, 512, 
 535, 540. 
 
 P. 348. 
 
 P. 348. 
 
 P. 348, 
 
 apportionment or re-apportionment of site value under this section as 
 they apply with reference to the ascertainment of the original site value 
 of land. 
 
 (4) The value attributed on any such apportionment or re-apportion- 
 ment to each part of the land shall, for the purposes of this Part of this 
 Act, be treated as the original site value or the site value of the land, as 
 the case may be. 
 
 30. — (1) The Commissioners shall record particulars of all valuations, 
 apportionments, re-apportionments, and assessments made by them 
 under this Part of this Act, and of any deductions allowed in determin- 
 ing any value, and of the amount of any duty paid under this Part of 
 this Act in respect of any land. 
 
 (2) The Commissioners shall furnish to any person interested in any 
 land, or to any person authorised by any person so interested, on his 
 application and on payment of such fee, not exceeding two shillings and 
 sixpence, as the Commissioners may fix with the approval of the 
 Treasury, copies of any particulars so recorded by them relating to the 
 land, certified, if required, by a Secretary or Assistant Secretary to the 
 Commissioners, 
 
 31. — (1) Every person who pays rent in respect of any land, and 
 every person who as agent for another person receives any rent in 
 respect of any land, shall, on being required by the Commissioners, 
 furnish to them within thirty days the name and address of the person 
 to whom he pays rent or on behalf of whom he receives rent, as the 
 case may be. 
 
 (2) For the purpose of the exercise of their powers or the perform- 
 ance of their duties under this Part of this Act in reference to the 
 valuation of land, the Commissioners may give any general or special 
 authority to any person to inspect any land and report to them the 
 value thereof, and the person having the custody or possession of that 
 land shall permit the person so authorised, on production of the 
 authority of the Commissioners in that behalf, to inspect it at such 
 reasonable times as the Commissioners consider necessary. 
 
 (3) If any person wilfully fails to comply with the provisions of this 
 section, he shall be liable to a penalty not exceeding fifty pounds to be 
 recoverable in the High Court. 
 
 (4) Any notice requiring a return for the purpose of valuation, any 
 copy of a provisional valuation, and any other notice or document which 
 is required to be given or sent to an owner or a person interested in 
 land under this Part of this Act by the Commissioners shall be sufficiently 
 given or sent if sent by post to the address of the owner or person 
 interested furnished to the Commissioners under the powers given by 
 this section, or, if the address cannot be so ascertained, by leaving the 
 notice or a copy of the document addressed to the owner or person 
 interested with some occupier of the laud, or, if there is no occupier, by 
 causing it to be put up in some conspicuous place on the land. 
 
Finance (1909—10) Act, 1910. 573 
 
 32. — (1) Where the value of any consideration for a transfer or lease Determina- 
 is to be determined for the purposes of this Part of this Act, that value of^considera- 
 shall, so far as tlie consideration consists of the payment of a capital tion. 
 sum, be taken to be the amount of that capital sum, and, so far as the P. 350. 
 consideration consists of a periodical money payment, be taken to be 
 such sum as appears to the Commissioners to be the capital value of 
 that payment, 
 
 (2) If the Commissioners are satisfied that any covenant or P. 353. 
 undertaking or liability to discharge any incumbrance, or, in cases 
 where a nominal rent only has been reserved, any covenant or under- 
 taking to erect buildings, or to expend any sums upon the property, 
 
 has formed part of the consideration, the Commissioners shall allow 
 such sum as they think just in respect thereof as an addition to the 
 value of the consideration. 
 
 (3) Where it is necessary to apportion any consideration for the P. 367. 
 purposes of this Part of this Act as between properties included in 
 
 any transfer or lease, the consideration shall be apportioned by the 
 Commissioners in such manner as they determine. 
 
 Appeals. 
 
 33. — (1) Except as expressly provided in this Part of this Act, any Appeals to 
 person aggrieved may appeal within such time and in such manner as 
 may be provided by rules made under this section against the first or 
 any subsequent determination by the Commissioners of the total value 
 or site value of any land ; or against the amount of any assessment of 
 duty under this Pai't of this Act ; or against a refusal of the Com- 
 missioners to make any allowance or to make the allowance claimed, 
 where the Commissioners have power to make such an allowance under 
 this Part of the Act ; or against any apportionment of the value of 
 land or of duty or any assessment or apportionment of the considera- 
 tion on any transfer or lease made by the Commissioners vinder this 
 Part of this Act ; or against the determination of any other matter 
 which the Commissioners are to determine or may determine under this 
 Part of this Act : 
 
 Provided that — 
 
 (a) an appeal shall not lie against a provisional valuation made by 
 
 the Commissioners of the total or site value of any land except 
 on the part of a person who has made an objection to the 
 provisional valuation in accordance with this Act ; and 
 
 (b) the original total value and the original site value and the site 
 
 value as ascertained under any subsequent valuation shall be 
 questioned only by means of an appeal against the determina- 
 tion by the Commissioners of that value where there is an 
 appeal under this Act, and shall not be questioned in any case 
 on an appeal against an assessment of duty. 
 
 P. 358. 
 
574 Land Clauses of the Finance Act. 
 
 p. 365. (2) An appeal under this section shall be referred to such one of the 
 
 panel of referees appointed under this Part of this Act, as may be 
 selected in manner provided by rules under this section, and the decision 
 of the referee to whom the matter is so referred shall be given in the 
 form provided by rules under this section and shall, subject to appeal 
 to the Court under this section, be final. 
 
 P. 366. (3) The referee shall determine any matter referred to him in 
 
 consultation with the Commissioners and the appellant, or any persons 
 nominated by the Commissioners and the appellant respectively for this 
 purpose, and may, if he thinks fit, order that any expenses incurred by 
 the appellant be paid by the Commissioners, and that any such expenses 
 incurred by the Commissioners be paid by the appellant. 
 
 Any order of the referee as to expenses may be made a rule of the 
 High Court. 
 
 P, 367. (4) Any person aggrieved by the decision of the referee may appeal 
 
 against the decision to the High Court within the time and in the 
 manner and on the conditions directed by Rules of Court (including 
 conditions enabling the Court to require the payment of or the giving 
 of security for any duty claimed) ; and subsections two, three, and 
 
 57 & 58 Vict, four of section ten of the Finance Act, 1894, shall apply with reference 
 
 c- 30. ^;o any such appeal : 
 
 Pp. 367, 622. Provided that where the total or site value as alleged by the 
 Commissioners of the property in respect of which the dispute arises 
 does not exceed five hundred pounds, the appeal under this section may 
 be to the county court for the county or place in which the appellant 
 resides or the property is situate, and this section shall for the purpose 
 of the appeal apply as if such county court were the High Court, and 
 in every such case any party shall have a right of appeal to the Court 
 of Appeal. 
 
 P. 370. (5) Provision shall be made by rules under this section with respect 
 
 to the time within which and the manner in which an appeal may be 
 made to a referee under this section, and with respect to the mode in 
 which the referee to whom any reference is to be made is to be selected, 
 and with respect to the form in which any decision of a referee 
 is to be given, and with respect to any other matter for which it 
 appears necessary or expedient to provide in order to carry this section 
 into effect. 
 
 Those rules shall be made by the Reference Committee, subject to 
 the approval of the Treasury. 
 
 The Reference Committee for England shall consist of the Lord Chief 
 Justice of England, the Master of the Rolls, and the President of the 
 Surveyors' Institution. 
 
 The Reference Committee for Scotland shall consist of the Lord 
 President of the Court of Session, the Lord Justice Clerk, and the 
 Chairman of the Scottish Committee of the Surveyors' Institution. 
 The Reference Committee for Ireland shall consist of the Lord Chief 
 
Finance (1909—10) Act, 1910. 575 
 
 Justice of Ireland, the Master of the Rolls in Ireland, and the President 
 of the Surveyors' Institution. 
 
 The President of the Surveyors' Institution may, if he thinks fit, 
 appoint any person, being a member of the council of that institution 
 and having special knowledge of valuation in Ireland, to act in his 
 place as a member of the Reference Committee in Ireland. 
 
 34. — (1) Such number of persons, being persons who have been Appointment 
 
 admitted Fellows of the Surveyors' Institution, or other persons having ?^ referees to 
 1 1 . 11 1 • f P 1-1 1 1 hear appeals, 
 
 experience m the valuation of laud as may be appomted for Ji^ngland, „ „ . 
 
 Scotland, and Ireland, respectively, by the Reference Committee, shall 
 
 form a panel of persons to act as referees for the purposes of this Part 
 
 of this Act in England, Scotland, and Ireland, respectively, and persons 
 
 having experience in the valuation of minerals shall be included in 
 
 each panel. 
 
 (2) There shall be paid out of moneys provided by Parliament to P. 371. 
 
 every referee appointed under this section such fees or remuneration as 
 
 the Treasury direct. 
 
 Supplemental. 
 
 35. — (1) No duty under this Part of this Act shall be cliarged in Exemption 
 respect of any land or interest in land held by or on behalf of a rating ^^ ^^". "^'" 
 authority, or any statutory combination representative of two or more authorities, 
 local rating authorities, and any increment value duty in respect of any ?. 386. 
 such land which would have been collected from the authority (whether 
 on the occasion of the transfer on sale of the land, or any interest in 
 the land, or the grant of a lease of the land, or on the periodical 
 occasions provided in this Act) shall, for the purposes of the provisions 
 of this Act as to the collection of increment value duty, be deemed to 
 have been paid. 
 
 (2) For the purposes of this section the expression " rating P. 388. 
 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 Act any P. 389. 
 
 capital sum or any instalment of a capital sum has been paid to any Deduction 
 
 rating authority in respect of the increased or enhanced value of any "o^i^iicre- 
 
 land due to any improvements made or other action taken by the of sum paid 
 
 authority, the amount of that capital sum or instalment shall be *° rating 
 
 deducted from any increment value of the land for the purposes of the respect of 
 
 collection of increment value duty and from the site valiie of the land increase in 
 
 value. 
 
576 
 
 Land Clauses of the Finance Act. 
 
 Special pro- 
 vision for 
 land held for 
 charitable 
 purposes, etc. 
 
 P. 391. 
 
 P. 401. 
 
 8 Edw. 7, 
 c. 69. 
 
 59 & 60 Vict. 
 C.25. 
 
 Special pro- 
 vision for 
 statutory 
 companies. 
 
 Pp. 405, b26. 
 
 P. 408. 
 
 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 under this 
 Part of this Act shall be charged in respect of land or any interest in 
 land held by or on behalf of any governing body constituted for 
 charitable purposes while 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 pi-operty 
 appropriated 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 univei-sities, colleges, schools, 
 and other institutions for the promotion of literature, science, or art. 
 
 (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 (Consolidation) 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 betAveen 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 bo 
 appropriated 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. 
 
 Tliis 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^ Th© Commissioners shall not require a statutory company to' 
 
Finance (1909—10) Act, 1910. 677 
 
 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 P- *09, 
 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 conveyance 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 com- P. 410. 
 pany " 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 carry on any railway, 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. Power to 
 in respect of which increment value duty or reversion duty is charged, charge dutj 
 is settled land within the meaning of the Settled Land Act, 1882, or is certain cases, 
 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 fthese 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 P. 425. 
 this section shall not take effect until notice thereof has been given to 
 
 the trastees 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, P. 425. 
 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 P. 426. 
 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, whex-e any person, having a limited interest in the P. 427. 
 
 N. 37 
 
578 
 
 Land Clauses of the Finance Act. 
 
 Application 
 of Part I. to 
 copjholds. 
 
 P. 428. 
 
 Definitions. 
 P. 434. 
 
 P. 440. 
 
 U & 45 Vict. 
 0.41. 
 
 P. 442. 
 P. 443. 
 
 P. 444. 
 
 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. 
 
 iO. The following provisions shall have effect with respect to the 
 application of this Part of this Act to copyholds, including customary 
 freeholds : — 
 
 (1) In the case of copyholds of inheritance, and copyholds held for a 
 
 life or lives or for years where the tenant has a right of 
 renewal, and customary freeholds — 
 
 (a) The total and site values of the land shall be ascer- 
 tained 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 ; 
 
 (b) 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. 
 
 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 rentcharge, or other 
 periodical payment or rendering in lieu of or in the nature of tithe, 
 or any fee farm rent, rent seek, quit rent, chief rent, rent of assize, 
 or any other perpetual rent or annuity granted out of land ; 
 
 The expression "rent" has the same meaning as in the Conveyancing 
 and Law of Property Act, 1881, and does not include a rent- 
 charge ; 
 
 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 
 
Finance (1909—10) Act, 1910. 679 
 
 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 P. 446. 
 share in a fee simple in possession and includes a reversion expectant 
 on the determination of a lease, but does not include any other 
 interest in expectancy or an incumbrance as defined 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 exceeding 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 p. 45I. 
 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 p. 456. 
 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 P. 457. 
 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 p. 453. 
 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 sixch 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 P. 461. 
 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 P. 461. 
 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 
 
 37—2 
 
680 Land Clauses of the Finance Act. 
 
 only of conveying any estate vested in them as trustees or incum- 
 brancers, or of acknowledging the receipt of the consideration 
 money, or of giving consent, and sections fifty-nine, sixty, and sixty- 
 45 & 46 Vict. 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 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 ; 
 P. 463. 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 52. In the application of this Part of this Act to Scotland, unless the 
 
 of Part I. to context otherwise requires, — 
 
 Scotland. 
 
 p ^yj (1) The expression " land" does not include teinds, titles or offices of 
 
 honour, or any servitude, superiority, 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 land- 
 lord's right of reversion to the subjects let on the determination 
 of the lease, but does not include teinds, servitudes, superiorities, 
 any interest in expectancy, whether vested or not, heritable 
 securities, 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 ; 
 
 " Servitudes " shall be substituted for " easements " and shall be 
 deemed to include public rights ; 
 
 " Local Government Board for Scotland " shall be siibstituted for 
 "Local Government Board." 
 
Finance (1909—10) Act, 1910. 581 
 
 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 
 of referees, the Judges of the Court of Session named for the 
 purpose of hearing appeals under the Valuation of Lands (Scot- 
 land) Acts shall be substituted for the High Court, subject to 
 such regulations as may be prescribed by Act of Sederunt, and 
 the appeal from suchjudges sliill be to the House of Lords, 
 and in subsections (2), (3), and (4) of section ten of the Finance 57 & 58 Vict. 
 Act, 1894, as applied with reference to any such appeal the said °" ^"' 
 judges 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 case shall be final. 
 
 (2) Any order of a referee as to expenses shall be enforceable as a P. 472. 
 
 recorded decree arbitral. 
 
 (3) Subsection (2) of section two of this Act shall be construed as if p. 472. 
 
 after paragraph (d) thereof the following 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 consideration 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 contract 
 
 or feu charter or a contract of ground aimual, 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 pei-son 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, administrators, and assigns 
 
 of a lessor and lessee respectively. 
 
 (4) Where arrangements are made under section four of this Act for P. 473. 
 
 dispensing with the presentation of any instrument or particu- 
 lars 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. 
 
582 
 
 Land Clauses of the Finance Act. 
 
 PART III. 
 Death Duties. 
 
 P. 474. 
 
 Limitation of 
 relief from 
 estate duty in 
 respect of 
 settled 
 property. 
 
 P. 474. 
 Power to 
 transfer land 
 in satisfaction 
 of estate duty, 
 settlement 
 estate duty, 
 or succession 
 
 duty. 
 
 Provision as 
 to gifts and 
 dispositions 
 inter vivos. 
 
 P. 475. 
 
 44 k 4.5 Vict, 
 c. 12. 
 
 52 & .53 Vict. 
 0. 7. 
 
 63 & 64 Vict. 
 C.7. 
 
 P. 476. 
 
 55. For the purpose of any claim to relief from estate duty under 
 subsection (2) of section five or sub-section (1) of section twenty-one of 
 the principal Act, in case of persons dying on or after the thirtieth day 
 of April, 1909, payment of or liability to duty, whether the payment 
 was made or the liability attached before, on, or after that date, shall 
 not be deemed to be a payment of or liability to duty in respect of 
 settled property if the payment was made or the liability attached in 
 respect of an interest in expectancy in any property on the death of a 
 person other than the settlor. 
 
 56. — (1) The Commissioners may, if they think fit, on the applica- 
 tion of any person liable to pay estate duty or settlement estate duty or 
 succession duty in respect of any real (including leasehold) property, 
 accept in satisfaction of the whole or any part of such duty such part of 
 the property as may be agreed upon between the Commissioners and 
 that person. 
 
 (2) No stamp duty shall be payable on any conveyance or transfer of 
 land to the Commissioners under this section. 
 
 "(3) The Commissioners may hold any property transferred to them 
 under this section and shall deal with it in such manner as Parliament 
 may hereafter determine. 
 
 59. — (1) In the case of a person dying on or after the thirtieth day 
 of April, nineteen hundred and nine, the period preceding the death of 
 the deceased before which a disposition purporting to operate as an 
 immediate gift inter vivos must have been made, or a surrender, 
 assurance, divesting, or disposition must have been made or effected, in 
 order that the property taken under the disposition, or affected by the 
 surrender, assurance, divesting, or disposition, may not be included as 
 property passing on the death of the deceased, shall be three years 
 instead of twelve months before the death, and accordingly para- 
 graph (a) of subsection (2) of section thirty-eight of the Customs and 
 Inland Revenue Act, 1881 (as amended by section eleven of the 
 Customs and Inland Revenue Act, 1889, and applied by paragraph (c) 
 of subsection (1) of section two of the principal Act), subsection (3) of 
 section two of the principal Act, and section eleven of the Finance 
 Act, 1900, shall be read as if three years were substituted for twelve 
 months : 
 
 Provided that this section shall not apply to any gift inter vivos, 
 surrender, assurance, divesting, or disposition made or effected before 
 the thirtieth day of April, nineteen hundred and eight, or made or 
 effected for public or charitable purposes. 
 
 (2) So much of paragraph (c) of subsection (1) of section two of the 
 principal Act and this section as makes gifts inter vivos property which 
 
Finance (1909—10) Act, 1910. 583 
 
 is deemed to pass on the death of the deceased, shall not apply to gifts 
 which are made in consideration of marriage, or which are proved to 
 the satisfaction of the Commissioners to have been part of the normal 
 expenditure of the deceased, and to have been reasonable, having 
 regard to the amount of his income, or to the circumstances, or which, 
 in the case of any donee, do not exceed in the aggregate one hundred 
 pounds in value or amount. 
 
 (3) Where property taken under such a disposition or affected by P. 477. 
 such a surrender, assurance, divesting, or disposition as aforesaid is 
 deemed to be property passing on the death of the deceased by reason 
 only that the property was not, as from the date of the disposition, 
 surrender, assurance, or divesting, retained to the entire exclusion of 
 the deceased or a person who had an estate or interest limited to cease 
 on the death of the deceased, and of any benefit to him by contract or 
 otherwise, the property shall not be deemed to pass on the death of the 
 deceased if subsequently, by means of the surrender of the benefit 
 reserved or otherwise, it is enjoyed to the entire exclusion of the 
 deceased or such other person as aforesaid, and of any benefit to him 
 by contract or otherwise, for such period preceding the death of the 
 deceased as is provided by this section. 
 
 60. — (1) In the case of any person dying on or after the thirtieth Amendment 
 day of April, nineteen hundred and nine, the proviso to subsection (5) ^^ ^'^ value 
 of section seven of the principal Act (which relates to the estimation of p - -g 
 the principal value of property for the purposes of estate duty) shall 
 cease to have effect. 
 
 (2) In estimating the principal value of any property under sub- P. 478. 
 section (5) of section seven of the principal Act, in the case of any 
 person dying on or after the thirtieth day of April nineteen hundred 
 
 and nine, the Commissioners shall fix the price of the property according 
 to the market price at the time of the death of the deceased, and shall 
 not make any reduction in the estimate on account of the estimate 
 being made on the assumption that the whole property is to be placed 
 on the market at one and the same time : 
 
 Provided that where it is proved to the Commissioners that the value 
 of the property has been depreciated by reason of the death of the 
 deceased, the Commissioners in fixing the price shall take such deprecia- 
 tion into account. 
 
 (3) An appeal shall not lie under section ten of the principal Act, p. 479. 
 whether as originally enacted or as applied by any other enactment, 
 where the question in dispute is a question of the value of any real 
 (including leasehold) property, but, if any person is aggrieved by the 
 decision of the Commissioners as to the value of any such property, he 
 
 may appeal against the decision in manner prescribed by Part I. of this 
 Act, and the provisions as to appeals under that Part of this Act shall 
 apply accordingly. 
 
584 
 
 Land Clauses of the Finance Act. 
 
 Special pro- 
 visions with 
 respect to 
 certain 
 classes of 
 property. 
 
 P. 480. 
 
 Deduction of 
 amount paid 
 for increment 
 value duty 
 from value 
 of estate for 
 purposes of 
 estate duty. 
 
 P. 480. 
 
 61. — (1) Notwithstanding anything in the last preceding section, the 
 proviso to subsection (5) of section seven of the principal Act shall 
 continue to apply to the valuation of property consisting of a tenancy 
 from year to year, including any tenancy which is, or is deemed to be, 
 subject to statutory conditions under the Land Law (Ireland) Acts, and 
 for determining the gross value or the net value of property for the 
 purpose of section sixteen of the principal Act. 
 
 62. Where increment value duty is to be collected on the occasion of 
 the death of 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 purposes 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. 
 
 P. 480. 
 
 Payment of 
 half the pro- 
 ceeds of the 
 duties on 
 land values 
 for benefit 
 of local 
 authorities. 
 
 P. 480. 
 
 PART vn. 
 
 Provisions as to Payments to Local Authorities and to Road 
 Improvement Account. 
 
 91. — (1) There shall be charged on and paid out of the Consolidated 
 Fund or the growing produce thereof a sum equal to one-half of the 
 net proceeds of the duties on land values under Part I. of this Act 
 (including mineral rights duties). 
 
 (2) The sums so charged shall be carried to a separate account, to be 
 established under regulations made by the Treasury for the purpose, 
 and, subject to such regulations as may be made by the Treasury in 
 respect of accounts, audit, and accumulation of moneys standing to the 
 account, be appropriated for the benefit of local authorities in the 
 United Kingdom in such manner as Parliament may hereafter determine. 
 
 Laying of 
 rules and 
 regulations 
 before Par- 
 liament. 
 P. 481. 
 
 PART VIIL 
 
 General. 
 
 93. — (1) All rules and regulations made by the Treasury or by the 
 Commissioners of Inland Revenue or by the Commissioners 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 subse- 
 quent 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, 
 
Finance (1909—10) Act, 1910. 586 
 
 shall be repaid by the Commissioners, without prejudice, however, to 
 the right of the Commissioners to re-assess the duty in accordance with 
 any rule or regulation which may be substituted for the annulled rule 
 or regulation. 
 
 9i. If any person for the purpose of obtaining any allowance, Penalty for 
 reduction, rebate, or repayment in respect of any duty under this Act, making false 
 either for himself or for any other person, or in any return made with representa- 
 reference to any duty under this Act, knowingly makes any false state- t'on. 
 ment or false representation, he shall be liable on summary conviction P- ^83. 
 to imprisonment for a term not exceeding six months with hard 
 labour. 
 
 95. — (1) All assessments or charges made or other things done Provision as 
 
 before the passing of this Act with, a view to the collection of any duty *° assess- 
 
 imposed by this Act shall have the same force and effect as if this Act ments' etc. 
 
 had been in operation at the time when the assessment or charge was made on 
 
 , ,1,1. 1 account of 
 
 made or other thing done. (juty before 
 
 (2) Any payments made before the passing of this Act on account passing of 
 of any duty imposed thereby, and any payments of drawback made 
 
 before the passing of this Act on account of any such duty, which would 
 have been proper payments on account of duty Or proper payments of 
 drawback if this Act had been in force at the time, shall be deemed to 
 be payments properly made under this Act, and, if treated as such 
 before the passing of this Act, shall be deemed to have been properly 
 so treated. 
 
 (3) The liability of any person to pay any sum on account of any 
 duty imposed by this Act shall not be affected by the fact that he has, 
 before the passing of this Act, paid either directly or by way of deduction 
 any such sum if the sum so paid has been subsequently refunded to 
 him, and any such sum may without prejudice to any other remedy be 
 recovered as a debt due to His Majesty. 
 
 (4) Where any deduction which would have been a legal deduction 
 if this Act had been in force has been made on account of any duty 
 imposed by this Act, and the sum deducted has subsequently been 
 made good by the person making the deduction, that person shall not 
 be prevented from again making the deduction. 
 
 In such a case, and also in a case where a person could have made 
 a legal deduction if this Act had been in force on account of any 
 duty imposed by this Act, but has not made it, the person who has made 
 or could have made the deduction, as the case may be, shall be entitled, 
 if there is no future payment from which the deduction may be made, 
 to recover the sum as if it were a debt due from the person to whom 
 the original deduction has been made good or as against whom the 
 deduction could have been originally made. 
 
 (5) Any reference in this section to a duty imposed by this Act p. 485, 
 
 includes a reference to a duty increased by this Act. 
 
 96. — (1) The Acts specified in the Sixth Schedule to this Act are Repeal, con- 
 struction, 
 
586 
 
 Land Clauses of the Finance Act. 
 
 and short 
 title. 
 
 P. 485. 
 
 57 & 58 Vict. 
 c. 30. 
 
 P. 486. 
 
 hereby repealed to the extent mentioned in the Third column of that 
 Schedule. 
 
 (2) Any reference to "the Commissioners" in Part II., Part VL, or 
 Part VII. of this Act shall be construed as a reference to the Commis- 
 sioners 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 
 Commissioners of Inland Revenue. 
 
 (3) Part III. of this Act shall be construed together with the Finance 
 Act, 1894. 
 
 (7) This Act may be cited as the Finance (1909-10) Act, 1910. 
 Schedules 1 — 5 inclusive. 
 
 SIXTH SCHEDULE. 
 Enactments Repealed. 
 
 Avoidance of 
 contracts 
 for payment 
 of increment 
 value duty by 
 transferee or 
 lessee. 
 
 P. 46. 
 
 Amendment 
 of s. 2 (3) of 
 the principal 
 Act. 
 
 P. 44. 
 
 THE EEYENUE ACT, 1911 
 
 (1 Geo. 5, c. 2). 
 
 An Act to amend the Law relating to Inland Revenue (including 
 
 Excise) and the National Debt, and for other purposes connected 
 
 with Finance. [31st March, 1911.] 
 
 Be it enacted by the King's most Excellent Majesty, by and with the 
 
 advice and consent of the Lords Spiritual and Temporal, and Commons, 
 
 in this present Parliament assembled, and by the authority of the same, 
 
 as follows : — 
 
 PART I. 
 Duties on Land Values. 
 
 1. Any contract made after the passing of this Act between a trans- 
 feror and transferee or a lessor and lessee for the payment by the transferee 
 or lessee, as the case may be, of increment value duty, or any expenses 
 incurred^ in connexion with the payment or assessment of the duty, or 
 for the repayment or reimbursement by the transferee or lessee to the 
 transferor or lessor in any manner of any payments made by the 
 transferor or lessor in respect of that duty or any such expenses, shall 
 be void. 
 
 2. Sub-section (3) of section two of the principal Act * (which relates 
 to the definition of increment value) shall apply to the case of any 
 transfer on sale of the fee simple of the land or of any interest in the 
 land which took place twenty years or more before the thirtieth day of 
 April nineteen hundred and nine, and which was a transfer to the 
 person who is the owner of the land or any interest in the land at the 
 
 * The Finance (1909-10) Act, 1910 ; see s. 3 (1), infra. 
 
The Revenue Act, 1911. 587 
 
 time when an application is made ixnder that provision, as it applies to 
 the case of a transfer on sale which took place within twenty years 
 before the thirtieth day of April, nineteen hundred and nine. 
 
 In the cases where the original site value has been finally settled 
 before the passing of this Act, an application may be made, notwith- 
 standing anything in sub-section (3) of section two of the principal Act, 
 under that sub-section, for the purpose of giving effect to this provision 
 within three months after the date of the passing of this Act, and the 
 Commissioners shall, in such a case, alter the original site value as 
 finally settled in such manner (if any) as may be necessary to give effect 
 to the amendment made by this provision, and, in cases where any 
 amount has been paid on account of duty, the Commissioners shall 
 make such repayment as may be necessary to adjust the amount paid 
 to any alteration of value made in pursuance of this provision. 
 
 3. — (1) It is hereby declared that in relation to a lease which has Explanation 
 determined the person in whom the lessor's interest was vested mgn^ of j^w 
 immediately before the expiration of the term for which the lease was as to reversion 
 granted, or, if the lease has determined before that time, immediately ^^" 
 before the transaction or event in consequence of which the lease has 
 determined, is the lessor for the purpose of section fifteen of the Finance 10 Edw. 7, 
 (1909-10) Act, 1910 (in this Act referred to as the principal Act), and 
 is the person to whom any benefit accrues from or by reason of the 
 determination of the lease for the purpose of the other provisions of 
 that Act relating to reversion duty. 
 
 (2) Where, whether before or after the passing of this Act, a lease of P- 168. 
 any land determines on the vesting of the lessor's interest and the 
 lessee's interest in the same person before the expiration of the term for 
 which the lease was granted, the amount of the reversion duty (if any) 
 payable shall not be the full duty, but such an amount as would, with 
 compound interest at the rate of four per centum per annum for the 
 residue of the term for which the lease was granted, produce the amount 
 
 of the full duty. 
 
 For the purposes of this provision the full duty means the duty (if 
 any) which would have become payable if the lease had not determined 
 until the expiration of the term for which it was granted, and, if the 
 total value of the land were at that time the same, as it is when the 
 lease actually determines. 
 
 (3) No reversion duty shall be charged on the determination of any 1M69. 
 lease of land where the lease is determined in pursuance of an agree- 
 ment between the lessor and the lessee for the acquisition by the lessee 
 
 of the lessor's interest, if at the time of the determination of the lease — 
 
 (a) the lease has at least fifty years of its term to run ; and 
 
 (b) the total value of the land does not exceed five hundred pounds. 
 
 (4) Where a lease of any land held upon trust for any body of P. 169. 
 persons is determined before the expiration of the term of the lease by 
 
 the surrender thereof to the lessor upon the terms that he shall grant 
 
688 Land Clauses of the Finance Act. 
 
 to those persons severally leases of various plots of land representing in 
 the aggregate the whole of the land comprised in the original lease, for 
 a term in each case equal to the unexpired term of the residue of the 
 original lease, and at rents amounting in the aggregate to but not 
 exceeding the rent reserved by the original lease, no reversion duty 
 shall be payable on the determination of the lease : 
 
 Provided that the lessor shall, in any case to which this provision 
 
 applies, deliver an account under section fifteen of the principal Act in 
 
 the same manner as if reversion duty were payable on the determination 
 
 of the lease. 
 
 P. 168. (5) Sub-section (3) of section fourteen of the principal Act shall cease 
 
 to have effect and shall be deemed never to have had effect. 
 Amendment i. Twenty years shall be substituted for ten years as the limit of 
 
 ^f tii^^ ^^'^ ■ time for taking expenditure into account for the purposes of para- 
 pal Act. graph (6) of sub- section (2) of section sixteen of the principal Act. 
 p. 182. S. Notwithstanding anything in sub-section (1) of section twenty-six 
 Amendment of the principal Act, the Commissioners may, on the request of the 
 
 of s. 26 (1) of owner of any pieces of land which are contiguous, and which do not in 
 
 the principal , ■,■,-, ^ o ' 
 
 Act. the aggregate exceed one hundred acres m extent, value those pieces of 
 
 P. 315. land together for the purposes of that Act, although those pieces of land 
 
 are under separate occupation, if they are satisfied that in the special 
 circumstances of the case it is equitable to do so ; and any such valua- 
 tion may be made under this provision, although any of the pieces of 
 land have been valued before the passing of this Act, if the request for 
 the valuation under this provision is made by the owner of the land 
 within three months after the passing of this Act, and in that case any 
 valuation previously made shall be of no effect. 
 P. 411, 6. Notwithstanding anything contained in the principal Act, where 
 
 Saving in under the provisions of any lease or agreement any statutory company 
 im^nT'^ t* f^^ ^^® required to pay over any part of the increment value of any land to 
 increment His Majesty, or to any person on behalf of His Majesty, or any Depart- 
 value duty by ment of Government, that part of the increment value shall, for the 
 
 C6FtRlIl 
 
 statutory purposes of the provisions of the said Act as to the collection of incre- 
 
 companies. ment value duty, be treated as increment value arising in respect of 
 
 land held by His Majesty. 
 P. 368. 7. It is hereby declared that the Commissioners of Inland Revenue, if 
 
 Eight of Com- dissatisfied with the decision of a referee, have under sub-section (4) 
 
 TuSnd*^^^ "^ of section thirty-three of the principal Act a right of appeal to the High 
 
 Revenue to Court against the decision as persons aggrieved within the meaning of 
 
 appeal against that provision, 
 decision of 
 referee. p^^^^ ^ 
 
 Provisions as to Payments for Local Authorities. 
 Repeal of 16. Section ninety-one of the principal Act (which provides for the 
 
 lb Edw. 7 payment of half the proceeds of the duties on land values for the benefit 
 c. 5. ' ' of local authorities) shall be suspended in its operation as from the date 
 
The Finance Act, 1894. 689 
 
 of tlie principal Act until Parliament shall otherwise determine, but 
 not beyond the thirty-first day of March nineteen hundred and 
 fourteen. 
 
 PART VII. 
 
 Miscellaneous, 
 
 20. — (1) The enactments specified in the Schedule to this Act are Repeal, con- 
 hereby repealed to the extent mentioned in the third column of that gho'^t'^ti^e^"'^ 
 Schedule. 
 
 (2) Part I. of this Act shall be construed together with Part I. of the 
 principal Act. 
 
 (3) This Act may be cited as the Revenue Act, 1911. 
 
 SCHEDULE. 
 Enactments Repealed. 
 
 Session and Chapter. 
 
 Short Title. 
 
 Extent of Repeal. 
 
 10 Edw. 7, c. 8 . 
 
 Finance (1909-10) Act, 
 1910 
 
 Section fourteen, sub- 
 section (3) ; ... and 
 section ninety-one. 
 
 The Sections of the Finance Act, 1894, as Amended 
 BY any Subsequent Enactments thought to be 
 Material to the Increment Value Duty. 
 
 THE FINANCE ACT, 1894 
 
 (57 & 68 Vict. c. 30). 
 
 Grant of Estate Duty. 
 
 1. In the case of every person dying after the commencement of Grant of 
 this Part of this Act, there shall, save as herein-after expressly pro- estate duty, 
 vided, be levied and paid, upon the principal value ascertained as -^P- ^^ *° ^^' 
 herein-after provided of all property, real or personal, settled or not 
 settled, which passes on the death of such a person a duty, called 
 "estate duty," at the graduated rates herein-after mentioned, and 
 the existing duties mentioned in the First Schedule to this Act 
 shall not be levied in respect of property chargeable with such estate 
 duty. 
 
 2. — (1) Property passing on the death of the deceased shall be what 
 deemed to include the property following, that is to say : — property is 
 
 (a) Property of which the deceased was at the time of his death 
 competent to dispose ; 
 
 deemed to 
 
 pass. 
 
 Jh. 
 
590 
 
 Land Clauses of the Finance Act. 
 
 41 & 45 Vict. 
 c. 12. 
 
 52 & 53 Vict. 
 c. 7. 
 
 P. 21. 
 
 Exception 
 for trans- 
 actions for 
 money con- 
 sideration. 
 
 (b) Property in which the deceased or any other person had an 
 
 interest ceasing on the death of the deceased, to the extent to 
 which a benefit accrues or arises by the cesser of such interest; 
 but exclusive of property the interest in which of the deceased 
 or other person was only an interest as holder of an office, 
 or recipient of the benefits of a charity, or as a corporation 
 sole ; 
 
 (c) Property which would be required on the death of the deceased 
 
 to be included in an account under section thirty-eight of the 
 Customs and Inland Revenue Act, 1881, as amended by 
 section eleven of the Customs and Inland Revenue Act, 1889, 
 if those sections were herein enacted and extended to real 
 property as well as personal property, and the words "volun- 
 tary " and " voluntarily " and a reference to a " volunteer " 
 were omitted therefrom ; and 
 
 (d) Any annuity or other interest purchased or provided by the 
 
 deceased, either by himself alone or in concert or by arrange- 
 ment with any other person, to the extent of the beneficial 
 interest accruing or arising by survivorship or otherwise on the 
 death of the deceased. 
 
 (2) Property passing on the death of the deceased when situate out of 
 the United Kingdom shall be included only, if, under the law in force 
 before the passing of this Act, legacy or succession duty is payable in 
 respect thereof, or would be so payable but for the relationship of the 
 person to whom it passes. 
 
 (3) Property passing on the death of the deceased shall not be deemed 
 to include property held by the deceased as trustee for another person, 
 under a disposition not made by the deceased, or under a disposition 
 made by the deceased more than twelve months before his death where 
 possession and enjoyment of the property was bona fide assumed by the 
 beneficiary immediately upon the creation of the trust and thenceforward 
 retained to the entire exclusion of the deceased or of any benefit to him 
 by contract or otherwise. 
 
 3. — (1) Estate duty shall not be payable in respect of property 
 passing on the death of the deceased by reason only of a bona fide 
 purchase from the person under whose disposition the property passes, 
 nor in respect of the falling into possession of the reversion on any lease 
 for lives, nor in respect of the determination of any annuity for lives, 
 where such purchase was made, or such lease or annuity granted, for full 
 consideration in money or money's worth paid to the vendor or grantor 
 for his own use or benefit, or in the case of a lease for the use or benefit 
 of any person for whom the grantor was a trustee. 
 
 (2) Where any such purchase was made, or lease or annuity granted, 
 for partial consideration in money or money's worth paid to the vendor 
 or grantor for his own use or benefit, or in the case of a lease for the use 
 or benefit of any person for whom the grantor was a trustee, the value 
 
The Finance Act, 1894. 691 
 
 of the consideration shall be allowed as a deduction from the value of 
 the property for the purpose of estate duty. 
 
 Section 4 relates to the aggregation of property and is thought not to 
 be material. 
 
 5. — (1) Where property in respect of which estate duty is leviable is Settled 
 settled by the will of the deceased or having been settled by some other P^'operty. 
 disposition passes under that disposition on the death of the deceased 
 to some person not competent to dispose of the property, — 
 
 (a) A further estate duty (called settlement estate duty) on the 
 
 principal value of the settled property shall be levied at the 
 rate hereinafter specified, except where the only life interest in 
 the property after the death of the deceased is that of a wife or 
 husband of the deceased ; but 
 
 (b) during the continuance of the settlement estate duty shall not be 
 
 payable more than once. 
 
 (2) If estate duty has already been paid in respect of any settled 
 property since the date of the settlement, the estate duty shall not, nor 
 shall any of the duties mentioned in the fifth paragraph of the First 
 Schedule to this Act, be payable in respect thereof, until the death of a 
 person who was at the time of his death or had been at any time during 
 the continuance of the settlement competent to dispose of such property 
 
 [*and who if on his death subsequent limitations under the settlement * Words in 
 take effect in respect of such property was sui juris at the time of his ^ j*^ ^ |f 
 death or had been sui juris at any time while so competent to dispose of Finance Act, 
 the property]. 1898, s. 13. 
 
 (3) In the case of settled property where the interest of any person 
 under the settlement fails or determines by reason of his death before it 
 becomes an interest in possession, and subsequent limitations under the 
 settlement continue to subsist, the property shall not be deemed to pass 
 on his death. 
 
 (4) Any person paying the settlement estate duty payable under this 
 section upon property comprised in a settlement, may deduct the amount 
 of the ad valorem stamp duty (if any) charged on the settlement in 
 respect of that property. 
 
 (5) Where any lands or chattels are so settled whether by Act of 
 Parliament or royal grant, that no one of the persons successively in 
 possession thereof is capable of alienating the same whether his interest 
 is in law a tenancy for life or a tenancy in tail, the provisions of this 
 Act with respect to settled property shall not apply and the property 
 passing on the death of any person in possession of the lands and 
 chattels shall be the interest of his successor in the lands and chattels, 
 and such interest shall be valued, for the purpose of estate duty, in like 
 manner as for the purpose of succession duty. 
 
592 
 
 Land Clauses of the Finance Act. 
 
 p. 92. 
 
 Collection 
 and recovery 
 of estate 
 duty. 
 
 P. 94. 
 
 P. 95. 
 
 P. 9c 
 
 Collection and Recovery of Duty and Value of Property. 
 
 6. — (1) Estate duty shall be a stamp duty, collected and recovered 
 as herein-after mentioned. 
 
 (2) The executor of the deceased shall pay the estate duty in respect 
 of all personal property (wheresoever situate) of which the deceased was 
 competent to dispose at his death, on delivering the Inland Revenue 
 affidavit, and may pay in like manner the estate duty in respect of any 
 other property passing on such death, which by virtue of any testa- 
 mentary disposition of the deceased is under the control of the executor, 
 or, in the case of property not under his control, if the persons account- 
 able for the duty in respect thereof request him to make such payment. 
 
 (3) Where the executor does not know the amount or value of any 
 property which has passed on the death, he may state in the Inland 
 Revenue affidavit that such property exists but he does not know the 
 amount or value thereof, and that he undertakes, as soon as the amount 
 and value are ascertained, to bring in an account thereof, and to pay 
 both the duty for which he is or may be liable, and any further duty 
 payable by reason thereof for which he is or may be liable in respect of 
 the other property mentioned in the affidavit. 
 
 (4) Estate duty, so far as not paid by the executor, shall be collected 
 upon an account setting forth the particulars of the property, and 
 delivered to the Commissioners within six months after the death by 
 the person accountable for the duty, or within such further time as the 
 Commissioners may allow. 
 
 (5) Every estate shall include all income accrued upon the property 
 included therein down to and outstanding at the date of the death of the 
 deceased. 
 
 (6) Interest at the rate of three per cent, per annum (a) on the estate 
 duty shall be paid from the date of the death up to the date of the 
 delivery of the Inland Revenue affidavit or account, or the expiration of 
 six months after the death, whichever first happens, and shall form part 
 of the estate duty, 
 
 (a) The words in italics were repealed by s. 40 of the Finance Act, 1896, 
 and Part III. of the Schedule to such Act, and s. 18 of the same Act was 
 substituted. See p. 602. 
 
 (7) The duty which is to be collected upon an Inland Revenue 
 affidavit or account shall be due on the delivei'y thereof, or on the 
 expiration of six months fi'om the death, whichever first happens. 
 
 (8) Provided that the duty due upon an account of real property 
 may, at the option of the person delivering the account, be paid by 
 eight equal yearly instalments, or sixteen half-yearly instalments, with 
 interest at the rate of three per cent, per annum from the date at which 
 the first instalment is due, less income tax (b), and the first instalment 
 shall be due at the expiration of twelve months from the death, and the 
 interest on the unpaid portion of the duty shall be added to each 
 
The Finance Act, 1894. 593 
 
 instalment and paid accordingly ; but the duty for the time being 
 unpaid, with such interest to the date of payment, may be paid at any 
 time, and in case the property is sold, shall be paid on completion of the 
 sale, and if not so paid shall be duty in arrear. 
 
 (b) Less income tax. — These words were repealed by s. 40 of the Finance 
 Act, 1896, and Part III. of the Schedule thereto. 
 
 7. Sub-sects. 1 to 4 inclusive are thought not to be material. Sub-sects. P. 95. 
 1 and 2 relate to allowance for debts in determining the value of an estate, 
 sub-s. 3 to expenses incurred in relation to property situate out of the 
 United Kingdom, and sub-s. 4 to an allowance for duty in relation to 
 such property. 
 
 (5) The principal value of any property shall be estimated to be p. 96. 
 the price which, in the opinion of the Commissioners, such property 
 would fetch if sold in the open market at the time of the death of the 
 deceased ; 
 
 [Provided that, in the case of any agricultural property, where no part 
 of the principal value is due to the expectation of an increased income from 
 such property, the principal value shall not exceed twenty-five times the 
 annual value as assessed under Schedule A of the Income Tax Acts, after 
 making such deductions as have not been allowed in that assessment and 
 are alloived under the Succession Duty Act, 1853, and making a deduction ig & 17 Vict. 
 foi' expenses of management not exceeding five per cent, of the annual value c. 5Ji 
 so assessed^ 
 
 By s. 60 (1) of the Finance Act, 1910, in the case of any person dying 
 on or after April 30, 1909, this proviso is to cease to have effect (see 
 p. 478). But by s. 61 of the same Act, notwithstanding s. 60 (1) just 
 cited, the proviso is to continue to apply to the valuation of property 
 consisting of a tenancy from year to year and for determining the gross 
 value of property for the purpose of s. 16 of the Finance Act, 1894. 
 Sect. 16 relates to the duties payable on small estates. 
 
 (6) Where an estate includes an interest in expectancy, estate duty p, 97. 
 in respect of that interest shall be paid, at the option of the person 
 accountable for the duty, either with the duty in respect of the rest of 
 
 the estate or when the interest falls into possession, and if the duty is 
 not paid with the estate duty in respect of the rest of the estate, 
 then — 
 
 (a) for the purpose of determining the rate of estate duty in respect 
 of the rest of the estate the value of the interest shall be its 
 value at the date of the death of the deceased ; and 
 
 (6) the rate of estate duty in respect of the interest when it falls into 
 possession shall be calculated according to its value when it falls 
 into possession, together with the value of the rest of the estate 
 as previously ascertained. 
 
 N. 38 
 
594 
 
 Land Clauses of the Finance Act. 
 
 p. 98. (7) The value of the benefit accruing or arising from the cesser of an 
 
 interest ceasing on the death of the deceased shall — 
 
 (a) if the interest extended to the whole income of the property, be 
 
 the principal value of that property ; and 
 
 (b) if the interest extended to less than the whole income of the 
 
 property, be the principal value of an addition to the property 
 equal to the income to which the interest extended. 
 
 (8) Subject to the provisions of this Act, the value of any property 
 for the purpose of estate duty shall be ascertained by the Commissioners 
 in such manner and by such means as they think fit, and, if they 
 authorise a person to inspect any property and report to them the 
 value thereof for the purposes of this Act, the person having the 
 custody or possession of that property shall permit the person so 
 authorised to inspect it at such reasonable time as the Commissioners 
 consider necessary. 
 
 (9) Where the Commissioners require a valuation to be made by a 
 person named by them, the reasonable costs of such valuation shall be 
 defrayed by the Commissioners, 
 
 (10) Property passing on any death shall not he aggregated more than 
 once, nor shall estate duty in respect thereof be more than once levied 
 on the same death. 
 
 The italicised words have no bearing on increment value duty. 
 
 8. — (1) The existing law and practice relating to any of the duties 
 now leviable on or with reference to death shall, subject to the provisions 
 of this Act and so far as the same are applicable, apply for the purposes 
 of the collection, recovery, and repayment of estate duty, and for the 
 exemption of the property of common seamen, marines, or soldiers who 
 are slain or die in the service of Her Majesty, and for the purpose of 
 payment of sums under one hundred pounds without requiring 
 representation, as if such law and practice were in terms made applicable 
 to this Part of this Act. 
 
 (2) Sections twelve to fourteen of the Customs and Inland Revenue 
 Act, 1889, and section forty-seven of the Local Registration of Title 
 (Ireland) Act, 1891, shall apply as if estate duty were therein mentioned 
 as well as succession duty, and as if an account were not settled within 
 the meaning of any of the above sections until the time for the payment 
 of the duty on such account has arrived. 
 P. 101. (3) The executor of the deceased shall, to the best of his knowledge 
 
 and belief, specify in appropriate accounts annexed to the Inland 
 Revenue affidavit all the property in respect of which estate duty is 
 payable upon the death of the deceased, and shall be accountable for 
 the estate duty in respect of all personal property wheresoever situate 
 of which the deceased was competent to dispose at his death, but shall 
 not be liable for any duty in excess of the assets which he has 
 
 P. 99. 
 
 Supple- 
 mental 
 provisions as 
 to collection, 
 recovery, 
 and repay- 
 ment of and 
 exemption 
 from estate 
 duty. 
 
 P. 614. 
 
 52 & 53 Vict. 
 
 c. 7. 
 
 54 & 55 Vict. 
 
 0.66. 
 
The Finance Act, 1894. 695 
 
 received as executor, or might but for his own neglect or default 
 have received. 
 
 (4) Where property passes on the death of the deceased, and his P. 102. 
 executor is not accountable for the estate duty in respect of such pro- 
 perty, every person to whom any property so passes for any beneficial 
 interest in possession, and also, to the extent of the property actually 
 received or disposed of by him, every trustee, guardian, committee, or 
 other person in whom any interest in the property so passing or the 
 management thereof is at any time vested, and every person in whom 
 
 the same is vested in possession by alienation or otiier derivative title 
 shall be accountable for the estate duty on the property, and shall, 
 within the time required by this Act or such later time as the Com- 
 missioners allow, deliver to the Commissioners and verify an account, 
 to the best of his knowledge and belief, of the pi'operty : Provided 
 that nothing in this section contained shall render a person accountable 
 for duty who acts merely as agent or bailiff for another person in the 
 management of property. 
 
 (5) Every person accountable for estate duty, and every peron whom T. 103. 
 the Commissioners believe to have taken possession of or administered 
 
 any part of the estate in respect of which duty is leviable on the death 
 of the deceased, or of the income of any part of such estate, shall, to 
 the best of his knowledge and belief, if required by the Commissioners, 
 deliver to them and verify a statement of such particulai's together with 
 such evidence as they require relating to any property which they have 
 reason to believe to form part of an estate in respect of which estate 
 duty is leviable on the death of the deceased. 
 
 (6) A person who wilfully fails to comply with any of the foregoiujj 
 provisions of this section shall be liable to pay one hundred pounds, 
 or a sum equal to double the amount of the estate duty, if any, 
 remaining unpaid for which he is accountable, according as the Com- 
 missioners elect : Provided that the Commissioners, or in any proceeding 
 for the recovery of such penalty the Court, shall have power to reduce 
 any such penalty. 
 
 (7) Estate duty shall, in the first instance, be calculated at the appro- • 
 priate rate according to the value of the estate as set forth in the Inland 
 Revenue affidavit or account delivered, but if afterwards it appears that 
 for any reason too little duty has been paid, the additional duty shall, 
 unless a certificate of discharge has been delivered under this Act, be 
 payable, and be treated as duty in arrear. 
 
 (8) The Commissioners on application from a person accountable 
 for the duty on any property forming part of an estate shall, where 
 they consider that it can conveniently be done, certify the amount of 
 the valuation accepted by them for any class or description of property 
 forming part of such estate. 
 
 (9) Where the Commissioners are satisfied that the estate duty leviable 
 in respect of any property cannot without excessive sacrifice be raised 
 
 38—2 
 
596 
 
 Land Clauses of the Finance Act. 
 
 p. 104. 
 
 44 & 45 Vict, 
 c. 12. 
 
 Charge of 
 estate duty 
 on property, 
 and facilities 
 for raising it. 
 
 P. 105. 
 
 P. 107. 
 
 at ouce, they may allow payment to be postponed for such period, to 
 such extent, and on payment of such interest not exceeding four per 
 cent, or any higher interest yielded by the property, and on such terms, 
 as the Commissioners think fit. 
 
 (10) Relates to interest, and is repealed by s. 40 of the Finance Act, 
 1896, and Part III. of the Schedule thereto. 
 
 (11) If after the expiration of twenty years from a death upon 
 which estate duty became leviable any such duty remains unpaid, the 
 Commissioners may, if they think fit, on the application of any person 
 accountable or liable for such duty or interested in the property, 
 remit the payment of such duty or any part thereof or any interest 
 thereon. 
 
 (12) Where it is proved to the satisfaction of the Commissioners 
 that too much estate duty has been paid, the excess shall be repaid 
 by them, and in cases where over-payment was due to over-valuation 
 by the Commissioners, with interest at three per cent, per annum. 
 
 (13) Where any proceedings for the recovery of estate duty in respect 
 of any property is instituted, the High Court shall have Jurisdiction to 
 appoint a receiver of the pi'operty and the rents and profits thereof, and 
 to order a sale of the property. 
 
 (14) All afiidavits, accounts, certificates, statements, and forms used 
 for the purpose of this Part of this Act shall be in such form, and 
 contain such particulars, as may be prescribed, and if so required by the 
 Commissioners shall be in duplicate, and accounts and statements shall 
 be delivered and verified on oath and by production of books and 
 documents in the manner prescribed, and any person who wilfully fails 
 to comply with the provisions of this enactment shall be liable to the 
 penalty above in this section mentioned. 
 
 (15) No charge shall be made for any certificate given by the 
 Commissioners under this Act. 
 
 (16) The estate duty may be collected by means of stamps or such 
 other means as the Commissioners prescribe. 
 
 (17) The form of certificate required to be given by the proper officer 
 of the Court under section thirty of the Customs and Inland Revenue 
 Act, 1881, may be varied by a rule of Court in such manner as may 
 appear necessary for carrying into effect this Act. 
 
 (18) Nothing in this section shall render liable to or accountable 
 for duty a bon^ fide purchaser for valuable consideration without notice. 
 
 9. — (1) A rateable part of the estate duty on an estate, in proportion 
 to the value of any property which does not pass to the executor as 
 such, shall be a first charge on the property in respect of which duty 
 is leviable; provided that the property shall not be so chargeable as 
 against a bona fide purchaser thereof for valuable consideration without 
 notice. 
 
 (2) On an application submitting in the prescribed form the descrip- 
 tion of the lands or other subjects of property (whether hereditaments, 
 
The Finance Act, 1894. 597 
 
 stocks, funds, shares, or securities), and of the debts and incumbrances 
 allowed by the Commissioners in assessing the value of the property for 
 the purposes of estate duty, the Commissioners shall grant a certificate 
 of the estate duty paid in respect of the property, and specify the debts 
 and incumbrances so allowed, as well as the lands or other subjects of 
 property. 
 
 (3) Subject to any repayment of estate duty arising from w^ant of P. 107. 
 title to the land or other subjects of property, or from the existence 
 
 of any debt or incumbrance thereon for which under this Act an 
 allowance ought to have been but has not been made, or from any other 
 cause, the certificate of the Commissioners shall be conclusive evidence 
 that the amount of duty named therein is a first charge on the lands 
 or other subjects of property after the debts and incumbrances 
 allowed as aforesaid : Provided that any such repayment of duty by 
 the Commissioners shall be made to the person producing to them the 
 said certificate. 
 
 (4) If the rateable part of the estate duty in respect of any property 
 is paid by the executor, it shall where occasion requii*es be repaid to 
 him by the trustees or owners of the property, but if the duty is in 
 respect of real property, it may, unless otherwise agreed upon, be 
 repaid by the same instalments and with the same interest as are in 
 this Act mentioned. 
 
 (o) A person authorised or required to pay the estate duty in respect 
 of any property shall, for the purpose of paying the duty, or raising 
 the amount of the duty when already paid, have power, whether the 
 property is or is not vested in him, to raise the amount of such duty 
 and any interest and expenses properly paid or incurred by him in 
 respect thereof, by the sale or mortgage of or a terminable charge on 
 that property or any part thereof. 
 
 (6) A person having a limited interest in any property, who pays the 
 estate duty in respect of that property, shall be entitled to the like 
 charge, as if the estate duty in respect of that property had been raised 
 by means of a mortgage to him. 
 
 (7) Any money arising from the sale of property comprised in a 
 settlement, or held upon trust to lay out upon the trusts of a settle- 
 ment, and capital money arising under the Settled Land Act, 1882, may 45 & 46 Vict. 
 be expended in paying any estate duty in respect of property comprised '^^ ^^• 
 
 in the settlement and held upon the same trusts. 
 
 10. As to appeals. This section appears not to be applicable except P. 108. 
 as stated below : appeals, as to the new duties, even in cases where the 
 occasion of payment is death, are regulated by s. 33 of the Finance 
 (1909-10) Act, 1910. 
 
 By virtue of s. 60 (3) of the Finance (1909-10) Act, 1910, appeals as 
 to the value of real and leasehold property arising under the Act of 1894 
 are to lie not under s. 10 of that Act, but under s. 33 of the Finance 
 (1909-10) Act, 1910. 
 
598 
 
 Land Clauses of the Finance Act. 
 
 p. 369. 
 
 Release of 
 persons 
 paying 
 estate duty. 
 
 P. 109. 
 
 But s. 33 (4) of the Finance (1909-10) Act, 1910 (see p. 360), 
 applies to appeals under this Act sub-ss. (2), (3), and (4) of s. 10 of 
 the Finance Act, 1894, which are .is follows : — 
 
 (2) No appeal shall be allowed from any order, direction, determina- 
 tion, or decision of the High Court in any appeal under this section 
 except with the leave of the High Court or Court of Appeal. 
 
 (3) The costs of the appeal shall be in the discretion of the Court, 
 and the Court, where it appears to the Court just, may order the Com- 
 missioners to pay on any excess of duty repaid by them interest at the 
 rate of three per cent, per annum for such period as appears to the 
 Court just. 
 
 (4) Provided that the High Court, if satisfied that it would impose 
 hardship to require the appellant, as a condition of an appeal, to pay 
 the whole or, as the case may be, any part of the duty claimed by the 
 Commissioners or of such portion of it as is then payable by him, may 
 allow an appeal to be brought on payment of no duty, or of such part 
 only of the duty as to the Court seems reasonable, and on security to 
 the satisfaction of the Court being given for the duty, or so much of 
 the duty as is not so paid, but in such case the Court may order 
 interest at the rate of three per cent, per annum to be paid on the 
 unpaid duty so far as it becomes payable under the decision of the 
 Court. 
 
 Discharge from and Ajypoi'tionment of Duty. 
 
 11. — (1) The Commissioners on being satisfied that the full estate 
 duty has been or will be paid in respect of an estate or any i)art thereof 
 shall, if required by the person accounting for the dutj', give a certifi- 
 cate to that eftect, which shall discharge from any further claim for 
 estate duty the property shown by the certificate to form the estate or 
 part thereof as the case may be. 
 
 (2) Where a person accountable for the estate duty in respect of 
 any property passing on a death applies after the lapse of two yeai-s 
 from such death to the Commissioners, and delivers to them and 
 verifies a full statement to the best of his knowledge and belief of 
 all property passing on such death and the several persons entitled 
 thereto, the Commissioners may determine the rate of the estate duty 
 in respect of the property for which the applicant is accountable, and 
 on payment of the duty at that rate, that property and the applicant 
 so far as regards that property shall be discharged from any further 
 claim for estate duty and the Commissioners shall give a certificate 
 of such discharge. 
 
 (3) A certificate of the Commissionei's under this section shall not 
 discharge any person or property from estate duty in case of fraud or 
 failure to disclose material facts, and shall not affect the rate of duty 
 payable in respect of any property afterwards shown to have passed 
 on the death, and the duty in respect of such property shall be at such 
 
The Finance Act, 1894. 599 
 
 rate as would be payable if the value thereof were added to the value of 
 the property in respect of which duty has been already accounted for ; 
 
 (4) Provided nevertheless that a certificate purporting to be a dis- 
 charge of the whole estate duty payable in respect of any property 
 included in the certificate shall exonerate a bonS, fide purchaser for 
 valuable consideration without notice from the duty notwithstanding 
 any such fraud or failure. 
 
 Sect. 12 relates to commutation of duties on expectancies; s, 13 to 
 compositions for death duties, where by reason of the numbers of deaths, 
 or of the complicated nature of the interests of different persons, it is 
 difficult to ascertain the exact amount of duty payable ; and both sections 
 are probably inapplicable to increment value duty. 
 
 ii. — (1) In the case of property which does not pass to the Apportion- 
 executor as such, an amount equal to the proper rateable part of the ™ent of duty, 
 estate duty may be recovered by the person, who being authorised or ^' 1^^- 
 required to pay the estate duty in respect of any propei'ty has paid 
 such duty, from the person entitled to any sum charged on such 
 property (whether as capital or as an annuity or otherwise), under a 
 disposition not containing any express provision to the contrary. 
 
 (2) Any dispute as to the proportion of estate duty to be borne by p. m. 
 any property or person, may be determined upon application by any 
 person interested in manner directed by rules of Court, either by the 
 
 High Court, or, where the amount in dispute is less than fifty pounds, 
 by a county court for the county or place in which the person recover- 
 ing the same resides, or the property in respect of which the duty is 
 paid is situate. 
 
 (3) Any person from whom a rateable part of estate duty can be 
 recovered under this section shall be bound by the accounts and valua- 
 tions as settled between the person entitled to recover the same and 
 the Commissioners. 
 
 Sect. 15 relates to the exemption of small annuities and annuities 
 and pensions payable by the Government of India from estate duty, to 
 the power of the Treasury to remit estate duty in respect of works 
 of art, etc., and to the exemption of advowsons from that duty. 
 
 Sect. 16 relates to certain exemptions from estate duty in the case 
 of small estates. 
 
 Sect. 17 sets forth the various rates of estate duty. 
 
 Sect. 18 relates to the ascertainment of value for the purpose of 
 the payment of succession duty. 
 
 Sect. 20 to a deduction from estate duty where the property in 
 respect of which it is payable has already paid duty in a British 
 possession. 
 
 Sect. 21 (1) to (4) i-elates to certain exceptions to or limitations 
 of the law relating to estate duty, understood not to be material. 
 
 Sub s. (5) is as follows, and may possibly be held applicable to P. 112. 
 increment value duty. 
 
600 Land Clauses of the Finance Act. 
 
 (5) Where a husband or wife is entitled, either solely or jointly with 
 the other, to the income of any property settled by the other under a 
 disposition which has taken effect before the commencement of this 
 part of this Act, and on his or her death the survivor becomes entitled 
 to the income of the property settled by such survivor, estate duty 
 shall not be payable in respect of that property until the death of 
 the survivor. 
 Definitions. 22. — (1) In this part of this Act, unless the context otherwise 
 
 P. 113. requires : — 
 
 (a) The expressions "deceased person" and "the deceased" mean 
 a person dying after the commencement of this Part of this Act : 
 (b The expression " will " includes any testamentary instrument : 
 
 (c) Tiie expression " representation " means probate of a will or 
 
 letters of administration : 
 
 (d) The expression " executor" means the executor or administrator 
 
 of a deceased person, and includes, as regards any obligation 
 under this Part of this Act, any person who takes possession 
 of or intermeddles with the personal property of a deceased 
 person : 
 
 (e) The expression " estate duty " means estate duty under this Act : 
 (/) The expression " property " includes real property and personal 
 
 property and the proceeds of sale thereof respectively and any 
 money or investment for the time being representing the 
 proceeds of sale : 
 
 (g) The expression " agricultural property " means agricultural land, 
 pasture and woodland, and also includes such cottages, farm 
 buildings, farm houses, and mansion houses (together with the 
 lands occupied therewith) as are of a character appropriate to 
 the property : 
 
 (h) The expression "settled property" means property comprised in 
 a settlement : 
 
 (i) The expression "settlement" means any instrument, whether 
 relating to real property or personal property, which is a 
 settlement within the meaning of section two of the Settled 
 Land Act, 1882, or if it related to real property would be a 
 settlement within the meaning of that section, and includes 
 a settlement effected by a parol trust : 
 
 (j) The expression " interest in expectancy " includes an estate in 
 remainder or reversion and every other future interest whether 
 vested or contingent, but does not include reversions expectant 
 upon the determination of leases : 
 
 (k) The expression "incumbrances" includes mortgages and 
 terminable charges : 
 
 (l) The expression " property passing on the death " includes 
 property passing either immediately on the death or after any 
 interval, either certainly or contingently, and either originally 
 
Finance Act, 1896. 601 
 
 or by way of substitutive limitation, and the expression " on 
 the death " includes " at a period ascertainable only by 
 reference to the death " : 
 
 (m) The expression " the Commissioners " means the Commissioners 
 of Inland Revenue : 
 
 (n) The expression " Inland Revenue affidavit " means an affidavit 
 made under the enactments specified in the Second Schedule to 
 this Act with the account and schedule annexed thereto ; 
 
 (o) The expression " prescribed " means prescribed by the Commis- 
 sioners. 
 
 (2) For the purposes of this Part of this Act— P- H*- 
 
 (a) A person shall be deemed competent to dispose of property if he 
 
 has such an estate or interest therein or such general power as 
 would, if he were sui juris, enable him to dispose of the 
 property, including a tenant in tail whether in possession or 
 not ; and the expression " general power " includes every 
 power or authority enabling the donee or other holder thereof 
 to appoint or dispose of property as he thinks fit, whether 
 exerciseable by instrument inter vivos or by will, or both, but 
 exclusive of any power exerciseable in a fiduciary capacity 
 under a disposition not made by himself, or exerciseable as 
 tenant for life under the Settled Land Act, 1882, or as mort- 
 gagee : 
 
 (b) A disposition taking effect out of the interest of the deceased 
 
 person shall be deemed to have been made by him, whether 
 the concurrence of any other person was or was not required : 
 
 (c) Money which a person has a general power to charge on property 
 
 shall be deemed to be property of which he has power to 
 dispose. 
 
 (3) This Part of this Act shall apply to property in which the wife P- 114. 
 or husband of the deceased takes an estate in dower or by the curtesy 
 
 or any other like estate, in like manner as it applies to property settled 
 by the will of the deceased. 
 
 FINANCE ACT, 1896 
 (59 & 60 Vict. c. 28). 
 
 14. Where property is settled by a person on himself for life, P. 115, 
 
 and after his death on any other persons, with an ultimate reversion Exemption to 
 
 of an absolute interest or absolute power of disposition to the settlor, P^^^^'^S of 
 
 the property shall not be deemed for the purpose of the principal Act enlargement 
 
 to pass to the settlor on the death of any such other person after the °^ interest 
 commencement of this Part of this Act, by reason only that the settlor 
 
Land Clauses of the Finance Act. 
 
 p. 116. 
 
 Keverter of 
 property to 
 disponer. 
 
 16 & 17 Vict, 
 c. 51. 
 
 Interest upon 
 estate duty 
 and other 
 death duties. 
 
 P. 116. 
 
 Repeal of 
 Acts. 
 
 being then in possession of the property as tenant for life, becomes, in 
 consequence of such death, entitled to the immediate reversion, or 
 acquires an absolute power to dispose of the whole property. 
 
 15. — (1) Where by a disposition of any property an interest is 
 conferred on any person other than the disponer for the life of such 
 person or determinable on his death, and such person enters into 
 possession of the interest and thenceforward retains possession thereof 
 to the entire exclusion of the disponer or of any benefit to him by 
 contract or otherwise, and the only benefit which the disponer retains 
 in the said property is subject to such life or determinable interest, and 
 no interest is created by the said disposition, then on the death of such 
 person after the commencement of this Part of this Act, the property 
 shall not be deemed for the pui-pose of the principal Act to pass by 
 reason only of its reverter to the disponer in his lifetime. 
 
 (2) Where by a disposition of any property any such interest as 
 above in this section mentioned is conferred on two or more persons 
 either severally or jointly, or in succession, this section shall apply in 
 like manner as where the interest is conferred on one person. 
 
 (3) Provided that the foregoing sub-sections shall not apply where 
 such person or persons taking the said life or determinable interest had 
 at any time prior to the disposition been himself or themselves competent 
 to dispose of the said property. 
 
 (4) Where the deceased person was entitled by law to the rents and 
 profits of real property (as defined by section one of the Succession Duty 
 Act, 1853), of his wife, and has died in her lifetime, such property shall 
 not be deemed for the purpose of the principal Act to pass on his death 
 by reason of her then becoming entitled to the property in virtue of her 
 former interest. 
 
 18. — (1) Simple interest at the rate of three per cent, per annum, 
 without deduction for income tax, shall be payable on all estate duty from 
 the date of the death of the deceased or, where the duty is payable by 
 instalments, or become due at any date later than six months after the 
 death, from the date at which the first instalment or the duty becomes 
 due, and shall be recoverable in the same manner as if it were part of the 
 duty. 
 
 (2) Extends sub-s. (1) to all death duties. 
 
 (3) The Commissioners of Inland Revenue may remit the interest on 
 any of such death duties where the amount appears to them to be so 
 small as not to repay the expense and trouble of calculation and account. 
 
 40. This section, together with Part III. of the Schedule, repeals the 
 words in s. 6 (6) of the Finance Act, 1894, '^ at the rate o/3 per cent, 
 per annum" and the words " and shall form part of the estate duty " 
 in order to give effect to s. 18 of the Finance Act, 1896, just set out; 
 and also repeals the words in sub-s. (8) of the same s. 6 of the Act of 
 1894, ''less income tax^ 
 
Finance Acts, 1898 and 1900. 
 
 603 
 
 FINANCE ACT, 1898 
 (61 & 62 Vict. c. 10). 
 
 PART V. 
 
 Estate Duties. 
 
 13. Sect. 5, sub-s. 2, of the Finance Act, 1894, shall be read and have 
 effect as if the following words had been inserted at the end thereof : 
 " and who if on his death subsequent limitations under the settlement 
 take effect in respect of such projterty was sui juris at the time of his 
 death or had been sui juris at any time while so competent to dispose 
 of the property." 
 
 P. 117. 
 
 Persons not 
 sui juris 
 not to be 
 deemed 
 competent to 
 dispose for 
 the purpose 
 of breaking 
 settlements. 
 
 FINANCE ACT, 1900 
 (63 Vict. c. 7). 
 
 11. In the case of every person dying after the thirty-first day of P. 117. 
 March, nineteen hundred, property whether real or personal in which Amendment 
 the deceased person or any other person had had an estate or interest v-^7*'oa 
 limited to cease on the death of the deceased shall, for the purpose of to property 
 the Finance Act, 1894, and the Acts amending that Act, be deemed to on death, 
 pass on the death of the deceased notwithstanding that that estate or 
 interest has been surrendered, assured, diverted, or otherwise disposed 
 of, whether for value or not, to or for the benefit of any person entitled 
 to an estate or interest in remainder or reversion in such property, 
 unless that surrender, assurance, divesting or disposition was bona fide 
 made or effected twelve months before the death of the deceased, 
 and bona fide provision and enjoyment of the property was assumed 
 thereunder immediately vxpon the surrender, assurance, divesting or 
 disposition, and thenceforward retained to the entire exclusion of the 
 person who had the estate or interest limited to cease as aforesaid, and 
 of any benefit to him by contract or otherwise. This section shall, 
 inter alia, apply to Scotland, conveyance or discharge of any life rent 
 in favour of the fiar or to the propulsion of the fee under any simple 
 or tailzied destination. 
 
 13. — (2) See this sub-s. on p. 118 (omitted here pei' mcuriam). 
 
 14. This section gives power to the Treasury to remit the payment of 
 the whole or any part of the death duties (within s. 13 (3) of the 
 Finance Act, 1894) in the case of persons killed or dying in war, etc., 
 up to 150^. if the total value of the property passing does not exceed 
 5,000?. 
 
604 
 
 Land Clauses of the Finance Act. 
 
 p. 119. 
 
 Power to 
 entertain 
 application 
 for discharge 
 from claims 
 for estate 
 duty made 
 at any time. 
 
 FINANCE ACT, 1907 
 (7 Edw. 7, c. 13). 
 
 ii. The Commissioners may, if they think fit, entertain any 
 application made for the purpose of sub-s. (2) of s. 11 of the 
 principal Act (which relates to discharge from claims for estate duty), 
 at whatever time the application is made ; and, as respects any applica- 
 tion so entertained, the provisions of that sub-section shall have effect 
 notwithstanding that the application is made before the lapse of tlie 
 two years mentioned in that sub-section. 
 
 THE CONVEYANCING AND LAW OF PKOPEETY 
 
 ACT, 1881 
 
 (44 & 45 Vict. c. 41), s. 65 (see p. 265). 
 
 65. — (1) Where a residue unexpired of not less than two hundred 
 years of a term which as originally created was for not less than three 
 P. 266. hundred years, is subsisting in land whether being the whole land 
 
 originally comprised in the term or part only thereof, without any triist 
 or right of redemption affecting the term in favour of the freeholder, or 
 other person entitled in reversion expectant on the term, and without 
 any rent or with merely a peppercorn rent or other rent having no 
 money value, incident to the reversion, or having had a rent not being 
 merely a peppercorn rent or other rent having no money value originally 
 so incident, which subsequently has been released, or has become barred 
 by lapse of time, or has in any other way ceased to be payable, then the 
 term may be enlarged into a fee simple in the manner, and subject to 
 the restrictions in this section provided. 
 
 Sub-sect. (2) is a long sub-section indicating the persons who may 
 enlarge the term and the manner in wliich they may do so. 
 
 (3) Thereupon by virtue of the deed and of this Act the term shall 
 become and be enlarged accordingly, and the person in whom the term 
 was previously vested shall acquire and have in the land a fee simple 
 instead of the term. 
 
 (6) The estate in fee simple so acquired shall, whether the term was 
 oi-iginally created without impeachment of waste or not, include the 
 fee simple in all mines and minerals which at the time of enlargement 
 have not been severed in right, or in fact, or have not been severed or 
 reserved by an inclosure Act or award. 
 
 (7) This section applies to every such term as aforesaid subsisting at 
 or after the commencement of this Act. 
 
The Conveyancing Act, 1882, and The Settled 606 
 
 •Land Act, 1882. 
 
 THE CONVEYANCING ACT, 1882 
 (45 & 46 Vict. c. 41), s. 11 (see p. 266). 
 
 11. Section sixty-five of the Conveyancing Act of 1881 shall apply P. 266. 
 to and include, and shall be deemed to have always applied to and 
 included, every such term as in that section mentioned, whether 
 having as the immediate reversion thereon the freehold or not ; but 
 not — 
 
 (i.) Any term liable to be determined by re-entry for condition 
 
 broken ; or 
 (ii.) Any term created by sub-demise out of a superior term itself 
 incapable of being enlarged into a fee simple. 
 
 THE SETTLED LAND ACT, 1882 
 (45 & 46 Vict. c. 38). 
 
 2. — (1) Any deed, will, agreement for a settlement or other agree- P. 412. 
 ment, covenant to surrender, copy of court roll. Act of Parliament, or Definition of 
 other instrument, or any number of instruments, whether made "or ^^^ tenant 
 passed before or after, or partly before and partly after the commence- for life, 
 ment of this Act, under or by virtue of which instrument or instruments 
 any land, or any estate or interest in land, stands for the time being 
 limited to or in trust for any person by way of succession creates or is 
 for purposes of this Act a settlement, and is in this Act referred to as 
 a settlement, or as the settlement, as the case requires. 
 
 (2) An estate or interest in remainder or reversion not disposed of by 
 a settlement and reverting to the settlor or descending to the testator's 
 heir, is for purposes of this Act an estate or interest coming to the 
 settlor or heir under or by virtue of the settlement, and comprised in 
 the subject of the settlement. 
 
 (3) Land, and any estate or interest therein, which is the subject of 
 a settlement, is for purposes of this Act settled land, and is, in relation 
 to the settlement, referred to in this Act as the settled land. 
 
 (4) The determination of the question whether land is settled land 
 for purposes of this Act or not is governed by the state of facts and the 
 limitations of the settlement, at the time of the settlement taking 
 effect. 
 
 (5) The person who is for the time being, under settlement, beneficially 
 entitled to possession of settled land for his life, is for purposes of this 
 Act the tenant for life of that land, and the tenant for life under that 
 settlement. 
 
 (6) If, in any case there are two or more persons so entitled as tenants 
 
606 
 
 Land Clauses of the Finance Act. 
 
 p. 415. 
 
 Capital 
 money under 
 Act, invest- 
 ment, etc., by 
 trustees or 
 Court. 
 
 Trustees' 
 reimburse- 
 ment. 
 
 P. 4U. 
 
 Enumeration 
 of other 
 limited 
 ownera, to 
 have powers 
 of tenant for 
 Ufe. 
 
 in common, or as joint tenants, or for otlier concurrent estates or 
 interests, they together constitute the tenant for life for purposes of 
 this Act. 
 
 (7) A person being tenant for life within the foregoing definition, 
 shall be deemed to be such notwithstanding that, under the settlement 
 or otherwise, the settled laud or his estate or interest therein is encum- 
 bered or charged in any manner or to any extent. 
 
 (8) The persons, if any, who are for the time being under a settle- 
 ment, trustees with power of sale of settled land, or with power of con- 
 sent to or approval of the exercise of such power of sale, or if under a 
 settlement there are no such trustees, then the persons, if any, for the 
 time being, who are by the settlement declared to be trustees thereof 
 for purposes of this Act, are for purposes of this Act trustees of the 
 settlement. 
 
 21. Capital money arising under this Act subject to payment of 
 claims properly payable thereout and to application thereof for any 
 special authorised object for which the same was raised, shall, when 
 received, be invested or otherwise applied wholly in one or partly in one 
 and partly in another or others of the following modes (namely) : 
 
 In payment of costs, charges and expenses of or incidental to the 
 
 exercise of any of the powers or the execution of any of the 
 
 provisions of this Act. 
 
 43. The trustees of a settlement may reimburse themselves or pay 
 
 and discharge out of the tnist property all expenses properly incurred 
 
 by them, 
 
 58. — (1) Each person as follows shall, when the estate or interest of 
 each of them is in possession, have the powers of a tenant for life under 
 this Act, as if each of them were a tenant for life as defined in this Act 
 (namely) : 
 
 (i.) A tenant in tail including a tenant in tail who is by Act of 
 
 Parliament restrained from barring or defeating his estate tail, 
 
 and although the reversion is in the Crown and so that the 
 
 exercise by him of his powers under this Act shall bind the 
 
 Crown, but not including such a tenant in tail where the land 
 
 in respect whereof he is so restrained was purchased with money 
 
 provided by Parliament in consideration of public services. 
 
 (ii.) A tenant in fee simple, with an executory limitation gift, or 
 
 disposition over, on failure of his issue, or in any other event : 
 
 (iii.) A person entitled to a base fee, although the reversion is in the 
 
 Crown, and so that the exercise by him of his powers under this 
 
 Act shall bind the Crown : 
 
 (iv.) A tenant for years determinable on life, not holding merely 
 
 under a lease at a rent : 
 (v.) A tenant for the life of another not holding merely under a lease 
 
 at a rent : 
 (vi.) A tenant for his own or any other life, or for years determinable 
 
The Settled Land Act, 1882. 607 
 
 on life, whose estate is liable to cease in any event during that 
 life, whether by expiration of the estate, or by conditional 
 limitation or otherwise, or to be defeated by an executory 
 limitation gift, or disposition over, or is subject to a trust for 
 accumulation of income for payment of debts or other purpose : 
 
 (vii.) A tenant in tail after possibility of issue extinct : 
 
 (viii.) A tenant by the curtesy : 
 (ix.) A person entitled to the income of land under a trust or direction 
 for payment thereof to him during his own or any other life, 
 whether subject to expenses of management or not, or until 
 sale of the land, or until forfeiture of his interest therein on 
 bankruptcy or other event. 
 
 (2) In every such case, the provisions of this Act referring to a 
 tenant for life, either as conferring powers on him or otherwise, aiid to 
 a settlement, and to settled land, shall extend to each of the persons 
 aforesaid, and to the instrument under which his estate or interest arises, 
 and to the land therein comprised. 
 
 (3) In any such case any reference in this Act to death as regards 
 a tenant for life shall, where necessary, be deemed to refer to the 
 determination by death or otherwise of such estate or interest as last 
 aforesaid. 
 
 59. Where a- person Avho is in his own right seised of or entitled in Pp. 42G and 
 possession to land is an infant, then for purposes of this Act the land is 
 
 settled land, and the infant shall be deemed tenant for life thereof. Infant 
 
 60. Where a tenant for life or a person having the powers of a entitled to 
 tenant for life under this Act is an infant, or an infant would, if he be tenant 
 Avere of full age, be a tenant for life or have the powers of a tenant for 
 
 life under this Act, the powers of a tenant for life under this Act may * 
 be exercised on his behalf by the trustees of the settlement, and if there yf^^^^ J 
 are none then by such person and in such manner as the Court on the 
 application of a testamentary or other guardian or next friend of the 
 infant either generally or in a particular instance orders. 
 
 61. — (1) The foregoing provisions of this Act do not apply in the case Married 
 of a married woman. women, how 
 
 to DG fljllGCtCQ 
 
 (2) Where a married woman who if she had not been a married 
 woman would have been a tenant for life or would have had the 
 powers of a tenant for life under the foregoing provisions of this Act, is 
 entitled for her separate use, or is entitled under any statute, passed or 
 to be passed, for her separate property, or as a feme sole, then she, 
 without her husband, shall have the powers of a tenant for life under 
 this Act. 
 
 (3) Where she is entitled otherwise than as aforesaid, then she and 
 her husband together, shall have the powers of a tenant for life under 
 this Act. 
 
 (4) The provisions of this Act referring to a tenant for life and a 
 settlement and settled land shall extend to the married woman without 
 
608 
 
 Land Clauses of the Finance Act. 
 
 pp. 426 and 
 462. 
 
 Tenant for 
 life lunatic. 
 
 P. 414. 
 
 Provision for 
 case of trust 
 to sell and 
 reinvest in 
 land. 
 
 her husband, or to her and her husband together, as the case may 
 require, and to the instrument under which her estate or interest arises, 
 and to the land therein comprised. 
 
 (5) The married woman may execute, make and do all deeds, 
 instruments, and things necessary or proper for giving effect to the 
 provisions of this section. 
 
 (6) A restraint on anticipation in the settlement shall not prevent the 
 exercise by her of any power under this Act. 
 
 62. Where a tenant for life or a person having the powers of a tenant 
 for life under this Act, is a lunatic so fo\md by inquisition, the com- 
 mittee of his estate may, in his name and on his behalf, under an order 
 of the Lord Chancellor or other person entrusted by virtue of the 
 Queen's Sign Manual with the care and commitment of the custody of 
 the persons and estates of lunatics, exercise the powers of a tenant for 
 life under this Act ; and the order may be made on the petition of any 
 person interested in the settled land, or of the committee of the 
 estate. 
 
 63. — (1) Any land, or any estate or interest in land, which under or 
 by virtue of any deed, will, or agreement, covenant to surrender, copy 
 of court roll. Act of Parliament, or other instrument or any number of 
 instruments, whether made or passed before or after, or partly before 
 and partly after, the commencement of this Act, is subject to a trust or 
 direction for sale of that land, estate, or interest, and for the application 
 or disposal of the money to arise from the sale or the income of that 
 money or the income of the land until sale, or any part of that money 
 or income for the benefit of any person for his life, or any other limited 
 period, or for the benefit of two or more persons concurrently for any 
 limited period, and whether absolutely, or subject to a trust for 
 accumulation of income for payment of debts or other purpose or to any 
 other restriction shall be deemed to be settled land, and the instru- 
 ment or instruments under which the trust arises shall be deemed to be 
 a settlement ; and the person for the time being beneficially entitled to 
 the income of the land, estate, or interest aforesaid, until sale whether 
 absolutely or subject as aforesaid shall be deemed to be a tenant for life 
 thereof ; or if two or more persons are so entitled concurrently, then 
 those persons shall be deemed to constitute together the tenant for life 
 thereof ; and the persons, if any, who are for the time being under the 
 settlement trustees for sale of the settled land, or having power of con- 
 sent to or approval of, or control over the sale, or if under the settle- 
 ment there are no such trustees then the persons, if any, for the time 
 being, who are by the settlement declared to be trustees thereof for 
 purposes of this Act are for purposes of this Act trustees of the 
 settlement. 
 
 (2) In every such case the provisions of this Act referring to a tenant 
 for life and to a settlement and to settled land shall extend to the person 
 or persons aforesaid and to the instrument or instruments under which 
 
Customs and Inland Revenue Act, 18S1. 609 
 
 his or their estate or interest arises, and to the land therein comprised 
 subject and except as in this section provided (that is to say) : 
 
 (i.) Any reference in this Act to the predecessors or successors in 
 title of the tenant for life or to the remainderman or reversioners 
 or other persons interested in the settled land, shall be deemed 
 to refer to the persons interested in succession or otherwise in 
 the money to arise from sale of the land, or the income of that 
 money or the income of the land until sale (as the case may 
 require). 
 
 (ii.) Capital money arising under this Act from the settled land shall 
 not be applied in the purchase of land unless such application is 
 authorised by the settlement in the case of capital money arising 
 thereunder from sales or other dispositions of the settled land, 
 but may, in addition to any other mode of application authorised 
 by this Act, be applied in any mode in which capital money 
 arising \mder the settlement from any such sale or other 
 disposition is applicable thereunder, subject to any consent 
 required or direction given by the settlement with respect to 
 the application of trust money of the settlement. 
 
 (iii.) Capital money arising under this Act from the settled land and 
 the securities in which the same is invested, shall not for any 
 purpose of disposition, transmission, or devolution, be considered 
 as land unless the same wovild, if arising under the settlement 
 from a sale or disposition of the settled land, have been so con- 
 sidered, and the same shall be held in trust for and shall go to 
 the same persons successively in the same manner, and for and 
 on the same estates, interests and trusts as the same would 
 have gone and been held if arising under the settlement from 
 a sale or disposition of the settled land, and the income of such 
 capital money and securities shall be paid or applied accordingly. 
 
 (iv.) Land of whatever temire acquired under this Act by purchase, 
 or in exchange, or on partition, shall be conveyed to and vested 
 in the trustees of the settlement, on the trusts, and subject to 
 the powers and provisions which, under the settlement or by 
 reason of the exercise of any power of appointment or charging 
 therein contained, are subsisting with respect to the settled land 
 or would be so subsisting if the same had not been sold, or as 
 near thereto as circumstances permit, but so as not to increase 
 or multiply charges or powers of charging. 
 
 CUSTOMS AND INLAND REVENUE ACT, 1881 
 (44 & 45 Vict. c. VA), s. 38, sub-ss. (2) and (3). 
 
 38. — (2) The personal or movable property to be included in an P. 18. 
 
 account shall be property of the following description, viz. — Grant of 
 
 (a) Any property taken as a donatio mortis causa made by any person ^^^^^^^ ^n 
 
 N, 39 accomisQ 
 
610 Land Clauses of the Finance Act. 
 
 certain dying on or after the first day of June, 1881, or taken under a 
 
 prope y. voluntary disposition made by any person so dying purporting 
 
 to operate as an immediate . gift inter vivos whether by way of 
 transfer, dehvery, declaration of trust, or otherwise, which shall 
 not have been bona fide made three months before the death of 
 the deceased. 
 
 (b) Any property which a person dying on or after such day having 
 
 been absolutely entitled thereto, has voluntarily caused or may 
 voluntarily cause to be transferred to or vested in himself and 
 any other person jointly whether by disposition or otherwise 
 so that the beneficial interest therein or in some part thereof 
 passes or accrues by survivorship on his death to such other 
 person. 
 
 (c) Any property passing under any past or future voluntary settle- 
 
 ment made by any person dying on or after such day by deed 
 or any other instrument not taking effect as a will whereby an 
 interest in such property for life or any other period deter- 
 minable by reference to death is reserved either expressly or 
 by implication to the settlor, or whereby the settlor may have 
 reserved to himself the right by the exercise of any power to 
 restore to himself, or to reclaim the absolute interest in such 
 property. 
 (3) Where an account delivered duly stamped comprises property 
 passing under a voluntary settlement and, upon the production of the 
 settlement, it shall appear that the stamp duty of 5s. per centum has 
 been paid thereon according to the amount or value of the property so 
 passing or any part thereof the amount of such stamp duty shall be 
 returned to the person delivering the account. 
 
 CUSTOMS AND INLAND EEVENUE ACT, 1885 
 (48 & 49 Vict. c. 51), ss. 11 to 19 (1) and s. 20. 
 
 1*. 124. 11. Whereas certain property, by reason of the same belonging to or 
 
 Grant of duty being vested in bodies corporate or unincorporate, escapes liability to 
 
 cornorat^and P'"^^^*®' ^^S^^J ^^ succession duties, and it is expedient to impose a duty 
 
 unincorporate thereon by way of compensation to the revenue : Be it therefore enacted, 
 
 bodies. (^jjg^t; there shall be levied and paid to Her Majesty in respect of all real 
 
 and personal property which shall have belonged to or been vested in 
 
 any body corporate or unincorporate during the yearly period ending on 
 
 the fifth day of April in any year, a duty at the rate of five pounds per 
 
 centum upon the annual value, income, or profits of such property 
 
 accrued to such body corporate or unincorporate in the same yearly 
 
 period, after deducting therefrom all necessary outgoings, including the 
 
 receiver's remuneration, and costs, charges, and expenses properly 
 
 Ujcurred in the management of such property. 
 
Customs and Inland Kevenue Act, 1885. <ill 
 
 Subject to exemption from such duty ia favour of property of the 
 descriptions following (that is to say) : — 
 
 (1) Property vested in or under the control or management of "The 
 
 Commissioners of Works " or " Tne Commissioners of Woods," 
 or any Department of Government. 
 
 (2) Property which, or the income or profits whereof, shall be legally 
 
 appropriated and applied for the benefit of the public at large 
 or of any county, shire, borough, or pla^-e, or the ratepayers or 
 inhabitants thereof, or in any manner expressly described by 
 Act of Parliament. 
 
 (3) Property which, or the income or profits whereof, shall be legally 
 
 appropriated and applied for any purpose connected with any 
 religious persuasion, or for any charitable purpose, or for the 
 promotion of education, literature, science, or the fine arts, 
 
 (4) Property of any friendly society or savings bank established 
 
 according to Act of Parliament. 
 
 (5) Property belonging to or constituting the capital of a body 
 
 corporate or unincorporate established for any trade or business, 
 or being the property of a body whose capital stock is so divided 
 and held as to be liable to be charged to legacy duty or 
 succession duty. 
 
 (6) Property aca[uired by or with funds voluntarily contributed to 
 
 any body corporate or unincorporate within a period of thirty 
 years immediately preceding. 
 
 (7) Property acquired by any body cori)orate or unincorporate within 
 
 a period of thirty years immediately preceding where legacy 
 duty or succession duty shall have been paid upon the acquisition 
 thereof. 
 
 12. In the construction and for the purposes of this Part of this^Act — P. 121. 
 The term " body unincorporate " includes every unincorporated Interpreta- 
 
 company, fellowship, society, association, and trustee, or number of ^^^ ^ erms. 
 trustees, to or in whom respectively any real or personal property shall 
 belong in such manner, or be vested upon such permanent trusts, that 
 the same shall not be liable to legacy duty or succession duty. 
 
 The term " accountable officer " means every chamberlain, treasurer, 
 bursar, receiver, secretary, or other officer trusted or member of a body 
 corporate or unincorporate by whom the annual income or profits 
 of property in respect whereof duty is chargeable under this Act shall 
 be received, or in whose possession, or under whose control, the same 
 shall be. 
 
 13. The duty hereby imposed shall be considered as a stamp duty, p. 125. 
 and shall be under the care and management of the Commissioners of Duty to be 
 Inland Revenue, herein-after called the Commissioners, who by them- ""der the 
 selves and their officers shall have the same powers and authorities Commis- 
 for the collection, recovery, and management thereof as are vested in sioners of 
 them for the collection, recovery, and management of the succession Revenue 
 
 39—2 
 
r)i2 
 
 Land Clauses of the Finance Act. 
 
 accountable 
 for the duty. 
 
 P. 122. 
 
 Keturn of 
 property to 
 be made to 
 the Commis- 
 sioners. 
 
 Ih. 
 
 duty, and shall have all other powers and authorities requisite for 
 
 carrying this Pai-t of this Act into execution. 
 
 r. 125. 14. The duty hereby imposed shall be a first charge on all the 
 
 Duty to be a property in lespect whereof the same shall be payable while such 
 
 first charge on property shall remain in the possession or under the control of the 
 
 Drouertv • * ^ ^ 
 
 what parties body corporate or unincorporate chargeable with such duty, or of any 
 
 party or parties acquiring the same, with notice of any such duty being 
 
 in arrear, and every such body corporate or unincorporate, and every 
 
 accountable officer, shall, to the full extent thereof, be answerable to 
 
 Her Majesty for the payment of the duty charged thereon. 
 
 15. — (1) Every body corporate or unincorporate chargeable with the 
 
 duty hereby imposed shall, on or before the first day of October in 
 
 every year, deliver, or cause to be delivered to the Commissioners or 
 
 their ofiicers, a full and true account of all property in respect whereof 
 
 any such duty shall be payable, and of the gross annual value, income, 
 
 or profits thereof accrued to the same body in the year ended on the 
 
 preceding fifth day of April, and of all deductions claimed in respect 
 
 thereof, whether by relation to any of the before-mentioned exemptions 
 
 from such duty or as necessary outgoings. 
 
 (2) The account shall be made in such form and shall contain all 
 
 such particulars as the Commissioners shall, by any general or special 
 
 notice require, or as shall be necessary or proper for enabling them 
 
 fully and correctly to ascertain the duty due, and every accountable 
 
 officer herein-before made answerable for payment of duty in respect of 
 
 any property' chargeable under this Act, shall be answerable also for the 
 
 delivery to the Commissioners of such full and true account as aforesaid 
 
 of and relating to such property. 
 
 16. Every accountable officer shall be at liberty to retain or raise 
 
 out of any moneys of any body corporate or unincorporate which shall be 
 
 held by him, or shall come to his hands, the full amount of all moneys 
 
 which he shall pay or have paid on account of the duty hereby imposed, 
 
 and all reasonable expenses incident to such payments. 
 
 17. — (1) It shall be lawful for the Commissioners to assess the duty 
 
 upon the footing of any account rendered to them, or if dissatisfied 
 
 with such account to cause an account to be taken by any person or 
 
 persons appointed by themselves for that purpose, and to assess the 
 
 duty on the footing of such last-mentioned account subject to appeal 
 
 to a Court in the same manner as in any case of succession duty as 
 
 herein-after provided. 
 
 (2) If the duty so assessed shall exceed the duty assessable according 
 
 to the account rendered to the Commissioners, and with which they 
 
 shall have been dissatisfied, and if there shall be no appeal against 
 
 such assessment, then it shall be in the discretion of the Commissioners, 
 
 having regard to the merits of each case, to charge the whole or any 
 
 part of the expenses incident to the taking of such last-mentioned 
 
 account on any funds liable to such duty as an addition thereto and 
 
 P. 126. 
 
 Power for 
 persons 
 answerable to 
 retain moneys 
 for payment 
 of duty. 
 
 P. 127. 
 
 Power for 
 Commis- 
 sioners to 
 assess duty 
 according to 
 accounts 
 rendered or to 
 obtain other 
 accounts. 
 
Customs and Inland Revenue Act, 1889. 613 
 
 part thereof, and co recover the same accordingly; but if there shall 
 be an appeal against such assessment, thou the payment of such 
 expenses shall be in the discretion of the Court. 
 
 (3) The duty shall be payable immediately after the assessment, and 
 notwithstanding any appeal tlicrefrom ; provided that in the event of 
 the amount of the assessment being reduced by the order of the Court, 
 the difference in amount shall be re{)aid with such interest (if any) as 
 the Court may allow. 
 
 18.^ — (1) Every body corporate or unincorporate, and every account- P. 127. 
 able officer hereby required to deliver any such account as aforesaid Penalty for 
 and wilfully neglecting so to do on or before the first day of October in pg^u^* ^nd 
 any year, shall be liable to pay to Her Majesty a sum equal to ten for non-pay- 
 pounds per centum upon the amount of duty payable in respect of the ™^" auty. 
 property required to be comprised in such account, and a like penalty 
 for every month after the first month during which such neglect shall 
 continue. 
 
 (2) Every body corporate or unincorporate, and every accountable 
 officer hereby required to pay any duty, and wilfully neglecting so to do 
 for a space of twenty-one days after the same shall have become 
 payable, shall be liable to pay to Her Majesty a penalty equal to ten 
 pounds per centum upon the amount of such unpaid duty, and a like 
 penalty for every month after the expiration of the said period of 
 twenty-one days during which such neglect shall continue. 
 
 19. — (1) The Commissioners shall, for the purposes of this Part of p. 128. 
 this Act, have the same powers in relation to proceedings to enforce the Application 
 delivery of accounts, and in relation to the verification of accounts, and of enactments 
 
 ftS to SUGCGS- 
 
 the production and inspection of books and documents, as they have sion duty to 
 
 in relation to succession duty under the law now in force. *h^^ P^"^*- ^^ 
 
 this Act. 
 
 20. In the case of any proceeding in any Court for the administration /*. 
 of any property chargeable with duty under this Act, such Court shall Court to pro- 
 provide out of any such property in its possession or control for the mgnt of duly 
 payment of the duty to the Commission. 
 
 CUSTOMS AND INLAND REVENUE ACT, 1889 
 (52 & 63 Vict. c. 7), ss. 11, 12, 13, 14. 
 
 11. — (1) Sub-section two of section 38 of the Customs and Inland P. 18. 
 
 Revenue Act, 1881, is hereby amended as follows : — Amendment 
 
 The description of property marked (a) shall be read as if the word ?!.^^ ^ "^'^ 
 
 "twelve " were substituted for the word "three " therein, and the s. 38] ' 
 said description of property shall include property taken under any 
 gift whenever made, of which property bona fide possession and 
 
614 Land Clauses of the Finance Act. 
 
 enjoyment shall not have been assumed by the donee immediately 
 upon the gift and thenceforward retained, to the entire exclusion of 
 the donor, or of any benefit to him by contract or otherwise : 
 
 The description of property marked (6) shall be construed as if the 
 expression " to be transferred to or vested in himself and any other 
 person " inchided also any purchase or investment effected by the 
 person who was absolutely entitled to the property either by him- 
 self alone, or in concert, or by arrangement with any other person. 
 
 The description of property marked (c) shall be construed as if the 
 expression " voluntary settlement " included any trust, whether 
 expressed in writing or otherwise, in favour of a vohmteer and, if 
 contained in a deed or other instrument effecting the settlement, 
 whether such deed or other instniment was made for valuable con- 
 sideration or not as between the settlor and any other person, and 
 as if the expression " such property " wherever the same occurs 
 included the proceeds of sale thereof. 
 
 Limitation of Claims to Succession Duty or Legacy Duty in 
 
 CERTAIN Cases. 
 
 P. 100. 12. — (1) Notwithstanding the forty-second section of the Succession 
 Purchasers Duty Act, 1853, or any other provision contained in that Act, real 
 aiul mort- property, or any estate or interest therein, shall not, as against a pur- 
 exempted chaser for valuable consideration, or a mortgagee, remain charged with 
 
 from liability or liable to payment of any sum for succession duty or duty herein- 
 
 to succession , . ^ , , • r, , , • ^ r. > • • - • 
 
 duty after a L>efore imposed by this Part of this Act, after the expiration of six years 
 
 specified from the date of notice to the Commissioners of Inland Revenue of the 
 
 fact that the successor, or any pei*son in his right or on his behalf, has 
 
 become entitled in possession to his succession or to the receipt of the 
 
 income and profits thereof, or from the date of the first payment by 
 
 such successor or pereon of any instalment or part of the duty, in case 
 
 the successor shall not have availed himself of the option given to him 
 
 by section twenty-two of the Customs and Inland Revenue Act, 1888, 
 
 or after two years from the time for the payment by such successor of 
 
 the last instalment or part of the duty, if he has availed himself of such 
 
 option ; or, in the absence of any such notice or payment, after the 
 
 expiration of twelve years from the happening of the event (whether 
 
 before or after the passing of this Act) which give rise to an immediate 
 
 claim to such duty, or if such period of twelve years expires within six 
 
 years from the date of the passing of this Act, then after the expiration 
 
 of six years from the last-mentioned date. 
 
 (2) The duty (if any) unpaid at the expiration of such period of six 
 
 years, or twelve years or six years as the case may be, shall be payable 
 
 and paid by the successor or the persons mentioned as accountable in 
 
 section forty-four of the said Act, other than the purchaser or mortgagee, 
 
 and shall become charged substitutively upon any other estate or interest 
 
 comprised in the succession of the successor remaining vested in him. 
 
Customs and Inland Eevenue Act, 1889. 615 
 
 or in any person in his right or on his behalf, other than the purchaser 
 or mortu;agee, and in case of a mortgage upon the equity of redemption, 
 
 (3) This section is not to lessen or affect any liability of any successor 
 or accountable person, other than the person or mortgagee, to payment 
 of duty, whether out of money received on any sale or mortgage, or 
 otherwise, but a purchaser or mortgagee shall not for the purpose of 
 obtaining the exemption conferred by this section be bound, to see that 
 the duty is discharged out of the money or other consideration paid or 
 given as the consideration for the sale or mortgage. 
 
 13. — (1) Any person may cause an attested copy (which shall be /j^ 
 exempt from stamp duty) of any document which creates a liability for power to 
 payment of any succession duty, or duty herein-before imposed by this deposit copies 
 Part of this Act, other than a testamentary document admitted to ^^^ liability 
 probate, to be deposited with the Commissioners of Inland Revenue at to cease after 
 their principal office in London, Edinburgh, or Dublin, as the case may sp^cined 
 require, and such copy shall be received at that office. 
 
 (2) The officers of the Commissioners receiving the copy shall, on 
 request of the person making the deposit, and either by indorsement on 
 the original document or otherwise give a receipt in writing under his 
 hand for the copy. After a receipt has been given by an officer of a 
 document under this section, no person shall be liable for payment of 
 any duty under such document after the expiration of six years from 
 the date of notice to the Commissioners of the fact which gives rise to 
 an immediate claim to such duty. 
 
 (4) The cost of depositing a copy of a document and obtaining a 
 receipt under this section shall be deemed costs duly incurred by a 
 trustee, executor, or administrator, or any other person in the execution 
 of his duties as trustee, executor, or administrator, or otherwise, under 
 the document. 
 
 14. No person shall, under a testamentary document admitted to n, 
 probate, or under letters of administration, or under a confirmation, be Liability to 
 liable for payment of any legacy duty or succession duty, or duty herein- ^"^'^ under 
 before imposed by this Part of this Act, after the expiration of six years admitted to 
 from the date of the settlement of the account in respect of which the probate to 
 duty is payable, where such account was in all respects a full and true specified 
 account and contained all the facts material to be known by the Com- period, 
 missioners of Inland Revenue for the ascertainment of the rate and 
 amount of duty ; and no trustee, executor, or administrator shall, after 
 the expiration of such six years, be liable to such duty if it is proved to 
 the satisfaction of the Commissioners that the account rendered was 
 correct to the best of his knowledge, information, and belief. 
 
616 
 
 Land Clauses of the Finance Act. 
 
 p. 101. 
 
 Burdens 
 which are 
 without regis- 
 tration to 
 affect 
 registered 
 laud. 
 
 LOCAL KEGISTKATION OF TITLE (IRELAND) 
 
 ACT, 1891 
 
 (64 & 55 Vict. c. 66), s. 47 (see p. 101), 
 
 Subject to the first proviso in this section contained, all registered 
 land shall be subject to such of the following burdens as for the time 
 being affect the land, whether those burdens are or are not registered, 
 namely — 
 
 (a) Succession duty, crown rents, quit rents, tithe rentcharges and 
 
 payments in lieu of tithe or tithe rentcharge ; 
 
 (b) land improvement charges and drainage charges ; 
 
 (c) annuities or rentcharges for the repayment of advances made 
 
 under the provisions of any of the Purchase of Land (Ireland) 
 Acts on account of purchase money ; 
 
 (d) annuities charged under the provisions of section 27 of the 
 
 Landlord and Tenant (Ireland) Act, 1870; 
 
 (e) rights of the public or of any class of the public ; 
 
 (/) customary rights, franchises, seignoral rights, and liabilities 
 
 arising from tenure ; 
 . (g) easements and profits a prendre, \inless they are respectively 
 created by express grant or reservation after the first registration 
 of the land ; 
 
 (A) tenancies created for any term not exceeding thirty-one years, or 
 for any less estate in cases where there is an occupation under 
 such tenancies ; and 
 
 {{) statutory tenancies ; 
 
 Provided as follows : — 
 
 (i.) Where it is proved to the satisfaction of the registering authority 
 that any land registered or about to be registered is exempt 
 from, or has ceased to be subject to, succession duty, crown 
 rent, quit rent, tithe rentcharge, payments in lieu of tithe or 
 tithe rentcharge, land improvement charge, drainage charge, or 
 annuity or rentcharge for the repayment of any advance made 
 on account of purchase money as hereinbefore is mentioned, the 
 authority may enter on the register notice of the fact ; and 
 
 (ii.) Where the existence of any of the burdens in this section men- 
 tioned is proved to the satisfaction of the registering authority, 
 the authority may, with the consent of the applicant or 
 registered owner, or in pursuance of an order of the Court, enter 
 notice thereof on the register. 
 
Stamp Act, 1891. 617 
 
 STAMP DUTIES. 
 
 The following exti-acts from the Acts relating to stamps are thought 
 to be specially useful in considering the question of increment value 
 duty. But it is not suggested that other sections of the Stamp Acts 
 will not apply to the increment value stamp. 
 
 THE STAMP DUTIES MANAGEMENT ACT, 1891 
 (54 & 55 Vict. c. 38), s. 1. 
 
 1. All duties for the time being chargeable by law as stamp duties P. 70. 
 
 shall be under the care and management of the Commissioners, and this Act to apply 
 
 Act shall apply to all such duties and to all fees which are for the time jy^ies^ *™^' 
 being directed to be collected or received by means of stamps. 
 
 Act. 
 lb. 
 Facts and cir- 
 
 THE STAMP ACT, 1891 
 
 (54 & 55 YicT. c. 39). 
 
 2. All stamp duties for the time being chargeable by law upon any P. 71. 
 instruments are to be paid and denoted according to the regulations in ^^^ duties to 
 this Act contained, and except where express provision is made to the accordin" to 
 contrary are to be denoted by impressed stamps only. regulations of 
 
 5. All the facts and circumstances affecting the liability of any 
 instrument to duty, or the amount of the duty with which any instru- 
 ment is chargeable, are to be fully and truly set forth in the instrument ; cumstances 
 and every person who, with intent to defra\id Her Majesty, affecting duty 
 
 [a) executes any instrument in which all the said facts and circum- j,j instru- 
 
 stances are not fvilly and truly set forth ; or meats. 
 
 ip) being employed or concerned in or about the preparation of any 
 instrument, neglects or omits fully and truly to set forth therein 
 all the said facts and circumstances 
 shall incur a fine of ten povmds. 
 
 . 12. — (1) Subject to such regulations as the Commissioners may think P. 80. 
 fit to make, the Commissioners may be required by any person to Assessment of 
 express their opinion with reference to any executed instrument iipon missioners. 
 the following questions : — 
 
 (a) Whether it is chargeable with any duty ; 
 
 [b) With what amount of duty it is chargeable. 
 
 (2) The Commissioners may require to be furnished with an abstract 
 of the instrument, and also with such evidence as they may deem 
 necessary in order to show their satisfaction whether all the facts and 
 
618 
 
 Land Clauses of the Finance Act. 
 
 p. 72. 
 
 Persons dis- 
 satisfied may 
 appeal. 
 
 P. 81. 
 
 Terms upon 
 which instru- 
 ments not 
 duly stamped 
 may be 
 received in 
 evidence. 
 
 circumstances affecting the liability of the instrument to duty, or the 
 amount of the duty chargeable thereon, are fully and truly set forth 
 therein. 
 
 (3) I f the Commissioners are of opinion that the instrument is not 
 chargeable with any duty, it may be stamped with a particular stamp 
 denoting that it is not chargeable with any duty. 
 
 (4) If the Commissioners are of opinion that the instrument is 
 chargeable with duty, they shall assess the duty with which it is in 
 their opinion chargeable, and when the instrument is stamped in 
 accordance with the assessment it may be stamped with a particular 
 stamp denoting that it is duly stamped. 
 
 (5) Every instrument stamped with the particular stamp denoting 
 either that it is not chargeable with any duty, or is duly stamped, shall 
 be admissible in evidence and available for all purposes notwithstanding 
 any objection relating to duty. 
 
 (6) Provided as follows : 
 
 (a) An instrument upon which the duty has been assessed by the 
 
 Commissioners shall not if it is unstamped or insufficiently 
 stamped, be stamped otherwise than in accordance with the 
 assessment : 
 
 (b) Nothing in this section shall extend to any instrument chargeable 
 
 with ad valorem duty and made as a security for money or 
 stock without limit, or shall authorise the stamping after the 
 execution thereof of any instnunent which by law cannot be 
 stamped after execution : 
 
 (c) A statutory declaration made for the purpose of this section shall 
 
 not be used against any person making the same in any pro- 
 ceeding whatever, except in an enquiry as to the duty with 
 which the instrument to which it relates is chargeable ; and 
 every .person by whom any such declaration is made shall on 
 payment of the duty chargeable upon the instrument to which 
 it relates be relieved from any fine or disability to which he 
 may be liable by reason of the omission to state truly in the 
 instrument any fact or circumstances required by this Act to 
 be stated therein. 
 13. Relates to appeals by special case to the High Court from the 
 Assessment Commissioners as to a stamp. Whether it is superseded by 
 s. 33, so far as increment value duty is concerned, or still remains in • 
 force, appears doubtful. 
 
 1^- — (1) Upon the production of an instrument chargeable with any 
 duty as evidence in any Court of civil judicature in any part of the 
 United Kingdom or before any arbitrator or referee notice shall be taken 
 by the judge, arbitrator, or referee, of any omission or insufficiency of 
 the stamp thereon, and if the instrument is one which may legally be 
 stamped after the execution thereof it may, on payment to the officer 
 of the Court whose duty it is to read the instrument, or to the arbitrator 
 
Stamp Act, 1891. 619 
 
 or referee, of the amoimt of the unpaid uty, and the penalty payable 
 on stamping the same, and of a further sum of one pound, be received 
 in evidence saving all just exceptions on other grounds. 
 
 (2) The officer, or arbitrator, or referee receiving the duty and penalty 
 shall give a receipt for the same and make an entry in a book kept for 
 that purpose of the payment and of the amount thereof and shall com- 
 municate to the Commissioners the name or title of the proceeding in 
 which, and of the party from whom, he received the duty and penalty, 
 and the date and description of the instrument, and shall pay over to 
 such person as the Commissioners may appoint the money received by 
 him for the duty and penalty. 
 
 (3) On production to the Commissioners of any instrument in respect 
 of which any duty or penalty has been paid, together with the receipt, the 
 payment of the duty and penalty shall be denoted on the instrument. 
 
 (4) Save as aforesaid, an instrument execiited in any part of the 
 United Kingdom, or relating wheresoever executed, to any property 
 situate, or to any matter or thing done or to be done in any part of the 
 United Kingdom, shall not, except in criminal proceedings, be given in 
 evidence or be available for any purpose whatever unless it is duly 
 stamped in accordance with the law in force at the time when it was 
 first executed. 
 
 15. See a note on p. 83 as to this section. 
 
 16. Every public officer having in his custody any rolls, books, records, p. 346. 
 papers, documents, or proceedings, the inspection whereof may tend to Rolls, books, 
 secure any duty, or to prove or lead to the discovery of any fraud or ^•' ° ^ 
 omission in relation to any duty, shall at all reasonable times permit any inspection, 
 person thereto authorised by the Commissioners to inspect the rolls, 
 
 books, records, papers, documents and proceedings, and to take such 
 notes and extracts as he may deem necessary, without fee or reward, and 
 in case of refusal shall for every oflFence incur a fine of ten pounds. 
 
 5i. For the purposes of this Act the expression " conveyance on pp 7^ 71. 
 sale " includes every instrument, and every decree or order of any Court Meaning of 
 or of any Commissioners, whereby any property, or any estate or "conveyance 
 interest in any property, upon the sale thereof is transferred to or vested 
 in a purchaser, or any other person on his behalf or by his direction. 
 
 65. — (1) Where the consideration or any part of the consideration for Pp. 71, 351. 
 a conveyance on sale consists of any stock or marketable security the How ad 
 conveyance is to be charged with ad valorem duty in respect of the value ^^ br^lcu-'^ 
 of the stock or security. lated in 
 
 (2) Where the consideration or any part of the consideration for a ^^spect of 
 conveyance on sale consists of any security not being a marketable securities, 
 security the conveyance is to be charged with ad valorem duty in respect 
 of the amount due on the day of the date thereof for principal and 
 interest upon the security. 
 
 56. — (1) Where the consideration or any part of the consideration for Tp- 71, 351. 
 a conveyance on sale consists of money payable periodically for a definite ^^^ ^?"- 
 
620 
 
 Land Clauses of the Finance Act. 
 
 consisting of 
 periodical 
 payments to 
 be charged. 
 
 Pp. 71, 354. 
 How con- 
 veyance in 
 consideration 
 of a debt &c., 
 to be charged. 
 
 P. 8. 
 
 What is to be 
 deemed a 
 conveyance 
 on any occa- 
 sion not being 
 a sale or 
 mortgage. 
 
 period not exceeding twenty years, so that the total amount to be paid 
 can be previously ascertained, the conveyance is to be charged in respect 
 of that consideration with ad valorem duty on such total amoxmt. 
 
 (2) Where the consideration, or any part of the consideration, for a 
 conveyance on sale consists of money payable periodically for a definite 
 period exceeding twenty years or in perpetuity, or for any indefinite 
 period not terminable with life, the conveyance is to be charged in 
 respect of that consideration with ad valorem duty on the total amount 
 which will or may, according to the terms of sale, be payable during the 
 period of twenty years next after the day of the date of the instrument. 
 
 (3) Where the consideration or any part of the consideration for a 
 conveyance on sale consists of money payable periodically during any 
 life or lives, the conveyance is to be charged in respect of that con- 
 sideration with ad valorem duty on the amount Avhich will or may, 
 according to the terms of sale, be payable diiring the period of twelve 
 years next after the day of the date of the instrument. 
 
 (4) Provided that no conveyance on sale chargeable with ad valorem 
 duty in respect of any periodical payments, and containing also provision 
 for securing the payments is to be charged with any duty in respect of 
 such provision, and no separate instrvUnent made in that case for 
 securing the payments is to be charged with any higher duty than ten 
 shillings. 
 
 57. Where any property is conveyed to any person in consideration 
 wholly or in part of any debt due to him or subject either certainly or 
 contingently to the payment or transfer of any money or stock whether 
 being or constituting a charge or incumbrance upon the property or not, 
 the debt, money, or stock is to be deemed the whole or part, as the case 
 may be, of the consideration in respect whereof the conveyance is 
 chargeable with ad valorem duty. 
 
 62. Every instrument, and every decree or order of any Court or of 
 any Commissioners, whereby any property on any occasion, except a sale 
 of mortgage, is transferred to or vested in any person is to be charged 
 with duty as a conveyance or transfer of property. 
 
 Provided that a conveyance or transfer made for effectuating the 
 appointment of a new trustee is not to be charged with any higher duty 
 than ten shillings. 
 
 FINANCE ACT, 1898 
 (61 & 62 Vict. c. 10). 
 
 P g_ 6. For the removal of doubts with reference to the effect of sections 
 
 Removal of fifty-four and fifty-seven of the Stamp Act, 1891, it is hereby declared 
 
 r!r& 55^V?ct. ^^'^^ ^^® definition of "conveyance on sale " in the said section fifty- 
 
 c. 39, 8. 54, so four includes a decree or order for or having the effect of an order for 
 
 far as regards foreclosure. 
 
 foreclosure 
 
 decrees. 
 
Finance Act, 1898. 621 
 
 Provided that — 
 
 (a) The ad valorem stamp duty upon any such decree or order shall 
 not exceed the duty on a sum equal to the value of the property 
 to which the decree or order relates and where the decree or 
 order states that vahie that statement shall be conclusive for 
 the purpose of determining the amount of the duty ; and 
 
 {h) where ad valorem stamp duty is paid upon such decree or order, 
 any conveyance following upon such decree or order shall be 
 exempt from the ad valorem stamp duty. 
 
 FINANCE ACT, 1911 
 
 (1 & 2 Geo. 6, c. 48). 
 Part V. 
 
 Death Duties. 
 
 18. It is hereby declared that, in estimating for the p. 473. 
 l)urposes of subsection (5) of section seven of the Finance coUatSor^ 
 x-Vct, 1894, the principal value of any agricultural pro- purposes of 
 
 , . 1 • ° T , Estate Duty. 
 
 perty which comprises cottages occupied by persons 
 
 employed solely for agricultural purposes in connexion 
 
 with the property, no account shall be taken of and ^^3^^^ ^^^'** 
 
 value attributable to the fact that the cottage is suitable 
 
 for the residential purposes of any persons other than 
 
 agricultural labourers or workmen on the estate. 
 
622 
 
 Land Clauses of the Finance Act. 
 
 OedbrXLH.. 
 Bale 13. 
 
 Appeal under 
 10 Edw. 7. 
 c. 8, 8. 33 (4), 
 
 COUNTY COURT RULES REGULATING APPEALS FROM A 
 REFEREE TO THE COUNTY COURT UNDER SECT. 33 (4). 
 
 These Rules are based upon and are substantially the same as the 
 Rules regulating Appeals to the High Court from the Referee (see 
 ante, p. 583) The only differences between the two sets of rules arise 
 from the ordinary differences in the constitution and procedure of the 
 High Court and the County Court. It will be observed that the County 
 Court Rules, like the High Court Rules, make no provision for appeals 
 by the Crown from the referee, although such an appeal is expressly 
 given by s. 7 of the Revenue Act, 1911. No doubt they will be 
 allowed in this respect. 
 
 STATUTORY RULES AND ORDERS, 1911. 
 342 
 
 No. 
 
 L. 10 
 
 COUNTY COURT, ENGLAND. 
 
 Procedure. 
 
 The County Court Rules, 1911. Dated April 11, 1911. 
 
 These Rules may be cited as the County Court Rules, 1911, or each rule 
 may be cited as if it had been one of the County Court Rules, 1903, and had 
 been numbered therein by the number of the order and rule placed in the 
 margin opposite such rule. 
 
 An order and rule referred to by number in these rules means the order 
 and rule so numbered in the County Court Rules, 1903, or in any County 
 Court Rules of subsequent date, as the case may be. 
 
 These Rules shall be read and construed as if they were contained in the 
 County Court Rules, 1903. The forms in the Appendix shall be used as if 
 the were contained in the Appendix to the County Court Rules, 1903, and 
 when it is so expressed shall be usel iiisteai of the corresponding forms 
 contained in such last-mentioned Appendix, or in the Appsndix to any 
 County Court Rules of subsequent date, as the case may be. 
 
 Where any rule or form hereby annulled is referred to in any of the 
 County Court Rules, 1903, or any County Coiu-t Rules of subsequent date, 
 or in the Appendix to any of those Rules, the reference to such rule or form 
 shall be construed as referring to the ru^e or form hereby prescribed to be 
 used in lieu thereof 
 
 OBDER XLn. 
 The Succession Duty Act, 1853, Section 50. The Finance Act, 1894, 
 Sections 10 and 14. 
 The following rules shall be added to Order XLII., viz. : — 
 
 The Finance (1909-10) Act, 1910, Section 33 (4). 
 
 33. Where any person aggrieved by the decision of a referee under the 
 
 Finance (1909-10) Act, 1910, desires to appeal to the Court against the 
 
 decision, he shall proceed by filing a petition setting forth specifically the 
 
 several facts and contentions of law upon which he alleges that the decision 
 
County Court Rules, &c. 
 
 623 
 
 of the referee was erroneous, and stating an address at which docutn'^nts 
 may be served on him 
 
 34. Subject to the provisions of these rules, a petition of appeal must be 
 filed within one month from the date of the decision of the refereee. 
 
 35. — (1) The petition shall be intituled "in the matter of the Finance 
 (1909-10) Act, 1910, and in the matter of an appeal by , of 
 
 under section 33 of the said Act." 
 
 (2) On the filing of a petition the registrar shall fix a day and hour on 
 and at which the petition will be heard, the day to be fixed at a date not 
 less than sixty days from the filing of the petition, so as to allow time for 
 the provisions of these rules to be complied with. 
 
 (3) On the day of hearing being fixed, the registrar shall seal a copy of 
 the petition, and shall deliver to the appellants two copies of a notice 
 according to the form in the Appendix, signed by the registrar and under 
 the seal of the Court ; and the sealed copy of the petition, with one of such 
 notices annexed thereto, shall within seven days after the filing of the 
 petition be served by the appellant upon the Commissioners of Inland 
 Eevenue. 
 
 36. Within ten days after service of the petition the Commissioners shall 
 serve upon the appellant a notice stating whether, and to what extent, they 
 admit the facts stated in the petition. 
 
 37.— (1) Within twenty-eight days after service of the petition the Com- 
 missioners shall serve upon the appellant a further notice stating the facts 
 and the contentions of law upon which they themselves intend to rely at the 
 hearing, and (if they so think fit) requiring the appellant to admit those 
 facts. 
 
 (2) The appellant, if he is so required to admit facts shall, and in any 
 case may, within ten days after service upon him of the notice reqviiied to 
 be served by the Commissioners under this rule, serve upon the Com- 
 missioners a notice stating whether, and to what extent, he admits the facts 
 stated in the notice served by the Commissioners. 
 
 38. Upon the expiration of ten days after the service of the notice required 
 to be served by the Commissioners under the last preceding rule all matters 
 shall, except to the extent admitted by both parties, be deemed to be at 
 issue. 
 
 39. Unless by consent, or otherwise ordered, only oral evidence shall be 
 admitted at the hearing. 
 
 40. The appellant shall not without the leave of the judge be entitled to rely 
 upon any facts or contentions of law other than those stated in the petition, 
 and the Commissioners shall not without the leave of the judge be entitled to 
 rely upon any facts or contentions of law other than those stated in the 
 notice required to be served by them under these rules. 
 
 41. — (1) It shall be the duty of the appellant and the Commissioners 
 respectively to exchange lists of all documents in their possession relating to 
 the matters at issue, and to give to each other inspection, at all reasonable 
 times, of any of those documents which may not be protected by any privilege, 
 and, if so required, to provide copies thereof on the usual terms. 
 
 (2) If the Commissioners are dissatisfied with the list so supplied by the 
 appellant, they may apply to the Court for an order for discovery of docu- 
 ments in the same manner and to the same extent as a party to an action 
 
 to be by 
 petition. 
 
 Order XLIL, 
 
 Rule 14. 
 Time for 
 appealing. 
 
 OrderXLII. 
 
 Rule 15. 
 Title, date of 
 hearing, and 
 service of 
 petition. 
 
 [See Form 
 311.] 
 
 OrderXLII., 
 
 Rule 16. 
 Notice of 
 admissions by 
 respondents. 
 
 OrderXLII., 
 
 Rule 17. 
 Notice to be 
 given by 
 respondents 
 of facts and 
 contentions of 
 law relied on. 
 
 OrderXLII., 
 
 Rule 18. 
 Matters, when 
 deemed to be 
 at issue. 
 
 OrderXLII 
 
 Rule 19. 
 Oral evidence. 
 
 OrderXLII., 
 
 Rule 20. 
 Parties 
 limited to 
 grounds 
 stated in 
 petition and 
 notice. 
 
 OrderXLII., 
 
 Rule 21. 
 Discovery and 
 inspection of 
 documents. 
 
624 
 
 Land Clauses of the Finance Act. 
 
 in the Court, but in considering any such application the Court shall take 
 into account the willingness or otherwise of the Commissioners to disclose or 
 allow inspection of any documents in their possession. 
 
 42. The judge may, at any stage of the proceedings, either upon or without 
 the application of either party, order that any material, whether strictly 
 admissible as evidence or not, which in the opinion of the judge ought, 
 having regard to the question of costs or otherwise, fairly to be admitted as 
 prima facie evidence of any fact, shall he prima facie evidence of that fact, 
 so as to shift the burden of proving the contrary on to the other part}'. 
 
 43. The judge may extend the time for filing or serving a petition of 
 appeal or for serving any notice under these rules, upon such terms (if any) 
 as the justice of the case may require, and any such extension may be 
 
 appealing and ordered although the application for the same is not made until after the 
 
 for serving 
 
 documents. 
 
 OrderXLIL, 
 
 Rule 24. 
 Amendment 
 of petition or 
 notices. 
 
 OkdekXLII., 
 Rule 25. 
 
 OrderXLIL, 
 
 Rule 22. 
 Admission of 
 certain 
 material as 
 prima facie 
 evidence. 
 
 OrderXLIL, 
 
 Rule 23. 
 Extension of 
 time for 
 
 expiration of the time allowed imder these rules. 
 
 44. The judge may at any stage of the proceedings allow the amendment 
 of the petition, or of any notice under these rules, upon such terms as the 
 judge may think right. 
 
 45. — (1) Where the Commissioners claim that any sum is due from the 
 appellant by way of duty, they may apply for an order that proceedings on 
 the appeal shall be stayed until the appellant has paid or has given security 
 
 rower to stay ^^^ ^he duty claimed. 
 
 proceedings 
 till duty paid 
 or secured. 
 
 OrderXLIL, 
 
 Rule 26. 
 Service of 
 documents. 
 
 OrderXLIL, 
 Rule 27. 
 
 Oriler on 
 
 petition. 
 
 OrderXLIL, 
 Rule 28. 
 
 Saving for 
 
 right of 
 
 Crown. 
 
 (2) Any such application shall be made to the judge in accordance with 
 the rules as to interlocutory applications, subject to the following 
 modifications : — 
 
 (i.) The application shall be made on notice in writing, and on aflBdavit ; 
 (ii.) The Commissioners shall serve notice of the application on the 
 appellant three days at least before the hearing of the application, 
 and shall deliver to the appellant, together with such notice, a copy 
 of any affidavit which they intend to use at the hearing of the 
 summons. 
 
 (3) The judge shall make such order on any such application as seems to 
 him reasonable in the circumstances of the case, and any order so made may, 
 on an application made in accordance with this rule either by the Com- 
 missioners or the appellant, be subsequently varied or discharged. 
 
 46. Any notice or other document required or authorised to be served upon 
 or sent to the Commissioners under these rules shall be sufficiently served 
 or sent if sent by post in a prepaid letter addressed to the Solicitor of Inland 
 Revenue, Somerset House, London, W.C, and any notice or other document 
 required or authorised to be served upon or sent to an appellant under these 
 rules shall be sufficiently served or sent if sent by post in a prepaid letter 
 addressed to him at his address for service as stated in his petition ; and 
 unless the contrary is proved, any notice or document served as aforesaid 
 shall be deemed to have been served at the time at which the letter would 
 be delivered in the ordinary course of post. 
 
 47. Where the judge makes an order upon a petition under this Order, 
 the registrar shall as soon thereafter as conveniently may be draw up, seal, 
 and file such order. 
 
 48. Nothing in these rules shall be construed to afPect any right vested in 
 the Crown by virtue of the Eoyal Prerogative. 
 
County Court Rules, &c. 625 
 
 We, William Lucius Selfe, William Cecil Smyly, Eobert Woodfall, Thomas 
 C. Granger, and H. Tindal Atkinson, being Judges of County Courts 
 appointed to frame rules and orders for regulating the practice of the Courts 
 and forms of proceedings therein, having by virtue of the powers vested in 
 us in this behalf framed the foregoing Eules and Orders, do hereby certify 
 the same under our hands and submit them to the Lord Chancellor 
 accordingly. 
 
 Wm. L, Selfe. 
 Wm. C. Smyly. 
 R. Woodfall. 
 T. C. Grangee. 
 H. Tindal Atkinson. 
 Approved, 
 
 Lorebukn, C. 
 Alverstone, C.J. 
 Herbert H. Cozens-Hardy, M.E. 
 Eoland L. Vaughan Williams, L.J. 
 E. J. Parker, J. 
 P. Ogden Lawrence. 
 Wm. H. AVinterbotham. 
 C. H. Morton. 
 I allow these Eules, which shall come into force on the first day of 
 May, 1911. 
 
 The nth day of April, 1911. 
 
 Loreburn, C, 
 
 N. 40 
 
INDEX. 
 
 ACCOUNT, 
 
 by corporate, etc., bodies for increment value duty, Ixxvi., 121 — 123, 
 
 126—128. 
 by lessor for reversion duty, xxxv., xciii., 176 — 181 
 form of, 523 — 525 
 illustration of, Ixxxviii. 
 to be delivered by personal representative for increment value duty, 
 xxix., 90, 92, 94, 101—103 
 
 ACCOUNTABLE OFFICER 
 
 of a corporate or unincorporate body, 
 definition of, 121 
 liability for increment value duty, 121, 127 — 128 
 
 ADMINISTRATION 
 
 of estates of corporate and unincorporate bodies, increment value duty 
 
 in, 128 
 priority of Crown for increment value duty in, 84, 90, 94, 105, 121 
 
 ADMISSION 
 
 of facts on appeal to High Court, 383 — 385 
 
 ADVERTISEMENT, 
 
 cost of, as capital expenditiu'e, on land, Ivi., 150, 294, 297 — 298 
 wbat, necessary for " sale in the open market," 275 
 
 AFFIDAVITS 
 
 in appeal proceedings, filing, 385 
 
 AGENT OR BAILIFF, 
 
 not accountable for increment value duty on deatb, 102 
 
 "AGGRIEVED," PERSON, 
 meaning of, 359, 368 
 
 AGREEMENT, 
 
 by transferee or lessee to pay increment value dutj', void, 46 
 
 for acquisition of reversion, effect of, on reversion duty, 169 
 
 may be presented for increment value duty, 77 
 
 for a lease, included in " lease," 11, 443 
 
 for sale or lease, stamping, Ixviii., Ixxiii., 82, 89 
 
 AGRICULTURAL LAND, 
 definition of, 463 — -4:71 
 
 effect of probable development on gross value, 277 
 estimation of principal value of, 478 
 
 exemption from increment value duty,xlv.,lxxviii.— Ixxix., 23, 130 — 137 
 
 complete, in case of small pro- 
 perties, 138—139 
 exemption of, from reversion duty, xci., 166—167 
 meaning of, 113, 130—133 
 not liable to taxation, valuation of, 310 
 
 40—2 
 
6^8 Index. 
 
 L 
 
 AGEICULTCJRAL JjAND—continiud. 
 original total value of, 321 
 periodical valuation of, cii. — ciii., 334 
 provision in favour of, in Finance Act, 1894... 95 —96 
 site value of, 287 
 
 stamping conveyances and leases of, Ixxi., 490 
 subject, in general, to undeveloped land duty, xcvi., 181 — 188 
 undeveloped land duty on, xcvii., 194—196, 203 
 value of, for agricultural purposes. See Agricultural Value. 
 
 AGEICULTUEAL VALUE 
 
 in relation to tlie provisional valuation, cxviii., 321 
 
 meaning of, 130—131, 195, 311—312 
 
 not the same as site value, 194 
 
 sporting i-ights in relation to, 439 
 
 when separate valuation necessary, 312 
 
 whether agricultural buildings included in, 131 — 133 
 
 whether to be ascertained quinquennially, 334 — 335 
 
 AGEICULTUEE, 
 
 definition of, 463 — 471 
 
 ALLOTMENTS, 
 
 included in agricultural land, 463, 470 
 
 ALLOWANCES. See Deductions. 
 
 ANNUAL EQUIVALENT 
 
 of capital value of minerals, 235 — 240 
 
 ANNUITY, 
 
 cesser of, not an occasion of collecting increment value duty, 18, 98 
 charged on land is an " incumbrance," 451, 452 
 granted out of land, whether a " rent-charge," 441 — 442 
 
 APPEAL, cxxiv. — cxxvii., 357 — 386, 573 — 575 
 
 against amended valuation, to which valuation appeal to be directed, 
 
 325 
 against provisional valuation, cxxiv. — cxxvi., 321, 325 — 329 
 
 time for, 364 
 against valuation of minerals, 257 
 appointment and remuneration of referees to hear, 371 
 as to estate duty, 108 — 109 
 
 as to increment value duty, xxiv., Ixxvi., 72, 124, 127 
 as to reversion duty, 172, 179 
 as to undeveloped land duty, 197, 199 — 200. 
 as to valuation, relative to restrictive covenants, 288, 293 
 as to valuation under Finance Act, 1894... 479 
 exceptions to right to, cxxiv., 199, 293, 358, 363, 382 
 from conviction for not presenting instrument, 75 
 from refusal to extend time for objections to provisional valuation, 322 
 Scotland, provisions applicable to, 472 
 
 to be confined to grounds set out in the petition or notice, 378, 384 
 to County Court, cxxvii., 367, 369—370 
 to High Court, cxxvi. — cxxvii., 382 — 386 
 
 amending petition, 385 
 
 excepted case where no appeal lies, 293, 382 
 
 filing and service of petition, 382 — 384 
 
 rules as to, 382—386 
 
 time for, 383 
 
Index. 6&9 
 
 APVl^AJj— continued. 
 
 to referee, cxxv. — cxxvi., 357 — 382 
 
 against provisional valuation, cxxiv. — cxxvi., 321, 325 — 329 
 
 time for, 364 
 appearance of third parties on, 378 
 form of notice of, 379 
 form of notice of withdrawal of, 381 
 notice of, provisions as to sending, 379, 385 
 rules as to, 370—379 
 time for notice of, 377 
 
 APPOETIONMENT, 
 
 consequences of requiring, under special circumstances, 341 
 notice of, to persons interested, 341 
 of annual value between dwelling-hoiise and land, 139 
 of capital expenditure in developing land, 190 
 
 value of minerals, 251, 340 
 of consideration, appeal against, 358, 362 
 
 between premises and goodwill, 301 
 
 properties in a transfer or lease, 72, 357 
 surface and minerals, xxvi. — xxviii., 217, 
 252—253 
 of original site value and of duty paid, on sale by a trustee, 419 — 420 
 of site value, Ixii. — Ixvii., Ixxii. — Ixxiii., cxxviii., 49, 338—343 
 
 powers of Commissioners with regard to, 4S, 49 — 50, 338 — 
 342 
 record of particulars of, 50, 344 — 346 
 
 APPROPEIATION 
 
 for charitable purposes, meaning of, 398 
 
 ARBITRATION, 
 
 appeal to referee is not an, 366 
 
 ARREARS OP DUTY, 94—95, 203—209, 329—330 
 
 ASSESSABLE SITE VAJ.UE, xlvi, Ixvi.— Ixvii., 27, 181, 294—304 
 basis of undeveloped land dutj% 181 
 compared with full site value, 272 
 definition of, 307 
 how ascertained, 273, 284 
 
 is the subject-matter for undeveloped land dutj', 295 
 may be original site value, 27 
 meaning of, 294—304 
 
 nut the site value on an occasion of collection, 26 
 when increment value duty payable on, 295 — 296 
 
 ASSESSMENT 
 
 of increment value duty, Ixxiv., 72, 84 — 85, 90 
 
 contract bj^ transferee or lessee to pay expenses 
 of, void, 46 
 of mineral rights duty, 225—226, 227, 251—254 
 of reversion duty, 179 — 180 
 
 of undeveloped land duty, 181, 190—193, 203—209, 330 
 power of Commissioners to determine unit of, 335 —337 
 
 ASSIZES, 
 
 power to order hearing of petition of appeal at, 384 
 
 ATTORNEY-GENERAL, 
 
 action against, as representative of the Crown, 510 — 512 
 
630 Index. 
 
 BANKEUPTCY, 
 
 disclaimer of lease in, reversion duty, 154 — 155 
 priority of Crown in, for increment value duty, 84 
 
 for undeveloped land duty, 207 
 
 BETTERMENT CHAEGE, 
 
 deductions allowed in respect of, cxxix., 389 — -391 
 is a " fixed charge," 456 
 
 BEICK CLAY, COMMON, 
 
 may be a "mineral," cvii,, 4—5, 213, 214, 226—227, 245 
 
 BEICK EAETH, COMMON, 
 
 may be a mineral, cvii., 4 — 5, 211, 214, 226 — 227 
 
 BEIDGE, 
 
 increase in value of land due to tolls derived from, 437 
 whether a " structure," 287 
 
 BUILDING LEASE, 
 
 covenant to erect buildings, part of value of consideration, 353 — 356 
 presentation of instrument on grant of a, 78 
 
 BUILDING SOCIETY, 
 
 whether exempted from land taxes, 404 
 
 BUILDINGS, 
 
 large, gross value of, 278 
 
 meaninf^ of, 184 — 186 
 
 their part in " development," 180, 183—189 
 
 value of, in relation to full site value, 285 
 
 BUSINESS, 
 
 deduction, for assessable site value, of expenditure for purpose of, 294, 
 
 298 
 meaning of, for undeveloped land duty, 186—187 
 takings and profits of, whether material in ascertaining gross value, 280 
 
 CANAL COMPANY, 
 
 exemptions in favoiir of land held by, Ixxxv., cii., 405 — 411 
 
 CAPITAL EXPENDITUEE, CAPITAL WOEKS, 
 betterment charges, cxxix., 389 — 391, 456 
 " capital nature," expenditure of a, meaning of, 297 
 deduction for, in arriving at assessable site value, 294 — 302 
 
 for reversion duty, 156 — 158, 162 — 163 
 in relation to increment value duty, Ivi. — Ivii. 
 on minerals, may reduce capital value, 246—251 
 
 increment value duty, 240—241 
 on roads, etc., may exempt from undeveloped land duty, 182 
 whether value of public-house licence due, 281 
 
 CAPITAL VALUE 
 
 of minerals, annual equivalent of, cix., 235 — 240 
 meaning of, cxiii. — cxiv., 246 — 251 
 provisional valuation, 320 
 whether " site value " refers to, 256 — 259 
 
 of periodical payments, 350 — 353 
 
 CERTIFICATE 
 
 of increment value duty paid, 104, 109 — 110 
 
Index. 631 
 
 CHALK, 
 
 may be a mineral, cvii., 4—5, 211, 226 — 227 
 
 as to increment -value duty, 245 
 
 CHANCERY DIVISION, 
 
 power to order hearing of petition of appeal in, '38'i 
 
 CHARGE 
 
 on land, whether increment value duty is a, Ixx., 3, 86— ST, 105, 129 
 on land for duty paid by tenant for life or trustee, 412 — 419 
 
 "CHARGED," 
 
 meaning of, in relation to increment value duty, 3, 105 — 1.07 
 
 CHARITABLE PURPOSES, 
 
 appropriation for, meaning of, 398 
 
 gifts made for, " property passing on death," 475 
 
 gifts of " interests in land " for, 448 
 
 governing body constituted for, Ixxxiv., 392, 397 — 398 
 
 land held for, exemptions as to, ci., 391 — 405 
 
 partial exemption from increment value duty, Ixxxiii.^- 
 Ixxxiv., 24, 258 
 trustees for, duty to charge duties on land, 425 
 what amounts to " used " for, 396 
 what are, 393—396 
 
 CIRCULARS 
 
 to solicitors issued by Commissioners, 538 — ^539 
 
 CLAY, COMMON, 
 
 may be a "mineral," cvii., 4—5, 213—214, 226—227 
 
 "CLEARED SITE," 
 
 meaning of, Iv. — Ivi., 284 
 
 CLUBS, 
 
 position of, in relation to land taxes, Ixxxiv., ci, — cii., 402 
 
 COLLEGES, 
 
 position of, with regard to land taxes, Ixxxiv., 392 
 
 "COMMENCEMENT OP ACT," 
 
 meaning of, in Finance (1909-10) Act, 1910... 2, 11 
 
 COMMISSIONERS, 
 
 appeal from, to refex^ee, 357 — 382 
 
 entitled to require information as to name of owner, cxx., 346 — 348 
 
 meaning of, 485 
 
 power of, to determine unit of assessment, 335 — 337 
 
 record of valuation, etc., to be kept by, cxxi., 341 
 
 to furnish copies of particulars recorded, cxxi., 345 
 
 COMMISSIONERS OP INLAND REVENUE, 
 
 examj)les of their discretionary powers, Ixiii. — Ixv., 5, 47 — 48, 51, 98, 
 103, 104, 125, 127-128, 139, 170—171, 182, 197, 199—200, 221— 22'>, 
 246—251, 252,253, 315—316, 335—343, 348,354 
 
 COMMON, RIGHTS OP, 
 
 to be considered in assessing total value, 287 
 
 COMPANY, 
 
 alteration of memorandum of association to secure non-profit-sharing 
 
 exemption, 403 
 existing, meaning of, 402 
 
632 Index. 
 
 COyLPANY—coiitmued. 
 
 liable to increment value duty on periodicEil occasion, 22 
 
 meaning of, 402 
 
 not profit sharing, exemptions from land taxes, 401 — 405 
 
 partial exemption of land held by, from increment value duty, 24, 2oS 
 
 priority of Crown in winding up of, for land taxes, 207 
 
 reconstruction of, might involve transfer on sale, 8 
 
 statutory, exemption of land held by, from land taxes, Ixxxv., ci. — cii., 
 
 405—408 
 statutory-, meaning of, 410 
 
 statutory, not exempted from mineral rights duty, 407 
 statutory, retiu'n by, 408 — 409 
 
 form of, 526—530 
 taking over another and undertaking to pay off debentiu'es, value of 
 
 consideration, 354 
 And see Coepoeate Body. 
 
 COMPEXSATION, 
 
 deduction of, payable by lessor for reversion duty, 156, 158 
 on compulsory purchase, not to include increment value duty, 258, 352 — 
 353 
 
 " COMPETENT TO DISPOSE," 
 meaning of, 93, 101, 114 
 
 CONDITION 
 
 of land, " in its then condition," meaning of, 276 
 
 CONSIDEEATION, 
 
 apportionment of, between premises and goodwill, 301 
 
 properties included in transfer or lease, 357 
 or assessment of, appeal, 358, 362 
 capital sum payable by instalments, whether a periodical money pay- 
 ment, 353 
 determination of value of, xxiv. — xxv., 30 — 33 
 
 after original site valuation made, xxiv. 
 tor grant of lease or transfer of interest, 
 ascertaining value of, 31 — 33 
 determines site value on such occasion, 27, 30 — 34 
 substituted original site value, 41—46 
 for transfer on sale of fee simple is substituted original site value, 41 — 
 
 46 
 site value on that occasion, 27, 29 — 
 30 
 payable by periodical payment, payment by instalments of increment 
 
 value duty, 86—88 
 to be regarded in apportioning site values, 338, 342 
 trustee selling should avoid overstating, 418 
 value of the, addition in respect of covenants, 353 — 356 
 how determined, 30, 350 — 353 
 on purchase bj- a trustee, 420 
 what is to be estimated as, 350 — 351 
 
 CONSTEUCTION OF STATUTES, cxxxi.^-cxxxiv. 
 CONTEACT 
 
 by transferee or lessee to pay increment value duty, void, Ixxi., 46 
 
 for sale or lease, stamping Ixviii., Ixxii. 
 And see Agreemext. 
 
 COPYHOLDS, cxxix.— cxxx., 428—434 
 difeerent kinds of, 429—430 
 
 enfranchisement of, a deduction in arriving at assessable site value, 
 ]vi., 295, 299—300, 428, 431—432 
 
Index. 638 
 
 COVYROLBB-continued. 
 
 lease of, who is the " owner," 433 
 
 minerals under, 258 — 259, 432 
 
 pi-esentation of instrument on transfer on sale of, 78 
 
 total and site value of, 428 — 434 
 
 treated as freehold or leasehold in the rules, 57 
 
 COEPOBATE OE UNINCOEPOEATE BODY, 
 may be a "person aggrieved," 359 
 meaning and definition of, 22 — 23, 121 
 
 payment of increment value duty by, by instalments, xlviii., Ixxvii. — 
 
 Ixxviii., 23, 122—125 
 on periodical occasions, xlviii., 
 Ixxv. — Ixxviii., 3, 22 — 25, 35 — 
 36,50-51,57—68, 121—129 
 on transfer or on grant of lease by, 
 
 129—130, 144 
 on minerals by, cviii., 256 
 valuation on payment of increment value duty by, liv., 28, 35 — 37 
 what, not liable for increment value duty on periodical occasions, 23 
 whether " aggrieved " by excessive site value on a periodical occasion, 
 359 
 
 COSTS 
 
 of appeal against assessments, 366 
 payable by or to the Crown, cxl. 
 
 COUNTY COUET, 
 
 appeal from referee to, cxxvii., 367, 369 — 370 
 
 COVENANT, 
 
 affirmative and negative distinguished, 291 — 292 
 against non-agricultural user of land, 136 
 by lessee to pay reversion duty, 175 
 
 undeveloped land duty, 207 — 208 
 by purchaser to incur expenditure, should be brought by him to the 
 
 Commissioners' knowledge, xxv., 493 
 forming part of consideration, an addition to its value, 353 — 356 
 inclusion of value of, for reversion duty, Ixxxix., 156 — 160 
 restrictive, affecting leasehold interest only ; effect on total value, 292 
 appeal as to, on valuation, 293 
 considered in total value, Iv., 287, 291 — 292 
 cost of releasing, a deduction for assessable site value, Ivi., 
 
 295, 300 
 deductions from total value based on, no appeal from referee 
 
 as to, 382 
 influence of, in raising value, 281 
 to renew lease, term of the lease, 441 — 446 
 
 CEICKET GEOUNDS. See Eecreation Grounds. 
 
 CEOWN, 
 
 action against Attorney- General, as representative of, 510 — 512 
 
 costs payable by or to the, cxl. 
 
 priority of. See PmoKiTY OF the Crown. 
 
 CEOWN LANDS, 
 
 partial exemption from increment value duty, Ixxxi. — Ixxxii., 24, 144 — 
 
 146 
 valuation of, 310 
 
634 Index. 
 
 DEATH, 
 
 increment value duty on, xxix., xlvii.,lxxiv. — Ixxv., 2 — 3, 15—22, 34 — 
 35, 50—64, 89 -121 
 assessment and collection of, 90 — 121 
 property passing on, how valued for increment value duty, 27 — 28, 34 — 
 35 
 wlien increment value duty due, 95 
 
 DEATH DUTIES, 
 meaning of, 23 
 And see Estate Duty ; Settlement Estate Duty ; Succession 
 Duty. 
 
 DEBENTUEES, 
 
 undertaking to pay off, on one company taking over another, value of 
 consideration, 354 
 
 DEDUCTIONS 
 
 allowed, to be recorded by Commissioners, 344 
 
 appeal against disallowance of, 362 
 
 lased on restrictive covenants, no appeal from referee as to, 382 
 
 claim by trustee for, 417 — 418, 422 
 
 for assessable site value, xxv., xxxi. — xxxii., 148 — 151, 294 — 304 
 
 details of objections to valuation, 323 
 for increment value duty, xlvi. — xlvii., 28 — 37, 75 — 76, 389 
 meaning of, Iv. — Ivii., 33 
 record of, 50 
 
 to ascertain occasional site value, liv., 28, 36 — 
 37 
 substituted original site value, 43 
 to be shown by transferor or lessor, xxiii., 
 
 75—76 
 when to be claimed, xxiii., xxxi., 148 — 149 
 for reversion duty, Ixx^vii.— Ixxxviii., 156, 389 
 for undeveloped land duty, cii. — ciii., 191—192, 389 
 for sums paid to rating authority in respect of increased value, 389 — 391 
 for total value, 287—294 
 
 of copj'holds, 431 
 form of claim for, 513 — 518 
 not claimed on original site valuation are lost for ever, 33, 148 — 149 
 
 DEPEECIATED SITE VALUES, 
 
 relief for owners in respect of, Ix. — Ixi., 41 — 46 
 
 " DERELICT," 
 
 meaning of, for undeveloped land duty, 188 
 
 DEVELOPMEXT, 
 
 allowance for future, in valuing land, 276 
 meaning of, 183 
 
 scheme of, may exempt fi'om undeveloped land duty, 182, 189—191, 
 196—200 
 
 DIEM CLA USIT EXTREMUM, WEIT" OE, cxli. 
 
 DISCOUNT 
 
 allowed on reversion duty on merger of lease, 157, 168 
 
 DISCOVERY 
 
 of dociunents, on petition of appeal, 384 
 
 DOCK COAfPANY, 
 
 ejtemptions in favour of lapd hgld by, Ixxxv,, cii., 405—411 
 
Index. 685 
 
 DONATIO MORTIS CAUSA, 
 
 h.ow far liable to increment value duty, 18 — 21 
 
 DEAIN, 
 
 whether a " structure," 287 
 
 DEAINAGE, 
 
 charges for, under Drainage and Improvement Acts, is probably not a 
 
 " fixed charge," 457 
 whether full site value includes value created by, 284 
 
 "DUTY PAID," "DUTY TO BE COLLECTED," 
 definitions of, 56 
 
 DWELLINGS, 
 
 flats, or tenements, partial exemption from increment value dutv, Ixxx. 
 — Ixxxiii., 24, 147—148 
 
 EASEMENTS 
 
 attached to property, whether to be taken into account in the gross 
 
 valuation, 282 
 considerations as to, on filling in "Form 4," 500 
 costs of release of, whether " expenditiu'e of a capital nature," 297 
 equivalent in Scotland to " servitude," 472 
 influence of, on site value, 436 
 to be regarded in arriving at total value, Iv., 287 
 
 EDUCATIONAL PURPOSES, LANDS HELD FOE, 
 partial exemption of, from increment value dutj',. 24 
 
 ELECTEICITY SUPPLY COMPANY, 
 
 exemptions in favour of land held by, 405 — 411 
 
 ESCROW, 
 
 recovery of increment value duty paid on, where not completed, 88 
 
 ESTATE DUTY, 
 
 allowance for increment value duty paid, in valuing for, 480 
 limitation of relief from, in i-espect of settled land, 474 
 provisions of Finance Act, 1894, relating to, 15—22, 66—68, 589—601 
 applied to increment value dutj^ on death, Ixxiv. — Ixxv., 
 90—121 
 Finance (1909-10) Act, 1910, relating to, 474—481, 
 582—584 
 transfer of land to satisfy, 474 
 
 ESTIMATE 
 
 by owner, for general valuation of land, 319 — 320 
 
 EVASION OF STATUTES, cxxxiv.-cxxxvii. 
 
 EVIDENCE 
 
 at hearing of petition of appeal, 384 — 385 
 
 on oath, referee has not apparently power to take, 366 — 367 
 
 EXCHANGE, 
 
 increment value duty not payable on, 9 
 
 EXECUTOES AND ADMINISTEATOES, 
 definition of " executor," 93 — 94, 113 
 duties as to increment value duty on property passing on death, xxix 
 
 92—121 
 increment value duty on interests in land passing to, as such, 90 
 
 EXTENT, WEIT OF IMMEDIATE, cxl,-cxli. 
 
636 Index. 
 
 FEE SIMPLE, 
 
 collection of increment value duty on, of settled lands, an interest in 
 
 which passes on death, 65 — 68 
 definition of, 447, 457—458 
 meaning of, xlviii., 9, 275, 440, 457 — 458 
 
 presentation of instrument on transfer on sale of, Ixviii. — ^Ixxi., 74 — 79 
 total value of, is market value, 289 
 
 undivided share in a, in possession is an " interest," 9 — 10 
 valuation of, for site value on death, 27 — 28, 84 
 
 FINE, 
 
 on grant of lease, assessment of increment value duty on, 86 
 
 FIXED CHAEGE, 
 
 definition of, 456—457 
 
 does not include charge of land taxes by tenant for life, 290 
 
 meaning of, 289—290, 355 
 
 is not an " incumbrance," 451 
 
 "interest in land," 446, 450—451 
 redemption of, whether deduction allowable for assessable site value, 
 Ivi., 299 
 
 FIXTURES, 
 
 whether gross value includes, 281 
 
 FLATS, 
 
 joint or separate valuation in respect of, 315 
 
 partial exemption of, from increment value duty, Ixxx. — Ixxxiii., 24, 
 147—148 
 
 FOEECLOSUEE 
 
 by mortgagee by demise, effect of, 443 
 
 liability of mortgagee of reversion for i-eversion duty after, 454 
 
 order, whether a transfer on sale, 8 
 
 FOEMS, 
 
 Forms I.Y.D. (A) and (B) (Statement and Particulars of Instrument), 
 
 488, 495—499 
 Form 3 (Statutory Companies), 526—530 
 Form 4 (Eeturn by Owner, etc.), 500 — 512 
 Form 5 (Return by Proprietor of Minerals), 519 — 522 
 Form 6 (Return by Owner of Mineral Eights), 531 — 535 
 Form 7 (Claim for Site Value Deductions), 513 — 518 
 Forms 8, 8a (Particulars of Persons to whom Eent Paid), 536 — 537, 541 
 
 —542 
 Form 35 (Provisional Valuation), 545 — 547 
 Forms 43 — 45 (Substituted Site Valuation), 543 
 form of reversion duty account, 523 — 525 
 notice of appeal, 379 
 
 withdrawal of appeal, 381 
 under s. 4 of the Finance Act, 495—499 
 
 FOUE PER CENT. TABLES, 56, 548 
 
 FEANCHISE, 
 
 whether increment value duty payable in respect of a, 437 
 
 FEEEHOLD, 
 
 customary. See Copyholds. 
 definition of (Scotland), 471 — 472 
 
Index. 637 
 
 FEIENDLY SOCIETIES, 
 
 benefits to be provided for, to entitle to exemptions, 404 — 405 
 dividing benefits, ' ' contract between society and member of a permanent 
 
 cbaracter," 405 
 exemptions from land taxes in favour of, Ixxxiv., ci>, 24, 258, 401 — 405 
 
 FULL SITE VALUE; 283-287 
 
 buildings, value of, in ascertaining, 284 — 285 
 incumbrances, whether value to be estimated free from, 284 
 meaning of, xlv., Iv. — Ivi., 283 — 287 
 object of ascertaining, 285 
 And see Original Site Value ; Site Value. 
 
 GAMES. See Eecreation Grounds. 
 
 GARDEN CITIES, 
 
 expenditure on open spaces in, whether a " deduction " for assessable 
 
 site value, 298 
 position of, with regard to increment value duty, Ivi. 
 provisions as to undeveloped laud duty in favour of, xcviii., 196 — 199 
 
 GAS COMPANY, 
 
 exemptions in favour of land held by, 405 — 411 
 
 GIFT, 
 
 inter vivos, within three years of death of donor, 475 — 476 
 
 GLASSHOUSES AND GREENHOUSES 
 
 in connection with market gardens, " agiicultural land," 469 
 make land "developed," 132, 181—182, 187—188 
 
 GLEBE LANDS, 
 
 whether held by rectors, etc., for charitable purposes, 398 
 
 GOLF LINKS, 
 
 position of, as to increment vakie duty, 134 — 135 
 used for pastui-e, whether agricultural land, 466 
 And see Recreation Grounds. 
 
 GOODWILL, 
 
 deduction for, in arriving at assessable site value, Ivi., 295, 300 — 301 
 deduction from consideration for, on compulsory piu'chase, 352 
 included in purchase of premises, ai:)portionment of consideration, 357 
 of licensed premises, elements included in, 281 
 what, included in total value for reversion duty, 157 
 whether a factor in ascertaining gross value, 278 
 
 GOVERNING BODY 
 
 constituted for charitable purposes, Ixxxiv., 392, 397 — 398 
 
 GRAND STAND, 
 
 whether a " structure," 286 
 
 GRAVEL 
 
 may be a mineral, cvii., 4 — 5, 211, 214, 226 — 227 
 as to increment value duty, 245 
 
 GROSS VALUE, 272—283 
 definition of, 272 — 4 
 
 determination of, for increment value duty, 306 
 
 easements attached to property, whether a factor in ascertaining, 282 
 fixtures, whether included in, 281 
 goodwill, whether a factor in ascertaining, 278 
 
688 Index. 
 
 GROSS YAIjUE— continued. 
 indirect effect of, 306 
 meaning of, xxxvi., Iviii. 
 minerals, in relation to, 282 — 283 
 object of ascertaining, 285 
 occasions for ascertaining, 27-t 
 of large public buildings, etc., 278 
 of licensed premises, 279 
 restrictive covenants, influence of, on, 281 
 state of repair, important in estimating, 281 
 whether material, 305 
 
 GYMNASIUM, 
 
 whether a " structure," 286 
 
 HEREDITAMENT, INCOEPOREAL, 
 not included in " land," 434 — 440 
 whether an " interest in land," 446, 451 
 
 HIGH COURT, 
 
 appeal to the, 382—386 
 
 HIGHWAY, 
 
 liability to repair, whether an " incumbrance," 452 
 
 HUMBER CONSERVANCY BOARD, 
 
 saving in respect of payment of increment value duty by, 411 
 
 INCOME TAX ACTS, THE, 485 
 
 INCORPOREA.L HEREDITAMENT, 
 not included in " land," 434 — 440 
 whether an "interest in land," 446, 451 
 
 INCREMENT VALUE, 
 
 although property has depreciated, 46 
 
 date from which it accrues, 6 
 
 definition of, xliv., 26 
 
 how ascertained, 289 
 
 meaning of, lis., 4, 26 — 27, 37 
 
 of minerals, cix., 235 — 240 
 
 reduction of, on occasion of collection of duty, 68 — 70 
 
 INCREMENT VALUE DUTY, xxi.— xxxv., xliv.— Ixxxv., 1—151, 230— 
 245, 549—557, 564-565 
 accrues de die in diem, 24, 52 
 
 agreement by transferee or lessee to pay, void, Ixxi., 46 
 allowance in valuing for estate duty, for amounts paid for, 480 
 amount of, 1., 2, 10 
 appeals, 72, 75, 124, 127 
 apportionments for, 48—50, 72, 340 
 
 And see Apportionment. 
 assessment by Commissioners of, Ixxiv., 72, 84 — 85, 90 
 charge on land, whether a, Ixx., 3, 86—87, 105, 129 
 collection of, general provisions, Ixvi. — Ixxviii., 47 — 72 
 
 in case of fee simple, Ixviii. — Ixxui., 50 — 54, 57 — 59, 352 
 an interest or a lease, Ixviii. — Ixxiii., 51 — 61, 
 352 
 on death, xxix., Ixxiv. — Ixxv., 2, 15 — 22, 34. 50—64, 
 ■ 89—121 
 
IndKX. 639 
 
 Increment value djjty— continued. 
 
 collection of, on periodical occasions, 3, 22 — 25, 35, 50, 57, 121—130, 
 141—144, 256 
 on transfer on sale or lease, 2, 7 — 15, 27 — 34, 72 — 90 
 deduction for sum paid to rating authority in respect of increased value, 
 
 389—391 
 " deemed to have been paid," Ixx., 84, 88, 126, 129, 141 
 definition of, 26 
 discharge of, in kind, 119 
 
 exemptions from, Ixxviii.— Ixxxv., 23 — 24, 130—148 
 agricultural land, Ixxviii. — Ixxix., 130—137 
 Crown lands, 144 — 146 
 flats, etc., 147—148 
 
 in the case of corporate, etc., bodies, 23 — -24 
 land held by rating authority, 386 — 388 
 
 by statutory company, 405 — 408 
 for charitable purposes, etc., 391 — 405 
 recreation grounds, Ixxx. — Ixxxi., 141 — 144 
 small houses and properties, Ixxix. — Ixxx., 137 — 141 
 summarised, 6 
 forms for, 495—499 
 illustrations of, 19—20, 38—42, 46, 49, 61—64, 70, 88—89, 110, 112, 115 
 
 —116, 118, 133, 140 
 interest on, 94—95, 103, 108—109, 117 
 is a stamp duty, Ixvii., 70 — 72 
 is payable by transferor or lessor, 72 — 75 
 
 contract to contrary void, 46 
 joint valuation when " equitable " for the purpose of, 315—316 
 " land," subject to, 4 — 6 
 
 lapse of time, protection by, cxliv. — cxlv., 100 — 101 
 methods of valuation for, 27, 36 
 mortgagee in possession leasing, liability for, 453 
 mortgagee selling under power of sale, whether duty payable by, 450, 
 
 462 
 mortgagee's position in relation to, 452 — 453 
 hot to overlap mineral rights duty, ex., 230—235, 242 — 244 
 reversion duty, xci. — xcii., 170 — 172 
 undeveloped land duty, cii. — ciii., 191 — 193 
 Occasions of collection of, 
 
 death, xxix., xlvii., Ixxiv.— Ixxv., 2, 15—22, 34, 50—64, 89—121 
 periodical occasions, 3, 22—25, 35, 50, 57, 121—130, 141—144, 256 
 transfer on sale or lease, 2, 7—15, 27—34, 51—64, 72—90, 129— 
 
 130 
 valuation, independent, required on each, 33, 303 — 304 
 omission by trustee to obtain assessment of, 421 
 on a sale by trustees, 416 — 417 
 on compulsory purchase of land is not part of expenses of conveyance, 
 
 409 
 on minerals, assessment and collection of, 235 — 245, 256 
 examples of, xxvi., 239, 243—244 
 exemptions from, 233—235, 240—241, 245 
 general note as to, cvii. — cxii., 259 — 263 
 valuation for, 245—259 
 
 when and how payable, xxv., xxviii., cv.— cxii., 230 — 245 
 on property passing on death, when due, 96 
 on purchase by a trustee, 420—421 
 
 payable by mortgagee, power to add to his security, 426 — 427 
 power of tenant for life or trustee to charge land with, 412 — 426 
 practice on assessment, xxi., 487—495 
 presentation of instrument for, xxi., 74 — 79, 85 — 87 
 
640 Index. 
 
 INCREMENT VALUE DUTY- continued. 
 
 rate of, 2 
 
 record of, 50 
 
 recovery of, by executor, from trustees ot owners, 94 
 
 by the Crown, cxl., 73, 90, 99 
 regulations as to, 487 — 495 
 remission of, 85 — 89, 104 
 
 of interest on, 117 
 
 of dutj^ on 10 per cent, of site value, 68 — 70 
 return of, 85—89, 104, 107—108 
 site value for purpose of, 303 
 stamp, xxii, 79 — 83 
 theory of, 3 
 
 " transfer on sale," for purposes of, 7 — 9 
 trustee who has paid, rights of, 418 — 419 
 unit of taxation for, xxix., 5 
 "unsatisfied," what is, 57 — 59 
 where lessee of Crown liable to pay proportion of purchase moneys to 
 
 Board of Trade, 411 
 whether a "testamentary expense," 120 
 
 INCUMBEANCE ON LAND, 
 
 " affecting the inheritance of settled land," whether charge for duty by 
 
 trustee is, 419 
 covenant to discharge, value of consideration, 354 — 356 
 definition of, 451 — 452 
 definition of (Scotland), 372 
 does not include a " fixed charge," 451 
 is not an "interest in land," xlv'iii., 9, 446, 451 — 452 
 meaning of, 114, 355 
 
 INCUMBRANCES, 
 
 whether full site value to be estimated free from, 284 
 
 INDUSTRIAL AND PROVIDENT SOCIETIES, 
 whether exempted from land taxes, 404 
 
 " INDUSTRY," 
 
 meaning of, for undeveloped land duty, 187 
 
 INFANT, 
 
 exercise of power on behalf of, to charge land with duty paid, 425 — 426 
 land owned by, who is liable to make retui-n for vakiation, 317 — 318 
 trustees for, exercising powers under Settled Land Acts, may exerci'^e 
 the powers of the " owner," 462—463 
 
 INFORMATION, 
 
 recovery of duties, by, cxxxviii.— cxl., 73, 176, 180 
 penalties by, cxxxviii. — cxl., 78, 178 
 
 INSOLVENT ESTATES, 
 
 priority of Crown for increment value duty in, 84 
 
 INSPECTION 
 
 of land, power of Commissioners to authorise, cxx., 348 
 
 INSTAIjMENTS, payment BY, 
 
 of increment value duty, by corporate, etc., bodies, Ixxi., 23, 122, 124 
 on death, 95, 107—108 
 
 where consideration a periodical payment, 
 85—89 
 
Index. 641 
 
 INSTRUCTIONS TO VALUEES 
 
 issued by Inland Eevenue Department, copy of, cl.— cli. 
 
 note on, cli. — clii. 
 
 INSTRUMENT, 
 meaning of, 492 
 
 particulars on presentation of, Form I.V.D. (B), 496 
 presentation of, Ixviii.— Ixxi., 74—79, 85—87, 487—499 
 dispensing -with (Scotland), 86, 473 
 where to be presented, 487 — 488 
 INTEREST, 
 
 executory, is an incorporeal hereditament, 440 
 in expectancy, is not an " interest in land," 446 
 
 meaning of, 450 
 on a charge by tenant for life or trustee for duty paid, 415 
 on increment value duty due, 75, 79, 94 — 95, 103, 108 — 109 
 
 remission of, where small, 117 
 
 INTEREST IN LAND, 
 
 collection of increment value duty on transfer of, 50 — 54, 72 — 89, 
 
 129—130 
 curtesy and dower, 114 — 115 
 definition of, 446 — 451 
 definition of (Scotland), 471 
 duty paid on creation of, 61 
 Finance Acts, 1894 and 1910, compared, 35 
 " in expectancy," 97, 114 
 land passing to personal representative as such, increment value duty 
 
 on interest in, 89 — 90 
 meaning of, xlviii., 6, 9 — 11, 114 
 
 decisions construing various statutes as to, 448 
 " proper proportion" of, 53 — 58, 59 — 61 
 settled land passing on death, increment value duty on interest in, 
 
 65—68 
 " term of the," defined, 55 
 what is, where trust for conversion exists, 16 
 what not included, 9 
 whether an interest in proceeds of sale of land is an, 449 
 
 IRELAND, 
 
 regulations as to increment value duty affecting, 492 — 493 
 
 JOINT TENANT, 
 
 sale by, of his share of the fee simple, increment value duty on, 457 — 
 
 458 
 whether a " proprietor " of minerals, 265 
 
 JOINT VALUATION 
 
 of properties under separate occupations, xxx., 313, 315 — 317 
 
 JOINTURE-RENTCHARGE, 
 
 is probably an " incumbrance," 299 
 
 JURISDICTION 
 
 of County Court in appeals against original valuation, 369 — 370 
 
 LAND, 
 
 compulsory purchase of, increment value duty is not part of expenses of 
 
 conveyance, 409 
 definition of, 434—440 
 definition of (Scotland), 471 
 general valuation of, cxviii. — cxxi., 309 — 315 
 
 N. 41 
 
642 Index. 
 
 LAND — contin ued. 
 
 meaniBg of, for increment value duty, 4 — 6, 11 
 
 for reversion duty, 157 
 miuerals, whether included in, 4 — 5, 304, 435, 509 
 purchased by statutory company, original site value, 408 — 409 
 return by owner of. Form 4... 500 — 512 
 subject to general valuation, what included in, 311 
 superfluous, of statutory company, 405 — 409 
 
 LAND CLAUSES. See Land, Compulsory Purchase of. 
 
 LAND COMPANY, 
 
 position with regard to increment value duty, Ixxvii. 
 works executed by, whether " of a capital nature," 297 
 
 LAND TAX, 
 
 redemption of, whether deduction allowed for assessable site value, Ivi., 
 299 
 See Increment Value Duty ; Eeversion Duty ; Undeveloped 
 Land Duty ; Mineral Eights Duty. 
 
 LEASE, 
 
 apportionment of consideration as between properties included in, 357 
 
 by mortgagee in possession, liability for increment value duty, 453 
 
 definition of, 443 — 444 
 
 determination of, how effected, 151 — 155 
 
 exercise by trustee of power to grant a, 420 
 
 " for fourteen years or less," meaning of, 12 — 14, 451 
 
 not an occasion for increment value duty, 
 xlviii., 2, 11—14 
 for less than twenty-one years, exempt from reversion duty, xci., 166 — 
 
 167 
 for life or lives, in relation to increment value duty, 14, 56 
 for life or lives, term of a, 444 — 446 
 
 for over foiu-teen years, an " occasion " for increment value duty, 
 
 xlvii. — xlviii., Ixviii. — Ixxiii., 2, 11 — 14 
 in reversion, whether an "occasion" for 
 increment value duty, 11 
 grant of, does not evoke substituted original site value, 43 
 
 transfer of, does, 43, 45 
 having ninety-nine years or more to run, 57 
 includes underlease or agreement for lease or underlease, 11, 443 
 increment value duty on grant or transfer of a, 2, 7 — 15, 27 — 34, 51 — 
 
 64, 72—90, 129—130 
 merger of, reversion duty, xci., 154, 167 — 168, 174 — 175 
 mining. See Mining Lease. 
 of an undivided share in fee simple, an " occasion " for increment value 
 
 duty, 12 
 of copyholds, who is the " owner," 433 
 
 presentation of instrument on grant of, Ixviii. — Ixxi., 74 — 79 
 reversion on a, whether subject to increment value duty, 55 — 57, 97 
 reversion duty on determination of a, 151 — 180 
 reversionary, for over fourteen yeai"s, effect of grant of a, 443 
 site value on grant of, Hii., 27, 30 — 34, 352 
 stamping, necessity for, 82 
 "term of," definitions, 56, 167, 169, 444—446 
 
 LEGACY, 
 
 payable partly out of realty, is an " interest in land," 448 
 
 LEGAL ESTATE, 
 
 trustee or mortgagee joining to convey, is not a transferor, 462 
 
Index. 643 
 
 LESSEE, 
 
 covenant by, to pay reversion duty, 175 
 
 definition of, 461 
 
 definition of (Scotland), 473 
 
 of minerals, whether "proprietor," 221, 265 
 
 reversion duty payable by, as under lessor, xc, 160 
 
 service of provisional valuation on, if an " owner," 320, 327 
 
 under a lease for fifty years or more, is an " owner " for increment value 
 
 duty, 140 
 whether person working minerals under a licence is a, 267 
 working, meaning of, 267, 567 
 
 LESSOE, 
 
 apparently includes a mortgagee for purpose of reversion duty, 453 
 definition of, 461—463 
 definition of (Scotland), 473 
 immediate, meaning of, 267 
 
 must pay mineral rights duty, cvi., 225 — 226, 228 
 
 increment value duty on minerals, cix., 241 — 242 
 intermediate, deduction from rent of mineral rights duty by, cvii., 227 
 
 —230 
 meaning of, for increment value duty, 73 — 74 
 
 for reversion duty, xcii. — xciii., 156, 174 — 175 
 must deliver account for reversion duty, xxxv., xciii., 176 — 181 
 
 position where no duty payable, xxxvii., 176 — 177 
 must pay increment value duty, Ixviii., 72—74 
 
 contract to the contrary void, 46 
 must present instrument for increment value duty, Ixviii. — Ixxi., 74 — 
 
 79 
 must show deductions, 75 — 76 
 
 " LEVIED," 
 
 meaning of, in relation to increment value duty, 3 — 4 
 
 LICENCE 
 
 to work minerals, mineral rights duty arising on, 267 
 
 LICENSED PEEMISES, 
 
 elements of goodwill of, 281 
 
 goodwill of, whether deduction allowable in respect of, for assessable 
 
 site value, 300 
 gross value of, 279 
 whether value of licence due to capital expenditure, 281 
 
 LIEN 
 
 is an "incumbrance," 451 
 
 trustee's, on land for costs, etc., whether a " fixed charge," 457 
 
 LIMESTONE 
 
 may be a mineral, cvii., 4—5, 212, 226 — 227 
 
 LIMITATIONS, STATUTES OP, 
 
 as to the Crown's claim for duties, cxliv. — cxlv., 100 — 101 
 
 LITEEAEY AND SCIENTIFIC INSTITUTIONS, 
 exemptions from land taxes, 392, 399 — 401 
 whether included in " charitable purposes," 399—400 
 
 LOAN SOCIETIES, 
 
 whether exempted from land taxes, 404 
 
 41—2 
 
644 Index. 
 
 LOCAL AUTHOEITIES 
 
 acquiring land, whether entitled to copies from record of valuations, etc., 
 
 345—346 
 application of part of duties collected to benefit of, 480 — 481, 584 
 charges by, whether " fixed charges," 290, 456 
 
 LOCAL GOVEENMENT BOAED, 
 
 consent of, before building on land exempted from undeveloped land 
 duty, 197 
 
 LUNATIC, 
 
 committee of, exercising powers under Settled Land Acts, may exercise 
 
 the powers of " owner," 463 
 exercise of power on behalf of, to charge land with duty paid, 425 — 426 
 land owned by, who is liable to make return for valuation, 317 — 318 
 
 MANDAMUS, WEIT OF, 
 
 against Commissioners, cxlvi. — cxlix. 
 
 MARINES, 
 
 when exempted from iucrement value duty, 99 
 
 MAEKET, 
 
 increase in value of land due to, 437 
 
 sale " by willing seller in the open market," meaning of, 275 
 
 MAEKET GAEDENS 
 
 included lu agricultural land, 463, 467 
 
 position of, with regard to undeveloped land duty, 468 
 
 MAEEIAGE, 
 
 gift made in consideration of, 20, 476 
 
 MEADOW LAND 
 
 included in " agricvdtural land," 463 
 
 MEMOEANDUM OF ASSOCIATION, 
 
 alteration of, of non-profit-sharing company to secure exemption, 403 
 
 MEEGEE 
 
 of a lease, reversion duty, xci., 154, 167 — 168, 174 — 175 
 
 METEOPOLITAN CONSOLIDATED STOCK 
 is an " interest in land," 448 
 
 MILITAEY LANDS, 
 
 exemption from land taxes, Ixxxiv., 392, 398 
 
 MINEEAL EIGHTS DUTY, cv.— cxvii., 209—230, 562—565 
 assessment and recovery of, 225 — 226 
 
 deduction of, from rent by immediate lessor, cvii., 227 — 230 
 duties of trustees with regard to, 424—425 
 excepted substances, cvii., 226—227 
 form of return by proprietor, for, 519 — 522 
 illustrations of, 220—221, 228—230 
 mortgagee in possession, whether liable for, 455 
 nature and amount of, cv., 209 — 217 
 
 not to be shifted from the immediate lessor, cvi., 225 — 226, 228 
 net to overlap increment value duty, ex., 230 — 235, 242 — 244 
 
 reversion duty, cvii., 230 — 231 
 paid by mortgagee, whether to be added to security, 455 ■ 
 penalties under provisions for, 224 — 225, 229 
 " rental value " for, defined, 217—223 
 return required for, 223 — 225 
 statutory company, not exempted from, 407 
 valuation for, 246 — 259 
 
Index. 645 
 
 MINEEAL WAYLEAVE, 
 meaning of, 268—269, 567 
 mineral rights duty on, cv. — cvi., 209 — 230 
 
 MINEEALS, 
 
 apportionment, as to increment value duty on, 340 
 capital value of, cix., cxiii. — cxiv., 246 — 251, 320 
 annual equivalent of, 235 — 240 
 whether " site value " refers to, 256 — 259 
 definitions of terms, 265 — 270 
 
 duties of trustees working, as to rental valuation, 424 — 425 
 exempted from mineral rights duty, cvii., 214 — 215, 226 — ^227 
 
 general propositions, 263 
 form of return by proprietor of, for mineral rights duty, 519 — 522 
 increment value duty on, when and how payable, xxv. — xxviii., 230 — 
 
 241 
 increment value of, cix., 235 — 240 
 in relation to gross value, 282 — 283 
 meanings of, different, 210 — 217 
 not included in quinquennial valuation, 334 
 
 "undeveloped land," ciii., 193 — 194 
 owner of, is liable to make return for valuation, 317 
 proprietor and owner of, compared, 265 — 266, 458, 566 
 of, duties of, cix., 223—225 
 meaning of, cv., 221, 265 
 provisional valuation, applies to capital value of, 320 
 purchased with the land by statutory company, whether entitled to 
 
 benefit of exemptions, 406 
 rental value of, 217—223 
 " rights to work," meaning of, 210 
 site value of, means capital value, cvii., 225 — 259 
 total value of, cxiii. — cxiv., 245 — 251 
 under copyhold land, 258—259, 432, 433 
 unworked, form of return as to, 531 — 535 
 valuation of, cxii.— cxvii., 222—224, 232—235, 245—259 
 wayleave, meaning of, 268 — 269 
 when deemed to be comprised in a mining lease, 269 
 whether included in general land valuation, 311 
 " land," 4—5,304, 435, 509 
 whether substances are, difficulty usually self-adiusting in practice, 
 
 216—217 
 " working," and " winning," 221, 269 
 working lessee, meaning of, 267 
 
 MINING LEASE, 
 
 expiration of, working minerals after, 269 
 
 meaning of, 218—219, 266, 566—567 
 
 meaning of "rent " in, 220 
 
 minerals not comprised in, whether subiect to the general land valuation, 
 
 311 
 rent customary in the district, 218, 269 — 270 
 reversion on a, increment value duty on, 261 — 262 
 
 reversion duty on, 257 
 when minerals comprised in a, 269 
 whether to be presented for increment value duty, 75 
 
 MOETALITY, TABLES OF, 56—62, 446 
 "Northampton Table," 62 
 
64B Index. 
 
 MOETGAGE 
 
 by demise, is not included in " lease," 443 
 
 by deposit of deeds, wbetlier an " incumbrance," 451 — 452 
 
 by tenant for life under Settled Land Acts, whether a " fixed charge," 
 
 457 
 covenant to pay off, value of consideration, 354 
 increment value duty not payable on a, xlviii., 9 
 of fee simple or interest, in relation to substituted original site value, 
 
 41—45 
 receiver under a, whether liable to make return for original valuation, 
 
 318 
 
 MOETGAGEE 
 
 by demise, having foreclosed or sold, 443 
 
 exercising power of sale, pays increment value duty, 73, 444, 450, 452 
 
 general note as to position of, in relation to land taxes, 452 
 
 in possession, whether liable for undeveloped land duty, 450, 454 
 
 on granting lease to pay increment value 
 duty, 453 
 joining in execution of transfer, whether a " transferor," 73 — 74, 461 — 
 
 462 
 joining to consent to leases, whether a " lessor," 74, 462 
 of reversion having foreclosed, reversion duty, 454 
 power of, to add duties paid to security, 426 — 427, 455 
 selling under power of sale, whether liable for increment value duty, 73, 
 
 444,450,452 
 when advancing money, should consider possible claim for increment 
 
 value duty, 453 
 when liable for land taxes, 450, 452 — 456 
 whether entitled to object to provisional valuation, cxxi., 326 
 
 copies from record of valuations, etc., cxxi., 345 
 whether increment value duty payable on death of, 453 
 
 MORTGAGOE, 
 
 increment value duty is payable on death of, 453 
 
 NAVAL LANDS, 
 
 exemption from land taxes, Ixxxiv., 392, 398 
 
 NOETHAMPTON TABLE, 56, 62, 446 
 
 NOTICE 
 
 of appeal, form of, 379 
 
 of withdrawal of appeal, form of, 381 
 
 requiring particulars of owner (Form 8), 347 — 348 
 
 requiring return for valuation, service of, 318 — 349 
 
 to make return for original valuation, 318 — 319 
 
 to persons interested of apportionment proceedings, 341 
 
 to trustees of settlement of charge for duties paid, 425 
 
 under rules as to appeals, provision as to sending, 379, 385 
 
 NUESEEY GEOUNDS, 
 
 included in agricultural land, 463, 467 
 
 "OCCASION" OF COLLECTION OF INCEEMENT VALUE DUTY, 
 xlvii.— 1., 2—3,7—25, 50—64, 72—130 
 death, xlvii., 2—3, 15—22, 34—35, 50—64, 89—121 
 
 what is site value on, 34 — 3^ 
 different interests, whether material to each other, 64, 70 
 fresh valuation on each, 33 
 on minerals, capital value may be basis of duty, 251 
 
Index. 647 
 
 " OCCASION " OF COLLECTION OF INCREMENT VALUE DUTY— 
 continued. 
 periodical occasions, xlviii., 3, 22—25, 35, 50, 57—58, 121—130, 141 — 
 144, 256 
 what are, 23, 121 — 122 
 what is site value on, 35 — 36 
 transfer on sale, or lease, xlvii., 2, 7 — 15, 50 — 64, 72 — 90 
 valuations necessary on, 303 — 304 
 what is site value on, 27 — 34 
 
 OCCASIONAL SITE VALUE, 27^1 
 apportionment of, 340 
 
 contrasted with assessable site value, 26, 303 — 304 
 how ascertained, Uii., 27 — 41 
 
 OCCUPATION, SEPAEATE, 
 
 each owner in, must make a return, xxix. — xxx., li., cxx., 317 — 320 
 
 determines unit of valuation, xxix. — xxx., 311 — 315 
 
 joint valuation of properties under, xxx., cxix. — cxx., 313, 315 — 317 
 
 of owner, where land actually unoccupied, 313 
 
 separate valuation of part of property in, xxx., cxix., 313 
 
 OPEN SPACES, 
 
 deduction for, in arriving at assessable site value, 294, 298 — 299 
 
 OECHARDS 
 
 included in agricultural land, 463, 466 — 467 
 
 OEIGINAL CAPITAL VALUE 
 
 of minerals, cix.— ex., 217, 232—235, 246—251 
 annual equivalent of, cix., 235 — 240 
 
 when not comprised in a mining lease or worked, 
 244 
 fixed by general land valuation, 310 
 
 OEIGINAL SITE VALUE, xxii., H.— lii., cii.— ciii., 26, 41—44, 191—192, 
 273, 283— 287, 294— 304, 338—343 
 alterations of, Ixii. — Ixiv. 
 appeal against valuation, 358 — 365 
 apportionment, Ixii. — Ixvi., 49 — 50, 338 — 343 
 basis of increment value duty, 26, 310 
 fixed by general land valuation, cxviii. — cxix., 310 
 
 provisional valuation unless objected to, 320 
 for undeveloped land duty, cii. — ciii., 191 — 192, 310 
 high or low, practical considerations, xxx. — xxxi., 309 
 how ascertained, 283—287, 289, 294—309 
 on purchase of land by statutory company, 408 — 409 
 payment of duty before fixing, 329 
 substituted, Ixi., 41 — 46, 543 — 544 
 to what extent alterable, xxxii., 339 
 
 OEIGINAL TOTAL VALUE, 287—294, 305—307 
 appeal against valuation, 358—365 
 fixed by provisional valuation unless objected to, 320 
 
 OEIGINAL VALUATION, cxviii.— cxxi., 309—333 
 
 OVERLAPPING OF DUTIES, cxxviii.— cxxix. 
 
 increment value duty and mineral rights duty, ex., 230 — 235, 242 — 244 
 and reversion duty, xci. — xcii., 170 — 172 
 and undeveloped land duty, cii. — ciii., 191 — 193 
 
 mineral rights duty and reversion duty, cvii., 230 — 231 
 
648 Index. 
 
 OWNEE 
 
 and lessee not the owner, compared, 459 
 definition of, 458 — 461 
 
 (Scotland), 471 
 express powers of the, summarised, 463 
 includes, for purposes of original valuation, lessor where over fifty 
 
 years of term unexpired, 330, 509 
 information to be furnished as to name and address of, cxx., 346 — 348 
 
 form, and accompanying notice, 536—538 
 may require separate valuation or apportionment, Ixii. — Ixv. 
 meaning of, xliii., civ., 45, 138, 140, 203, 205—206, 509 
 
 in case of small properties, Ixxix., 138 
 
 for mineral rights duty, cv. — cvi., 265 — 266 
 must furnish particulars or information, li., 317 — 319 
 
 form of particulars required, 504 — 512 
 of copyholds, meaning of, 428, 433 
 reversioner who is not the, position of, 460 
 rights and duties of, 459 — 460 
 
 summary of clauses of the Act where the term used, 458 — 459 
 when subject to land taxes, as such, 458 
 whether mortgagee in possession is the, 454 
 
 PAEK 
 
 attached to mansion house, whether it may be "agricultural land," 
 465—466 
 
 PAEKS AND OPEN SPACES, 
 
 exemptions from undeveloped land duty, xcviii., 196 — 198 
 
 PAETITION, 
 
 increment value duty not payable on a, 9 
 
 PAETNEESHIP, 
 
 not a body Tinincorporate, 23 
 
 PASTUEE LAND, 
 
 gross and full site value of, 286 
 included in agricultural land, 463 
 
 PAYMENT INTO COUET 
 
 of amount of duty claimed, provision for repayment, cxlvi. 
 
 PENALTIES, cxliii.— cxliv. 
 
 for failure to account, etc., for increment value duty, 103, 127 — 128 
 for reversion duty, xciii., 177 — 178 
 fiimish information as to owner, 348 
 make return for mineral rights duty, 224 — 225 
 original valuation, 317, 319 
 for making false statement or representation, 483 — 484 
 for non -presentation of instrument, Ixviii., Ixxi., 74 — 79 
 for refusal to allow deduction of mineral rights duty, 229 
 procedure in relation to, cxxxviii. — cxlix. 
 whether enforceable on application to stamp, 83 
 
 "PEESON INTEEESTED," 
 
 meaning of, 298, 326, 345, 447 
 
 PETITION 
 
 of appeal to High Coiu-t, 382—385 
 
 amending, 386 
 
Index. 649 
 
 PETITION OF EIGHT 
 
 for repayment of duty, cxlv. 
 
 "PIECE OF LAND," 
 meaning of, 336 
 
 PORTION, 
 
 charge of a, is an " incumbrance," 451 
 
 POSSESSION 
 
 without title, whether sufficient to constitute " proprietor," 265 
 
 POWER OF APPOINTMENT, 
 
 land subject to, may be liable to increment value duty, 17, 20, 93, 101, 
 106 
 
 PRACTICE, 
 
 procedure in relation to duties and penalties, cxxxviii. — cxlix. 
 rules as to appeals to the High Court, 383—386 
 
 PREMIUM 
 
 on grant of a lease in estimating site value, 31 — 33 
 
 in paying increment value duty by instalments, 86 
 
 PRESENTATION OF INSTRUMENT. See Instrument. 
 
 PRINCIPAL VALUE 
 
 for estate duty, effect of former gross value on, 306 
 
 meaning of, 95, 96, 259, 273, 283 
 
 of an interest in land, in fixing increment value duty, 27 — 28, 34 
 
 provisions as to estimation of, 478 — 479 
 
 PRIORITY OF CROWN 
 
 for increment value duty, 
 
 in administration, 90, 94, 105, 121 
 in Chancery, 84 
 
 in bankruptcy, 84 
 for reversion duty, 174, 176 
 for undeveloped land duty, 207 
 
 PROHIBITION, WRIT OF, 
 
 against Commissioners, cxlix. 
 
 " PROPER PROPORTION," 
 definition of, 53 
 explained, 56, 59—61 
 
 PROPERTY PASSING ON DEATH, 
 
 how valued for increment value duty, 27 — 28, 34—35, 478 — 479 
 increment value duty on, assessment, collectiou, and recovery, 90, 121 
 meaning of, for estate duty and increment value duty, 15 — 22, 91, 114 
 principal value of, 95—96, 259, 478—479 
 settled land comprised in, increment value duty on, 65 — 68 
 
 " PROPORTIONATE PART " OF INCREMENT VALUE DUTY, 
 collection of, 24—25, 51—64 
 illustrations of, 61 — 64, 111 
 rules as to, 25, 62 — 61 
 
 to be determined by Commissioners in certain cases, 14 
 whether to be borne by legatee in whose favour land charged, 111 
 
 "PROPRIETOR" 
 
 of minerals, and " owner " compared, 265 — 266, 566 
 duties of, cix., 223—225 
 meaning of, cv., 221, 265 
 
650 Index. 
 
 PEOVISIONAL VALUATION. See Valuation, Provisional. 
 
 PUBLIC PURPOSES, 
 
 gift made for, " property passing on death,'' 475 
 
 PUBLIC EIGHTS OF USER, 
 examples of, 291 
 
 PURCHASER. See Transferee. 
 
 RAILWAY, 
 
 undeveloped land adjoining, retained for future extensions, 407 
 
 RAILWAY COMPANY, 
 
 exemptions in favour of land held by, Ixxxv.— cii., 405 — 411 
 
 land let by, for objects naturally in connection with undertaking, 407 
 
 RATE, 
 
 meaning of, 388 
 
 RATEABLE PART. See Proportionate Part. 
 
 RATING AUTHORITY, 
 
 deduction for sum paid to, in respect of increased value, 389 — 391 
 exemption of land held by, from land taxes, Ixxxiii., ci,, 24, 386 — 388 
 meaning of, 388 
 
 REAPPORTIONMENT. See Apportionment. 
 
 RECEIVER, 
 
 appointment of, in proceedings for recovery of increment value duty, 
 
 104 
 whether liable as a "person receiving rent" to make return for 
 
 valuation, 318 
 
 RECREATION GROUNDS 
 
 attached to a developing estate, whether deduction allowable for 
 
 assessable site value, 299 
 exemption of, from increment value duty, Ixxx. — Ixxxi., 24, 141 — 144 
 undeveloped land duty, xcviii., 197, 198 — 200 
 
 RECORD, 
 
 copies of particulars on, to be furnished, cxxi., 345 
 
 of valuations, apportionments, etc., cxxi. — cxxiii., 50, 344 — 346 
 
 REFEREE, 
 
 appeal from, to High Court, rules, 382 — 386 
 to, 357—382 
 
 rules, 370—379 
 appointment of, 371 
 
 cannot apparently take evidence on oath, 366 — 367 
 form of decision of, 379, 382 
 order by, as to costs of appeal, 366 
 power of, to state case for the Court, 366, 378 
 to select another, in certain cases, 378 
 remuneration of, 371 
 selection of, 377 
 And see Appeal. 
 
 REFERENCE COMMITTEE, 
 
 constitution of, cxxvii., 370 — 371 
 
Index. 651 
 
 eegistered societies, 
 
 exemption of, from land taxes, 401 
 meaning of, 401 
 
 And see Friendly Societies. 
 
 REGULATIONS, 52-61, 481— 4S3, 487—495 
 
 as to collection of increment value duty on " occasions," 52 — 61 
 
 presentation of instrument, etc., Ixxi., 74 — 79, 85 — 87, 487 — 495 
 
 RELIGIOUS CORPORATIONS SOLE, 
 
 whether glebe lands held by, " for charitable purposes," 398 
 
 REMAINDER 
 
 is an incorporeal hereditament, 440 
 not an " interest," xlviii., 9 
 
 REMAINDERMAN, 
 
 whether " aggrieved " by inadequate original site value, 359 
 
 entitled to copies from record of valuations, etc., 345 
 object to provisional valuation, 326 
 
 REMISSION 
 
 of estate duty twenty years after death, 103 — 104 
 of increment value duty, 85 — 89, 104 
 
 on ten per cent, of the site value, lix. — Ix., 
 68—70 
 of interest on increment value duty, 117 
 
 RENT, 
 
 building lease at a nominal value of consideration, 353 — 356 
 "customary in the district," 218, 269 — 270 
 definition of, 442—4^3 
 
 (Scotland), 471 
 meaning of, 318, 566 
 of minerals, meaning of, 220—222, 266 
 
 RENTAL VALUE 
 
 of minerals, definition of, cvi., 217 — 221, 237 
 
 and deductions of duties from rent, cix., 229 — 230 
 when reduced by amount of return for capital expenditure, 
 240—241 
 
 RENT-CHARGE, 
 
 cesser of, not an occasion of collection of increment value duty, 18, 98 
 covenant on a sale to pay, whether part of consideration, 354 — 355 
 definition of, 440—442 
 
 (Scotland), 471 
 meaning of, 290, 355 
 sale of freeholds subject to, "periodical money payment," 353 
 
 RESTRICTIVE COVENANT. See Covenant. 
 
 RETURN 
 
 for general valuation by owner, 317 — 319 • 
 
 whether required of statutory company, 408 — 409 
 form of, 500—512 
 
 RETURN OF DUTY, 
 
 increment value duty, Ixxi., 85 — 89, 104, 107 — 108 
 paid as an over-assessment before settlement of original valuation, 329 
 —330 
 
 REVERSION DUTY, xxxv.— xxxvii., Ixxxvi.— xciv., 151—180, 557—559 
 account for, xxxv., Ixxxviii., xciii., 176 — 181, 523 — 525 
 appeals as to, 172, 179 
 assessment of, 179 — 180 
 
652 Index. 
 
 EEVEESION BVTY— continued. 
 avoidance of, 153 — 154 
 covenant to renew lease, effect of, 446 
 deductions for betterment charges, 389 
 
 capital works or expenditure, Ixxxviii., 156 — 158 
 compensation payable by lessor, Ixxxviii., 156, 158 
 duties of trustees with respect to, 423 
 exemptions from, Ixxxix. — xcii., 164 — 174, 391 — 408 
 
 land held for charitable purposes, etc., 391 — 405 
 
 by statutory company, 405 — 408 
 lease for less than twenty-one years, xci., 166 — 167 
 form of account by lessor, for, 523 — 525 
 gross value to be ascertained on pavnient of, 274, 305 — 307 
 illustrations of, 160— 162, 163, 164, 166, 171 
 mortgagee's position in relation to, 453—454 
 nature of, Ixxxvi., 151- 156 
 not to overlap increment value duty, xci. — xcii., 170—172 
 
 mineral rights duty, cvii., 230 — 231 
 on merger of a lease, 154, 167 — 168, 174 — 175 
 payable by mortgagee, power to add to his security, 426 — 427 
 power of tenant for life or trustee to charge land with, 412 — 425 
 rate of, xxxvi., 152 
 recovery of, xcii. — xciv., 174 — 180 
 where lessor himself a lessee, xc, 160 
 
 EEYEESION ON A FEEEHOLD 
 is not an " interest," 9 
 
 EEVEESION ON A LEASE, 
 apportionment on sale of, 341 
 is an incorporeal hereditament, 440 
 
 " interest," 9 
 lease having over ninety-nine years to run, not an "interest" under 
 
 the rules, 57 
 mining lease, increment value duty on, 261 — 262 
 
 reversion duty, 257 
 of small property, not exempted from increment value duty, 140 — 141 
 person entitled to, when an " owner " for purposes of original valuation, 
 
 330—331 
 reversion duty on a foreclosed, xcii., 172 — 174 
 
 leasehold, 160 
 selling value of, not same as total value, 289 
 service of provisional valuation on reversioner, 320, 327 
 short leases of, for avoiding increment value duty, 13 
 " term of the interest," 55 
 
 when exempt from reversion duty, Ixxxix — ^xci., 164 — 174 
 when " purchased," for purposes of reversion duty, xc, 164 
 whether subject to increment value duty, 97 
 
 EEVEESIONEE, 
 
 whether " aggrieved " by total value being fixed too high or too low, 360 
 whether entitled to object to provisional valuation, 326 
 who is not the " owner," position of, 460 
 
 EULES 
 
 and regulations, Ixvi. — Ixviii., 10, 14, 52 — 61, 481 — 483 
 as to appeal to High Court, 382 — 386 
 referee, 370—379 
 
 SAILOES, COMMON, 
 
 when exempted from increment value duty, 99 
 
. Index. 653 
 
 SALE 
 
 by trustees, increment value duty on, 416 — 417 
 
 " SALE IN OPEN MAEKET," 
 meaning of, 276—277 
 
 SAND 
 
 may be a "mineral," cvii., 4—5, 211, 214—215, 226-227 
 as to increment value duty, 244 — 245 
 
 SAVINGS BANKS, 
 
 whether exempted from land taxes, 404 
 
 SCHEME OF VALUATION, 
 
 reasons for and merits of the, 307 — 309 
 
 SCHOOLS, 
 
 exemption of, from land taxes, Ixxxiv., 392, 399— 401 
 
 SCIENTIFIC INSTITUTIONS, 
 
 exemption of, from land taxes, 84, 392, 399—401 
 whether " science " includes applied science, 401 
 
 SCIRE FACIAS, WEIT OF, cxli.— cxlii. 
 
 SCOTLAND, 
 
 definitions in Finance Act applicable to, 471 — 473 
 regulations as to increment value duty affecting, 492 
 
 SEASHOEE, 
 
 whether " land " includes land between high and low water marks, 435 
 
 SECUEITY 
 
 for annual instalments of increment value duty, 87 
 
 for duty claimed, stay of appeal proceedings until payment of, 385 
 
 for payment of increment value duty, xxiii., Ixix., 80 
 
 given for payment of duty, provision for vacating, cxlvi. 
 
 SEPAEATE OCCUPATION, 
 
 the unit of valuation, li., Ixii. — Ixvi., 5, 311 — 315 
 
 SEEVICE 
 
 of documents in appeal proceedings, 379, 385 
 of notice requiring return for valuation, 349 
 
 SET-OFF 
 
 of decrement against increment, 337 
 
 of increment value duty against mineral rights duty, ex., 242 
 
 SETTLED LAND, 
 
 apportionment of site value of, 343, 419 — 420 
 
 charge of land taxes by tenant for life of, not a " fixed charge," 290 
 
 limitation of relief from estate duty in respect of, 474 
 
 meaning of, 65, 113, 412—413, 605 
 
 mortgage by tenant for life of, whether a " fixed charge," 457 
 
 passing on death, increment value duty on, 17, 65 — 68, 108, 112, 115 — 
 
 117 
 power to charge upon, duty paid by tenant for life, 412 — 416 
 
 trustee, 412—416, 418—420 
 sale of, may give rise to increment value duty, 9, 73 — 74 
 what sums tenant for life may charge on, 414 
 
654 Index. . 
 
 SETTLED LAND ACTS, 
 
 trustees for the purposes of, their duties as to charge by tenant for life, 
 425 
 
 SETTLEMENT, 
 
 trustees of, joining in conveyance to receive and acknowledge purchase- 
 money are not " transferors," 462 
 
 SETTLEMENT ESTATE DUTY, 
 
 exemption from increment value duty by payment of, 65 — 68 
 transfer of land to satisfy, 474 
 
 SHED, WOODEN, 
 
 ■whether a " structure," 286 
 
 SHOOTENG EIGHTS 
 
 in relation to gross value, etc., 438 — 440 
 not included in " land," 438 — 440 
 
 SITE VALUE, xliv.-xlvii., Iv.— Ivii., 27—46, 191—192, 283—287,294— 
 304, 338—343 
 apportionment of, bdi. — Ixvii, Ixxii. — Ixxiii., 49, 338 — 343 
 assessable, 181, 294—304, 307 
 
 compared with full site value, 272 
 cost of clearing site to ascertain, 301—302 
 depreciated, relief for owner in respect of, Ix. — Ixi., 41 — 46 
 different kinds of, 271—272 
 
 duty of trustee transferor as to ascertainment of, 418 
 for undeveloped land duty, cii. — ciii., 191 — 196 
 influence of easements on, 436 
 meaning of, xliv. — xlvi., 27, 181 
 means capital value in case of minerals, 255 — 259 
 of agricultural land, 287 
 on " occasion of collection," liii. — lix., 27 — 41, 148 — 151 
 
 definition of, 27 
 original, xxii., li.— hi., cii.— ciii., 26, 41—44, 191—192, 273, 283—287, 
 294—304 
 And see ORIGINAL SiTE YALTJE. 
 
 reduction of, of undeveloped land where increment value duty paid, 
 
 cii.— ciii., 191—192 
 substituted original, 41 — 46 
 
 to be ascertained imder scheme of general land valuation, cxviii. — cxxi., 
 
 309, 311 
 
 And see Agricultubai, Value ; Assessable Site Value ; 
 
 Depreciated Site Value; Full Site Value; Occasional 
 
 Site Value; Original Site Value; Substituted Original 
 
 Site Value. 
 
 < 
 
 SMALL HOLDINGS, 
 
 exemption of, from increment value duty, Ixxix. — Ixxx., 138 — 139 
 undeveloped land duty, c. — ci., 203 
 
 SMALL HOUSES AND PEOPEETIES, 
 
 exemption of, from increment value duty, 137 — 138 
 undeveloped land duty, 200 — 201 
 
 SMALL OWNEBS, 
 
 exemption of, from increment value duty, Ixxix., 137 — 139 
 
 SOLDIEES, 
 
 when exempted from increment value duty, 99 
 
Index. 655 
 
 SOLICITOES, 
 
 circulars issued by Commissioners to, 538 — 539 
 costs on presentation of instrument, 76 
 
 SPECIFIC PEEFOEMANCE, 
 
 difficulties in actions for, 82, 89 
 
 "SPOETING PUEPOSES," 130—137 
 
 SPOETING EIGHTS, 
 
 in relation to gross value, etc., 438 — 440 
 not included in "land, "438— 440 
 
 SPEINGS, 
 
 whether increment value due to, dutiable as of " land," 438 
 
 STAMP, INCEEMENT VALUE DUTY, 
 compared with ad valwem stamp, 32 — 33 
 kinds of, xxi. — xxii., Ixviii. — Ixxiii., 79 — 80 
 necessary for evidence, 79 — 82 
 on agreement and not on deed, 89 
 
 on conveyances and leases of agricultural land, Ixxi., 490 
 purchaser must look for but not verify, 83. 89 
 
 STAMP DUTY, 
 
 increment value duty is a, 70—72 
 
 STATUTES, ..... 
 construction and evasion of, cxxxi. — cxxxvii. 
 
 STATUTOEY COMPANY, 
 
 exemptions in favour of, Ixxxv., cii., 405 — 408 
 meaning of, 410 
 
 not exempted from mineral rights duty, 407 
 return by, "Form 3," 526—530 
 
 STEEETS, 
 
 deductions allowed for payments made in respect of improvements, etc., 
 389—391 
 
 "STEUCTUEE," 
 
 meaning of, 286—287, 302 
 
 SUB-LEASE, SUB-DEMISE. See Underlease. 
 
 SUBSTITUTED OEIGINAL SITE VALUE, Ixi., 41—46, 543-544 
 extension of the period of twenty years, 44 — 46 
 manner and time of application for, 42, 44 — 46 
 not evoked by grant of a lease, 43 
 
 SUCCESSION DUTY, 
 
 transfer of land to satisfy, 474 
 
 TABLES, FOUE PEE CENT., 56, 548 
 
 TABLES OF MOETALITY, 56—62,. 446 
 Northampton Table, 62 
 
 TAXES, 
 
 whether land taxes included in " rates and taxes," in ascertaining gross 
 value, 277 
 
656 Index. 
 
 TENANT FOE LIPE, 
 
 charge by, on settled land, of land taxes paid, not a " fixed charge," 
 
 290 
 definition of, 605—606 
 equitable, who is the " owner," 460 
 liable as owner to make return for valuation, 317 
 liable for undeveloped land duty, 205 
 maj charge increment value duty and reversion duty on land, cxxix., 
 
 258, 412—416 
 may pay increment value duty on sale, 73 
 mortgage of settled land by, whether a " fixed charge," 457 
 of copyholds, position of, as to land taxes, 428, 433—434 
 of settled land, joining to consent to sale, is not a " transferor," 462 
 power of, to charge duty paid on settled land, cxxix., 258, 412 — 416 
 surrender to remainderman before death by, whether increment value 
 
 duty payable, 117, 475 — 478 
 what amounts may be charged on settled land by, 414 
 whether accountable for increment value duty on death, 102 
 whether " aggrieved " by excessive original site value, 359 
 whether a "proprietor" of minerals, 265 
 
 TENANT IN COMMON, 
 
 sale by, of his share of the fee simple, increment value duty on, 457 — 
 458 
 
 TENANT IN TAIL, 
 
 liable for undeveloped land duty, 205 
 
 may pay increment value duty on sale or lease, 73 
 
 whether accountable for increment value duty on death, 102 
 
 TENEMENTS, 
 
 partial exemption from increment value duty, Ixxx. — Ixxxiii., 147 — 148 
 
 "TERM OF A LEASE," 
 
 definitions of, 55, 167, 169, 444—446 
 
 TOLLS 
 
 derived from markets or bridges, whether included in " land," 437 
 
 TOTAL ANNUAL VALUE, 
 
 apportionment of, between land and dwelling-house, 139 — 140 
 of dwelling-house, meaning of, 138 
 
 TOTAL VALUE, 
 
 appeal against objectionable assessment of, where site value assessment 
 
 acceptable, 360 — 361 
 basis of, 288 
 
 compared with " principal values," 96 
 deductions from, based on restrictive covenants, no appeal from referee 
 
 as to, 382 
 for reversion duty, xxxv., Ixxxvii. — ^Ixxxix., 156 — 169 
 for undeveloped land duty, 203 
 how ascertained, 273, 288 
 
 is the basis of site value on a periodical occasion, 30 
 is market value, 289 
 
 meaning of, Iv., Ixxxvii.— Ixxxix., 35—36, 96—97, 156, 159, 287—294 
 of minerals, meaning of, cxiii. — cxiv., 245 — 248 
 process of arriving at, algebraically represented, 273 
 rent-charges, whether value of, to be deducted in arriving at, 290 
 restrictive covenants, effect of, on, 287, 291 — 292 
 time for ascertaining, for reversion duty, 157, 275 
 to be ascertained imder scheme of general land valuation, 309, 311 
 when taxable, 288 
 
Index. 657 
 
 TOWN PLANNING, 
 
 deduction for sums paid to rating authorities in respect of, 389 — 390 
 
 "TRADE," 
 
 meaning of, for undeveloped land duty, 187 
 
 TEADE UNIONS, 
 
 whether exempted from land taxes, Ixxxiv. — Ixxxv., 404 
 Ajid see Friendly Societies. 
 
 TEAMWAY COMPANY, 
 
 exemptions in favour of land held by, 405 — 411 
 
 TRANSFEE ON SALE, 
 
 apportionment of consideration as between properties included in, 357 
 
 compared with " conveyance on sale," 71 
 
 meaning of, for purposes of increment value duty, 7 — 9, 351 
 
 (Scotland), 473 
 of an interest in land, collection of increment value duty on, xlvii., 
 
 Ixviii.— Ixxiii., 7—15, 27—84, 51—64, 72—89, 129—130 
 of fee simple, what is site value on, 27, 29 — 30 
 of interest in land, what is site value on, 27, 29 — 30 
 presentation of instrument on, 74 — 79 
 previous to Act, may alter original site value, 41 — 46 
 
 TEANSFEEEE, 
 
 intending, whether entitled to copies from record of valuations, etc., 346 
 should disclose covenants to incur expenditure, to the Commissioners, 
 
 xxiii. — XXV., 493 
 witti notice of unpaid increment value duty, 126, 129 
 
 TRANSFEEOR, 
 
 meaning of, 73, 461 — 463 
 
 (Scotland), 473, 492 
 must pay increment value duty, Ixviii. , 72 — 74 
 
 contract to contrary void, Ixxi., 46 
 must present the instrument, Ixviii. — Ixx., 74 — 79 
 must shew deductions, xxiii., 76 
 position of, having sold before original site valuation made, xxiv. 
 
 TRUST ■ 
 
 for securing money is an "incumbrance," 451 
 
 TEUSTEE, 
 
 duties of, on original and periodical valuations, 421 — 423 
 increment value duty, on purchase by, 420 — 421 
 
 on sale by, 416 — 417 
 joining in execution of transfer, whether a "transferor," 461 — 462 
 lien of, on land for costs, etc., whether a " fixed charge," 457 
 may charge increment value duty on land, cxxix., 258, 412 — 425 
 payment of increment value duty by a, 73 — 74 
 position of, in relation to land taxes, 416 — 425 
 whether accountable for increment value duty, 103 
 
 UNDERLEASE 
 
 is a "lease," 11—12,443 
 
 restrictive covenant in, effect on total value, 292 
 
 to be stamped, 82 
 
 "UNDERTAKING" 
 
 of statutory company, meaning of, 407 — 408 
 
 N. 42 
 
658 Index. 
 
 UNDEVELOPED LAND 
 
 does not include minerals, ciii., 189 — 190 
 
 meaning of, xcv. — xcvi., 181 — 191 
 
 periQdical valuation of , cii., cxix., 181, 275, 333 — 335 
 
 reduction of site value of, where increment value duty paid, cii.— ciii., 
 
 191—193 . . 
 
 what is, whether undeveloped land duty is payable is immaterial, 310— 
 311 
 
 UNDEVELOPED LAND DUTY, xxxvii.— xxxviii., xcv.— civ., 180—209, 
 559—562 
 appeals as to 197. 199—200 
 assessment and recovery, ciii. — civ., 203 — 209 
 deductions, cii. — ciii., 191 — 192, 389 
 duties of trustees with regard to, 424 
 
 exemptions and allowances, xcvi.— cii., 182, 189—190, 194—203, 391 — 
 
 408 
 agricultural land, xcvii., 194—196 
 
 under existing leases, c, 
 201—203 
 land held by statutory company, 405—408 
 held for charitable purposes, 391 — 401 
 worth less than 501. per acre, xcvi., 
 194 
 parks, recreation grounds, etc., xcvii. — 
 
 xcviii., 196—200 
 small agricultural properties, ci. — cii., 203 
 small properties, xcix., 200 — 201 
 illustrations of, 191—192, 201 
 
 joint valuation where " equitable," for purpose of, 316 
 not a charge on the land, 180, 205 
 not to be shifted from the " owner," 204, 207—208 
 not to overlap increment value duty, cii. — ciii., 191 — 193 
 paid by mortgagee whether to be added to security, 427, 455 
 payable on assessable site value, 295 
 priority of Crown for, 207 
 rate of, xcv., 180 
 
 site value for, xcv., cii. — ciii., 191 — 193 
 when payable, ciii., 203 
 
 whether a " tax" in ascertaining gross value, 277 
 whether mortgagee in possession liable for, 450, 454 
 
 UNDIVIDED SHAEE, 
 
 fee simple of an, is an " interest," 9 — 10 
 
 in a life estate, whether an " interest," 10 
 
 in fee simple, lease of, is an " occasion " for increment value duty, 12 
 
 of proceeds of sale of land, whether an " interest," 16 
 
 sale of an, increment value duty on, 73 
 
 UNIT OF TAXATION, Ixiv.— Ixvi.. 335—337 
 
 UNIT OF VALUATION, xxix.— xxx., li., 309—317 
 adopted by Commissioners, effect of accepting, 318 
 " each piece of land," meaning of, 312 — 313 
 
 UNIVERSITIES, 
 
 position of, with regard to land taxes, Ixxxiv., 392 
 
 UNOCCUPIED LAND, 
 
 question of " separate occupation " as to, 313 
 
Index. 6^9 
 
 unsatisfied duty, 
 
 meaning of, 51 
 
 to be determined by Commissioners, 47 — 48 
 
 YALUATION, 
 
 alteration in, to caiTy out decision of referee, 379 
 charge by tenant for life for expenses of, 415 — 416 
 diities of a trustee as to original and periodical valuations, 421 — 423 
 estimate by owner, of original total and site values, 319 — 320 
 for increment value duty, xxii., xxxiii. — xxxv., 27 — 36 
 cost of, how defrayed, 98 
 of agricultural land, J 30 — 135 
 on each occasion of collection, 33 
 record of, 50 
 
 site value on an "occasion," 
 on death, xxix., 27 — 28, 34 
 on lease or transfer of interest, 27, 30 — 34 
 to be furnished by corporate and unincorporate 
 bodies, 123 
 form of return ("Form 4 "), 500—512 
 general, of all land, cxviii. — cxxi., 309 — 315, 568 — 573 
 object of gross, and full site, 285 
 
 of part of land under separate occupation, xxx., cxix.. 309, 313 — 315 
 of minerals, cxii.— cxvii., 222— 224, 232—235, 245—259 
 of site, high or low, practical considerations, xxx. — xxxi., 309 
 
 under general land valuation, cxviii. — cxxi., 309, 311 
 original, cxviii. — cxxi., 309 — 315, 568 — 573 
 
 payment of duty before settlement of, 329 — 330 
 probably includes minerals, 246 — 247 
 procedure on, 331 — 333 
 return for, 317—320 
 
 to be recorded by Commissioners, cxxi. — cxxiii., 344 — 346 
 when made, 316 — 317 
 periodical, apportionment of site values on, 338 — 342 
 effect of not completing in current year, 335 
 for undeveloped land duty, cii., cxix., 181, 275, 333 — 335 
 provisional, cxx., 320 — 333 
 
 amendment of, 322 — 324 
 
 appeal against, 321, 325—329, 358—364 
 
 time for, 364 
 classification of cases, xxxiii. 
 copy may be applied for, cxx., 326 — 332 
 copy of, how served, 348 — 349 
 duties of trustees as to, 423 
 extension of time for objections to, 322 
 form of, 546—547 
 
 circular letter enclosing, 545 
 objections to, 323—324 
 meaning of, 320 
 notice of objection to, 322 — 324 
 objection to, whether objector entitled to a personal hearing, 
 
 oZo 
 precautions to be taken by person interested in the land as 
 
 to, 327—328 
 service on a lessee if an " owner," 320, 327 
 
 " owner," cxx., 320, 327 
 whether service of amended valuation necessary, 323 
 with regard to agricultural value, 321 
 reason for adoption of existing scheme of, 307 — 308 
 record of, 344— 3'i5 
 
660 Index. 
 
 YALUATIO^— continued. _ - 
 
 scheme of, reasons for and merits of the, 307 — 309 
 separate occupation, part of land under, xxx., 309, 313 — 315 
 And see Appeal ; Apportionment ; Gross Value ; Total Value ; 
 Site Value. 
 
 VOLUNTARY CONVEYANCE, 
 
 increment value duty not payable on a, 9 
 
 with certain exceptions, 18 — 20 
 in relation to substituted original site value, 45 
 
 WATEE, 
 
 land covered by, whether included in " land," 435 
 
 WATEE SUPPLY COMPANY, 
 
 exemptions in favour of land held by, Ixxxv., cii., 405 — 411 
 
 WAYLEAVE, MINEEAL 
 meaning of, 268 — 269, 567 
 mineral rights duty on, cv. — cvi., 209 — 230 
 " working lessee" of, meaning of, 267 
 
 WELL, 
 
 whether a " structure," 287 
 
 ••WILLING SELLEE," ' 
 
 meaning of, xlv., Iviii., 275 — 276 
 
 "WIN" MINEEALS, TO, 
 meaning of, 221, 269 
 
 '« WOODLAND," 
 
 exemption ofj from undeveloped land duty, 196 — 198 
 included in agricultural land, 463, 467 
 whether use as a deer forest is use as, 135 
 
 " WOEKING LESSEE," 
 meaning of, 267, 567 
 
 " WOEKING YEAE," 
 
 meaning of, cvi., 220, 268, 567 
 
 WEITS 
 
 against the Commissioners, cxlvi. — ^cxlix. 
 
 for recovery of duties, by the Crown, cxl. — cxlii. 
 
 YEAELY TENANCY, 
 valuation of, 96, 480 
 
 BRADBURY, AGNEW, & CO. LD., PR1NTKR8, LONDOK AND TONBRIDOE. 
 
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