is to be calculated and paid according to the value of the interest of each person in the way already stated.(u) 4. Gifts in Joint-Tenancy.-Duty is chargeable in proportion to the legatee's respective interest in the succession in manner already mentioned.(v) But the Succeesion Act(w) makes all joint tenants liable to duty in respect of any increase of benefit accruing to them by survivorship. Therefore legatees in jointtenancy are now chargeable with duty in respect of any further interest which they acquire by the death of their co-legatees, as well in cases where the latter are originally chargeable with duty, as in those where they are exempt. In the case of a gift to husband and wife jointly, either in liferent or in fee, no duty becomes payable on the death of the one who dies first. But if the gift is such as to confer on them a succession in the first instance, duty must be paid on the value of an annuity for the longest of the two lives.(x) 5. Property given subject to Powers of Appointment.—The rules are the same as those already stated under the Legacy Acts(y), with this addition made by the Succession Duty Act(2), that property appointed in execution of any general power taking effect upon a death (including a power created by will) is liable to duty, as a succession derived by the donee of the power from the person by whom it was created, notwithstanding that there is no gift of any previous interest in the property subjected to the power. 6. Money directed to be laid out in Land.-The rules here are also the same as those previously stated under the Legacy Acts(a), with this addition made by the Succession Duty Act(b), that all personal property which is subject to any trust for investment in the purchase of heritable estate, is to be charged with succession duty, so far as it is not chargeable under the Legacy Duty Acts, either as heritable or personal property according to the circumstances. After the money has been actually laid out, the duty is the same as on heritable property. 7. Successions in Personal Property.-The duty is to be assessed and paid in the same manner as on legacies.(c) (u) See § 291 supra under this heading; 16 & 17 Vict. c. 51, § 32. (v) See § 291 under this heading. (w) 16 & 17 Vict c. 51, § 3. (x) Hanson, p. 254. (y) § 291 supra. 8. Successions in Heritable Property.-The following distinctions obtain (1.) Where the Property yields an Annual Income. - The duty is charged upon the value of the successor's lifeinterest in the annual value of the property, calculated according to the tables annexed to the Succession Duty Act, and is payable by eight equal half-yearly instalments, commencing at the expiration of twelve months from his becoming entitled to the beneficial enjoyment; and the seven following instalments at half-yearly intervals of six months each from the day on which the first instalment shall have become due. The difference between a successor for life and one in fee-simple is, that if the former dies before all the instalments are due, the unpaid instalments cease to be payable, while in the case of a successor in feesimple, they are a continuing charge on his interest. (d) A personal right to heritable property now vests in the successor by mere survivance.(e) (2.) Where the Property is not productive of fixed Annual Value. -Such as: (1) Growing Timber. Upon timber, trees, and wood, not being coppice or underwood, the successor is chargeable with duty only where the sales for the year, after deducting all necessary outgoings, exceed £10(ƒ); (2) Advowson or Church Patronage. The rule here was (patronage being now abolished) to pay duty only when the patronage was sold, on the purchase money(g); (3) Property subject to Beneficial Leases. Duty is chargeable upon the successor's interest in any fine or grassum, &c., which is received for the renewal of the lease or the grant of any reversionary lease of the same property(h); (4) Manor, opened Mine, &c. The yearly value of a manor, opened mine, or other heritable property of a fluctuating yearly income, is to be ascertained with reference to the average yearly clear value of preceding years, or to the amount of interest at the rate of 3 per cent., which the principal value of the property would be sufficient to produce.(i) (d) 16 & 17 Vict. c. 51, § 21. (g) Ibid. § 24. (h) Ibid. § 25. (i) Ibid. § 26. A succession which is subject to a trust for charitable or public purposes, or which devolves on a corporation, is in either case chargeable with duty upon the principal value; the only difference being that in the former case the duty is to be raised and paid at once, while in the latter case it is made payable by instalments.() 318. What Deductions are allowed in Valuing Successions.—In estimating the annual value of lands, houses and other property yielding or capable of yielding income not of a fluctuating nature, an allowance is to be made of all necessary outgoings, as repairs, poor-rates, road and county rates, and the like, payable by the proprietor, but not of income tax or agent's charges for collecting rents.(k) Where heritable property is let below full annual value, further duty is to be chargeable in respect of the increase of benefit accruing to the successor at the end of the lease(), or for any fine or premium he may receive for a renewal.(m) An allowance is to be made of all incumbrances not created by the successor himself, but only so far as regards heritable property, by reducing the annual value to the extent of the yearly interest payable on the debt.(n) An allowance is also to be made in the case of heritable property in respect of monies which the successor may previously to his possession have laid out in substantial repairs or permanent improvements.(o) So also in all cases in respect of property which the successor, upon taking his succession, may be bound to relinquish.(p) But no allowance is to be made in the first instance for any contingent incumbrance whereby the successor's interest is liable to be burdened (g), or of any contingency upon the happening of which the property may pass to some other person(r); but when the incumbrance takes effect, or the contingency happens, the matter is to be readjusted, and the overpaid duty returned.(s) 319. Mode of Collecting the Duty.-The provisions bearing on this branch of our subject are contained in §§ 45-50 of the Succession Duty Act. The accountable persons are required, in the case of personal property at the time of first paying, retaining, or otherwise disposing of it to the successor, or any person in his right, and in the case of heritable property, at the time when the duty first becomes payable, to give notice to the Commissioners of their liability; and at the same time to deliver to the Commissioners a full and true account, duly verified by production of books and documents, of the property, and of its value, and of the deductions which they claim, together with the names of the successor and predecessor, and their relations to each other, and all other particulars necessary to enable them to ascertain the duties. payable. If satisfied with such account the Commissioners may assess the duty on the footing of it, but if dissatisfied therewith, they may cause an account to be taken by a person to be appointed by themselves, and assess the duty on such account. In such case, however, the accountable persons may, upon giving notice in writing within twenty-one days after the date of the assessment, appeal to the Court of Exchequer(t), or where the duty does not exceed £50, to the Sheriff-Court. The proceedings of the court may be reviewed on appeal.(u) If, however, there is no appeal, and the duty assessed exceeds the duty assessable according to the account with which the Commissioners felt dissatisfied, the Commissioners may in their discretion charge the whole or any part of the expenses incident to the taking of the account for them as an increase of the duty; and if it is an appeal, the payment of expenses shall be in the discretion of the court. If any accountable person makes default in delivering an account, the Commissioners may serve him with a summons with a view to enforce delivery of the account. For any wilful neglect to give such notice of succession, or to deliver such account at the period prescribed, a penalty is inflicted at the rate of 10 per cent. on the duty payable on the succession, calculated at the rate of 1 per cent., and a like penalty for every month after the first month during which the neglect continues. A similar penalty is inflicted upon a person neglecting to pay the duty within twenty-one days after its amount has been finally ascertained. In practice, however, these penalties are never, except in very exceptional cases, exacted; instead, interest is charged on the unpaid duty under the provisions of the Act 31 & 32 Vict. c. 124.(v) (t) The Court of Session constituted Court of Exchequer by 19 & 20 Vict. c. 56. See "Exchequer" in Bar clay's "Digest." (u) 19 & 20 Vict. c. 56, §§ 17, 20. (v) § 9 of Act. 320. What Persons are accountable for the Duty.-Besides the successor, every person who, either in the character of trustee (which term includes an executor), guardian, tutor, or curator, or husband, may have the management of any property subject to succession duty, and also every person in whom such property is vested by alienation or other derivative title at the time it falls into possession, is personally accountable, and is a debtor to the Crown for the duty payable in respect of it, to the extent of the property he may actually receive or dispose of.(w) The Act requires the court in which any case is pending for the administration of property chargeable with duty, to provide for payment of such duty out of any property in its possession or control. (x) 321. Where Duty is Payable.-All duties must be paid personally, either at the Inland Revenue Office in Edinburgh, or to a stamp-distributor in the country. At the same time the appropriate account must be presented for the purpose of being examined and stamped. 322. When Duty must be Paid.-Generally the time of payment of the duty is the time when the successor, or any person in his right, becomes entitled in possession to his succession, or to the receipt of the income and profits thereof(y), and not the time of the accruer of the right.(2) Where the property chargeable with duty is subject to a prior charge or burden not created by the successor himself, the duty in respect of the increased value accruing upon the determination of such charge or burden is, if not previously paid, compounded (u) or commuted (b), to be paid at the time of such determination. In the case of an annuity, or property made chargeable as an annuity, the duties chargeable thereon are to be paid by eight equal half-yearly instalments, the first to be paid twelve months after the successor becomes entitled to the beneficial enjoyment, and the seven following instalments at half-yearly intervals of six months each, from the day when the first instalment becomes due. If the successor die before all such instalments are due, the remaining payments shall cease, except the successor has the heritable property absolutely, and then all the instalments are to be paid.(c) (w) 16 & 17 Vict. c. 51, § 44. (x) Ibid. § 53. (y) Ibid. § 20. (z) Hanson, p. 24. (a) See § 326 infra. (b) See § 428 infra. (c) § 21 of 16 & 17 Vict. c. 51. |