annuity shall be calculated without regard to any contingency besides death. But if any such annuity shall determine by death before four years' payments become due, then the duty shall be payable in proportion only to such payments of the annuity as may be actually due; and where any annuity shall determine upon any other contingency, then not only all payments of duty which would otherwise become due shall cease, but a return may be obtained of so much of the duty previously paid as will reduce it to the amount of duty payable for such annuity calculated (according to the said tables) for the term it shall have endured: (y) (2.) Annuity Payable out of a Legacy. The value of any legacy given by way of annuity, and payable out of another legacy, shall be valued, and the duty charged thereon in the same manner as any other annuity; and the duty on such legacy shall be payable on the amount thereof after deducting the value of the annuity.(z)

(3.) Sum Bequeathed to Purchase an Annuity.-The duty on
a legacy given by directing executors to purchase an
annuity of a certain amount shall be calculated upon the
sum necessary to purchase such annuity, according to the said
tables, and shall be deducted from such sum, and paid as on
an absolute bequest, and the annuity to be purchased shall
be reduced in proportion to the duty payable thereon. (a)
(4.) Benefits Incapable of Valuation.-Where any benefits shall
be so given that the amount or value can only be ascer-
tained from time to time by the actual application of the
allotted fund; or where the amount or value of such
benefit cannot, by reason of the form or manner of the
gift, be immediately ascertained-the duty shall be charged
on the sums which shall be applied from time to time, as
separate and distinct legacies, and shall be paid out of the
fund applicable for such purposes, or charged with answer-
ing the same.(b)

3. Gifts to Several Persons in Succession.-The duty on a legacy or residue given to be enjoyed by different persons in succession, all of whom shall be chargeable with the same rate of duty, shall be paid as in the case of an absolute bequest X but

where a legacy shall be given to be enjoyed in succession by persons chargeable with different rates of duty, those who shall be entitled for life, or for any other temporary interest, shall be charged with duty by way of annuity, as the parties respectively become entitled, and those who first become absolutely entitled, or who take when all the successions shall first become liable to the same rate of duty, shall pay duty for the same in the same manner as if it had been given immediately.

Where any partial interest shall arise out of such property so to be enjoyed in succession, the duty thereon shall be charged and paid as before stated in the case of an annuity payable out of a legacy, and in like cases of partial interests. (c)

No duty shall be paid on plate, furniture, or other effects not yielding income, given to be enjoyed by different persons in succession, till the same shall be sold, or shall come to some person having power to sell or dispose thereof, or having an absolute interest therein; and shall be then charged on that person only, who shall be responsible for the duty instead of the executors. (d)

Where a legacy shall be so given by any will or testamentary instrument, that different persons shall become entitled thereto in succession, the duty shall be charged thereon as if given to be enjoyed in succession, whether such person shall take under such will or testamentary instrument, and its dispositions, or in default of such dispositions, and as entitled by intestacy.(e)

4. Legacies in Joint-tenancy.—Where a legacy shall be given to persons in joint-tenancy, some or one of whom may be chargeable, and any other or others not chargeable with duty, those who may be chargeable shall pay duty in proportion to their respective interests; and should the persons so chargeable afterwards become entitled by survivorship, or by severance of the tenancy, to a larger interest, they shall then pay duty on such increased interest.(f)

5. Legacies subject to Contingencies.—Where a legacy shall be given subject to a contingency which may defeat the gift, and whereupon the same may go to another person, such legacy, unless chargeable as an annuity, shall be charged with duty as an absolute bequest, notwithstanding the same may, on such contingency happening, go to a person not chargeable with the same duty, or with any duty. And should the legacy, on such contingency happening, go to a person liable to a higher rate of duty, such person

(c) 36 Geo. III. c. 52, § 12. (d) Ibid. § 14.

(e) Ibid. § 15. (ƒ) Ibid. § 16.

shall pay the difference between the duty before paid, and such higher rate of duty.(g)

6. Legacies subject to Power of Appointment.-Where legacies shall be subject to a power of appointment in favour of persons specially named, such legacies shall be charged with duty as if given in succession; and where any limited interest shall be given in any property, with a general and absolute power of appointment to persons to whom the same would not belong in default of appointment, such property, on the execution of the power, shall be charged with the same duty as if the same had been immediately given to the person executing such power, after allowing any duty before paid in respect of the limited interest. And where property shall be given with a general and absolute power of appointment to persons to whom the same would belong in default of appointment, such persons shall be charged with duty as if the same had been bequeathed to them absolutely.(h)

7. Upon Money directed to be laid out in Land.-Money, or other personal estate, directed to be laid out in the purchase of real estate, shall pay duty as an absolute bequest of personal estate, unless the same shall be given so as to be enjoyed by different persons in succession; and then each person in succession shall pay duty as if the same had not been directed to be laid out in the purchase of real estate, unless the same shall be applied in the purchase of real estate before such duty accrued; but if before the same, or some part thereof, shall be so laid out, any person shall become entitled to an estate of inheritance in possession in the real estate to be purchased therewith, or with so much thereof as shall not have been previously applied, the same duty which ought to have been paid by such person, if absolutely entitled thereto as personal estate, shall be raised and paid out of the fund remaining to be applied. (i)

8. Estates pur autre vie.-An estate pur autre vie signifies an estate for another's life. If such estate be limited to testator and his heirs, it is heritable estate, and if not disponed to others would descend to the heir-at-law; but if limited to executors, it is personal property, and shall be chargeable with duty accordingly.(j)

The 45 Geo. III. c. 28(k) makes the above provisions applicable to legacies and moneys arising by the sale of heritable estate.

(g) 36 Geo. III. c. 52, § 17.

(j) Ibid. § 20.

(h) Ibid. § 18.

(k) § 5 of Act.

(i) Ibid. § 19.

292. Mode of ascertaining Duty on Property not reduced into Money.-The duty on specific legacies, as furniture, ships, jewellery, or other property handed over or assigned to the legatees without being converted into money, is by Statute() levied by a very complex method; but the practice now is to require production of an appraisement or valuation, which is filed in the Legacy Duty Office along with the residue account; such appraisements are exempted from stamp duty.(m)

293. Rates of Duty.-Where the deceased died after 5th April, 1805, whether testate or intestate, the duty on the amount of every legacy, annuity, residue, &c., is as follows (n) :—

To children of the deceased (o), and their descen-
dants, or to the father or mother, or any lineal
ancestor of the deceased, or to the husbands
or wives of any such persons,
To brothers and sisters of the

deceased, and

their descendants, or to the husbands or wives of any such persons, To brothers and sisters of the father or mother of the deceased, and their descendants, or to the husbands or wives of any such persons, To brothers and sisters of a grandfather or grandmother of the deceased, and their descendants, or to the husbands or wives of any such persons,

£1 per cent.

£3

£5

£6

To any person in any other degree of collateral consanguinity, or to strangers in blood to the

deceased,

£10

The husband or wife of the deceased is not subject to duty. The 44 Vict. c. 12, § 41, provides that the one per cent. Legacy and Succession Duty payable by children and others, under the Legacy and Succession Duty Act, is not payable in respect of any personal property included in an original inventory recorded subsequent to 1st June, 1881, and on which the stamp duty has been paid. This does not apply to legacies or successions out of heritable property or out of foreign assets, or to heritable property;

(1) 36 Geo. III. c. 52, § 22.
(m) 34 & 35 Vict. c. 103, § 26.
(n) 55 Geo. III. c. 184.

(0) This applies only to lawful

children of the deceased, illegitimate children being subject to duty at the rate of 10 per cent.

U

nor does it apply to the duties payable by the other relatives of the deceased or strangers in blood; the legacy and succession duties payable by these persons remain the same.

Sec. 42 of the above Act charges pecuniary legacies and shares of residue below £20 in value, where the deceased died on or after 1st June, 1881, with the duty imposed by the Legacy Duty Acts, subject to the reliefs mentioned above (§ 287).

294. Mode of Collecting Duty.-The collecting of the duty upon legacies and residues is mainly regulated by the 36 Geo. III. c. 52.

The Commissioners of Inland Revenue fall to prepare proper stamps, denoting the different rates of duty payable; and to do all things necessary for carrying the Act into execution.(p) They also appoint proper persons in the different counties to collect and receive the duties imposed; which duties are to be transmitted to the head office, and duly entered in their books, in which shall be kept proper accounts, so that it may at all times appear what duties shall have been paid.(g) They are also to provide forms of receipts for legacies and residues(r), which, when filled up, shall express (s)-(1) the date of the receipt; (2) the name of the testator or intestate; (3) the name of the person to whom the receipt is given; (4) the name of the person receiving the legacy, &c.; (5) the amount of the legacy; and (6) the amount and rate of the duty payable thereon. The accountable persons are prohibited from distributing any part of the property without taking a receipt containing these several particulars. (t) And they are required to bring the receipt to the Commissioners within twentyone days after its date, in order that it may be stamped and the duty paid(u); and in default they are subjected to a penalty of ten per cent. upon the amount of the property distributed; and the person to whom they hand over the property is also made liable to a similar penalty if he omits to give a receipt in the form required. The Commissioners may stamp the receipt after the expiration of twenty-one days, and within three calendar months from its date, upon payment of a penalty of 10 per cent. on the amount of the duty; but they are absolutely prohibited from stamping a

(p) 44 Vict. c. 12, § 26.

(q) 36 Geo. III. c. 52, § 4.

(r) Ibid. § 5. See also §§ 304-306

(8) Ibid. § 27.

(t) Ibid. § 27.

(u) Ibid. § 29.

infra.