The nterest of every successor in heritable property is considered as an annuity equal to the clear annual value thereof, and the duty is paid thereon as above, except in the following cases: (1) Property subject to a trust for any charitable or public purpose, the duty upon which is to be paid at once(d); (2) Timber, &c., which is not taxable until it is actually severed from the land, and then only upon sales exceeding £10 yearly; it is not to be taken into account in calculating the annual value of the succession(e); (3) An advowson or church patronage (now abolished) was chargeable on the purchase money as a legacy out of heritable estate within the meaning of the 45 Geo. III. c. 28, § 4(ƒ); (4) Manors, casualty of superiority, opened mine and other heritable property of a fluctuating yearly income, the duty upon which is to be fixed with reference to the average profits of such preceding years as may be agreed upon, or otherwise upon the annual value calculated at 3 per cent. on the principal value of the property(g); and (5) successions taken by corporations, the duty on which is payable by instalments, as in the case of a successor in fee-simple.(h)

In the case of successions in personal property, the duty is to be paid in the same manner as if the successions were legacies bequeathed by the predecessor to the successor.(i)

In the case of a reversionary interest in personal estate bequeathed or devolving so as to become chargeable with legacy duty, no duty is payable until the property falls into possession, unless by sale or by arrangement with the liferenter, or otherwise, the value of it is sooner realised, so as to be given to the person entitled, in which case the duty is payable at once on the amount received. Where the title to any reversionary property, chargeable with duty, is accelerated by the surrender or extinction of the prior interests, the duty, unless previously commuted(), is payable as if no such acceleration had taken place.(k)

Where a succession before falling into possession passes by reason of death to some other successor, one duty only is payable, but it is at the highest rate which would have been payable if each successor has been subject to duty.(1)

(d) 16 & 17 Vict. c. 51, § 16. (e) Ibid. § 23.

(f) Ibid. § 24,

(g) Ibid. § 26. (h) Ibid. § 27.

(i) § 32 of 16 & 17 Vict. c. 51.
(j) See § 299 supra.

(k) 16 & 17 Vict. c. 51, § 15.
(1) Ibid. § 14.

Y

323. Interest on Arrears of Duty.-No provision is made in the Act with regard to the payment of interest upon arrears of duty, but the Act 31 & 32 Vict. c. 124(m), provides for the payment of such interest at the rate of 4 per cent., and enables the commissioners to enforce the payment.

324. Exemptions from Duty.-In the following cases no duty is imposed by the Succession Duty Act(n):—

1. On any succession or successions derived from the same predecessor under £100 in money or value.

2. On any succession estimated to be of less value than £20 in the whole.

3. On any moneys set apart in trust for payment of the duty on any succession.

4. On any interest surrendered or extinguished before 19th May, 1853.

5. On legacies and shares of personal estate already charged with duty under the Legacy Duty Acts.(0)

The Act 44 Vict. c. 12(p), exempts from the 1 per cent. legacy and succession duty, any personal property in respect of which stamp duty has been paid on the affidavit or inventory where recorded after 1st June, 1881. This does not apply to heritable property chargeable with duty.

325. Return of Duty.-Whenever any duty shall have been paid on account of any succession, and it shall afterwards be found that the same was paid by mistake, or in respect of property the successor was unable to recover, or from which he has been evicted or deprived, or otherwise, the commissioners shall refund the same. (q)

326. Duty may be Compounded.—In cases of hardship and inequality the Commissioners are authorised to compound the duty payable upon such terms as they think fit, and in special cases they may enlarge the time for payment of any duty.(r)

327. Duty may be Paid in Advance. The Commissioners may receive any duty tendered to them in advance, and allow discount thereon at the rate of 4 per cent.(s) If after the duty has been paid it should appear that overpayment has been made, an application may be made for return of the overpayment.(t)

(m) § 9.

(n) 16 & 17 Vict. c. 51, § 18. (0) See exemptions under Legacy Acts, § 300.

(p) § 41. See also § 293 supra. |

(q) 16 & 17 Vict. c. 51, § 37.
(r) Ibid. § 39.

(8) Ibid. § 40. See tables showing how discount calculated, p. 484.

(1) Ibid. § 37.

328. Duty may be Commuted.-The Commissioners have power by the Succession Act to commute the duty presumptively payable in respect of a succession; but the power is seldom exercised except in cases where, for instance, the property comprised in the succession is being sold, or divided, or given up at once to the expectant successor by the person entitled to the previous interest.(u) By the 43 Vict. c. 14(v), the powers of the Commissioners have been extended to include the commutation of legacy as well as succession duty presumptively payable on reversionary and contingent claims.

329. Duty to be a First Charge on Property.-The duty is a first charge on the interest of the successor in heritable property and of all persons claiming in his right, but in the case of personal property, the charge lasts only so long as it remains in the ownership of himself or of a trustee for him.(w) Purchasers of heritable property are therefore liable for the duty when it has not been previously paid. (a) But bona fide purchasers for value and without notice are exonerated if a receipt is produced for the whole duty, notwithstanding any invalidity in the succession account or insufficiency in the assessment; and no such purchaser is to be subject to any duty, the liability to which depends upon intrinsic circumstances not appearing on the face of the title under which he purchased.(y)

In order to obviate any inconvenience resulting from these provisions, the Commissioners are empowered to make separate assessments of the duty, or to apportion it where it is already assessed, so as to render each part of the property chargeable only with the duty payable in respect of it.(z)

The Commissioners are required to deliver to any person interested in any property affected by duty, a stamped certificate of its payment.(a)

330. Official Forms.-The forms of accounts prescribed by the Board of Inland Revenue in relation to succession duties, consist of four, and are numbered 4, 5, 6, 7 respectively; the three preceding numbers, 1, 2, 3, relating to legacy duty, have been already noticed.(b)

(u) 16 & 17 Vict. c. 51, § 41. (v) § 11.

(w) 16 & 17 Vict. c. 51, § 42. (x) Nisbet, 8 D. 69.

(y) 16 & 17 Vict. c. 51, § 52.
(z) Ibid. § 43.

(a) Ibid. § 51.

(b) §§ 304, 305, 306

Form No. IV.

This form applies to property which comes under a deed of any kind, other than a will, and generally embraces personal property only, but it may also have reference to heritable or leasehold property if it be directed to be sold, but not otherwise. It is in the following terms :—

FORM NO. IV. ABSOLUTE.-INLAND REVENUE.-Succession Duty for Property not chargeable by way of Annuity.*

AN ACCOUNT of the Succession to Personal Property† of

of

Price of Stocks, &c.

Interest, dividends, &c., which have accrued from the date of the death to the date when duty tendered,

Total, £

declare, That this is a just and true account of all the personal

This form is for property chargeable under the Succession Duty Act, and should be delivered in duplicate. A separate form is supplied for property chargeable under the Legacy Duty Acts.

+ Personal property includes money charged on real property and money to arise from the sale of real property.

Here state the title, whether under settlement, by survivorship, or in any other manner, and if under a deed or document, the date thereof, and the names of the parties thereto.

§ Here state whether trustee, &c., or successor.

day of

property to which

death of the before-named

of

Dated this

was entitled to succeed beneficially upon the and that the said

is a

the predecessor, from whom the said property is derived.

18 ·

(Here sign the account)

ASSESSMENT.

Where a succession accrues under a deed, the deed, or an extract, or a certified copy of it must be lodged with the Board for perusal at the time the account is lodged with them.

All dividends accruing from the date of death must be included in the account, as also all rents derived from property to date of sale and interest on prices received from date of sale to date of account.

The description of the successor must be given in the terms of the statute as given above under "Rates of Duty."(c)

Form No. V.

This form applies to personal property, the interest of which is given by a deed other than a will (No. II. Form should be used for bequests under a will) to some person for life, and after the decease of the liferenter the principal directed to be paid to other parties. It is in the following terms:

FORM NO. V. ANNUITY.-INLAND REVENUE.-Succession Duty for Life Interest in Personal Property.*

(This Account to be delivered in Duplicate.)

Register

of the year 18

* This form is for property chargeable under the Succession Duty Act. A separate form is supplied for property chargeable under the Legacy Duty Acts.

(c) § 293.