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SUCCESSION DUTY
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See also:SUCCESSION See also:DUTY , in the See also:English fiscal See also:system, " a tax placed on the gratuitous acquisition of See also:property which passes on the See also:death of any See also:person, by means of a See also:transfer from one person (called the predecessor) to another person (called the successor)." In See also:order properly to understand the See also:present See also:state of the English See also:law it is necessary to describe shortly the state of affairs See also:prior to the See also:Finance See also:Act 1894—an act which effected a considerable See also:change in the duties payable and in the mode of See also:assessment of those duties. The See also:principal act which first imposed a succession duty in See also:England was the Succession Duty Act 1853. By that act a duty varying from r to to % according to the degree of See also:con-sanguinity between the predecessor and successor was imposed upon every succession which was defined as " every past or future disposition of property by See also:reason whereof any person has or shall become beneficially entitled to any property, or the income thereof, upon the death of any person dying after the See also:time appointed for the commencement of this act, either immediately or after any See also:interval, either certainly or contingently, and either originally or by way of substitutive See also:limitation and every See also:devolution by law of any beneficial See also:interest in property, or the income thereof, upon the death of any person dying after the time appointed for the commencement of this act to any other person in See also:possession or expectancy." The property which is liable to pay the duty is in realty or leasehold See also:estate in the See also:United See also:Kingdom and personalty—not subject to See also:legacy duty—which the See also:beneficiary claims by virtue of English, Scottish or Irish law. Personalty in England bequeathed by a person domiciled abroad is not subject to succession duty. Successions of a See also:husband or a wife, successions where the principal value is under £See also:ioo, and individual successions under £20, are exempt from duty. Leasehold property and personalty directed to be converted into real estate are liable to succession, not to legacy duty. See also:Special See also:provision is made for the collection of duty in the cases of See also:joint tenants and where the successor is also the predecessor. The duty is a first See also:charge on property, but if the property be parted with before the duty is paid the liability of the successor is transferred to the alienee. It is, therefore, usual in requisitions on See also:title before See also:conveyance, to demand for the See also:protection of the purchaser the See also:production of receipts for succession duty, as such receipts are an effectual protection notwithstanding any suppression or misstatement in the See also:account on the footing of which the duty was assessed or any insufficiency of such assessment. The duty is by this act directed to be assessed as follows: on See also:personal property, if the successor takes a limited estate, the duty is assessed on the principal value of the See also:annuity or yearly income estimated according to the See also:period during which he is entitled to receive the annuity or yearly income, and the duty is payable in four yearly instalments See also:free from interest. If the successor takes absolutely he pays in a lump sum duty on the principal value. On real property the duty is payable in eight See also:half-yearly instalments without interest on the See also:capital value of an annuity equal to the See also:annual value of the property. Various See also:minor changes were made. By the Customs and Inland See also:Revenue Act 1881, personal estates under £300 were exempted. By the Customs and Inland Revenue Act 1888 an additional 1% was charged on successions already paying 1% and an additional 11% on successions paying more than 1%. By the Customs and Inland Revenue Act 1889 an additional duty of 1% called estate duty was payable on successions over £to,000. The Finance Acts 1894 and 1909 effected large changes in the duties payable on death (for which see ESTATE DUTY; LEGACY). As regards the succession duties they enacted that See also:payment of the estate duties thereby created should include payment of the additional duties mentioned above. Estates under £l000 (£2000 in the See also:case of widow or See also:child of deceased) are exempted from payment of any succession duties. The succession duty payable under the Succession Duty Act 1853 was in all cases to be calculated according to the principal value of the property, i.e. its selling value, and though still payable by instalments interest at 3% is chargeable. The additional succession duties are still payable in cases where the estate duty is not charged, but such cases are of small importance and in practice are not as a See also:rule charged. United States.—The United States imposed a succession duty by the See also:War Revenue Act of 1898 on all legacies or distributive shares of personal property exceeding $ro,000. It is a tax on the See also:privilege of succession. Devises or distributions of See also:land are not affected by it. The See also:rate of duty runs from 75 cents on the Poo to $5 on the $See also:loo, if the legacy or See also:share in question does not exceed $25,000. On those of over that value the rate is multiplied 11 times on estates up to $ioo,000, twofold on those from $ioo,000 to $ 00,000, 21 times on those from $500,000 to a million, and threefold for those exceeding a million. This See also:statute has been supported as constitutional by the Supreme See also:Court. Many of the states also impose succession duties, or transfer taxes; generally, however, on See also:collateral and remote successions; sometimes progressive, according to the amount of the succession. The state duties generally See also:touch real estate successions as well as those to personal property. If a See also:citizen of state A owns registered bonds of a See also:corporation chartered by state B, which he has put for safe keeping in a See also:deposit vault in state C, his estate may thus have to pay four succession taxes, one to state A, to which he belongs and which, by legal fiction, is the seat of all his personal property; one to state B, for permitting the transfer of the bonds to the legatees on the books of the corporation; one to state C, for allowing them to be removed from the deposit vault for that purpose; and one to the United States. Additional information and CommentsThere are no comments yet for this article.
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