MR. KNOX (Cavan, W.)I beg to ask the Chancellor of the Exchequer whether he is aware that Ireland pays about ½ per cent. of the present Succession Duty, mostly on realty; whether 8 per cent. of the estimated increased yield of the Death Duties on realty would amount to £10.5,600; and whether the In- 239 land Revenue Authorities, in estimating the yield of the increased duties from Ireland, have allowed that sum, or, if loss, then what sum, as the increase of duties on realty in Ireland?
SIR W. HARCOURTThe amount which Ireland pays under the Succession Duty has been taken into account in calculating the yield of the new Death Duties in Ireland. It is impossible to say exactly in what proportion the increase of duties will be borne by the different parts of the United Kingdom; but the Commissioners of Inland Revenue have no doubt whatever that Ireland will not bear a larger share of that increase than she does of the existing duties.
MR. LAMBERT (Devon, South Molton)I beg to ask the Chancellor of the Exchequer whether, in cases of real estate held or purchased by Public Bodies for purposes of investment, such as the Commissioners of Queen Anne's Bounty, Charity Commissioners, and other Corporate Bodies claiming exemption from the operation of the Statutes of Mortmain, and of other Corporations having power to acquire lands, which on transfer to such Corporations in perpetuity are not subject to the incidence of the proposed Estate Duty, he will take steps to subject real estate held by such Corporations to the same burden of taxation as that borne by real estate belonging to private individuals; whether he will consider the question of charging such real estate with Estate Duty at periods corresponding with the average period of human life as a means of effecting this object; and whether he will furnish a Return showing the amount of land and the capital value thereof held by such Corporations in perpetuity?
SIR W. HARCOURTThe Act 48 & 49 Vict., c. 51 (Part II.), imposes a duty ("Corporation Duty") at the rate of 5 per cent. on the annual value, income, or profits derived from real and personal estate held by bodies corporate and incorporate. That Act contains an exemption in favour of the Corporations referred to in the question. The present does not seem to me a suitable time for revising the Corporation Duty. In reply to the third paragraph of the question, I beg to refer the hon. Member to the abstract of the Mortmain Return (No. 274) 1882.
* MR. GIBSON BOWLESI beg to ask the Chancellor of the Exchequer whether Clause 5, Sub-section 2, of the Finance Bill will have the effect of making an executor liable to account for and pay Estate Duty in respect of all personal property whatever and wheresoever situate passing on the death of the deceased, or only in respect of that portion of the property for which he is an executor; and, if only in respect of that portion of the property for which he is an executor, how is it proposed to enforce upon a foreign executor domiciled abroad the liability to account for and pay the Estate Duty in respect of property situate out of the United Kingdom?
SIR W. HARCOURTNo. The clause makes the executor liable to pay the Estate Duty in respect of all personal property (wheresoever situate) of which the deceased was competent to dispose at his death—not on all property passing at his death—which might be a very different thing. It is optional with him to pay on other property passing at his death, but he is not bound to do so. A foreign executor domiciled abroad cannot be compelled to account for or pay the Estate Duty in respect of property situate out of the United Kingdom; but the Estate Duty on the foreign personalty can be paid by the English executor out of the English assets actually received or disposed of by him. His liability is thus limited by Clause 7, Sub-section 3, of the Finance Bill.
* MR. GIBSON BOWLESCan the right hon. Gentleman tell me how he is going to recover the Estate Duty on foreign property in the event of a foreign executor domiciled abroad?
SIR W. HARCOURTWe shall recover it in the same way as other revenue is now recovered under similar circumstances.
MR. GIBSON BOWLESBut I want to know how the right hon. Gentleman is going to recover the Estate Duty on foreign property from a foreign executor domiciled abroad?
SIR W. HARCOURTI must ask the hon. Member to postpone that question until the discussion of the Budget Bill.
§ MR. RADCLIFFE COOKE (Hereford)I beg to ask the Chancellor of the Exchequer whether he is aware that the additional duty of 6d. per proof gallon on spirit presses very unfairly on chemists and druggists, who cannot recover any part of the additional tax without infringing the Sale of Food and Drugs Act; whether he is aware that it has been estimated that the tax will amount to an equivalent of an extra 2d. in the £1 on the average chemist and druggist's income; and whether he will consider if means can be devised so that spirit used in medicine can be subject to a special and lower tax than spirit used as a beverage?
SIR W. HARCOURTThe distinction proposed in this question is not practicable. The hon. Member will find the reasons why this cannot be done stated fully by the right hon. Gentleman the Member for St. George's, Hanover Square, on May 19, 1890.