§ MR. CALDWELL (Glasgow, St. Rollox)I beg to ask the Chancellor of the Exchequer whether it is the case that, in the case of transference of property from the dead to the living, personalty in Scotland pays a Probate Duty of 3 per cent on the capital sum bequeathed, whilst Feu Duties and Ground Annuals pay only a Succession Duty of 1½ per cent on the capital sum, and that based on a life interest of the party succeeding; whether Feu Duties and Ground Annuals pay any local taxes; and whether any good reason exists for this difference of Government duty on the two classes of property?
§ THE CHANCELLOR OF THE EXCHEQUER (Mr. GOSCHEN, St. George's. Hanover Square)Personalty in Scotland, as in the rest of the United Kingdom, pays 1½ per cent Probate Duty to Imperial Taxation, while Feu Duties and Ground Annuals also pay 1½per cent irrespective of rates of consanguinity. There is no direct charge for local rates in respect of Feu Duties and Ground Annuals; the Feu Duties and Ground Annuals being included in the valuation of the property, upon which valuation local taxes are paid. I may remind the hon. Member that I explained the reasons for the difference of the duty on real and personal property in the Budget Debates of 1888 and 1889.
§ MR. CALDWELLIs it not the fact that personalty pays to the Exchequer 3 per cent, in whatever way the amount is ultimately divided, whilst realty pays only 1½ per cent?
§ MR. GOSCHENYes; but I do not think the hon. Member has studied the history of the question. Only 1½per cent is paid to the Exchequer, and the other 1½ to local funds.
§ MR. CALDWELLBut Feu Duties and Ground Annuals contribute nothing to local funds.
§ MR. GOSCHENI must refer the hon. Member to other Members of the Government, who are far better versed in these matters than I am.