HC Deb 09 July 1896 vol 42 cc1185-6

In determining the value of an estate for the purpose of estate duty, allowance shall be made for the following incumbrances created by a disposition made by the deceased otherwise than for full consideration in money or money's worth (namely):—

  1. (a) Any capital sum which being presently raisable bears interest until raised at not less than three per cent. per annum;
  2. (b.) Any annuity not determinable only on the death of the deceased.

Provided that the disposition creating the incumbrance was made more than twelve months before the death of deceased and possession and enjoyment of the interest on such capital sum or of such annuity, as the case may he, was bonâ-fide assumed by the beneficiary immediately upon the creation of the incumbrance and thenceforward retained to the entire exclusion of the deceased or of any benefit to him by contract or otherwise.

The object of the clause was to remove an anomaly and injustice in the provisions of the Finance Act of 1894 in regard to the deduction of incumbrances from the value of an estate. He gave as an illustration the case of a man who wished to settle £1,000 on his daughter, perhaps on her marriage. If he raised £1,000 upon mortgage that incumbrance was deducted from the value of the estate. If he charged it on his property, the amount was not deducted from the value of the estate, even though interest was at once payable and paid. He hoped the Government would see their way to accept the clause.

*THE CHANCELLOR OF THE EXCHEQUER

said it was a very difficult subject, and he was afraid he could not possibly accept that clause. It was very difficult to draw the line.

*MR. BUTCHER

said he would not press the matter, and asked leave to withdraw the Motion.

Clause, by leave, withdrawn.

*MR. BUTCHER moved the following Clause:—