HC Deb 02 March 1900 vol 79 cc1523-4
MR. GIBSON BOWLES () Lynn Regis

I beg to ask Mr. Chancellor of the Exchequer whether Her Majesty's Government had notice that any of the land purchased by the War Office on Salisbury Plain is settled property and as such liable to estate duty on the death of the present tenants for life; whether they have taken into consideration the fact that in those circumstances the estate duty is, under Section 9 of the Finance Act, 1894, a first charge on the property; whether any provision has been made whereby any such duties that may be chargeable on the property have been commuted and paid in such a way as to release the property from the first charge in question, and, if no such release has been effected, can he say which of the properties purchased still remain liable to pay estate duty; and whether Her Majesty's Government propose to take any, and, if so, what stops to relieve them from the first charge upon them thence arising.

* MR. J. POWELL-WILLIAMS

Her Majesty's Government had notice that some of the land purchased by the War Office on Salisbury Plain was settled property at the time when they bought it, but the War Office was advised that inasmuch as the land ceased to be settled property when it was sold, it would not be liable to estate duty on the death of the present tenants for life, and that such duty would be payable exclusively out of the proceeds of sale. Consequently, there was no duty which it was necessary for the War Office to get commuted or to obtain relief from. If the death of a tenant for life had occurred after the passing of the Finance Act, 1894, and before the purchase, a different case would have arisen. The fact would have been disclosed in the evidence of title produced by the vendors, and arrangements made accordingly. But no such case has arisen with regard to this property.

MR. GIBSON BOWLES

Did the hon. Gentleman's legal adviser advise him that the fact of the purchase money being chargeable with the duty relieved the land from the effect of Section 9 of the Finance Act, 1894?

* MR. J. POWELL-WILLIAMS

I have given the legal advice exactly as it was given to the Secretary of State, and upon which he intends to proceed.

MR. GIBSON BOWLES

Is the liability in addition to and not in substitution of?

* MR. J. POWELL-WILLIAMS

The legal advice we have is exactly the contrary.