§ SIR W. HART DYKE (Kent, Dartford)I beg to ask Mr. Chancellor f the Exchequer whether he is aware that Death Duties have been paid upon licensed property at the rate of eighteen years purchase in the case of freehold, and of sixteen years for leasehold property; and that notice has been immediately given to terminate the said licences the following year; and whether he can suggest any remedy for such a state of things.
§ *THE CHANCELLOR OF THE EXCHEQUER (Mr. RITCHIE, Croydon)Under Section 7 (5) of the Finance Act, 1894, the basis of valuation for Estate Duty is the price which the property would fetch if sold in the open market at the time of the death of the deceased. This principle is applied to licenced property, and if, as not infrequently happens, the executors dispose of the property shortly after the death, then the actual value realised is taken. The capital value in such cases bears very varying relations to the annual rental. Of course the probability or otherwise of house remaining a licensed house is a overning element in determining the value. If in any case a licence is withdrawn immediately or soon after the death of the owner of the premises, and the estate is still under administration, the Board of Inland Revenue would
† See (4) Debates, ci., 1106.1227 always be open to consider an application for readjustment of the value put upon the licensed property for Estate Duty.