HC Deb 25 June 1906 vol 159 cc586-7
MR. GROVE (Northamptonshire, S.)

To ask Mr. Attorney-General whether, seeing that in the case of the death of a trustee holding property in the Transvaal succession or estate duty in respect of the trust estate is levied, he will take steps to bring the English and Transvaal laws into harmony, and so remove the disabilities under which English subjects holding property in the Transvaal suffer.

(Answered by Sir John Walton.) It is assumed that the Question refers to English succession or estate duty, and to the death of a person domiciled in the United Kingdom (see Finance Act, 1894, s. 2 (2). The general rule is that neither succession duty nor estate duty is leviable in the United Kingdom on the death of a trustee, as no change in the beneficial enjoyment of property is involved. As to succession duty, this is not expressly provided, but it follows from s. 2 of The Succession Duty Act, 1853. As to estate duty, there is an express provision, s. 2 (3) of The Finance Act, 1894. If the case put in the Question falls within either of the two exceptions referred to in the above sub-section, the grievance can only be that duty is charged here and also in the Transvaal in respect of the same property. Grievances of this nature are intended to be met by s. 20 of The Finance Act, 1894. This section has not, however, been applied to the Transvaal, the reason being that the conditions under which an Order in Council may apply the section have not been satisfied. There was some correspondence last year between the Colonial Office and the Transvaal Government with regard to legislation in that colony necessary to enable His Majesty in Council to apply the section. The Inland Revenue Department are not cognisant of the stage which this correspondence has now reached. There appears to be no case for altering the English law, but any Question directed to that object should be addressed to the Chancellor of the Exchequer. It is not known whether under the Transvaal law duty is payable on the death of a trustee (as such). I have no power to obtain any alteration in the Transvaal law, and if such alteration is desired, application should be made to the Colonial Office.