§ Apart from the question of rates, the method of valuation adopted for the purposes of the death duties has necessarily a very important influence on the revenue. 516 Under the present law, agricultural property enjoys the somewhat peculiar privilege that, whatever may be its value in the market, its valuation for death duty purposes cannot exceed 25 years' purchase of the net rental after allowing for expenses of management. I propose to abolish this limitation, and to deal with the class of property to which it applies on the basis applicable to all other property passing upon death—namely, the actual price which would be paid by a willing buyer to a willing seller as on the date upon which the property becomes chargeable to duty.
§ Further, the law as to the valuation of large blocks of stocks and shares is not sufficiently clear. It is sometimes contended that, if the whole property were placed on the market on the date of the deceased's death, a "slump" would take place in the value of the securities Of course, no executor would be so imprudent as to take this course. There is no reason why it should not be definitely laid down that stocks and shares are in all cases to be valued at the market price, without any reference to the size of the holding, and I propose to amend the law accordingly. From these two changes in the law relating to valuation, I hope ultimately to derive a considerable accession of revenue, but the effect of the changes will only be felt gradually, and the advantage to be derived from the alteration in the current financial year is scarcely likely to be appreciable.