§ 52. Sir WILLIAM DAVISONasked the Chancellor of the Exchequer whether he is aware that in the assessment of an estate for Death Duties the value of stocks and shares and other personalty is assessed at their value on the last day of the testator's life, no allowance being made for any depreciation in the estate which may be caused by the testator's death; while on the other hand life insurances taken out to provide for death duties are added to the estate of the testator at their full value after his death and not, as should be the case, comparable with other personalty at their surrender value immediately prior to death; and whether steps will be taken 1823 to value life insurances for death duties at their surrender value immediately prior to death, as in the case of other personalty?
Mr. CHAMBERLAINMy hon. Friend's question is based on a misapprehension of the law. Under subsection (5) of section 7 of the Finance Act, 1894, as amended by subsection (2) of section 60 of the Finance (1909–10) Act, 1910, the principal value of property for Estate Duty purposes is the value at the time of death and not the value at any prior moment of time. It is, moreover, provided in the latter mentioned subsection that proved depreciation in the value by reason of the death is to be taken into account.
§ Sir W. DAVISONIs it not well known in recent cases where the testator was prominent in the management of a business, that the value of the shares fell as much as 2s. 6d. on his death and that the Estate Duty was levied on the higher figure of the Stock Exchange value immediately before the death?
Mr. CHAMBERLAINI have informed my hon. Friend what the law is, but if he has any case which he thinks is not in accordance with the law, I shall be glad to look into it.
§ Mr. THORNEDoes not the right hon. Gentleman think that this is the best form of raising revenue?