§ 56. Mr. R. D. ACLANDasked the Chancellor of the Exchequer whether he will give, in relation to any recent examples, what has been the relation between the valuation of lay tithe for Death Duty purposes and the gross annual value of the same lay tithe?
§ The FINANCIAL SECRETARY to the TREASURY (Mr. W. S. Morrison)Only an insignificant proportion of the total tithe rentcharge passes on death and the valuation for purposes of Estate Duty of tithe so passing normally varies between 10 and 12 times the gross annual value. It has, however, been as low as six times in special cases, for example, where the
§ tithe is small in amount and subject to difficulties of collection.
§ Mr. ACLANDCan the hon. and learned Gentleman say what has been the highest in recent cases? He has given the lowest.
§ Mr. MORRISONNo, Sir, I have given the hon. Member the normal practice. If he wishes for the highest figures, I would ask him to put down a question.
§ 57. Mr. ACLANDasked the Chancellor of the Exchequer the factors which are taken into consideration in calculating the value of lay tithe for death duty purposes; and how the calculation is made?
§ Mr. MORRISONThe principal value for purposes of Estate Duty of lay tithe passing upon death falls to be determined in accordance with the provisions of Section 7 (5) of the Finance Act, 1894. That value, which is the value which the tithe would realise if sold in the open market, is normally computed by capitalising at an appropriate number of year's purchase the amount of tithe payable, less a deduction in respect of rates, Land Tax, cost of obligation (if any) to repair the chancel and an estimated amount for cost of collection.