§ Lieut.-Colonel Windsor-Cliveasked the Chancellor of the Exchequer whether he will consider the hardship caused to testamentary beneficiaries, such as a widow and children, by charging Estate Duty in respect of the house owned and occupied by the deceased on an inflated war-time value which cannot in fact be realised because the beneficiaries must continue to reside in the house, and take steps to alleviate this burden.
§ Sir J. AndersonYes, Sir. As my hon. and gallant Friend is aware, the general rule of valuation for purposes of Estate Duty is to take the market value at the date of death. I have, however, reached the conclusion that, in the exceptional cases to which he refers, it would be right in assessing the value of the house to disregard any increase in the market value above the pre-war value in so far as it could only be realised by a sale with vacant possession. The assessment so made would be subject to review if the house were sold or let within a reasonable period of, say, two years after the death. This treatment,. which will apply to new cases and to cases which are still open, will be allowed where a near relative of the deceased was ordinarily resident with him at the date of death and satisfies the Inland Revenue Department that he or she intends to remain in the house and has no other place of residence available.