This scale applies also to the interests in expectancy noticed under Scale II., dealt with after the 18th April, 1907, and before 30th April, 1909. (a)

Scale III-On deaths occurring after 29th April, 1909, and before the 16th August, 1914. (b)

Scale IV. On deaths occurring after the 15th August, 1914, the rates for estates not exceeding £40,000 being the same as those given in Scale III. (b1)

Reduction of Duty in Case of Small Excess.-Where necessary the amount of duty payable under the above rates, is to be

(a) Finance (1909-1910) Act, 1910, s. 54.

(b) Ibid. s. 54, Sched. II. Finance Act, 1914, s. 12.
(b1) Finance Act, 1914, s. 12, Sched. I.

reduced so as not to exceed the highest amount of duty which would be payable at the next lower rate, with the addition of the amount by which the value of the estate exceeds the value on which the highest amount of duty would be payable at the lower rate. (b2)

Relief from Duty on Quick Successions.-Where estate duty is payable on property consisting of land, or a business not carried on by a company, or any interest in land or such a business, passing upon death, and subsequently within five years estate duty again becomes payable on the property or any part of it passing on the death of the person to whom the property passed on the first death, the amount of the duty payable on the second death (if that occurs after the 31st July, 1914) is to be reduced as follows: (63)

Where the second death occurs withinone year of the first death

Per cent.

by 50

five years

But where the value of the property on the second death exceeds the value of the same property on the first death, the latter value is to be taken for the purpose of calculating the amount of duty on which the reduction is to be allowed.

Payment of Duty.-An affidavit containing particulars of the estate must be delivered by the executors or administrators within six months of the death, and the duty is calculated as at the time of death, and becomes due on the delivery of the affidavit or at the expiration of the six months, whichever first happens, interest at 3 per cent. on the duty being payable from the date of the death. (c)

In cases of hardship the commissioners may postpone payment, or remit it altogether after the expiration of twenty years, (d) and in the case of real property the duty may be paid by eight yearly or sixteen half-yearly instalments, the first becoming due at the end of twelve months from the death,

and interest at 3 per cent. due on the unpaid instalments being paid with each instalment. The whole duty and interest may be paid off at any time, and in the case of a sale it must be paid off, otherwise it becomes duty in arrear. (e) The duty on interests in expectancy may be paid either with the rest of the estate duty or when the interest falls into possession. (f) The provisions of ss. 12, 14 of the Customs. and Inland Revenue Act, 1889, apply as to the limitations of claims for estate duty. (g)

Incidence of the Duty.-The executor or administrator of the deceased is accountable for the estate duty in respect of all property, wherever situate, of which the deceased was competent to dispose, but is not liable for any duty in excess of the assets which he has received as executor, or might, but for his own neglect or default, have received. (h) The duty upon the property passing to the executor as such (which includes personalty and leaseholds) (i) is borne, like probate duty, by the general personal estate, to the exclusion of specific legacies; but the rateable proportion of the duty on other species of property which do not pass to the executor as such (including realty which passes to the executor or administrator under the provisions of the Land Transfer Act, 1897) (k) is a first charge upon such property, except as against a bona fide purchaser without notice, (l) and if paid by the executor or any other person authorized or required to pay the duty, may be recovered by him from the trustee or owner. (m)

Settlement Estate Duty. (1) Since the Finance Act, 1914.— In addition to the estate duty payable under the Finance

(e) S. 6 (8).

(ƒ) S. 7 (6). (g) S. 8 (2).

(h) S. 8 (3).

(i) The authorities as to whether property disposed of by will under a general power of appointment passes to the executor as such are conflicting. (See re Maddock, Llewelyn v. Washington, [1901] 2 Ch. 372; re Power, Acworth v. Stone, [1901] 2 Ch. 659; re Moore, Moore v. Moore, [1901] 1 Ch. 691; re Dixon, Penfold v. Dixon, [1902] 1 Ch. 248; re Fearnsides, Baines v. Chadwick, [1903] 1 Ch. 135.)

(k) See Land Transfer Act, 1897, s. 5.

(1) Finance Act, 1894, s. 9 (1).

(m) Ib., ss. 9 (7), 14 (1).

Act, 1894, a further duty at the rate of one per cent., raised to two per cent. in 1909, termed "Settlement Estate Duty," was imposed by the Act on settled property passing on deaths occurring after the 1st August, 1894, the property being at the same time relieved from further payment of estate duty or settlement estate duty during the continuance of the settlement. On deaths occurring after the 11th May, 1914, it is provided by the Finance Act, 1914, that settlement estate duty is no longer to be paid, the relief from further payments of estate duty on subsequent devolutions of the property occurring on deaths during the continuance of the settlement being at the same time removed in the case of persons dying after the 15th August, 1914, subject, however, to the reduction in the rates of duty chargeable in the case of quick successions previously mentioned, (m1) and subject also to an exception in the case of the death of one of the parties to a marriage settlement, and to the deduction from the estate duty payable of the amount of settlement estate duty already paid, as provided by the Act. (m2)

(2) Prior to the 12th May, 1914.-In the case of persons dying before the 12th May, 1914, the following provisions relating to settlement estate duty apply:-

Where any property subject to estate duty is settled by the will of the deceased, or, having been settled by some other disposition, passes on the death of the deceased to some person not competent to dispose of the property, and where the disposition in both cases by which the property is settled has taken effect after the 1st of August, 1894, a further duty of one per cent. (termed settlement estate duty"), raised to two per cent. on deaths occurring after the 29th April, 1909, by the Finance Act, 1910, on the principal value of the settled property is payable. (n)

The duty is not payable, (1) where the only life interest after the death of the deceased is that of a wife or husband of the deceased; (o) (2) in cases where the net value of the

(m1) See p. 129, ante.

(m2) Finance Act, 1914 (4 & 5 Geo. 5, c. 10), s. 14.

(n) Ib., ss. 5 (1), 17, 21 (4); Finance Act, 1910, s. 54.
(0) Finance Act, 1894, s. 5 (1) (a).

property on which estate duty is payable, exclusive of property settled otherwise than by the will of the deceased, does not exceed £1000, provided estate duty has been paid; (p) (3) where property is settled by Act of Parliament, or royal grant with a restraint upon alienation; (q) otherwise than under the Settled Land Act, 1882. (r)

Where, on deaths after the 1st of July, 1898, settlement estate duty has been paid on a contingent settlement, and the contingency does not and cannot arise, the duty is to be repaid; (s) and in no case is settlement estate duty to be paid more than once during the continuance of the settlement, (t) and where it is paid the value of the ad valorem stamp on the settlement may be deducted. (u)

In the case of settled legacies or other personal property the duty is payable out of the settled legacy or property, in the absence of a direction to the contrary, (x) where the settlement is made by the will of a person dying after the 1st of July, 1896.

The value of property for purposes of settlement estate duty is calculated, and the payment of the duty is made, in the same manner as estate duty; and where estate duty has already been paid since the date of the settlement, neither it (viz. estate duty) nor the one per cent. legacy or succession duty are again payable until the death of a person who at the time of his death, or during the continuance of the settlement, was competent to dispose of the property, and who, if on his death subsequent limitations under the same settlement take effect in respect of such property, was sui juris at the time of his death, or had been sui juris at any time while so competent. (y)

Settlement estate duty in respect of a legacy or other personalty settled by the will of the deceased is to be collected upon an account, setting out the particulars, delivered by the

(p) S. 16 (3).

(q) S. 5 (5).

(r) See Re Bolton's Estates Act, 1863, [1904] 2 Ch. 289.

(8) Finance Act, 1898, s. 14.

(t) S. 5 (1)(b).

(u) S. 5 (4).

(x) Finance Act, 1896, s. 19.

(y) Finance Act, 1894, s. 5 (2); Finance Act, 1898, s. 13.