recreations, where the land is held under an agreement not determinable for five years, or where it is probable that it will continue to be so used. (b) (5) Land held by or in trust for His Majesty, or any department of Government. (c)

Reversion Duty.-This duty is payable by the lessor on the determination of a lease of land, the original term of which exceeds twenty-one years, at the rate of £1 in every £10 on the value of the benefit accruing to him by reason of the determination of the lease. The "benefit" accruing is the amount by which the total value of the land at the determination of the lease (less moneys expended by the lessor and attributable to works, or expenditure of a capital nature, or compensation to the lessee for the same) exceeds the total value at the time when the original lease was granted, these values being ascertained in accordance with the provisions of the Act. (d)

The duty is recoverable from the lessor as a debt due to the Crown; but ranks pari passu with all other debts due from the lessor. The lessor must deliver an account to the commissioners of Inland Revenue within three months of the determination of the lease, subject to a penalty on failure to do so. (e)

In the case of merger, provision is made for reduction of the duty, and mode of calculation in the event of the vesting of the lessor's and lessee's interests in the same person before the expiration of the lease. (ƒ)

Exemptions.-The duty is not payable in the following cases: (1) On a reversion to a lease purchased before the 30th April, 1909, where the lease determines within forty years of the purchase, if the lease determines under the original lease, and not by agreement. (2) Where the land is, at the determination of the lease, agricultural land. (3) Where the original term did not exceed twenty-one years. (4) Where the interest of the lessor at the termination of the lease is a leasehold interest not exceeding twenty-one years. (g) (5)

(b) Finance Act, 1910, s. 9.

(c) Ib. s. 10.

(d) Finance Act, 1910, s. 13.
(e) Ib. s. 15.

(f) Revenue Act, 1911, s. 3 (1).

(g) Finance Act, 1910, s. 14.

Where the lessee acquires the lessor's interest by agreement, no duty is payable if, at the determination of the lease under the agreement, the lease has fifty years of the original term to run, and if the total value of the land does not exceed £500. (h) (6) Where a lease which is held in trust for a body of persons is surrendered and new leases are severally granted to the individuals composing that body, the plots so leased aggregating to the amount of the whole land, and the several rents aggregating to the amount of the whole original rent, but not exceeding it, no duty is payable. But in this case the lessor must deliver an account as if reversion duty were payable. (i)

Allowance for Increment Value Duty.-Increment value duty and reversion duty are not both payable in respect of the same benefit; and when one has been paid, it is to be credited as a payment in respect of the other in assessing the amount chargeable when that becomes due. (k)

Undeveloped Land Duty.-This duty is payable annually by the owner, as a debt due to the Crown, and notwithstanding any contract to the contrary, at the rate of d. in the £ on the site value (where that value exceeds £50 per acre) of undeveloped land excluding minerals. Undeveloped land is defined as being land not developed by the erection of dwelling-houses, or buildings for the purposes of any business, trade, or industry other than agriculture (but including glasshouses or greenhouses), or not otherwise used bonâ fide for any business, trade, or industry, other than agriculture. (1)

A periodical valuation is to be made by the Commissioners of the site value of undeveloped land as on the 30th April in the year 1914, and in every subsequent fifth year; and the site value for the purpose of assessing undeveloped land duty is either the original site value as ascertained under the Act, or the site value obtained under any subsequent periodical valuation. (m)

(h) Revenue Act, 1911, s. 3 (3).
(i) Ib. s. 3 (4).

(k) Finance Act, 1910, s. 14 (4).
(1) Ib. ss. 16 (1), (2), (4), 17 (1), 19.
(m) Ib. ss. 28, 16 (3).

The duty is assessed and payable at any time after the 1st January in each year. if not assessed within the year it is payable at any time within two months of assessment, provided not more than three years have elapsed from the expiration of the year for which it is charged. (n)

Allowances.—(1) Where increment duty has been paid, the site value for purposes of undeveloped land duty is to be reduced by a sum equal to five times the amount paid as increment value duty. (o) (2) An allowance of one acre is to be made for every £100 expended by the owner or his predecessors in title on roads or sewers with a view to development, provided the expenditure has occurred within twenty years of the occasion of payment. (p) (3) On agricultural land, where the site value exceeds £50 per acre, the duty is payable only on the amount by which the site value exceeds the agricultural value. (q)

Exemptions.-(1) Subject to the provisions of the Act, woodlands, parks, gardens, and open spaces, and lands used for games and recreations, or kept free from buildings in pursuance of a development scheme, are exempt from the duty. (r) (2) Duty is not chargeable where the site value does not exceed £50 per acre. (s) (3) Agricultural land cultivated by the owner, where the value of the land together with any other land belonging to him does not exceed £500. (t) (4) The site value of land not exceeding one acre occupied with a dwelling-house; or the site value of gardens or pleasure grounds (not exceeding five acres) where the site value of the gardens and pleasure grounds together with the site value of the house does not exceed twenty times the annual value as adopted for schedule A of the income tax. (u) (5) Agricultural land held under a tenancy created before the 30th April, 1909, whilst the tenancy continues during the term granted. But where the landlord has power to determine the tenancy of the

(t) Ib. s. 18. Owner, here, includes lessee where the original term granted was fifty years or more.

(u) Ib. s. 17 (4).

whole or any part of the land, the tenancy of the whole or such part is not to be deemed to continue after the earliest date at which he could so determine it. (x)

Mineral Rights Duty. This duty is an annual charge of 18. in the £ on the rental value of all rights to work minerals, and mineral wayleaves, (y) the rental value being either: (1) the rental paid by the working lessee in the previous year less the amount (if any) which represents extra rent or return to the lessor for expenditure by him which would ordinarily have been incurred by the lessee; or (2) where the minerals are worked by the proprietor, the amount which would have been received by him as rent, if the mineral rights had been let upon the customary conditions; or (3) in the case of mineral wayleaves, the amount paid as rent in the last working year. (z)

Payment. On notice being given by the commissioners the proprietor, or person receiving the rent, must give particulars within thirty days subject to a penalty not exceeding £50.

The duty is then assessed by the Commissioners of Inland Revenue, and becomes payable at any time after the 1st January in any year.

It is recoverable as a debt due to the Crown from the proprietor, when he works the minerals, and in any other case from the immediate lessor of the working lessee, who must bear the duty notwithstanding any contract to the contrary made before or after the passing of the Act (viz. 29th April, 1910). (a)

Where the duty falls upon an intermediate lessee he is entitled to deduct the amount of the duty from the rent payable to his lessor; and any person from whom a deduction is so made, may, if himself a lessee, make a similar deduction from the rent payable by him in respect of the mineral right or wayleave. Contracts for the payment of rent without allowing this deduction are void; and any person refusing

(x) Finance Act, 1910, s. 5.

(y) Ib. s. 20.

(z) Ib. s. 20 (1), (2).

(a) lb. s. 20 (3), (4).

to allow the deduction is liable to a penalty not exceeding £50. (b)

Provisions as to Increment Value and Reversion Duty.No reversion duty is payable on the determination of a mining lease. (c) Increment value duty is not payable on the grant of a mining lease; or in respect of minerals which are comprised in a mining lease or are being worked, except as an annual duty payable as provided by the Act. (d) Increment value duty is not to be charged on minerals which on the 30th April, 1909, were comprised in a mining lease; or were being worked by the proprietor, so long as they continue to be so comprised, or worked. This exemption continues though they cease to be so comprised or worked during a period not exceeding two years. (e) Where increment value duty is chargeable upon mineral rights, it is an annual sum calculated according to the provisions of the Act, and collected as Mineral Rights Duty, subject to the same right of deduction; the rental value upon which it is charged is subject to a reduction of that part of the rental which represents a return for money expended by the lessor within fifteen years, in boring or otherwise. (f)

Where increment value duty is paid on mineral rights in any year the proprietor or lessor is entitled to be relieved in that year from payment of mineral rights duty up to the amount paid in respect of increment value duty. (g)

Exemptions.-Mineral rights duty is not to be charged in respect of common clay, common brick clay, common brick earth, or sand, chalk, limestone, or gravel. (h)

Valuation of Unworked Minerals.-Where minerals cease to be comprised in a mining lease, or to be worked, their capital value (viz. their total value less the amount allowed by the commissioners as capital expenditure to bring the mines. into working) is to be ascertained in the manner provided by

(h) Ib. s. 20 (5). These minerals are specially excepted from the operation of s. 22 relating to reversion and increment value duties as stated in the text above. It would therefore seem that they are subject to these duties.