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Increment Value Duty

land, site, occasion, stamp, liable, amount, lease, held and grant

INCREMENT VALUE DUTY. A duty imposed by the Finance (1909-10) Act, 1910, upon the increment value of any land, at the rate of one pound for every complete five pounds of that value accruing after April 30, 1909.

The increment value is the amount by which the site value of the land, at the time the increment value duty is to be collected, exceeds the original site value.

The site value of land on the occasion of a sale is the value of the consideration ; on the occasion of the grant of any lease of land, the site value is the value of the fee simple of the land, calculated on the basis of the value of the consideration for the grant of the lease.

The duty is payable upon any transfer on sale of the fee simple of land, or of any interest in the land, or the grant of any lease exceeding fourteen years, and upon the death of any person where land passes upon the death, and where land is held by any body, corporate or unincorporate, in such a manner that it is not liable to death duties, upon such periodical occasions as are provided by the Act (viz., April 5, 1914, and in every subsequent fifteenth year). If the body corporate or unincorporate so desire, the duty may be paid by fifteen equal yearly instalments, and the first shall be due immediately after the assessment.

On the first occasion of collection of the duty the increment value shall be reduced by an amount equal to 10 per cent. of the original site value, and on any subsequent occasion by an amount equal to 10 per cent. of the site value at the previous collection of the duty ; but no remission shall be given which will make the amount of the increment value on which duty has been remitted during the preceding period of five years exceed 25 per cent. of the site value at the previous collection of the duty prior to the commencement of that period, or of the original site value if no such occasion.

Increment value duty shall be a stamp duty.

On any sale of the fee simple of land, or the grant of any lease exceeding fourteen years, the duty shall be assessed by the Commissioners and paid by the transferor or lessor, The instrument of the transfer or lease, or reasonable particulars thereof, must be presented to the Commissioners for the purpose of assessment of the duty.

Section 4, s.s. 3, is as follows : " (3) Any such instrument shall not, for the purposes of Section fourteen of the Stamp Act, 1891, and notwith standing anything in Section twelve of that Act, be deemed to be duly stamped unless it is stamped " (a) either with a stamp denoting that the increment value duty has been assessed by the Commissioners and paid in accordance with the assessment ; or " (b) with a stamp denoting that all particulars have been de livered to the Commis sioners, which, in their opinion, are necessary for the purpose of enabling them to assess the duty, and that security has been given for the payment of duty in any case where the Com missioners have required security ; or " (c) with a stamp denoting that upon the occasion in ques tion no increment value duty was payable : but where an instrument is so stamped, it shall, notwithstanding any objection relating to the incre ment value duty, be deemed to be duly stamped so far as respects that duty." (See ADJUDICATION STAMPS,

STAMP DUTIES. I Exemptions :— Agrk ultural land, while it has no higher value than its market value at the time for agricultural purposes only.

Land on which a dwelling-house is built which has been used for twelve months previously by the owner as his residence and the annual value, as adopted for the purpose of income tax under Schedule A, does not exceed— (a) in the case of a house in the administrative county of London, l40; (b) a house in a borough or urban district with a population of 50,000 or upwards, /26 ; (c) a house elsewhere, /16.

Agricultural land occupied and culti vated, for twelve months previously, by the owner, where the total amount belonging to the same owner does not exceed 50 acres, and the average total value does not exceed /75 per acre (except land occupied together with a dwelling-house where the annual value exceeds /30).

Land held bond fide for games or other recreation.

Land held by, or for, His Majesty, or any department of Government.

Land held for charitable purposes.

Land whilst it is held by a statutory company for the purposes of the and which cannot be appropriated except to those pur poses. When sold, increment value duty is payable. (Statutory com pany means any railway, canal, dock, or water company.) Where a mortgagee is liable to pay incre ment value duty, Section 39, provides : " (4) Where the fee simple of any land or any interest in land in respect of which increment value duty or reversion duty is charged is vested in a mortgagee who is liable to pay any sum on account of either of those duties, he shall be entitled to add to his security the sum for which he is so liable, including any costs or expenses properly incurred by him in respect of the payment of the duty.

" (5) In Scotland, where any person having a limited interest in the land or interest in land in respect of which any duty under this Part of this Act is charged, is the person who is liable to pay any sums on account of the duty, he shall be entitled to charge such land or such interest in land by means of a bond and dis position or bond and assignation in security in his own favour which he is hereby authorised to grant." There are special provisions with regard to increment value duty in the case of minerals worked or leased (Section 22)..