LEGACY DUTY. The duty which is payable upon bequests of personalty by a testator who is domiciled in the United Kingdom at the time of his death.
The legacy duty rates payable upon the amount of any legacy, as amended by the Finance (1909-10) Act, 1910, Section 5S, are as follows : Lineal ancestors or descend ants of the testator . . I per cent.
Brothers and sisters of the testator, or their descend ants 5 per cent. Uncles and aunts of the tes tator, or their descendants 10 per cent. Great uncles and great aunts of the testator, or their descendants, . . . . 10 per cent.
Any other person. . . . 10 per cent.
Prior to the Finance (1909-10) Act, 1910, the husband or wife were not chargeable with legacy duty on property settled or bequeathed by the other, but this exemption did not apply to property settled or be qeathed by any other person ; but by the above Act the duty at the rate of 1 per cent. is payable where the person taking the legacy is the husband or wife of the testator, as in cases where the person is a lineal ancestor or descendant ; but the duty shall not be levied where the value of the property (other than property in which the deceased never had an interest) in respect of which estate duty is payable does not exceed L'15,000, nor where the amount of the legacy derived by the same person from the testator does not exceed £1,000, nor where the person taking the legacy is the widow or a child under the age of twenty-one of the testator and the amount of the legacy derived by the same person from the testator does not exceed £2,000.
The above shall take effect only where the testator by whose will the legacy is given or the intestate on whose death the legacy duty is payable dies on or after April 30, 1909.
Succession duty (and not legacy duty) is payable upon legacies which are charged upon the proceeds of a sale of real estate, or where the personal estate is insufficient and real estate has to be resorted to for pay ment, the legacies are liable to a deduction for the rateable part of the duty which results from the real estate. (See SUCCES SION DUTY.) When the deeds of any such property are lodged as security the succes sion duty receipts should accompany the deeds.
Legacy duty is not levied where the total value of the personalty does not exceed £100, nor where the net value of the estate does not exceed 11,000, and estate duty has been paid. Legacy duty is not payable on legacies to lineal descendants if estate duty has been paid. (See EXECUTOR.)