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Reversion Duty

lease, value, land, lessor and increment

REVERSION DUTY. A duty imposed by the Finance (1909-10) Act, 1910 (Section 13), and payable, on the determination of any lease of land, upon the value of the benefit accruing to the lessor by reason of the determination of the lease, at the rate of one pound for every complete D0 of that value.

Every lessor is required, on the determina tion of a lease Nvhere reversion duty is pay able, to deliver an account to the Commis sioners setting forth particulars and the estimated value of the benefit accruing to him.

When a mortgagee is liable to pay any sum on account of reversion duty, see Section 39, s.s. 4 and 5, under heading INCREMENT VALUE DUTY.

There are special provisions with regard to reversion duty in the case of a mining lease. (Section 22.) • Exemptions :— Where, in the case of a reversion to a lease purchased before April 30, 1909, the lease determines within forty years from the date of the purchase. (This exemption does not apply where the lease is determined within forty years by agreement between the lessor and the lessee, not contained in the lease itself, unless the lease would, apart from any such agreement, have determined within that period.) The determination of a lease on land which is, at the time of the determination, agricultural land.

A lease the original term of which did not exceed twenty-one years, nor where the interest of the lessor expectant on the deter mination of a lease is a leasehold interest which does not exceed that number of years.

Where a lease is determined before the expiration of the term and a fresh lease granted to the lessee for at least twenty-one

. years beyond the date on which the original lease would have expired, an allowance is made of 2i per cent. of the duty for every year of the original term of the lease which is unexpired, but the allowance shall not exceed 50 per cent. of the whole duty payable.

Where increment value duty is due and reversion duty has been paid, or reversion duty is due and increment value duty has been paid, and it is proved to the satisfaction of the Commissioners that the increment value and the benefit accruing to the lessor are identical, such sums as the Commissioners determine to have been paid in respect of the one shall be treated as a payment on account of the other.

Land held for charitable purposes.

Land whilst it is held by a statutory company for the purposes of the undertaking and which cannot be appropriated except to those purposes. (Statutory company means any railway, canal, dock or water company.) Section 14, s.s. 5, provides as follows : " Where a reversion has been mortgaged before the thirtieth day of April nineteen hundred and nine, and the mortgagee has foreclosed before the lease on which the reversion is expectant determines, the mort gagee shall not be liable to pay reversion duty in excess of the amount by which the total value of the land at the time of the deter mination of the lease exceeds the amount payable under the mortgage at the date of the foreclosure."