Home >> Dictionary Of Banking >> Paying Banker to Transfer Of Shares >> Succession Duty

Succession Duty

person, deceased, property, estate and descendants

SUCCESSION DUTY. A duty which is payable by the person who succeeds to real or leasehold property in the United King dom, upon the death of another person. The duty is also payable upon legacies which are charged upon the proceeds of a sale of real estate, or on so much of the proceeds of a sale of real estate as may be required to discharge legacies where the personal estate has proved insufficient, and upon personal property included in a settlement.

The succession duty rates, payable upon the value of the succession as amended by the Finance (1909-10) Act, 1910, Section 58, are as follows : per cent.

On the succession of lineal ancestors or descendants of the deceased. 1 Brothers and sisters of the deceased and their descendants, or their husbands or wives 5 Uncles and aunts of the deceased and their descendants, or their husbands or wives 10 Great uncles and great aunts of the deceased, and their descendants . 10 On the succession of other persons . 10 Prior to the Finance (1909-10) Act. 1910, the husband or wife of the predecessor was not chargeable with succession duty, but by that Act the duty, at the rate of one per cent., is to be paid in cases where the person taking the succession is the husband or wife of the deceased, as in cases where the person is a lineal ancestor or descendant ; but that 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 Z15,000, nor where the successions derived by the same person from the de ceased do not exceed Z1,000, nor where the person taking the succession is the widow or a child under the age of twenty-one of the deceased, and the value of the succession derived by the same person from the deceased does not exceed Z2,000.

The above shall take effect in the case of a succession arising through devolution by law, only where the succession arises on or after that date, and in the case of a succes sion arising under a disposition, only if the first succession under the disposition arises on or after that date.

When a person who has succeeded to a property lodges the deeds thereof as security, the succession duty receipts should be pro duced, as the duty forms a charge upon the property.

By the Customs Act, 1889, special pro vision has been made in favour of pur chasers with regard to succession duty, freeing the land therefrom after twelve years in some cases and six years in others. (Section 12.) If property is conveyed to two or more per sons as joint tenants and one joint tenant dies, the surviving joint tenant or tenants must pay duty on the beneficial interest accruing to him, her, or them by the survivorship.

Succession duty is not payable where the principal value of the estate not exceed Z100 ; nor by lineal descendants or lineal ancestors where estate duty has been paid on the full value of the property.