The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-12-10
DEATH DUTIES help
BRITAIN WAGE war
Estate Tax VIII Yield $780,.
600, 600 Before Close Of
Fiscal Year.
PAYS HALF NATIONS DEBT

LONDON. Nov. 20.-For the fiscal yeas
which ends next March the British Gov
eminent will derive tho equivalent OF
&i5o.OO0 900 from the estates Of those
who have died during the preceding
year and from those who are benen.
Charles Of wills and those h In the ABB
sence OF willis. are natural heirs.
The estate duty" the legacy duty
and the succession duty with certain
other duties and taxes are Jumped to-
gether and commonly chilled death du-
ties which will produce this great sum.
The revenue thus derived will pay
nearly half OF all the British national
debt services. a trying expense In these
days Of great expenditures. 1t will pay
for six full, lays OF war. which might. In
this great conflict Of economies ~ we'll
as Of men. prove u be the winning six
days In the end.
The sum. which docs not begin to
equal the income tax returns, which are
nearly four times AS great. nor the ex-
else or even the customs receipts, Is
greater than the cost Of tho American
navy IN 1914: II is so per cent. more
than the cost Of the American army for
that period.
Yet high as the British death duties
| are and as remunerative to the Govern
| ment AZ they are II IL the opinion Oh
| the experts In this country that there
| is no tax which comes 10 near to meet
| ing the two great ideals Of taxation
| efficiency and oonomy u collection and
| minimum Of inconvenience and annoy
| ance to the taxpayer. Britain 70 a land
| of taxation. and taxes are on a dangerous
| upward trend or account Of the war.
4. cabinet Minister warned the people
the other day that they might yet have
to sacrifice half their Incomes but IN
what Srumbling over the burden there
Is 1t Ia noticeable that the death duties
are not greatly criticised.
Few Complaints Fron Heirs.
There is a ,crude formula to illustrate
xhy-the man who dies doesn't worry
! about the share the Government will take
from his estate. while the man who re-
ceives an inheritance 10 getting some
thing more or less for nothing, n 20
he annot complain.
Few complaints come to US" SAID MI.
| Alfred W. Seward, secretary of the estate
duty office Of the inland revenue once,
in discussing . matter with the corre-
spondent.
'Of course, the British people are ac-
customed to these death duties. which In
one form and another 60 back to 1893.
when the first was imposed but In spite
Of the fact that the duties have peen
advanced from time to time. there ~ no
serious objection. j do not believe. now
ever, that the duties will be Increased
even in the face OF great national ex-
pendi,ures on account Of the war.
As producers Of revenue the death
taxes are admittedly most eficacious.
Not only is the return to the Govern
ment good, but the cost Of getting It IL
low. probably lower than other rev.
enue.
There Is. however. an important enec'
sociologically, although how great u u
is a matter OF considerable dispute. Eng
land is a place of vast estates. great
landed nroprietors, There are three
peers who own 1000. 900 acres between
them. which is a vast amount OF land In
a small island I'VE this.
The more valudble the estate a man
leaves the greater Is the share when
the Government takes upon his death.
II a person leaves an estate valued AZ
1880 the Government takes 1 per cent
II IL is valued at s5.ooo.oo0 or over tho
Chancellor OF the Exchequer signs a re-
celpt for 20 per cent OF that vaiue' OF
$1,000, 600.
The estate duty is q simple thing.
II . mans estate Ia over $500 and less
than s.. 800 1t pays a tax OF ! per cent.
II less than $1,000 2 per cent. ana so
on uu TO an estate Of 100000, when
the tax Is 20 per cent.
The legacy duty Is a tax paid by
the man who inherits money or property.
He pays It on the value OF all person.
atty received 10y viii or intestacy.
Thu succession duty ID on all rea!
property and on personal property pass
ing by settlement, such as a marriage set
Element. The rates Of legacy and sue
cession duties are the same, The hus-
band or wife. an the case may be. or the
sons and daughters. or the ancestors. In
other words, lineal relatives. pay a tax
Of 1 Der cent. Brothers and sisters OF
their descendants pay . per cent. Al
otbers-relatives or otherwise-pay 10
ner cent. The duty Is graded according
10 the natural rights OF inheritance.
collections Easily Made.
The ease Of collection is found In the
court procedure OF the country. II
man Of property dies his estate naturally
falls into the machinery OF the law.
Usually there is an executor appointed.
either by law or by the will. II is up TO
this executor TO see that the duties are
paid. +,
More often than not the executor Is
without personal interest in the estate.
ON the contrary, 1t Is to his personal in
,erest to see that the requirements OF the
law are fulfilled.
The la " prevents the Judge Of the Pro-
bate Court from probating the will until
the executor has made a list Of the assets
of the estate. submitted II to the estate
duty office. which investigates and ap-
proyes. This approval must DO turned
over TO the judge before he will probate
The will. Thus the estate cannot be dis
,rihuted in accordance with the terms OF
.he will until the estate duty has been
paid.
Similarly, the executor Of the estate
must see TO il that the legacy and sue
cession duties are paid before he turns
over the money or property to the bene-
fciaries. Through the terms Of the will.
witch has been subjected to its scrutiny.
together with the lists Of assets, which
have also been investigated. the Govern
ment authorities are familiar with every
beuuest and know Just how much is COM
ing to the Government.
IL the executor fails to make proper
ayment he Is held personally liable and
must himself pay the duties due. Thus
the collection and payment falls on who
ever is administering the estate. and the
Government undergoes u minimum OF
work and exDense,