Evening star., 1932-04-18

landed estates, 1t is neceAsary to sell
part Of the property TO pay the taxes,
time Is allowed TO enable the executors
to carry out necessary transactions.
Harsh and Unfair.
The incidence Of these taxes, rs both
taxed and tax collectors agree, Is harsh
and unfair. Here is an example; For
income tax assessments the incomes OF
husband and wife living together In
England are deemed one income. That
may sound romantic, but the authori-
ties have their eye on the higher scale
on which large incomes pay tax. An
income of $4,000 pays more tax than
two separate incomes Of 81 900 each.
Bearing in mind that the incomes OF
husband and wife are one, 1t might be
reasonable to think that no death duties
were payable by the survivor on estate
left by a husband or wife. That Is not
so. wife inheriting her husband S
estate, on which single income tax has
hitherto been paid, has to pay death
duties and either succession or legacy
duties, as the case may be.
The Inland Revenue Department
cheerfully agrees that the situation Is
illogical, but, 1t says, money must be
raised.
It is generally recognized that no
fortune can survive three payments OF
death duties unless 1t Is renewed by
fresh wealth. This is particularly true
of landed estates. Where land Is the
main source of income, death duties
spell ruin. They account for the fire.
quent sales of pictures. libraries and
jewels from the great country houses.
The sale in New York OF the Marquis OF
Lothian'S precious early English manu-
scripts is a case in point.
Build Small Houses.
Another sign Of the times is the fact
that in several cases the heirs to famous
titles and magnificent mansions are
building themselves cottages" small
houses on their estates, in which they
mean to live permanently. because they
know that when they inherit and have
paid the death duties they will not be
able to live in the ancestral hall. Among
these Is the Marquis OF Titchf1eld, heir
to the Duke of Portland.
A rapid succession Of deaths in q
family means disaster to the family
fortunes. When death duties have to
be paid two or three times in a short
period the only hope Of the survivors is
marriage with a rich wife, preferably an
American with an income derived from
possessions in the United States. An
estate abroad is safe from King Georges
tax gatherers.
During the war, when death reaped
a terrible harvest among the younger
men of the propertied classes, a special
act was passed remitting for the dura-
tion of the war the harsh provisions of
the inheritance taxes as applied to men
dying on active service. Estates of
$25. 900 were left untaxed, and in large
fortunes the amounts payable were dis
counted according to the governments
tables of mortality for life annuitants
for the period the man might have ex-
pected to live under ordinary condi-
tions. This amounted to very sensi-
Bile decrease.
1t is curious that there is little dif-
ference Of opinion in most cases be-
tween the inland revenue officials and
the inheritors regarding the value Of
property to be taxed for death duties.
The official valuation departments esti-
mate is on an average about per cent
higher than that of the valuers en-
ployed by the executors of the will. The
higher valuation has to be paid, of
course, the only remedy being the ex-
pensive and uncertain one of an action
in the courts.
Copyright. 1882. by the North American
Newspaper Alliance, Inc.)