(n) Finance Act, 1896, s. 15 (4).

(o) This term does not include reversions expectant on the determination of leases, s. 22 (1) (j) of Finance Act, 1894.

(p) S. 21 (3); Finance Act, 1900, s. 12(1).

(q) S. 12.

(r) S. 15 (1).

10. An annuity payable by the Government of British India to the widow or child of a deceased officer of such Government (s).

11. Any advowson or church patronage which would have been free from succession duty under s. 24 of the Succession Duty Act, 1853 (t).

12. Property of less value than 100 (u).

13. Property of common seamen, marines, or soldiers who die in His Majesty's service (x).

14. Property passing on the death to the widow or lineal descendants, of any person dying after 11th Oct., 1899, from wounds, accident, or disease contracted within twelve months before death on active service when subject to the Naval Discipline or Army Act; duty in respect of such property may be remitted up to 150 where the total value of the property passing does not for the purposes of duty exceed 5,000 (y).

15. Personal property settled by a person dying before the 1st Aug., 1894, in respect of which probate or account duty or other duty payable on any representation or inventory under any Act in force before the Customs and Inland Revenue Act, 1881, has been paid or is payable, unless the deceased was at any time since the settlement competent to dispose of the property (z).

16. Pictures, prints, books, manuscripts, works of art, or scientific collections of national, scientific, or historic interest, given or bequeathed for national purposes, or to any university or to any county council or municipal corporation (a), and similar property not yielding income which is settled so as to be enjoyed in kind in succession by different persons, whilst so enjoyed by a person not competent to dispose of the same (b). In either of these cases the Treasury can remit the duty.

(s) S. 15(3).

(t) S. 15 (4).

(u) S. 8(1).

(x) S. 8(1).

(y) Finance Act, 1900, s. 11.

(z) Finance Act, 1894, s. 21 (I); notes thereto in Austen-Cartmell, 3rd ed. ; the s. does not apply after the personalty has been converted into realty, A.-G. v. Earl of Londes-borough, 1904, 1 K. B. 749 ; 73 L. J. K. B. 503. (a) S. 15(2).

Estate duty, including settlement estate duty (c), is a first charge on the property on which it is leviable in proportion to the value of the property which does not pass to the executor as such (d), but not as against a purchaser in good faith and for value without notice (c). In the case of a purchaser with notice, his liability is limited to the extent of the property actually received by him (f). A certificate of the Commissioners purporting to be a discharge of the duty is sufficient to exonerate a purchaser for value without notice, notwithstanding that it has been obtained by fraud or failure to disclose material facts (g). But even though the certificate is forthcoming, a purchaser must see that there is no charge on the property in respect of estate duty in favour of a person having a limited interest in the property who has paid the duty (h).

Purchaser without notice not liable.

Certificate purporting to discharge property sufficient.

A voluntary disposition of property by a person dying after the 1st Aug., 1894, does not avoid estate duty if the donor dies within twelve months of the disposition ; such property is deemed to pass on the death of the deceased (i) : this, however, was held only to apply to property which, if not

Estate duty on property disposed of within twelve months of death.

(b) Finance Act, 1896, s. 20.

(c) See Austen-Cartmell, 3rd ed. p. 59.

(d) S. 9 (1) ; this does not include leaseholds or freeholds converted in equity; see notes to the s. in Austen-Cartmell, 3rd ed. The effect of the L. T. Act, 1897, is not to make freeholds pass to the executor as such within the s., Re Palmer, (1900) W. N. 9 ; Re Shar-man, 1901, 2 Ch. 280. And as to whether personalty, which includes leaseholds appointed under a general testamentary power of appointment, disposed of, would have passed on the death of the deceased, and not to a life estate which determines on the death of the deceased ; thus in A.-G. v. Be Preville (k), it was held that estate duty was not payable on the death of a tenant for life who released his life estate to the remainderman and died within twelve months of so doing. To remedy this ruling the Finance Act, 1900, s. 11 (1) provides that in the case of a person dying after the 31st March, 1900, property, in which the deceased or any other person had an estate or interest limited to cease on the death of the deceased, shall be deemed to pass on the death of the deceased, notwithstanding that that estate or interest has been disposed of, whether for value or not, to a person entitled in remainder, unless the disposition was bond fide made or effected twelve months before death, and bond fide enjoyment and possession was immediately assumed thereunder to the entire exclusion of the person who had the estate or interest limited to cease as aforesaid.

Passes to the executor as such, see Re Power, 1901, 2 Ch. 659 ; 70 L. J. Ch. 778 ; Re Fearnsides, 1903, 1 Ch. 250; 72 L. J. Ch. 200, and cases there cited. The decisions are conflicting.

(e) lb. ; s. 8 (18), notes thereto, in Austen-Cartmell.

(f) See s. 8(4).

(g) S. 11 (4).

(h) See s. 9 (6); notes thereto in Austen-Cartmell, 3rd ed. ; Berry v. Gaukroger, 1903, 2 Ch. 116 ; 72 L. J. Ch. 435.

(i) S. 2 (1) (e).

The period during which a purchaser remains liable for estate duty is the same as in the case of succession duty (I).

Provision is made giving an option of paying estate duty on real estate by eight equal yearly or sixteen equal half-yearly instalments, with interest at three per cent. ; but the instalments for the time being unpaid may be paid at any time, and in case the property is sold shall be paid on completion of the sale, and if not so paid shall be duty in arrear (m). In accordance with the provisions of this section a purchaser with notice that the duty is payable by instalments should see that the duty is paid off. The person authorised or required to pay the duty has power, whether tho property is or is not vested in him, to raise the duty, and any interest and expenses properly paid or incurred by him in respect thereof, by sale, mortgage, or terminable charge on the property, or any part thereof (n); and any person having a limited interest in any property, who pays the duty in respect of that property, is entitled to the like charge as if he had raised the duty by means of a mortgage (o). Money arising from the sale of property comprised in a settlement, or held upon trust to lay out upon the trusts of a settlement, and capital money arising under the S. L. Act, 1882, may he expended in paying any estate duty in respect of property comprised in the settlement, and held upon the same trusts (p).

Duty may be paid by instalments.

On a sale instalments must be paid off.

Power to raise duty by sale or charge.

(k) 1900, 1 Q. B. 223.

(l) See Finance Act, 1894, s. 8 (1), (2); sup. pp. 1228, 1229.

(m) S. 6 (8); amended Finance Act, 1896, 8. 40.

In addition to estate duty, a further duty, called settlement estate duty, is charged at the rate of one per cent, on the principal value of the estate, where, being subject to estate duty, it is settled by the will of the deceased, or, having been settled by some other disposition, passes under that disposition on the death of the deceased to some person not competent to dispose of it; the duty, however, is not payable where the only life interest in the property after the death of the deceased is that of a wife or husband of the deceased; nor is it payable more than once during the continuance of a settlement (q); nor in respect of property settled by a disposition taking effect on or before the 1st Aug., 1894 (r) ; nor in respect of property settled by the will of the deceased where the net value of the property on which estate duty is payable, exclusive of property settled otherwise than by the will of the deceased, does not exceed 1,000 (s). The duty is payable in respect of property contingently settled (t), subject in the case of a death after June, 1898, to repayment on proof that the contingency has not arisen, and cannot arise (u).

Settlement estate duty.

(n) S. 9 (5); Re Earl Howe's S. E., 1903, 2 Ch. 69 ; 72 L. J. Oh. 461.

(o) S. 9 (6).

(p) S. 9 (7).

(q) Finance Act, 1894, s. 5 (1), and notes thereto in Austen-Cart-mell, 3rd ed. A direction to pay "testamentary expenses" out of residue does not exonerate the settled property, Be King, 1904, 1 Ch. 363 ;

73 L. J. Ch. 210.

(r) S. 21 (4).

(s) S. 16 (3).

(t) A.-G. v.Fairley, 1897, 1 Q. B. 698; 66 L. J. Q. B. 454 ; A.-G. v. Clarkson, 1900, 1 Q. B. 156 ; 69 L. J. Q. B. 81 ; (1902) W. N. 167.

(u) Finance Act, 1898, s. 14 ; Watherston's Trustees v. Lord Advocate (1901) 3 F. 429, Ct. of Sess.

A purchaser in good faith, and for full consideration in money or money's worth, of property registered under the L. T. Acts is not liable for succession or estate duty unless, (a) notice of the liability of the estate thereto is noted on the register, or, (b), in the case of a possessory title, the liability to the duty was at the date of the original registration of the land subsisting or capable of arising, or (c), in the case of a qualified title, the liability to the duty was included in the exceptions made on such original registration of the land (x).

Succession and estate duty on registered land.

(x) L. T. Act, 1897, s. 13 ; L. T. Rules, 1903, rr. 208 - 211, and which are same as rr. 171 - 174 of the Rules of 1897 ; notes to the s. and rules in Cherry and Marigold's L. T. Acts.