SYSTEMS OF LAND VALUATION IN THE UNITED KINGDOM ()3 



tion (which fixes the datum line). But the duty paid on a previous 

 occasion is credited on each successive occasion. Thus duty is not 

 collected more than once on the same increment value ; the land itself 

 becomes franked or credited with the duty paid on each successive 

 occasion. 



An allowance of lo % of the Assessable Site Value in the Original 

 Valuation is deducted from the increment value, before charging duty, upon 

 the happening of the first occasion, and thereafter the lo % is successively 

 based upon the vSite Value fixed upon the last preceding occasion upon 

 which dut}' was collected. 



Until, therefore, sites ha\'e appreciated lo % no increment value duty 

 will be forthcoming as regards genuine rises in Site Values, aud the further 

 10 % allowances granted on subsequent occasions will go far to defeat collec- 

 tion of duty subsequently. There is a proviso, however, Hmitiug the lo % 

 allowances so as not to exceed 25 % in any period of 5 years. 



The next step is to understand how the Site Value is calculated on the 

 happening of an " occasion. " 



It must be emphasised that whereas the Original Valuation is a distinct 

 valuation, yet the Site Value on a sale or lease occasion is a calculation 

 based on the price or consideration paid on the sale or the rent reserved in 

 the lease. The Original Assessable Site Value is deduced from a Total 

 Value of lands assumed to be fee simple in possession (except as to copyholds 

 as pre\nously explained); consequently the Site Value on the occasion must 

 be deducted from a Fee Simple Value or price comparative in its nature with 

 Original Total Value. Therefore the Act provides that sale prices or rents 

 reserved for leases, whether paid for the whole fee simple or any lesser 

 interest in land, are to be converted into terms of fee simple, but in the 

 process of conversion the prices paid or rents reser\'^ed must be sedulously 

 preserved as the basis or foundation on which to calculate when converting. 



This Fee Sim. pie Value is frequently called " the Fee Simple Value 

 based on the consideration paid." 



From this latter Value the Occasion Site Value is deduced in exactly 

 the same way in which Original Assessable Site Value is deduced from 

 Original Total Value, but no deduction ma^^ be made on any " occa- 

 sion " if the deduction is one which could have been but was not claimed in 

 ascertaining the Original Assessable Site Value from Total Value. 



The Original Assessable Site Value and the Occasion Site Value being 

 then contrasted the increment valiie, if an}-, is revealed, and this incre- 

 ment value is in terms of fee simple. If the actual occasion under review is 

 in fact in respect of an interest less than the fee simple, then only such part 

 of the increment value duty is collectible as is proportionate to the lesser 

 interest. 



As regards occasions on death, the real market value on which Estate 

 (Death) Duty is payable becomes the Occasion Total Value, but again, of 

 course, after conversion into terms of fee simple if a lesser interest passes 

 on death. 



An occasion valuation is might be as follows: 



