SYSTEMS OF LAND VALUATION IN THE UNITED KINGDOM 95 



into Occasion Site Value. Where, however, a property other than bare land 

 sells for a price consistent with its real value at the time of its sale, no matter 

 how much in excess of the Original Total Value, no increment is revealed 

 unless the site has genuinely risen in value. 



It is contended h\ many that the Legislature did not intend to throw 

 that part of the price paid in excess of real value {except in the case of occa- 

 sions connected with bare land) on to the Occasion Site Value, and it is 

 possible that an amending bill may be introduced ; but the Act has of neces- 

 sity and of right been administered on its legal construction. 



A concession is made to owners in cases of sale occasions whereby 

 the Site Value on an occasion, instead of being contrasted with the Original 

 Assessable Site Value for the purpose of Increment Value Duty is compared 

 with a " Substituted Site Value. " This Substituted Site Value is based on 

 the consideration paid at any previous sale or on the amount of any advance 

 on mortgage that may have taken place either within 20 years of 29th. April, 

 1910, or within the life time of any owner who is such on the date of the claiin 

 to have such Substituted Site Value recorded. The applicant must prove 

 the facts b}- producing the deeds connected with such prior transaction. 

 The Substituted Site Value is derived from the consideration paid (or the 

 amount advanced on mortgage) in exactly the same manner as Occasion 

 Site Value upon any sale occasion that gives rise to Increment Value Duty. 



The intention of this concession is to prevent Increment Value Duty 

 being payable when a sale is efiected at a price less than that obtained within 

 20 years or within the owner's life time; Increment Value Duty is thus largely 

 defeated. 



Inasmuch as properties held by bodies such as municipaUties and 

 limited Uability companies do not "pass on death" provision is made for a 

 periodical valuation of the sites of such properties in the year 1914 and every 

 subsequent fifteenth year ; any increase in site values then revealed is 

 taxable for Increment Value Duty. 



The exemptions from Increment Value Duty, mainly directed to the 

 rehef of agriculture, are: — 



" Agricultural land, while it has no higher value than for agricultural 

 purposes only : small residences occupied by the owner, or holder of lease 

 of 50 years, where annual value does not exceed £40 in lyondon, £26 

 in towns of 50,000 population, and £16 elsewhere; small agricultural hold- 

 dings, where land and dwelling do not exceed £30 annual value, occupied 

 and cultivated by the owner, and not exceeding 50 acres (of average value 

 not exceeding £75 an acre); flats (sale, lease, etc., of separate dwelling); 

 land held by rating authorities, statutory companies, charitable bodies, 

 as regard periodical increment value duty (each 15th year). " 



(b) Undeveloped Land Duly. 



The rate of Undeveloped Land Duty is one halfpenny annually for every 

 pound of the Assessable Site Value in the Original Valuation ; but the Site 

 Values are to be revised in 191-j and thereafter quinquennially. 



