98 GREAT BRITAIN AND IRELAND - MISCELLANEOUS 



tide to treat Avith political questions, and for that reason it will be sufl&cient 

 to point out that the fundamental difference between (i) a rate upon an- 

 nual value levied upon occupiers and (2) a rate upon capital value levied 

 upon owners is that the former depends upon the actual use which 

 happens to be made of land, and the latter upon the use to which it 

 might be reasonably expected to be put. This is the root of the compar- 

 ison. Further, if " abihty to pay " should be the basis, then capital value 

 represents intrinsic worth, whereas aimual value frequentlj^ does not. 



Valuable building land worth £1000 may be let as pasture land at 

 an annual rent of £10; if the land were sold and the £1000 invested at 4 %, 

 the income would be £40. Under the existing system of local annual 

 rates and taxes, the £10 is alone subjected to them, and the wealth repre- 

 sented by the available armual sum of £30 escapes. The imposition of 

 the Undeveloped I^and Duty under the Finance Act, 1910, does fall upon 

 what otherwise previously escaped, but it is a question whether the ordi- 

 nary rates and taxes should not also so fall. 



If wealth or intrinsic realisable value should be the basis of contribu- 

 tion to national a nd local expenditure in respect of land, capital value gives 

 such a basis. 



From the records in the Valuation Book can be ascertained either the 

 capital value of an entire property in land or of its site. 



§ 9. The VALUATION AJSTD TAXATION OF MINERALS. 



The Finance Act, 1910, directs that minerals are to be valued as " a 

 separate parcel of land. " and throughout the scheme of the Act, both as 

 regards A'^aluation and duties, they are kept distinct from the surface land. 



The Act charges an annual dutj' termed Mineral Rights Duty at the rate 

 of one shilling in the pound {5 %) on the rental value of all rights to work 

 minerals (and of wayleaves), whether worked by the proprietor or leased. 



Prom this duty common minerals such as clay, brick clay, sand, chalk 

 or gravel are exempted. 



The duty is payable b)' the proprietor or lessor. 



As regards minerals that were tiot being worked or under lease an 30/A. 

 April ^ 1909, the mineral owners are given an option of declaring the nature 

 and value of such minerals, and if the option has been exercised, the Val- 

 uation Office value such minerals and record their " Original Capital 

 Value. " 



When unworked or unleased minerals are sold or pass on death the 

 price paid or value at the death, as the case may be, is contrasted with the 

 Original Capital Value, and one fifth of any increment in Value accruing 

 (less an allowance of 10 % of the Original Capital Valued is payable as 

 Capital Increment Value Duty by the vendor or executors. 



Whenever a subsequent sale or death occurs when the minerals are 

 neither in work nor in lease, a comparison of their sale price in case of sale, 

 or value in case of death, is made with the Original Capital Value and if 



