SYSTEMS OF LAND VALUATION IN THi: UNITED KINGDOM 99 



an increase in value is revealed one fifth of such increment is payable as 

 duty, but credit is given for all previous payments of duty and an abatement 

 is made by an allowance or deduction of lo % of the Capital Value on the last 

 previous occasion upon which Capital Increment Value Duty was collected. 



When a proprietor commences to work his minerals, or grants a lease 

 for the working of them this scheme for the collection of Capital Increment 

 Value Duty is supersededby Annual Increment Value Duty and the "capital" 

 scheme is not resumed so long as the minerals are productive. If the working 

 is carried to exliaustion no further Capital Increment Value Duty can ever 

 be collected, but if the workings of the lease terminate before the complete 

 exhaustion of the minerals, the provisions for collection of Capital Incre- 

 ment Value Duty revive and in place of the Original Capital Value a new Capi- 

 tal Value is brought into use, namely, the Capital Value of the residue of 

 the minerals ; their value is to be specially ascertained two years after 

 the cesser of the workings. 



Where unworked minerals come into bearing because the proprietor 

 grants a lease or commences to work, the "Annual Increment Value Duty" 

 is charged at the rate of 20% of the calculated annual increment measured 

 as follows : - — 



If the minerals are leased the annual rent or royalty received, or if 

 they are worked by the proprietor, the fair estimated rent, is contrasted 

 yearly with the " annual equivalant " of the Original Capital Value or, with 

 the annual equivalent of the capital Value upon which Capital Increment 

 Value Duty was collected in respect of any previous sale or death. 



The Annual Increment Value Duty therefore rises or falls from year to 

 year according to the fluctuations of the annual mineral rents or royalties. 



Any Annual Increment Value Duty payable in any year defeats and 

 relieves from Minerals Rights Duty up to the amount paid in respect of the 

 former. 



The common minerals which are exempt from Mineral Rights Duty are 

 also exempt from Annual Increment Value Duty. 



If a mineral owner does not exercise hif option and fails to return a 

 value for his minerals which were unworked and not on lease on 30th. April, 

 1909, such minerals are recorded as having no value ; and as a consequence, 

 upon the first happening of any sale, death, grant of a lease or commence- 

 ment to work, the sale price, value at death, royalty received or fair 

 rental is contrasted respectively with " nil," to the detriment of the pro- 

 prietor, as no Original Capital Value has been established ; the intention 

 being that am- fresh discoveries of minerals made after 30th. April, 1909, 

 should be wlwlly subject to Increment Duty. 



^^^In conclusion the writer desires to express the hope that, if he has 

 not been successful in explaining the Finance Act of iqio with sufficient 

 lucidity and clearness to enable its main feature to be grasped, some consid- 

 eration and forbearance may be shown in view of the complexity and 

 technicalit}' of the subject. 



