VALUATION. 141 



The method of estimating the gross estimated rental and rate- 

 able value of such woodlands is prescribed as follows : 



"(a) If the land is used only for a plantation or a wood, the value 

 shall be estimated as if the land instead of being a plantation or a wood 

 were let and occupied in its natural and unimproved state ; (b) if the land 

 is used for the growth of saleable underwood, the value shall be estimated 

 as if the land were let for that purpose ; (c) if the land is used both for a 

 plantation or a wood and for the growth of saleable underwood, the value 

 shall be estimated either as if the land were used only for a plantation or 

 a wood, or as if the land were used only for the growth of the saleable 

 underwood growing thereon as the assessment committee may determine." 



In Valuing Woodlands for Succession Duty the custom has 

 generally been to value all the timber and other wood, and to 

 take 3 per cent of this as a fair annual return from their 

 capital value under good management. This income is then 

 treated as an annuity, and succession duty has to be paid upon 

 it on a scale laid down in tables annexed to the Act. Thus, if 

 the life-tenant were 40 years of age on entering into succession, 

 and the annual income from the woods were estimated at 500 

 a-year, this annuity would be considered as having a capital 

 value of 7437 J assessable to duty (and not as 500^003 = 

 16,666). 



The Valuation of a Growing Timber-Crop. If of market- 

 able size, the present market value of single trees and of the 

 whole crop in any compartment may easily be determined by 

 measurement or in the case of ornamental trees or groups of 

 trees, by making a fair allowance for their special ornamental 

 value. If only comparatively young immature crops of wood,, 

 it will usually be best to estimate their value for sale or transfer 

 according to their total cost up to the present. But deductions 

 must be made for the rental value of the land and general 

 annual charges, in order to arrive at the true value of the 

 timber-crop alone. 



The Valuation of the Normal Capital in Wood throughout 

 a Working-Circle. If the woods forming a working-circle are 



