438 MISC. PUBLICATION 218, U. 8. DEPT. OF AGRICULTURE 
The income taxes on these woodlands are assessed as follows: 
Schedule A: 2). sith a: 
Gross assessment of annual value on 327 acres at 3s. 2d. peracre__ 52 O O 
Deduct: £7 Ss pid. 
One-eighth for statutory allowance for repairs__-_-_- 6, 10 0 
ho ap A CB SL gs lc SE oa ga TOE ZOsR0 
Potal siP2eh FU eG a2 ee jos Pore ol 9 Se eee ea ee 16 10 0O 
Net ASSESS Tien ts Sess 8 et ee ade et 35 10 0 
Schedule B: 
One-third of gross assessment for schedule A__________________- 1240220 
Dieta i i ae i ay cn ec ee en ee 520 t0r20 
The maintenance claim for the estate as a whole is so large that all 
the schedule A tax for the whole estate (including the woodlands) is 
recovered. This means that, as owner, the proprietor derives no 
income from the estate and consequently pays no tax. 
Sixty-three acres of young plantations are taxed under schedule D. 
Tax under schedule A is also payable, but as the schedule A net assess- 
ment may be inserted as one of the costs, 1. e., as the rent paid to the 
owner, it is easier to omit it on both sides of the combined account of 
schedules A and D. As owner she pays tax on the rent. As occupier 
she recovers tax on the rent as a cost. About 12 acres of land are 
planted every other year. On these young plantations there is nec- 
essarily a loss when the expense of establishment is charged off annu- 
ally as allowed under schedule D. This loss for the year 1929-30 was 
as follows: 
Se teen 
Cost ofsplamting U3 acres arta aes ee Uece a aie Sl dite, ee tee a cas epee 104 0 O 
Deduct forestry, commission -eratt pees 2 ee eee 19 10 0O 
Totals. Feet Perel eee By Pek eee Ree pie tak eee 84 10 0 
Cost of: managing remainingvarea 225. 224 ee ee ee 81 0 0 
Totalicce oo re ks eer AON gs sank eet Te es ests ee oe 165 10 O 
In 1928-29 there was no planting and consequently no forestry 
commission grant. The cost of management was £42 9s. 9d. Thus 
under schedule D tax is recovered on about £100 per annum (the 
average of 2 years, £165 and £42). 
So far as local taxes are concerned, the woods have now been derated. 
Before 1929 rates were paid at about 9s. 6d. in the pound on a ratable 
value of 4s. per acre, including sporting rights. The amount paid 
annually was about £31. 
To summarize, tax is paid under schedule A on £35 10s. 0d. ($173), 
and this tax is recovered under the maintenance claim. Tax is paid 
under schedule B on £17 Os. Od. ($83). Under schedule D tax is re- 
covered on about £100 ($490). Thus the amount of the taxes on the 
entire estate is less than it would be if the woodlands were subtracted 
from the estate. No account of actual income and expenditure on the 
woodlands on the estate was obtained, but it is probable that they are 
run at a loss. Nevertheless considerable net income could be earned 
on the woodlands assessed under schedule B without altering the as- 
sessment or computation of taxes. This estate is an interesting ex- 
ample of the extent to which the British tax system may favor forestry. 
