828 



Redemption of Tithe Rentcharge. 



[Deo., 



This Schedule provides that the Minister shall estimate the 

 annual sura payable in perpetuity which he considers equal to 

 the variable tithe rentcharge which would be payable if there 

 were no redemption. This estimated annual sum is called the 

 " gross annual value," and the following deductions are 

 directed to be made from it in order to obtain what may con- 

 veniently be described as the " net annual value ": — 



(1) The average annual amounts paid or payable by the 



titheowner in respect of the rentcharge on account of 

 rates and land tax during the three years immediately 

 preceding the date of the application to redeem; and 



(2) Such sum, not exceeding 2 \ per cent, of the " gross 



annual value," as in the opinion of the Minister repre- 

 sents the necessary cost of collection of the rentcharge. 



The compensation for redemption is such sum as in the 

 opinion of the Minister is sufficient, after payment of the cost 

 of investment, to produce, when invested in Government 

 securities, an annuity equal to the " net annual value." 



In the case of an application for redemption made on or 

 before the 1st January, 1921, the Schedule directs that the 



gross annual value " of the rentcharge must be taken to be 

 the original commuted amount thereof, and that the compen- 

 sation must be twenty-one times the " net annual value " 

 obtained from it as explained above. 



At the end of the year, on the recommendation of a Depart- 

 mental Committee consisting of Sir Charles Longmore, K.C.B. 

 (Chairman), Sir Henry Rew, K.C.B., and Mr. W. R. Le 

 Fanu, with Mr. P. W. Millard of the Ministry as Secretary, 

 the Minister decided that, for the purpose of any redemption of 

 tithe rentcharge for v/hich application was made after the 

 1st January, 1921, until further notice, the gross annual value 

 for the purposes of the Tithe Act, 1918, should be at the rate 

 of £118 for each £100 of tithe rentcharge (commuted value) 

 and the compensation for redemption should be seventeen times 

 the " gross annual value " after the above-mentioned deduc- 

 tions therefrom had been made. The following is a typical 

 calculation of the consideration money for the redemption on 

 these terms of £100 tithe rentcharge. Assuming that : — 



(1) The rateable values of £100 tithe rentcharge (par value) 



for the past three years were £78, £68 and £63, and 

 that the rates in the pound were 5s., 7s., and 9s. 

 respectively: 



(2) The assessable values for the past three years for land 



tax purposes were £73, £68 and £63, respectively, 



