THE FINANCE BILL.—CLAUSE XLIV.
[To THE EDITOS OF THE "SPECTATOR."] Stu,—Clause XLIV. has received very little attention, but it is much more serious in its probable effect on the owner of agricultural property than any other part of the Bill, Further, it involves what can only be described as a breach of faith on the part of the Government, which has declared by the mouths of its most responsible members that it does not propose to penalise agriculture by this Budget. The Act of 1894 provided that agricultural property should be assessed for Estate-duty at not more than twenty-five years' purchase of the net income, so that it should show a return of 4 per cent. on the Estate-duty valuation. This pro- vision is to be repealed, and "the normal market price at the time of the death of the deceased" is to be taken. The result will be to increase the amount of the valuation by fully 50 per cent. in some cases, and in all cases a lame addition
appears to be inevitable. The method of assessing agri- cultural land for Estate-duty is to be entirely changed, to the very serious detriment of the landowner ; the method of assessing other forms of property for the same purpose is to continue as fixed by the Act of 1894. What is this but a special tax imposed on agriculture ? How can the Government honour- ably proceed with Clause XLIV. in view of their distinct and repeated declarations that they do not wish to attack or injure the owners of agricultural property P Hitherto there has been a salutary check and limitation upon the powers of Somerset House in this matter. Henceforward, if this clause is passed, there will be none. Some person or persons will guess what is " the normal market price " at the particular date (the meaning of " normal " in this connexion is somewhat obscure), and that will be all—except the paying I This revolution is to be effected by a singularly harmless-looking little clause which specifies that " the proviso to Subsection (5) of Section 7 of the principal Act shall cease to have effect." Only an expert is likely to discern how deadly is the poison which this arrow bears.—I am, Sir, &c., J. H. WA.RBIIRTON LEE.
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