SUCCESSION DUTY is a sum paid to the state by a person benefited by the succession to certain kinds of property. Legacies were first taxed in 1780. It was not until 1853 that a tax was levied upon succession to real property, or succession under any instrument other than a will by which property is enjoyed in succession to a deceased person. The duty is paid on succession to both real and personal property, in fact, in almost all cases which do not fall within the Legacy Duty Acts. The Succession Duty Act, 1853 (16 and 17 Vict. c. 51), defines succession as “every past or future disposition of property by reason whereof any person has or shall become beneficially entitled to any property, or the income thereof, upon the death of any person dying after the time appointed for the commencement of this Act, either immediately or after any interval, either certainly or contingently, and either originally or by way of substitutive limitation, and every devolution by law of any beneficial interest in property, or the income thereof, upon the death of any person dying after the time appointed for the commencement of this Act to any other person in possession or expectancy.” There are certain exemptions, the most important being successions of a husband or wife, successions where the whole value is under £100, individual successions under the value of £20, and legacies and shares of personal estate chargeable under the Legacy Duty Acts. The duties levied vary from 1 to 10 per cent., according to the degree of consanguinity between the predecessor and the successor. Leasehold property and personalty directed to be converted into real estate are liable to succession and not to legacy duty. Spécial provision is made for the collection of the duty in the case of joint ...tenants, in the case where the successor is also the predecessor, and in other dispositions of a special nature. The duty is a first charge on property; but, if the property be parted with before the succession duty be paid, the liability of the successor appears to be transferred to the alienee. A bona fide purchaser is protected by a receipt for duty, notwithstanding any suppression or mis-statement in the account on the footing of which the duty was assessed, or any insufficiency of such assessment. It is usual in requisitions on title before conveyance to demand for the protection of the purchaser the production of receipts for succession duty. Recent legislation has made some amendments in the law. By 43 Vict. c. 14, s. 11, succession duty may be commuted in certain cases by the Commissioners of Inland Revenue. 44 Vict. c. 12, s. 36, relieves from payment of succession duty on personal estate not exceeding £300 by payment of a sum of thirty shillings on the affidavit or inventory. Section 41 exempts from payment of the 1 per cent. duty in respect of property for which stamp duty has been paid on the affidavit or inventory. Up to 1885 certain property vested in bodies corporate and unincorporate escaped liability to succession duty. 48 and 49 Vict. c. 51, s. 11, now imposes on such bodies (with considerable exceptions) a duty at the rate of 5 per cent. on the annual value, income, or profits of the succession. All the Acts which have been cited extend to the United Kingdom.
In the United States succession duty is regulated by tit. xxxv. ch. 10 of the Revised Statutes. The duty varies from 1 to 6 per •cent., according to the degree of consanguinity.
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