BRITISH DEATH DUTIES

Evening Post, Volume CXVIII, Issue 31, 6 August 1934, Page 12

BRITISH DEATH DUTIES

A TAX ON CAPITAL

The ■ collection-of.-.£2,7.70,000 from death duties, remarked the London "Daily Telegiviph\V -recently; ■ raises-: the receipts -ftom this'source during the "current' Budget-year to £19,290,000, as compared with £13,2(50,000 in the sirnilar period of 1933-34. Last "year's 'total yield''from .this source was £85,250,000,-but' since this sum was swollen by unusually large payments from the estate of the late Sir John Ellerman, Mr. Chamberlain, in his recent Budget, reduced the estimate for the current year to £76,000,000. But receipts, if they keep up' their present tendency, may well keep right those critics who suggested that this figure was an "undcr-estimatc, remarks the "Telegraph."- :"; ■ - -' , Under present conditions bumper receipts from this, as much as from any other source of revenue, it is pointed out, encourage the taxpayer to look hopefully to the next Budget, but in orthodox city circles it cannot; be forgotten that the yield of the death duties represents a tax, not on income, but on capital. In normal times, the only proper purpose to which the receipts from a capital tax can soundly be devoted is reduction of debt. Some day and somehow we shall have to get back to the normal procedure oi sound finance.