HARASSED PEERS

Wanganui Chronicle, Volume LXXXIII, Issue 19731, 28 December 1926, Page 11

HARASSED PEERS

BECOME COMPANIES TAXATION BURDEN LESSENED It was recently announced that, following the lead of eight dukes and many other members of the peerage, the Earl of Rosebery has “ turned himself into a company.” Under the style of Rosebery Estates an unlimited company has been registered in Edinburgh to administer the earl’s estates and interests. The two directors are Lord Rosebery and his heir. Lord Dalmeny; the nominal capital is £.362,500, and articles of association prohibit any invitation to the public to subscribe for shares or debentures.

Luring the past few years many great landowners, dukes, marquises, and others, have turned themselves into private companies, limited or unlimited. The firts to set the fashion was the Earl of Warwick, who became the Warwick Estates Company (Ltd.), in 1889, with £120,000 share capital, to acquire from the Earl and Countess of Warwick the life-interest of the earl in the Warwick estates, and certain policies of assurances on their respective lives. For a long time this remained the solitary example, but since the war, the practice has spread. The - list is a large and growing one, and includes: — Duke of Devonshire. Chatsworth Estates .. .. £2,304,000 Duke of Portland. Welbeck Estates 780,000 Duke of Rutland. Belvoir Estates 500,000 Duke of Marlborough. Blenheim Estates 200,000 Duke of Buccleuch. Buccleuch Estates 100,000 Duke of Sutherland. Sutherland Estates 100,000 ’Duke of Grafton. Grafton Estates 70,000 Duke of Montrose. Montrose Estates 35,000 Marquis of Northampton. Compton Estates' 300,000 Marquis of Linlithgow. Hopseoun Estates 235,735 Marquis of Granby. Haddon Estates 100,000 Marquis of Zetland. Zetland Estates 30,000 Earl of Mexborough. Mexborough Estates .. .. 600,000 Earl of Moray. Moray Estates 312,500 Earl of Leven and Melville. Leven Estates 200,000 Earl of Strathmore and Kinghorne. Strathmore Estates 134,000 Earl of Ellesmere. Bridgewater Estates .. 100,000 Earl of Ilchester. Strangways Est’ates 30,000 Earl of Lucan. Lucan Estate's 12,500 Earl of Dudley. Himley Estates .. 10,100 Viscount Wimborne. Guest Consolidated Estates . . 50,000 Lord Leconfield. Leconfield Estates .. .. .. 400.000 Lord Methuen. Corsham Estates .. .« .. .. 150.000 Lord Dalmeny. Ledburn Land Co. 100,000 Lord Saltoun. Parloth Estate's .. .. .. .. 100,000 Lord Hylton. Merstham Manor Estates .. 100,000

The object of the formation of these companies is that a company is not liable to super- tax, and the owner ol shares in an estates company would only be liable for eupef-tax on the amount he received as,dividends from the company. Frequently the owner of an estate is desirous of making protate to a company in consideration of the allotment of fully-paid shares, he is in a position to direct that certain vision for various members of his family, and, having transfeTred his esof the shares should be alloted to various individuals instead of himself. As a result- the taxable income' of the owner may be reduced, andj assuming that he does not die within three yearA a reduction of the amount of duties payable at his death is also effector. Obviously the possibility of the death of one or more of the allottees dying first should not be overlooked. At th-’ same time, the owner must carefully consider :he effect of making an outright gift of part of the shares, as. of course, the allottee could not be com-, pel led to surrender them. If the in- i come of the company should be less than the personal assessment of the > rnvacr to i-neome tax at the date of in- i coTporaiion. the amount of such lax' payable would be presumably reduced. 8o far. however, as super-tax is eonrented. it is hardly likely that there would be any material saving an isucb a tax. having regard to the provision? of the Finance Act of 1922.

This Act pircvented the avoida-nee of the p®yia3!*nt of wper-tax through the withhoSdiEig of distribution of iaeom-e of a compaarr which would otherwise be darttributed. Companies can no longer use their profits for creating larre' surplus fund.® to be turned into capital by the issue -of bonus shares. Another advantage to be derived from

turning an estate inte a company would W that, where an estate owner has several children cr grandch.ildr'en, the respective interests of the beneficiaries wad’Fi' his will (tumM b® utmffire' cfeazrbr detfined. It is gemenally uaapet'twwa.'Tnr te Bnnitt. th® Imbatliiity | th® niranSiXCTTs 'Oif fih® .comijwiry :ffind :aili | th.® <®.tlL®E’ <rcf irxcorptsraTitm micyz dm tdbtaimeii iby nwglSbC.f.iiig ran nrHnxifteil componry. By radotptiing This (rtnrrae, jnrynieitl <of the 1 connt. cap? tai <ditty <Oll jjteaEpnraticm is

MOSQUITO .BITES tAdKD SUNBUKK. The wsuHing fdisooirdxut :ajnd rainroyance nan jreaOily be dbriatctl by tire timely .use --of wHidb rgets wdll below the fSain sutracce and aerriflres anil heads Insect. Bites, Sunburn :ond other forms <of skin irritation. Before basking .the sun xub in Q-tol.