Estate duty framework .281894-1949.29 History of inheritance taxes in the United Kingdom

william harcourt, successful promoter of 1894 reforms

the succession duty s taxation of life interest in real property, opposed full capital value, seen unfair heirs of different ages, elder heirs received life interest lower in value 1 received younger heir, when shares in same property.

in famous 1894 budget, william harcourt further noted unfairness of system had developed:

in finance act 1894, estate duty replaced probate duty, account duty, additional succession duties, , 1889 estate duty. collected in addition legacy duty , succession duty still remained in effect.

with respect real property, succession duty ceased calculated on value of life interest in succession, being instead based on principal value of property after deducting liability related estate duty, expenses incurred in raising funds paying it.

settlement estate duty increased 2% finance act 1909-10, , later abolished finance act 1914.

estate duty designed progressive tax. became more highly progressive on time, highest marginal rates fixed follows:

in 1907, 15% on taxable amounts on £1,000,000, total estate greater £3,000,000
in 1910, 15% on taxable amounts on £1,000,000
in 1914, 20% on taxable amounts on £1,000,000
in 1919, 40% on taxable amounts on £2,000,000
in 1930, 50% on taxable amounts on £2,000,000
in 1939, 60% on taxable amounts on £2,000,000
in 1940, 65% on taxable amounts on £2,000,000
in 1946, 75% on taxable amounts on £2,000,000
in 1949, 80% on taxable amounts on £1,000,000 (following abolition of legacy , succession duty)






^ gardiner, a.g. (1923). life of sir william harcourt. ii. london: constable , co. ltd. p. 282. 
^ *  chisholm, hugh, ed. (1911). harcourt, sir william george granville venables vernon . encyclopædia britannica. 12 (11th ed.). cambridge university press. pp. 939–940. 
^ william harcourt, chancellor of exchequer (16 april 1894). financial statement . parliamentary debates (hansard). united kingdom: house of commons. 
^ finance act 1894, s.1 , first schedule
^ fa 1949, eleventh schedule, part iv
^ fa 1975, s. 50 , sch. 13, part i
^ fa 1894, s. 18
^ dymond 1920, part i.
^ finance act 1894, s. 22(1)(l)
^ dymond 1920, pp. 131-133.
^ fa 1910, s. 59
^ fa 1894, s. 17
^ fa 1894, s. 16
^ fa 1894, s. 5
^ dymond, p. 149.
^ finance act 1907, first schedule
^ finance act 1909-10, first schedule
^ finance act 1914, first schedule
^ finance act 1919, third schedule
^ finance act 1930, second schedule
^ finance (no. 2) act 1939
^ finance (no. 2) act 1940
^ finance act 1946, tenth schedule
^ finance act 1949, seventh schedule

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