PEERS AS COMPANIES

North Otago Times, Volume CVII, Issue 17748, 17 March 1927, Page 7

PEERS AS COMPANIES

^VOIDANCE OF TAXAT10N, SUPER-TAX AND DEATH DUTIES LE'SSENED, Following the lead of eight dukes and ruany other members of the peerage, the Earl of Roseberry had "txirned himself into a oompany," states the "Daily Ghronicle " Under the style of Rosebery Estates an anlimited company has been registered in Edinburgh to administer the Earl's estates and interests.- The two directors, aro Lord Rosebery and his heir, Lord Dalmeny ; the nominal capital is £362,500, and articles of association prohxbit any invitation to the public to subscribe for shares or debentures. Recently in the title of Ohatsworitk E'states, Ltd., with a capital of £2,300,000, the Duke ©f Devonshire registered a private unlimited company to administex his lands. Advantages gained' by landed proprietors in becoming private companies — which include avoidance of heavy super-tax, Iess income-tax, and reduction of death duties — are explained by experts in company law. The £362,500 capital oi' the Lord Rosebery company is divided into 181,250 preference shares of £1 each, bearing a cumulative preferential dividend at tho rate of 5 per cent. per annumA and 181,250 ordinary shares of £1. The Earl of Rosebery, who was 79 last May, owns, according to "Who's .Who," 25,500 acres in. Scotland and 8173 aci'es in England. During the past few years many great landownei'S, dukes, marquises, and others have tumed themsolves iiito private companies, limifted or uftlimited. The first to set the fashion was the Earl of Warwick, who became the Warwick Bstaites Company, Ltd., in 1889, with £120,000 share capital, to acquire from the Earl and Countess of Warwick the Iife-interests of the earl in the Warwick estates, and ceftain policies of assurances on their respective lives.

'A' LENGTHY LIST. For a long timo 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 E'states w, ,200,000 Duke of Buccleuch. Buccleuch Estates r..- y&s 100,000 Duke of Sutheidand. Sutherland Estates •... 100,000 Duke of Grafton. Grafton Estates ... r..- 70.000 Duke of Montrose. Montrose Estaites '..-j *=;. 35,00 Marquis of Northampton. Oonxptorx Estates ... ... 50"O,OQD Marquis Lintithgow. . Hopetoun Estatee 235,735 Marquis of Ganby„Haddon Estates w c?; 1U0,000 Marquis of Sefland. Zotland Estates •... 30,000 Eari of MexhoTOueth, Mexhorough Estat© 600,000 Earl of Rosebery. Rosebery Estates . .■ r^.. 362,500 Earl of Moray. Molrlay Estates 812,500 Earl of Leven and Melville. Leven Estates 200,000 j Eaxd of Strathmore and Kinghorne. • Strathmore Estates 134,903 ! Earl of Ellesmere. Bridgewater Estates 100,000 ' •Earl of Ilchesiter. Strangwayis Estates t.. 30,000 Earl of Lucan. Lucan Estates' vs.- r... 12,500 Earl of Dudley. Himley Estates — . tf.- 10,700 Viscount Wimborne. Guest C'onsolidated Estates 50,000 Lord Leoonfield.Leconfield Estates ,.j w. 400,000 Lord Methaen. Corsham Estates e m 150,000 Lord Dalmeny. Ledburn Land Co. -.tv sw 100,000 Lord Saltoun. Pkilorth Estates w 100,000 Lord Hylton. Mersthain Manor Estates 100.000 I

Serne ef these ©state companies are 5 unlimited, i.e., each shareholder is ! liable for the whole of the whole of the ! company. But as these are not trading; > concerns, which might possibly incur i liabiliti;es ' greatei than their sh'are i capital, the risk is not great, while the j cost of forming the company is materi- ; ally lessened. ' • - j Mr C. Black of olie Land Union, in- « formed the "Daily Ghronicle" that h© did not think the conversion of an E'state into a company was of much advantage to an owner. "It has been said." he went on, "'that the adoption of this eoiirse enableg the landowner to escaps taxation. If it had this. elfect, you mav be certain that th© Chancellor of the Exchequer would be down upon them. He did so in the Finance Act of 1922." Mr Black was very pessimistic about the future of the landed classes generally. Mr Black' s viewy are not altogether shared by the Country Gentlemen's Association.- Mr C H. Newton, one of the officials of that bj^^saici the- action taken by them hacitwiL advantn.e:es : — (a) It- ©asured that lanckm'r»er> • should he taxed on their real and not their fictitions income , ,'bl iu enaqled them to save on theii death duties by givinjr shares to their children during their lifotime — a much easiei thing to do than givng land. Further, hy inviting- subscriptions from the outside public. further capital could be read-