A LEGAL challenge against Sark’s Seigneur could be dropped after Chief Pleas passed new legislation ending his claim to feudal dues on property sales. A case brought by Duncan Barclay, son of Brecqhou co-owner Sir David, against Michael Beaumont is outstanding in the Royal Court.
A final decision had not been made but, in a letter to Chief Pleas, Advocate Gordon Dawes outlined the situation.
‘He will give consideration to withdrawing his challenge if the treizieme is assigned to Chief Pleas, but this outcome is by no means guaranteed,’ he said in the letter.
‘Much will depend on future discussions with the relevant committee or committees. The question will be reviewed in the light of what happens at the meeting and in the weeks thereafter.’
On the second night of its meeting, Chief Pleas agreed The Real Property (Transfer Tax, Charging and Related Provisions) (Sark) Law, 2007.
The legislation abolishes seigneurial conge and treizieme.
But a 4% property-transfer tax will be payable for all deals over £50,000.
The Seigneur will be paid £28,000 a year, rising annually in line with inflation.
But the letter expressed concerns about that.
‘The Seigneur is not even defined to identify him (or her) as the holder of that office for the time being. There is no definition of what his civic functions are to comprise and no mechanism for ending the obligation to pay the stipend (e.g. in the event of misconduct by a future Seigneur).’
There were other issues about the law raised in the letter.
‘Brecqhou is concerned that so much of the detail of the legislation will be left to future ordinances,’ said Advocate Dawes.
‘The provisions relating to an ﾓequivalence taxﾔ are particularly obscure. Taxation has traditionally been the subject of primary legislation, not ordinances. New taxes of this kind should be dealt with by projet de loi, not ordinance, particularly something as potentially controversial.’
Brecqhou was also concerned at the lack of criteria for the assessor to operate by.
‘There is a risk of an ad hoc system emerging without such principles being set out.
‘The ability of the assessor to impose a penalty of up to 100% of the tax payable is excessive.’
There was no retrospective effect in the legislation.
‘Which is as it should be, with the single exception of backdating the Seigneur’s annuity.’
The letter said that even with the abolition of conge and treizieme, the feudal relationships are preserved.
‘This is again an opportunity missed to reform and, most likely, do away with altogether, the feudal structure and, instead, place Sark property law on a sensible, modern footing.’
The report was brought to Chief Pleas by the Finance and Commerce Committee.
Its president, William Raymond, was unavailable to comment.
There will be minor typographical changes made before it is sent to the Privy Council for approval.
Article posted on 7th July, 2007 - 12.00am
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