Tag Archives: British Death tax

Thrifty Duchesses

Like every other Anglophile, I’m breathlessly waiting for Kate, Duchess of Cambridge, to give birth to a new royal heir.  In the meantime, I’m admiring her common touch–she is, after all, a commoner.  This week she made fashion news by wearing a maternity dress costing L17.50 (about $27), off the rack at a chain called Asos.  Naturally, thousands have been sold.  As far as I can see, she has not put a foot wrong in all the years she’s been Prince William’s main squeeze.

I admire another duchess from an earlier generation, too:  Deborah Devonshire.  She was born into a family of not-very-rich minor aristocrats, the Mitfords.  There were six girls and one boy, and very little money to support them all.  Only the son was properly educated; the girls were expected to marry well.  They begged to go to school and were put off. They were given London debutante seasons instead. But they were all beautiful, brilliant and creative.  So they made their own way in the world.

To make ends meet, Deborah’s mother sold eggs.  Her father dreamed of striking gold in Canada.  In spite of several trips where he personally dug for gold, it never happened for him.  Deborah was the youngest of the family and was considered a little dim as a child.  Nothing could have been further from the truth.

In my last post I described how Deborah became Duchess of Devonshire when the heir to the Cavendish title and property was killed in action in World War II, and then the sitting Duke died unexpectedly.  The dreaded Death Tax took effect:  the authorities demanded millions of pounds, reportedly about 80% of the total value of the inherited estate.

Deborah personally took charge.  The Cavendish family seat, Chatsworth, had always welcomed tourists.  After all, grand country homes were meant to be seen and admired.  Traditionally, the housekeeper conducted tours–for only the right sort of people, of course–and was allowed to keep the resulting tips.  Many housekeepers saved enough money to eventually open their own shops. (In Downton Abbey terms, think of Mrs. Hughes discreetly pocketing money from well-to-do tourists).  The housekeeper was responsible for vetting the tourists who rang the doorbell.  I’m thinking baseball caps, Bermuda shorts and fanny packs would not make it inside.

Anyway, when Deborah took matters in hand, the only facility to welcome tourists was a water tap outside.  That tap still exists.

Water tap outside Chatsworth

Water tap outside Chatsworth

But Deborah decided that people like to buy things, and they like to eat.  She created a restaurant and extensive gift shop, now so large and full of delights that it’s a destination in itself. She created a Farm Store (think a very exclusive Whole Foods, with everything in it produced on the grounds of the estate). She created a children’s farm, where city kids can learn how their food is produced. She oversaw a huge renovation of the grand house.  She created placards describing the house’s treasures. She began formally charging admission and hiring staff to guide tourists. She created guidebooks and eventually audioguides, with help from historians and art experts. She wrote about a dozen books, about the property and about her colorful life.

Today, a visit to Chatsworth can keep a visitor happy for an entire day.  One of my purchases at the gift shop on my last visit was a wonderful book all about the Mitford sisters, The Sisters by Mary Lovell.  Reading it is a fascinating history lesson.

SistersBook

At age 93, Deborah still presides–pretty much as CEO–over the thriving enterprise she created, starting at a time when all seemed lost for the noble Cavendish family.  Let’s hear it for duchesses with good sense and a common touch!

Paying the Bills at Downton Abbey

The hit show Downton Abbey is filmed at the real-life Highclere Castle, a little south and east of London in Hampshire.  The castle is still occupied by the heirs of the prominent Herbert family, who acquired the estate in around 1769.  Why not? If I inherited a castle, I would certainly live there.  But it’s not as easy as it seems.

Traditionally, keeping up a large country home required the income from at least 1,000 acres.  This meant intensive work by tenant farmers, with the heir to the property closely supervising, usually through an estate manager.  It has become more and more difficult to turn a profit in agriculture, especially since many large estates have had to sell off acreage.  One big reason is the dreaded Inheritance Tax, popularly known as the Death Tax.  The tax in approximately its present form was begun in 1894.  On the death of the landowner, the heir had to come up with staggering tax payments–often as much as the market value of the estate.  This problem only got worse during and after the two World Wars, as Britain struggled to pay the enormous costs of war.

In the 1840s, the Third Earl of Carnavon went on a building spree and ran out of money.  By the time the Fifth Earl inherited, his debts were crushing. At the time, many financially strapped aristocrats were marrying American heiresses like Cora Levinson, who became Countess of Grantham on the show Downton Abbey.  The Fifth Earl found an heiress closer to home. He married Almina Wombwell, who in spite of her name was actually the beloved biological daughter of banker Alfred de Rothschild. Lady Almina’s inherited fortune saved the house in 1895.

The present 8th Countess of Carnavon has written a book titled Lady Almina and the Real Downton Abbey.  (I haven’t read it yet!)

AlminaBook

In recent years the present Earl was able to negotiate a delay in paying the “death tax” by working out an agreement with the English Heritage organization, whereby the building and grounds are open to public visits for part of the year.  The cost of a day’s visit is about $27.  On a typical summer day, about 1500 visitors pay this fee.  (Due to the popularity of the show, reservations are booked up months in advance, but a few walk-up tickets are available). There is also a gift shop, of course. And the estate is rented out for weddings, about 20-25 per year, at rates starting at about $22,000. During filming of Downton Abbey, the film company pays somewhere around $5,000 per day.

All this seems like big money, but it costs $1.5 million to run the house for a year.  And major repairs are needed.  I’ve seen estimates as high as $18 million, and reports that the upper floors of the castle are uninhabitable. The present Countess is coming in for some criticism for cashing in on the show’s popularity, but I certainly can’t blame her.  Like the family on the hit show, she wants to preserve a property and with it a little piece of a vanished way of life.  She personally cannot even inherit, since the property will go to the son of her husband’s first marriage.  The recent article is in The New York TImes at

http://www.nytimes.com/2013/05/26/fashion/trying-to-turn-a-castle-into-a-cash-register.html?pagewanted=2&_r=0

In coming posts I will explore other ways the great country houses of England have been preserved, and revisit some of my favorites.  Join me next time!