The Taxman Cometh

Since 1707, when William Cavendish, art-loving second Duke of Devonshire, fell heir to the vast Chatsworth estate in Derbyshire, the family has amassed the biggest private art collection in Britain. Estimated value: more than -L-750,000. In recent years, Chatsworth has been open to the public. Families of sightseers have swarmed over the 4,000 expertly landscaped acres and strolled through corridors and state rooms full of works of art, dating back to the 5th century B.C. But last week the British version of the U.S. Bureau of Internal Revenue won a court fight which threatened to break up Chatsworth forever.

In an action in chancery court, the Inland Revenue claimed that an improperly dated agreement signed by the tenth Duke of Devonshire just before his death last year was void; instead of going to a nonprofit fund, and thus escaping death duties, the collection should go to swell the duke's other assets (to -L-3,000,000). Since the 80% death duty on the whole estate would leave the family only -L-600,000--less than the value of the collection alone--the heirs would have to sell the Chatsworth art and break up the collection. Said the court: "I cannot refrain from expressing deep concern . . ."

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