Amendment and Extension of Stamp Duty Exemptions

5 November 2019

LN 281 of 2019 has amended the following subsidiary legislation enacted under the Duty on Documents and Transfers Act, implementing measures announced in the Budget for 2020.

Amendment to the Exemption of Duty in terms of article 23 Order (S.L. 364.12)

A new proviso to article 3 has been added in terms of which no duty shall be chargeable on the first €175,000 of the aggregate value of the consideration paid for the acquisition of property where: the transfer is made on or after the 15^thOctober 2019 but before the 1^stJanuary 2021, it qualifies for relief of duty under article 32(4)(a) of the Duty on Documents and Transfers Act, and the property is the first immovable property acquired inter vivos by the purchaser.

The revised penultimate proviso to article 3 extends the deadline for submission of the relevant form under article 51 of the Duty on Documents and Transfers Act, together with legal evidence that no other immovable property had been acquired inter vivos before, to 28^thFebruary 2021.

The reduced rate of duty of 2% which applies on transfers inter vivos of residential property in Gozo, has been extended for another year pursuant to an amendment to article 4 of the Order, which now requires that the final deed in relation to the transfer is made by the 31^stDecember 2020 and the notice of the final deed in relation to such transfer is given to the Commissioner for Revenue by the 28^thFebruary 2021.

Amendment to the Duty and Donations of Marketable Securities and Immovable Property Used for Business (Exemption) Order (S.L. 364.15)

The reduced rate of duty applicable to donations of marketable securities and immovable property used for business purposes (family business) has been extended further until 31^stDecember 2020.

Amendment to the Duty on Transfers (Exemption No. 2) Order (S.L. 364.16)

The reduced rate of duty applicable to transfers of property situated within an urban conservation area or which is scheduled by the Planning Authority has been extended until 31^stDecember 2020.

Amendment to the Duty on the Acquisition of the Second Immovable Property to be used as Sole Residence (Exemption) Order (S.L. 364.17)

The refund of duty granted in connection with the purchase of a second immovable property to be used as a sole residence (replacement property purchased within 12 months of the transfer of the former residential property) has been extended to 31^stDecember 2020.