Duty on Donations of Marketable Securities and Immovable Property Used for Business

The Minister for Finance, through Legal Notice 82 of 2018, announced an extension to the timeframes for the application of the reduced 1.5% duty rate on qualifying intra-family transfers. The salient features of this measure the following: -The 2% or 5% standard rate of duty generally applicable to transfer of company shares shall be reduced to 1.5% for intra-family donations, i.e. donations by individuals to qualifying family members (being one’s spouse, descendants and ascendants in the direct line and their relative spouses, or in the absence of descendants to his brothers or sisters and their descendants); – The reduced 1.5% duty rate shall also apply for intra-family donations of ‘business (immovable) property’ which was used in a family business (as defined in the Family Business Act) for at least three years prior to the donation; -The benefit of the reduced duty rate would be forfeited (in which case the standard duty rates would apply for the intra-family donation) if the donee transfers the donated shares or business property within 3 years from the donation, or if the business property is not used as such within 3 years from the donation. Moreover, by virtue of said Legal Notice, the reduced duty rate shall now also be applicable where, the donations are effected (through a public deed), and the applicable schedules are delivered to the Commissioner for Revenue by 30 September 2018.