Stamp & Duty Transfer Tax Frequently Asked Questions

 

The tax payable on a deceased’s estate…

Under Part 2 Section 3 of the Transfer Tax Act, the seller of the property pays it before the property is transferred.

Prior January 1, 2009- 7 1/2 %

January 1,2009 to July 31,2009- 5%

August 1, 2009 to Present- 4%

A Joint Tenancy:

  • Revenue Affidavit
  • Documentary proof of ownership of property(ies)
  • Death Certificate
  • Application to Note Death
  • If principal place of residence, Statutory Declaration

Sole Proprietorship/Tenancy in Common:

  • Documentary proof of ownership of property(ies)
  • Death Certificate
  • Revenue Affidavit
  • Probate with Will or Letters of Administration
  • Inventory or Oath of Executor/ Oath of Administrator
  • Transmission Application
  • Assent to Devise
  • Documentary proof for any outstanding debt/ mortgage

Yes. Market values at the time of death are used when calculating the Transfer Tax.

Section 12 (2) of the Transfer Tax Act gives the formula for calculating Transfer Tax (on death).

Yes, the application must, however, show the relevant documents for all the properties and indicate the property on which the tax should be apportioned.

When the grace period given after the initial assessment has passed, the case is updated and the next due date and the date of assessment will be the same.

The Revenue Affidavit is a return, and becomes the property of the Stamp Commissioner once it is filed. It cannot be withdrawn after an assessment is raised because the properties and shares left behind by the deceased will not be transferred unless the taxes are paid.

One year after the deceased’s death.

Interest is calculated at the rate of 6% per annum, on the Transfer Tax outstanding (Paragraph 17(3) of Part Two of the Transfer Tax Act)

Although the jointly held property is not considered a part of the deceased’s estate by the courts, the deceased had a disposable interest in it. It is this half interest which is taxable under Section 5(1). However, if the property qualifies as the principal place of residence, it is exempted from tax.

Allowances given are: Medical expenses, Funeral expenses, Debts and Mortgages.

Yes, the Transfer Tax can be paid by installments by virtue of Paragraph 21(2) of Part II of the First Schedule of the Transfer Tax Act.

Payments are made by Cash or Manager’s Cheque only. No personal cheques are accepted.

Payments made by Cheque should be made payable to the Commissioner General.

Applications can be made to the Minister of Finance for a Waiver of the Tax and/or Interest.

No, only one principal place of residence can be granted under the Act (Paragraph 11(5) of Part Two of the First Schedule).

The Stamp Duty paid on the Probate was assessed by the Courts and is calculated on all the assets owned by the deceased (inclusive of cash, Insurance, Bonds etc.). The Probate is up stamped with the transfer tax (on death) paid because it is the prescribed document under the Transfer Tax Act. It must be up stamped with the total tax, which was paid in the Testator’s estate.

No tax is payable as long as the estate, from which the property is passing, has been settled. (Section

The Will & the Oath of Administrator are needed to process a Share Transfer and an Assent Transfer because they both dictate by Law who should benefit from the estate or the particular asset.

Because there exist two separate transactions. Firstly, the Transfer Tax is charged on the deceased’s taxable assets. (TRANSFER TAX IS PAID). Secondly, the assets of the deceased are passed to the Legal Representative and then to the beneficiary (NO TRANSFER TAX PAYABLE).

The Supreme Court can be contacted for the formula.

There can be only one case file for a deceased’ estate. The taxable assets of the estate must be aggregated and tax computed in accordance with Section 12 (1) of Part Two of the First Schedule of the Transfer Tax Act.

 

<<back

 

GART Rates