By means of Legal Notice 325 of 2024, the Government has amended the Duty on Donations of Marketable Securities and Immovable Property used for Business (Exemption) Order, by virtue of which a reduced rate of duty is applied on the transfer by gratuitous title of marketable securities or business property.
In the case of marketable securities, duty will be due at the rate of 1.5% on the real value of the securities when these are transferred by gratuitous title to relatives of the transferor as defined in Article 5(2)(e)(i) of the Income Tax Act.
In the case of a transfer of a business property being a commercial tenement that has been used in a family business for at least three years preceding the date of transfer, duty of 1.5% shall also apply where the property is transferred by gratuitous title to relatives of the transferor as defined in Article 5(2)(e)(i) of the Income Tax Act.
The reduced rate as explained above has been extended from 1st January 2025 to 1st January 2026 and the notice required in terms of the Duty on Documents and Transfers Act and the Rules issued in terms of the said Act has to be submitted by not later than 31st December 2025 (extended from 31st December 2024).
