Legal Notice 250 of 2026 amends the Duty on Donations of Marketable Securities and Immovable Property Used for Business (Exemption) Order (SL 364.15), extending the reduced duty rate of 1.5% to transfers causa mortis (inheritance) of qualifying business assets. Previously, the reduced rate applied only to inter vivos donations of business assets meeting specific conditions. The amendment requires proof that the deceased had maintained a genuine business operation and that the assets were used for that business. The relief aims to facilitate generational succession in family-owned enterprises by reducing the stamp duty burden on inherited shares and immovable property. The measure applies to transfers occurring on or after the publication of LN 250, and taxpayers must file a declaration with the Commissioner for Revenue to claim the reduced rate.
Key Takeaways
- Scope extended to inheritance: The 1.5% duty rate now covers causa mortis transfers, provided the assets qualify as business assets and the business continuity test is satisfied.
- Evidence requirements: Heirs must demonstrate the existence of a bona fide business and the use of assets in that business, potentially requiring audited accounts and operational records.
- Filing obligation: A specific declaration must be submitted to the Commissioner for Revenue within the prescribed timeframe to benefit from the reduced rate.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement