The Duty On Donations of Marketable Securities And Immovable Property Used For Business (Exemption) Order, allows donations of marketable securities and business property used in a family business, to be subject to a reduced duty rate of 1.5%, from the standard 2% or 5%. The incentive (which has been extended to run until 1 January 2021) can be applied on the transfer of properties used for conducting business activities and which have been used for commercial purposes. It can also be applied for intra-family donations of company shares and other types of marketable securities.
Qualifying family members include one’s spouse, descendants and ascendants in the direct line as well as their relative spouses. In the absence of descendants, donations to brothers or sisters, and their descendants, are allowed. Individuals choosing to avail themselves of this benefit must hold on to the marketable securities for a period of at least three years after the donation. Likewise, the immovable property must not only be retained by the donee but also continue to be used within the business.
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We encourage family businesses to get in touch with our experts to find out more about how to avail themselves of this reduced rate. Grant Thornton can help with the preparation of all required documentation including the deed of transfer, obligatory reports and filings.
You can be confident that our team of professionals will work with you to assist with your family business planning requirements. We believe that succession planning is an ongoing process that includes critical decisions as well as careful planning and preparation in order to successfully transition ownership, leadership and management of the business and the family's assets to successive generations.
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