35 tal-2018

L.N. 35 of 2018

DUTY ON DOCUMENTS AND TRANSFERS ACT

(CAP. 364)

Duty on the Acquisition of the Second Immovable Property to be

used for Own Residence (Exemption) Order, 2018

BY VIRTUE of the powers conferred by article 23 of the Duty on

Documents and Transfers Act, the Minister responsible for Finance

has made the following order:-

The title of this order is the Duty on the Acquisition of the

Second Immovable Property to be used for Own Residence

(Exemption) Order, 2018.

Notwithstanding any other provision in the Duty on

Documents and Transfers Act, where an individual transfers his

residential immovable property (hereinafter referred to as the

''replaced property''), and acquires another residential immovable

property (hereinafter referred to as the ''replacement property'') within

twelve (12) months from the date of transfer of the replaced property,

the duty paid on the first eighty-six thousand euro (€86,000) of the

value of the replacement property shall be refunded

Provided that this article shall only apply where all the

following conditions have been satisfied

(a) the transfer of the replaced property must qualify for

tax relief under article 5A(4)(c) of the Income Tax Act;

(b) the replaced property must have been acquired by

way of a transfer that qualified for relief under article 32(4)(a) of

the Duty on Documents and Transfers Act;

(c) the acquisition of the replacement property must

qualify for duty relief under article 32(4)(a) of the Duty on

Documents and Transfers Act. Acquisitions made through a

gratuitous title in accordance with rule 3(2) of the Duty on

Documents and Transfers Rules are excluded;

(d) if the replaced property had qualified for an

exemption under article 3 of Exemption of Duty in Terms of

Article 23 Order or under article 32C of the Duty on Documents

and Transfers Act, five (5) years must have elapsed on the date

of acquisition of the replacement property;

(e)

the individual must not have owned any other

residential immovable property acquired through a transfer inter

vivos before the acquisition of the replacement property, other

than the replaced property in the case where the replacement

property is acquired before transferring the replaced property.

For the purpose of articles 3 and 4, the individual must not own

any other residential immovable property at the time of

acquisition of the replacement property, other than the replaced

property in the case where the replacement property is acquired

before transferring the replaced property. For the purpose of this

sub-article "residential immovable property" includes also a plot

of land or airspace;

(f) the transfer of the replaced property must be made

within twelve (12) months from the acquisition of the

replacement property.

For the purpose of article 2, in the case of persons who are Duty refundable

on the Register of Persons with Disability kept by the Commission for to

disability.

the Rights of Persons with Disability set up in terms of the Equal Cap. 413.

Opportunities (Persons with Disability) Act, and who are in possession

of an identity card issued by the said Commission, and who benefit

from any Disability Assistance according to article 27 of the Social Cap. 318.

Security Act, the duty paid on the first one hundred and fifty thousand

euro (€150,000) of the value of the replacement property will be

refunded.

For the purpose of article 2, in the case of guardians of Duty refundable

persons who are on the Register of Persons with Disability kept by the to

persons with

Commission for the Rights of Persons with Disability set up in terms disability.

of the Equal Opportunities (Persons with Disability) Act, who reside in

the same household and who are in possession of an identity card

issued by the said Commission, and who benefit from any Disability

Assistance according to article 27 of the Social Security Act, or from Cap. 318.

Disabled Child Allowance according to article 77 of the same Act, the

duty paid on the first one hundred and fifty thousand euro (€150,000)

of the value of the replacement property shall be refunded.

The benefit would apply on a pro-rata basis according to Benefit to apply

pro-rata.

the share of the property being acquired.

This order shall apply to acquisitions affected from 10 th Applicability of

October 2017 up to 31 st December 2018, and the form contained in the order.

First Schedule of the Duty on Documents and Transfers Rules has been S.L. 364.06.

delivered to the Commissioner for Revenue on or before 28 th February

2019

Provided that for the purpose of articles 3 and 4, the benefit

would apply to acquisitions taking place from 1 st January 2017.

Claims for refund of duty under this order shall be made in

writing and shall not be considered by the Commissioner if made after

two (2) months from the date of the last contract. The Commissioner

will check eligibility and the person who acquires the property must

submit to the Commissioner for Revenue any information, forms and

documentation that the Commissioner for Revenue may require by

means of a notice in writing, within the period specified in the notice

which may not be of less than thirty (30) days.

The relief granted under this order shall be forfeited and the

provisions of article 9 shall apply if any of the provisions of this order

are not satisfied.

When the relief from duty under this order is forfeited as

provided in article 8, the provisions of article 2 shall not apply and the

duty chargeable on the transfer referred to in that article shall be the

duty that would have been chargeable in accordance with the

provisions of the Duty on Documents and Transfers Act had the relief

under this order not been claimed and availed of.

€0.27