ADJUSTMENTS TO DECLARED VALUE OF IMMOVABLE PROPERTY RULES

ADJUSTMENTS TO DECLARED

VALUE OF IMMOVABLE PROPERTY

SUBSIDIARY LEGISLATION 364.11

ADJUSTMENTS TO DECLARED VALUE OF

IMMOVABLE PROPERTY RULES

7th January, 2005

LEGAL NOTICE 3 of 2005.

The title of these rules is the Adjustments to Declared

Value of Immovable Property Rules.

In these rules, unless the context otherwise requires -

"the Act" means the Duty on Documents and Transfers Act;

"deed of adjustment" means a deed to which rule 4 refers;

"original declaration" means a declaration made in accordance

with article 33 of the Act, in respect of a transfer causa mortis to

which rule 3 applies;

"original value" means, without prejudice to rule 7, the value of

immovable property or a portion thereof, as the case may be,

transferred to a person causa mortis as declared in an original

declaration.

Any person who acquired immovable property under a

transfer causa mortis on or after the 24th November, 1992 may, if

notice of that transfer has been given to the Commissioner in

accordance with article 51 of the Act before the 25th November,

2003, and subject to the other provisions of these rules, make an

adjustment to the value of the property declared in the original

declaration by declaring a higher value and paying the duty on that

increase.

An adjustment to the original value shall be made by

means of a public deed and notice of the adjustment shall be given

to the Commissioner by the notary who receives the deed of

adjustment by not later than the 30th June, 2005 together with a

certified copy of the deed by means of which the original

declaration had been made.

The deed of adjustment shall contain a declaration by the

transferee causa mortis that he wishes to make an adjustment to the

original value in accordance with these rules and shall indicate the

original value and the amount by which the transferee wishes to

increase that value.

When the original declaration contains a declaration of the

original value of more than one item of immovable property, the

deed of adjustment shall indicate separately the original value of

each item and the corresponding additional amount, including,

where applicable, a nil amount, by which the person making the

declaration wishes to adjust each such value.

Where the original value is the subject of an assessment

made under the Act and, before the notice referred to in rule 4 has

been given to the Commissioner, that assessment becomes or has

ADJUSTMENTS TO DECLARED

VALUE OF IMMOVABLE PROPERTY

become final and conclusive, or is or has been confirmed or

amended by a final decision of an appellate tribunal or court or is

withdrawn following an agreement in writing with the

Commissioner, the value of the property resulting from the said

final and conclusive assessment, or decision or agreement shall be

deemed the original value for the purposes of these rules.

Where the original value is the subject of an assessment

made under the Act which, at the time that the notice referred to in

rule 4 has been given to the Commissioner, has not become final

and conclusive, the original value for the purpose of these rules

shall be the value declared in the original declaration, as defined in

rule 2

Provided that -

(a) the deed of adjustment, the notice thereof and the

payment of the tax in accordance with these rules shall

be without prejudice to that assessment and to the

procedures relating to any objection and appeal against

that assessment;

(b) when that assessment becomes final and conclusive,

the duty paid in accordance with these rules in respect

of any immovable property shall be available as a

credit against the duty, excluding additional duty, on

the assessed value as resulting from that assessment in

respect of the said property, which credit shall not

exceed the said duty on the assessed value.

The amount by which a person may increase the original

value shall not be higher than the maximum increase shown in the

second column of the following table

In respect of any item of immovable property -

Maximum increase

as a percentage of

the original value of

the corresponding

item of immovable

property

Acquired by the transferee causa mortis after the

24th No vemb er, 19 92 an d bef ore t he 25 th

November, 1994 ......................................................

200%

Acquired by the transferee causa mortis after the

24th No vemb er, 19 94 an d bef ore t he 25 th

November, 1995 ......................................................

175%

Acquired by the transferee causa mortis after the

24th No vemb er, 19 95 an d bef ore t he 25 th

November, 1996 ......................................................

150%

Acquired by the transferee causa mortis after the

24th No vemb er, 19 96 an d bef ore t he 25 th

November, 1997 ......................................................

110%

Acquired by the transferee causa mortis after the

24th No vemb er, 19 97 an d bef ore t he 25 th

November, 1998 ......................................................

90%

Acquired by the transferee causa mortis after the

24th No vemb er, 19 98 an d bef ore t he 25 th

November, 1999 ......................................................

90%

ADJUSTMENTS TO DECLARED

VALUE OF IMMOVABLE PROPERTY

Acquired by the transferee causa mortis after the

2 4 t h N o v e m b e r, 1 9 9 9 a n d b e f o r e t h e 2 5 t h

November, 2000 ......................................................

60%

Acquired by the transferee causa mortis after the

2 4 t h N o v e m b e r, 2 0 0 0 a n d b e f o r e t h e 2 5 t h

November, 2001 ......................................................

40%

Acquired by the transferee causa mortis after the

2 4 t h N o v e m b e r, 2 0 0 1 a n d b e f o r e t h e 2 5 t h

November, 2002 ......................................................

30%

Acquired by the transferee causa mortis after the

24th November, 2002 and declared in a deed of

transfer causa mortis of which notice has been given

to the Commissioner before the 25th November,

2003 ........................................................................

20%

A duty of five percent of the amount of the additional value

shall be payable on every deed of adjustment. The duty shall be

paid to the notary who receives the deed and remitted by the notary

to the Commissioner together with the notice of the said deed.

Save as provided in or as may be necessary for the

purposes of these rules, the provisions of the Act and of rules

pr e s c r i be d u n d e r t h e A c t , i n r e s pe c t o f de e d s c o nt a i ni n g a

declaration of a transfer causa mortis, notice of such declarations,

and the payment and remittance of the duty on such transfers shall

apply, mutatis mutandis, to deeds of adjustment.

No deed of adjustment shall be valid unless it complies

with these rules and the duty payable thereon is remitted to the

Commissioner together with the notice thereof by not later than the

30th June, 2005.

The duty on a deed of adjustment shall be due

notwithstanding any exemption from or limitation to the duty on

the original declaration.

Without prejudice to proviso (b) of rule 8, duty paid in

accordance with the provisions of these rules shall, under no

circumstances, be refundable.

Saving the other provisions of these rules, duty payable in

accordance with these rules shall be deemed to be duty payable on

a declaration causa mortis made in accordance with article 33 of

the Act.

These rules shall be without prejudice to article 43(1)(a)

and (4)(a) of the Income Tax Management Act.