Gifts and Inheritances
Duty is chargeable under the Duties Act 2001 when an interest in land is acquired.
When a transfer is the result of a gift , the transferee is acquiring an interest in that property. Therefore duty must be paid on the transfer.
There is a exemption available when the gift will be used for charitable, educational or religious purposes.
Because no money will have changed hands the duty will be calculated based on the unencumbered value.
The unencumbered value is determined by multiplying the valuation last determined by the Valuer-General, by the appropriate adjustment factor (for vacant land) or estimated trends in capital value (for other real property) for the relevant municipality.
A duty concession is available where property is received by the beneficiary of a will or inheritance.
To claim the duty concession you must supply:
- Original transfer instrument;
- Original or certified copy of probate and will or letters of administration. If it is unclear from these documents as to the transferee's entitlement, a statutory declaration by the executor/administrator must be provided clearly setting out how the transferee(s) is/are entitled; and
- Any other information such as agreements, and/or distribution statements should be produced where relevant to the transaction.
The beneficiary of a deceased estate can also apply for an exemption from duty on transfer of a motor vehicle.