Citizens Advice Bureau

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Stamp duty on property purchase/transfer and death ( 11.1.50 )

LOCAL INFORMATION

11.1.50
Stamp duty on property purchase, transfer and death

 

Extent:       Jersey
Updated:    October 2017

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Words you may need to know

 

Freehold - a property that has freehold status. Freehold property can be defined as any estate which is "free from hold" of any person besides the owner. The owner enjoys free ownership for perpetuity and can use the land for any purposes in accordance with the local regulations.

Perpetuity - forever, eternity

Purchaser - buyer

Dwelling - a house or other building or place in which somebody lives

Mortgage - a loan agreement secured on a property

Nil - nothing

Occupied - lived in

Entitled – to have a right to do something

Reversionary interest - right to inherit property. The right to property, granted to somebody by the former owner

Consideration - sum of money or benefit in payment for the property

Transfer – when possession of, or rights to, something is passed from one person to another

Transaction - a business arrangement – eg a contract, an agreement, a transfer of land or property etc

Gross value – full value (before any deductions that might apply are made)

Indebtedness – when you accept that you owe money to someone

Registered – when something is recorded eg an official list

Intestacy - the person has died without leaving a will

Devised - to pass on property through a will

Testator - someone who has made a legally valid will

Matrimonial - belonging or relating to marriage. A matrimonial home is where a married couple live

Immovable - relates to buildings or land. Also called real property or realty

The most important distinction in property is between immovable or “real” property and movable or “personal” property, which includes transferable and movable items such as cars, furniture, items of value, jewellery, cash and stock certificates

Estate – the property you own – can be immovable/ real or movable/personal

Concession - a right or kindness granted

 

 

What is ‘stamp duty’?

Stamp duty is a government charge or fee that has to be paid on certain transactions.  Different types of transaction have different amounts of stamp duty that are payable.

 

The details and fee scales are in the Stamp Duties & Fees (Jersey) Law 1998, as amended.

 

See:  www.jerseylaw.je/laws/revised/Pages/24.960.aspx

 

How is stamp duty paid?

To pay stamp duty special stamps need to be purchased from the States Treasury at Cyril Le Marquand House, The Parade, St Helier. These stamps will be stuck onto the document that relates to the transaction that you have to pay the stamp duty for eg a will, a contract of purchase etc.

 

The information below is a summary of the amount of stamp duty that is payable in the circumstances below. Working out how much stamp duty needs to be paid can be difficult. It is recommended that you get professional advice if you are in doubt.

 

However, if you have a professional such as a lawyer who is dealing for you with eg a house purchase or the will of someone who has died , they will tell you how much stamp duty has to be paid.

 

Residential Property

 

On house purchase [freehold]  

Value/Consideration of the property

Duty payable

Value does not exceed £50,000

50p for each £100 or part of £100, with a minimum fee of £10

£50,000 to £300,000

£250 for the first £50,000 plus £1.50 for each £100 or part of £100 in excess thereof

£300,000 to £500,000

£4,000 for the first £300,000 plus £2 for each £100 or part of £100 in excess thereof

£500,000 to £700,000

£8,000 for the first £500,000 plus £2.50 for each £100 or part of £100 in excess thereof

£700,000 to £1,000,000

£13,000 for the first £700,000 plus £3 for each £100 or part of £100 in excess thereof

£1,000,000 to £1,500,000

£22,000 for the first £1,000,000 plus £4 for each £100 or part of £100 in excess thereof

£1,500,000 to £2,000,000

£42,000 for the first £1,500,000 plus £5 for each £100 or part of £100 in excess thereof

£2,000,000 to £3,000,000

£67,000 for the first £2,000,000 plus £6 for each £100 or part of £100 in excess thereof

£3,000,000 to £6,000,000

£127,000 for the first £3,000,000 plus £8 for each £100 or part of £100 in excess thereof

Exceeds £6,000,000

£367,000 for the first £6,000,000 plus £9 for each £100 or part of £100 in excess thereof

The above will also incur £80 registration fee and £20 Jurat stamps

 

Transfer of property with no cash consideration e.g. gifts

Same rate as above

Transfer of property on divorce or separation, or within a marriage or civil partnership

If transfer is by reason of a Court Order (or Out of Court Settlement) under the Matrimonial Causes (Jersey) Law 1949, then the fee is £5 per page of application with a minimum of £10.

When the matrimonial home is owned solely by one party of a marriage it can be transferred to joint-ownership. The fee payable is £5 per page with a minimum fee of £10.

When the matrimonial home is jointly-owned it can be transferred to the sole ownership of one party of the marriage. The fee payable is £5 per page with a minimum fee of £10.

Transfer of property - co-habiting couples

Concession on stamp duty does not apply but Registrar of Deeds has discretion if couple have been co-habiting for many years. Each case is considered individually.

First Time Buyers Purchase - On a house or land purchase (on which a dwelling is to be built) for own occupation [freehold]

Property Value

Duty Payable

Does not exceed £300,000

NIL

Exceeds £300,000 but does not exceed £400,000

NIL in respect of the first £300,000 plus £1 for each £100 or part of £100 in excess thereof

Exceeds £400,000 but does not exceed £450,000

The amount of duty payable under the normal scale (without first time buyer reduction) reduced by the following formula: 5000-((Value of property – 400,000) x 10%)

The above will also incur £80 registration fee and £20 Jurat stamps

Who is a first time buyer

The transaction must however fulfil all the conditions under item 13 (b) of the first schedule to the Stamp Duties & Fees (Jersey) Law 1998, including:-

i) the purchaser is:

-  a person who has Entitled status in accordance with the Control of Housing and Work (Residential and Employment Status) (Jersey) Regulations 2013, (but not because of Regulation 2(1)(e) of those Regulations)  or

- is the spouse or a civil partner of such a person and is joint transferee with that person; and

ii) the purchaser satisfies the designated officer that:
-  he or she has never owned a reversionary interest in any dwelling accommodation
   anywhere in the world and

- nor has he or she ever been entitled to occupy any such dwelling accommodation ( or would have been so entitled if Clause B applied) by virtue of having owned the accommodation, and for the purposes of this clause ‘owned’ includes –

(a)        having held such accommodation on contract lease;

(b)        having owned such accommodation together with any other person;

(c)        having owned shares that give the right to occupy such accommodation; and

(d)       any arrangement whereby such accommodation was held in the name of a nominee or
            trustee, or of a company owned by such nominee or trustee, for the benefit of the
           purchaser; and

 

iii) the consideration for the sale is not less, or not substantially less, than the gross value of the property as sold.

 

Stamp Duty Rates to Register a Mortgage

Reduced rates

If you qualify as a first time buyer or are purchasing a property under £450,000 for your own occupation, the rate of duty is :

-          nil for the first £350,000 of the amount borrowed and

-          if above £350,000 but below £450,000 then the rate payable will be 0.25% on the amount above £350,000 but below £450,000, subject to a minimum of £25.

In all cases an £80 registration fee is payable.

Changing Mortgage Provider – refinancing with a new lender

 

Where the amount borrowed is less than or equal to the unpaid amount then duty will only be the £80 registration fee. Where the borrowing is greater than the unpaid amount, then duty will be £80 on the unpaid amount plus ½% for the portion that is greater.

 

The transaction must however fulfil all the conditions under item 1(ba) of the first schedule to the Stamp Duties & Fees (Jersey) Law 1998, including:-

 

 i) all the same persons have acknowledged indebtedness in both the new borrowing document and the registered borrowing document;

 

ii) the borrowing applies to a dwelling that is owned and occupied by the person who has acknowledged indebtedness (the ‘borrower’) as his or her sole place of residence in Jersey and the owner and occupier of the dwelling on the date of registration of the registered borrowing document are the same owner and occupier of the dwelling on the date on which the new borrowing document is to be registered; and

 

iii) the new borrowing document and the registered borrowing document relate to the same dwelling (or where the dwelling is not yet constructed, the new borrowing document and the registered borrowing document relate to the same land and the construction of that dwelling on it).

Normal Mortages

50p for each £100 or part of £100 of the amount being registered subject to a minimum of £5.

The above will also incur £80 registration fee

Transfer of immovable property in a will

Property devised in a will of Realty, will need to be registered with the Public Registry at the Judicial Greffe, Royal Court House, Royal Square, St Helier. There is duty payable upon application to register and a fee of £80 for a professional application and a fee of £200 for a personal application to register a will of immovable estate.

Value of the estate

Duty payable

Value does not exceed £50,000

50p for each £100 or part of £100, with a minimum fee of £12

£50,000 to £300,000

£250 for the first £50,000 plus £1.50 for each £100 or part of £100 in excess thereof

£300,000 to £500,000

£4,000 for the first £300,000 plus £2 for each £100 or part of £100 in excess thereof

£500,000 to £700,000

£8,000 for the first £500,000 plus £2.50 for each £100 or part of £100 in excess thereof

£700,000 to £1,000,000

£13,000 for the first £700,000 plus £3 for each £100 or part of £100 in excess thereof

£1,000,000 to £1,500,000

£22,000 for the first £1,000,000 plus £4 for each £100 or part of £100 in excess thereof

£1,500,000 to £2,000,000

£42,000 for the first £1,500,000 plus £5 for each £100 or part of £100 in excess thereof

£2,000,000 to £3,000,000

£67,000 for the first £2,000,000 plus £6 for each £100 or part of £100 in excess thereof

£3,000,000 to £6,000,000

£127,000 for the first £3,000,000 plus £8 for each £100 or part of £100 in excess thereof

Exceeds £6,000,000

£367,000 for the first £6,000,000 plus £9 for each £100 or part of £100 in excess thereof

In certain circumstances the Public Registry will require two valuations of the property when the application is from a member of the public. Application by a legal adviser is recommended if the property is not left to the immediate heir / heirs.

If the beneficiary(ies) under the will is (are) the same person(s) to whom the property would have passed on an intestacy (and in the same shares) then the fee shall be £80 in the case of a professional application for each document registered, and in any other case £200 for each document registered.

On the annulment of a will by the Court, the Greffier, on application being made to him, shall issue a certificate authorizing the Treasurer of the States to reimburse to the applicant the amount of the fee originally paid or so much thereof as the Greffier shall determine.

Dealing with the matrimonial home in a Will of Immovable Estate

If the matrimonial home was bought as joint ownership, the interest in the property passes to the surviving spouse on the death of the husband/wife. There is no need to register the will of immovable property.

If the matrimonial home was bought as owners in common or owned entirely by the spouse then on the death of the husband/wife the interest in the property passes to their heirs.

If the beneficiary(ies) under the will is (are) the same person(s) to whom the property would have passed on an intestacy (and in the same shares) then the fee is £200 for a personal application or £80 in the case of a professional application.

Where the testator devises to his spouse a property which, at the time of his death, was their matrimonial home, the net value of that property shall be disregarded in determining the net value of the immovable property devised.

Stamp duty on personal estate

If the net value of the personal estate is less than £10,000 there is no fee.

If the net value exceeds £10,000 but is under £100,000 the fee is £50 for each £10,000 or part thereof.

If the net value exceeds £100,000 the fee is £500 in respect of the first £100,000 plus £75 for each additional £10,000 or part thereof.

There is a sliding scale for fees for a personal application for probate or letters of administration.