The States of Guernsey has recently brought into force the Document Duty (Guernsey) Law, 2017 (Amendment) Ordinance, 2020 (the Amendment).
The Amendment introduces new 'exempt transactions' (transfers of real property that are exempt from document duty) under the law.
Prior to the introduction of the Amendment, any transfer of real property from an individual to a company would have attracted document duty on that property's market value, regardless of whether the ultimate beneficial ownership of that property had changed or not.
With the Amendment in force, the law now provides that transfers of property by individuals into companies (of which they are the beneficial owner of all of the shares) are exempt transactions and will not attract document duty.
The Amendment also clarifies a number of transfers made by trustees that shall be considered as exempt transactions.
For further information, or to discuss how the Amendment may affect you, please contact a member of the Guernsey property team.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.