Changes to the Stamp Act related to exemptions from Stamp Duty on Deeds of Gift
In the Stamp Act, as published as Cap 440 of the Revised Edition of the Laws of St. Vincent and the Grenadines in 2009, there was a wide category of exempt persons, who were exempted from the obligation to pay a stamp duty of 10 per cent of the value of the real estate involved in a conveyance on transfer or sale, of which 5 % is to be paid by the transferor and 5% by the Transferee.
The category of exemptions that obtained were:
There was no stamp duty payable in respect of any gift inter vivos where no money or money’s worth had been passed between the following persons:
(a) Parents and children (including grand-children, great- grant children, great-great grand children and great great-great grand children);
(b) Brothers and sisters (either of the whole blood or half blood);
(c) Spouses, including transfers made within three years after the grant of decree absolute whether such transfers are voluntary or made pursuant to any order of the High Court in connection with a property settlement.
The exemptions also applied where there was a gift to or from a company in which 51% or more of the shares were beneficially owned by a transferee or transferor falling within the categories of persons specified as exempted individuals above.
The exemption also applied so that the named exempted persons above included any company in which 51% or more of the shares are owned by a parent, child, brother, sister or spouse of the corresponding party (transferor or transferee).
The transfer however is voidable if it is cancelled within 5 years of it being executed.
2011 Changes – Narrowing Exemptions
In around the year 2011, there was an amendment to the Stamp Act where the exemptions on the payment of the 10 % stamp duty on the transfer of land by gift, was reduced to the following exempt categories:
(a) Parents and children
(b) Spouses
2021 Changes – Widening Exemptions
By virtue of the Stamp Duty Amendment Act 2021, the law has been changed once again so that the category of exempt persons for deeds of gift reverts to almost the way that it was as set out in the 2009 Edition of the Stamp Act.
The categories of exempt persons now are:
(a) Parents and children including grandchildren;
(b) Brothers and sisters;
(c) Spouses, including transfers made within three years after the grant of a decree absolute whether such transfers are voluntary or made pursuant to any order of the High Court in connection with a property settlement.
Note that the category (a) is narrower than the 2009 category (a), in that it stops with grandchildren and does not extend to great and great-great grandchildren.
The exemption for transfers between exempt persons and companies beneficially controlled by exempt persons now reverts to exactly the way that it was in 2009.
Prepared by Louise Mitchell
August 31, 2021