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Changes to transfer tax rates on estates at death, become effective tomorrow (June 1), as announced by Finance and Planning Minister, Dr. Omar Davies during his budget presentation in Parliament in April.
As a result, at death there will be no tax on the first $100,000.00 value of the estate to be transferred. Thereafter, amounts over $100,000.00 will be at a rate of 7.5 per cent.
This is a simplification of the previous tax structure, which saw varied rates being levied on different values. As such, the first $10,000.00 of value was exempt, the next $10,000.00 attracted a 7.5 per cent tax, the next $40,000.00 was at a rate of 10 per cent, the next $50,000.00 and values above $110,000.00 were taxed at a rate of 12.5 per cent and 15 per cent, respectively.
The Finance Minister said that modification to the transfer tax payable was likely to result in settlement of estates, which had previously remained unsettled due to the complexity of the tax and the high tax rates.
The new measure is expected to yield an additional $300 million in revenue for the 2005/06 budget.