CHAPTER 53:02
CAPITAL TRANSFER TAX

ARRANGEMENT OF SECTIONS

    SECTION

    1.    Short title

    2.    Interpretation

    3.    Capital transfer tax

    4.    Exemption of certain properties from payment of capital transfer tax

    5.    Liability of certain properties to capital transfer tax

    6.    Deductions allowable in calculating tax

    7.    Persons liable for tax

    8.    Valuation of property

    9.    Tax returns in respect of capital transfer tax

    10.    Management of capital transfer tax

    11.    Regulations

        First Schedule

        Second Schedule

Act 13, 1985,
Act 12, 1996,
Act 11, 1997,
Act 19, 2019,
S.I. 17, 2020.

An Act to provide for the levying of capital transfer tax on gratuitous disposal of certain properties and on inherited properties and other matters connected therewith.

[Date of Commencement: 31st May, 1985]

1.    Short title

    This Act may be cited as the Capital Transfer Tax Act.

2.    Interpretation

    In this Act, unless the context otherwise requires—

    "aggregate taxable value" means the sum of the values (excluding such values as are exempt from capital transfer tax under section 4 and deductions allowed under section 6) of all chargeable disposals in any tax year;

    "chargeable disposal" means—

    (a)    any gratuitous disposal of property including any gratuitous waiver or renunciation of a right; or

    (b)    any property devolving on any person by way of inheritance;

    "Commissioner" means the Commissioner of Taxes appointed under section 3(1) of the Income Tax Act (Cap. 52:01);

    "donee" means any beneficiary of a chargeable disposal and includes a trustee to whom such property has been disposed for the benefit of any beneficiary;

    "donor" means the person disposing of a chargeable disposal and includes a person whose property has passed to another by way of inheritance or the executor of the estate of such person;

    "inheritance" means property which has devolved on a person on the death of its owner;

    "property" means any right in or to movable or immovable, corporeal or incorporeal property wherever situated;

    "tax" means capital transfer tax;

    "tax year" means any period of 12 months commencing on the first day of July;

    "value", in relation to property on the date of disposal of such property, means the market value.

3.    Capital transfer tax

    (1) Subject to the provisions of this Act, a tax, to be known as capital transfer tax, shall be charged on the aggregate taxable value of all chargeable disposals made by a donor to a donee in any tax year at the rates specified in the First Schedule hereto.