Transfer of Business Property between Family Members

KEY TAKE OUTS:

  • When is stamp duty exempt?
  • Is stamp duty payable on business property?

Normally when entering a Memorandum of Transfer between family members, transfer duty (formerly known as stamp duty) will be payable by the party acquiring the property.

The amount of transfer duty payable will depend on the market value of the property, this can be determined by ordering a valuation report.

There are some exemptions and concessions from transfer duty, such as a break-up of marriages or de facto relationships, deceased estates or transfers between married or de facto couples. Further information in relation to these exemptions and concessions can be found on the Coutts website.

Further to the above scenarios, there is also an exemption available for transfers of certain business property between family members.

In order to be eligible to claim such exemption of transfer duty, the following will need to apply:

  • The transferor is a family member of the transferee;
  • The land was used for primary production in connection with a business carried on by the transferee, immediately before the transaction or at the date of the first execution of the instrument of the transaction; and
  • The business is to continue to be carried on by the transferee.

If all of the above apply, then you should be eligible to claim an exemption of transfer duty, however please note that if you are looking at acquiring business property from a family member, we recommend seeking advice prior to entering into a Memorandum of Transfer.


ABOUT CHRISTINE JOHNSEN:

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Christine is a licensed conveyancer and Justice of the Peace at Coutts’ Narellan office. She is highly efficient and is able to assist clients with matters concerning; the sale and purchase of residential and commercial property, retirement village contracts, put & call options and family transfers.

Christine communicates clearly with her clients, thoroughly walking them through every stage of the buying and selling process to ensure that their experience is as stress free as possible. She also makes a point of being available to her clients, when they need her, throughout the entirety of their matter.


For further information please don’t hesitate to contact:

Christine Johnsen
Licensed Conveyancer & JP
christine@couttslegal.com.au
1300 268 887

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This blog is merely general and non specific information on the subject matter and is not and should not be considered or relied on as legal advice. Coutts is not responsible for any cost, expense, loss or liability whatsoever in relation to this blog, including all or any reliance on this blog or use or application of this blog by you.