Document Duty saving in 2014 Budget

9th October 2013

The States Treasury & Resources Department has released its proposed budget for 2014.

Of particular interest to the property world is that Tax on Real Property will increase by 5%.

Better news for the property market is a proposed saving on Document Duty.

Document Duty will be reduced to 1% on properties up to £250,000, and 2% for those between £250,000 and £400,000. Anything over £400,000 will pay the ongoing rate of 3%.

This provision will come into force on 29th October 2013 and last for 12 months. It only applies to properties with dwellings and other exclusions include little used transfers such as Partage and Conveyances by way of Délaissance. Transfers of property by share transfer are not affected as they do not attract Document Duty.

These changes apply to all property buyers - not just first-time buyers - as the changes are designed to stimulate growth in the housing market, following the market’s 20% reduction in the number of sales this year.