The States of Jersey have reintroduced a cap on Stamp Duty payable in deceased estates.
Briefing - 21/02/2013
The States of Jersey have reintroduced a cap on Stamp Duty payable in deceased estates. Previously, Stamp Duty was approximately 0.75% of the net estate without any upward limit. The maximum Stamp Duty now payable is £100,000 regardless of the value of the estate. The cap is welcome news to clients who wish to retain their Jersey assets in their own name and it will be beneficial to estates worth in excess of £13,360,000.
Stamp Duty is payable on the net value of the deceased's estate as at the date of death. If the deceased was domiciled in Jersey then their worldwide estate is brought into account. If they were not domiciled in Jersey, then it is only the net value of the Jersey situs assets which are brought into account. It is calculated as follows:
|Net value of estate||Duty|
|Not to exceed £10,000||Nil|
|Not to exceed £100,000||£50 for each £10,000 or part thereof|
|£100,000 to £13,360,000||£500 in respect of the first £100,000 plus £75 for each additional £10,000 or part thereof|
|To exceed £13,360,000||£100,000|
The Duty must be paid in advance of the application for a Grant of Probate. The estate must not be administered in any way (save to arrange the funeral and to take into safe custody the movable estate of the deceased person) until the Grant issues. Therefore, bridging finance is often required.
There are no formal account forms but any adjustments must be made by way of corrective affidavit within 6 months of the true net value of the estate being ascertained. Unlike UK inheritance tax, there is no claw-back provision which means that Stamp Duty may be mitigated by lifetime giving without a survival period.
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