Probate & Estate Stamp Duty
Have you considered the stamp duty implications of the assets you plan to leave in your will?
Jersey does not, unlike the UK, charge death duties, Inheritance Tax or other capital taxes. In the UK the IHT rate is 40% on assets beyond a threshold of £325,000 but some exemptions apply, such as gifts between spouses. In Jersey, there is a stamp duty which may be payable by those who inherit our assets on our death. Jersey stamp duties are considerably lower than UK Inheritance Tax. Jersey law categorises assets into movable and immovable, and different stamp duty regimes apply to each.
Movable assets include jewellery, furniture, bank accounts, shares (including those that relate to share transfer properties) and investments.
For the purpose of calculating stamp duty on your net movable assets at death, the value of the movable assets is rounded up to the nearest £10,000. The stamp duty is calculated at the rate of 0.5% of the value up to £100,000 and 0.75% thereafter, (plus £50 in the case of professional applications for probate). Stamp duty is paid when the executor or administrator of the estate applies for probate or letters of administration.
Immovable assets include land, and everything built on it, leases for over nine years, flying freehold property and the benefit of certain mortgages. Stamp duty is payable on the registration of a will of immovable estate in the Public Registry and is calculated on a sliding scale, based upon the market value of the property, as at the date of death.
Certain exemptions apply to the stamp duty payable on immovable property where the property in question is the matrimonial home (not owned jointly), or where the will leaves the immovable property to those who would have inherited had there been no will (an intestacy), in the same shares as they would have inherited on an intestacy. For example, no stamp duty is payable in the case of a widow, widower or single mother, leaving their entire immovable property to their children on death. However, if that parent left individual properties to individual children in their will, stamp duty would be payable. Furthermore, there would be no benefit to transferring the properties in question to the children prior to death, as the rate of same stamp duty would apply to such transactions.
Probate and asset stamp duty calculator
Not sure how much stamp duty is payable on movable and immovable assets? Use our calculator to work it out. Each client matter is unique and certain additional exemptions may apply, so we advise you to contact our personal law team for your individual calculation based on your circumstances.
Stamp duty is payable to the court on a sliding scale based on the value of the estate. If the deceased was Jersey domiciled this includes their worldwide estate, if not it only includes their estate in Jersey.
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