27

WEDNESDAY, MARCH 2, 1994

VALUE THE

OF FIRST,

THE MATRIMONIAL HOME BE EXCLUDED COMPLETELY WHEN DETERMINING THE VALUE OF THE ESTATE FOR DUTY

PURPOSES;

DECEASED WITHIN THE LIMIT FOR GIFTS MADE BY THE SECONDLY, THREE YEARS BEFORE THE

TO DATE OF DEATH BE INCREASED

IN 1987; $200,000 FROM THE PRESENT FIGURE OF $100,000 SET AND,

THIRDLY, THE ALLOWANCE FOR FUNERAL EXPENSES INCURRED IN HONG

OF KONG

INCREASED FROM THE EXISTING LEVEL

BE

$50,000.

$10,000

ΤΟ

THE COST OF THESE PROPOSALS WILL BE $85 MILLION IN 1994/95 $425 MILLION UP TO 1997/98, SIR HAMISH SAID.

AND

THE

RELIEF FOR STAMP DUTY ON PROPERTY TRANSACTIONS

FINANCIAL SECRETARY, THE HON SIR

REDUCE THE IMPACT OF

HAMISH

TODAY PROPERTY

MACLEOD,

TO

STAMP DUTY PROPOSED (WEDNESDAY) TRANSACTIONS TO HELP FAMILIES WHO WANT TO OWN THEIR OWN HOMES.

OVER THE

PRESENTING

BUDGET FOR 1994/95, SIR HAMISH SAID HIS PAST YEAR, PROPERTY PRICES HAD CONTINUED TO RISE, AND THE PRESENT DUTY PRICES WERE ON PROPERTY TRANSACTIONS WAS SET IN 1988, WHEN PROPERTY CONSIDERABLY LOWER THAN TODAY.

THE ΤΟ TAKE ACCOUNT OF THE INCREASE IN PROPERTY PRICES DURING

ADJUST STAMP INTERVENING YEARS, THE FINANCIAL SECRETARY PROPOSED TO DUTY ON LOWER AND MEDIUM-VALUE FLATS, AS FOLLOWS:

* FOR PROPERTIES WITH A VALUE NOT EXCEEDING $500,000, A FEE OF

$100 WILL BE CHARGED.

*

ABOVE THIS LEVEL, STAMP DUTY WILL BE CHARGED ACCORDING TO

THE THRESHOLD AT SLIDING SCALE, SUBJECT TO MARGINAL RELIEF. WHICH THE 2.75% RATE BEGINS TO APPLY WILL BE $1.5 MILLION TO $3 MILLION.

A

RAISED FROM

AS A RESULT OF THE PROPOSED ADJUSTMENTS, THE STAMP DUTY PAID ON SCHEME WILL BE TYPICAL $1 MILLION FLAT UNDER THE HOME OWNERSHIP HALVED, FROM $15,000 TO $7,500, STR HAMISH SAID.

A

ABOUT 100,000

PROPERTY

"I ESTIMATE THAT

TRANSACTIONS WILL. AND ATTRACT LESS STAMP DUTY, WHICH WILL COST $810 MILLION IN 1994/95 $3.9 BILLION UP TO 1997/98," HE SAID.

TO

THE FINANCIAL SECRETARY, HOWEVER, DID NOT PROPOSE ANY CHARGE TO THE STAMP DUTY ON STOCK TRANSFERS, WHICH HAD BEEN HALVED FROM 0.6% 0.3% OVER THE LAST THREE YEARS.

/HE SAID:

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