✧ We all pay taxes; they might be huge, for example, the Land Transfer Tax (the “LTT”), but, don’t we love situations when fewer taxes might be paid?
✧ The LTT legislation contains clauses which may make you feel happy one day. For example, when you can use a First-Time home buyer credit and pay less LTT or when you might be exempted from paying the LTT. Most popular situations are below:
①Transfers between spouses or former spouses when one of the following circumstances are met:
• the only consideration is given for the conveyance is the assumption of any encumbrance registered (for example a mortgage);
• a written agreement is in force under which the parties have agreed to live separate and apart; or,
• the direction of an order or judgment made by the court.
② Transfers between natural persons if no consideration passes on, then the tax payable is nil. However, the LTT shall be payable on the value of any registered mortgages against the land.
③ Transfers by an individual to a Family Business Corporation if before such transfers the land was used mostly in the operation of an active business which was operated exclusively by this individual.
④ Transfers between Affiliated Corporations if such transfers satisfy the particular criteria. If it’s your situation, contact @Anna for details.
✧ Every situation is unique as details matter. The right choice is only possible when all options are explored.