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Paper 2 · Lesson 8 — Taxes on Property — Property Tax, Stamp Duties, Income Tax and GST

Stamp duties general

The general Stamp Duties Act framework, distinct from the specific BSD/ABSD/SSD charges: dutiable instruments and who bears the duty, ad valorem vs fixed duty, mortgage duty, late-stamping deadlines and penalties, and the s.36 / aborted-agreement exemptions and remissions.

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Question 1

A conveyancing paralegal sorts a batch of documents to decide which attract stamp duty. The batch holds a tenancy agreement, a will, a mortgage securing a property loan, and a promissory note unrelated to any property or shares. He has been told that anything a lawyer draws up must be stamped, and wants to separate the documents that truly attract duty from those that do not.

Consider the following statements.

  1. (i) The tenancy agreement is a dutiable document.
  2. (ii) The will is a dutiable document.
  3. (iii) The mortgage relating to a property loan is a dutiable document.
  4. (iv) The promissory note not relating to property or shares is a dutiable document.
  1. A. (i) and (iii) only
  2. B. (i), (ii) and (iii) only
  3. C. (i), (iii) and (iv) only
  4. D. (i) only
Show the answer and full explanation

Answer: A

The rule. Dutiable documents include tenancies, transfers and property mortgages. Wills, promissory notes and loan agreements not relating to property or shares, insurance policies and statutory declarations are non-dutiable.

Why A is correct. Only the tenancy and the property mortgage are dutiable. The will and the unrelated promissory note are on the non-dutiable list.

The other options.

  • B adds the false (ii), the will.
  • C adds the false (iv), the unrelated promissory note.
  • D drops (iii), the property mortgage.

Exam note. A will and a non-property promissory note are non-dutiable — do not assume every legal document attracts stamp duty.

Dutiable documents include tenancies, transfers and property mortgages →

Practise it under exam conditions

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