Minister for Finance Edward Scicluna would like to inform the public that the Budget fiscal measure whereby family businesses which are passed from one generation to another through an act of donation, benefit from a reduction in transfer duties from 5% to 1.5%, is going to be extended till 30 September 2018. The respective Legal Notice (L.N.) would be published next week.
This duty applies to immovable and movable property making up the business, which must have been held as a family business for three years prior to the donation and must be retained as a family business for three years following the donation.
“The business community reacted favourably to this measure and due to the complexity involved in concluding such a transaction, we felt that it is wise to extend the period for such succession transfer of business by six months”, stated Minister for Finance Edward Scicluna.