Document Duty on Property Transactions
Document Duty is payable to the Revenue Service on the transfer of Guernsey property and certain other instruments. It is not an annual return but is due at the time of the transaction, typically on or before the date the instrument effecting the transfer is executed. Calculated on the consideration paid.
Who this applies to
- Buyers of Guernsey residential property
- Buyers of Guernsey commercial property
- Any party to a transaction involving the transfer of Guernsey land or property interests
- Share transfers in property-holding companies (if the substance is a property transfer)
What to file
The duty is assessed on the instrument (conveyance deed, share transfer form) by the Revenue Service or notary. The notary or advocate handling the conveyance typically stamps the document and remits the duty.
How to file
Through the notary or advocate (Guernsey equivalent of a solicitor) acting on the conveyance. The advocate calculates the duty, presents the instrument to the Revenue Service for stamping, and remits the duty.
Payment due
At the time of or before execution of the instrument of transfer. Late payment results in the instrument being unstamped, which has legal implications for title registration.
Penalties for missing this deadline
An unstamped instrument cannot be registered or admitted in evidence. Penalties and interest apply on late duty. The Revenue Service may void unstamped transfers until duty is paid.
Filing checklist
- Instruct a Guernsey advocate to handle the conveyance
- Agree and confirm the consideration (purchase price) with the advocate
- Ensure the advocate calculates Document Duty on the banded rate scale
- Arrange funds to cover the Document Duty liability in addition to the purchase price
- Allow the advocate to stamp the document and register title with the Land Registry
Common mistakes to avoid
- Not budgeting for Document Duty as part of property transaction costs
- Assuming the Document Duty calculation is applied as a flat rate (it uses a banded marginal system like UK stamp duty)
- Forgetting that share transfers in property-owning companies may also trigger Document Duty
- Not completing the transaction through a licensed Guernsey advocate, which is required for Guernsey conveyancing
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