Alex Borg Explains PN Pledge To Remove Inheritance Tax: PM Says People Will Not Benefit

In their electoral programme presented last Monday, the Nationalist Party proposed the removal of all taxes and stamp duty on inherited property transfers.

This means that when someone inherits a property, they will not have to pay stamp duty, no matter how much the property is worth and whether it was the person’s main home or not. The measure will apply to all heirs.

The PN said this will make sure that the property and assets a person worked for during their life can pass on to their family without the State taking a percentage of the property’s value at a difficult moment for the family.

To make sure the system stays fair and transparent, any inherited property declared with a value of more than €500,000 will need an independent valuation by a registered architect. However, heirs will still not pay tax or stamp duty on the transfer.

On his part, Prime Minister Robert Abela said that this would not benefit people but would see them doing worse. Borg said that the Prime Minister is lying about the proposal, debunking what called misinformation about taxes being introduced later on in the process.

The PN also pledged to remove succession tax and stamp duty on family businesses passed on through inheritance. This will apply to shares in companies and commercial property used for business purposes.

To qualify, the business or commercial property must have been used by the family business for at least three years before the owner’s death. The business activity must also continue for at least five years after the inheritance, unless there is a valid reason why the business closes.

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