Labour Government To Cut Stamp Duty On Family Business Transfers From 5% To 1.5%

The Labour Party has announced two proposals in its electoral manifesto to facilitate the transfer of businesses within families. These measures are designed to address both the practical realities businesses face and the need for fiscal sustainability and legal certainty.

During a press conference, Jonathan Attard, Minister for Justice and Reform of the Construction Sector, stated that a Labour government would permanently reduce stamp duty from 5% to 1.5% on the transfer of a business between family members.

He also outlined a second proposal, which would allow the donation of a business to be formally registered at the beginning of the process. This would enable heirs to benefit from the reduced 1.5% rate, provided the transfer is completed within one year from the death of one of the donors.

Minister Attard explained that these changes are intended to simplify the transfer of family businesses, reduce administrative burdens, and provide greater legal certainty. He added that the measures reflect the principle of social justice, whereby economic growth generates wealth that is distributed fairly across society.

The press conference was also addressed by Clyde Caruana, Minister for Finance, who criticised the Nationalist Party’s tax proposals presented earlier in the day, describing the figures as inconsistent and lacking credibility.

Caruana argued that the Nationalist Party had made incorrect calculations when it claimed that around 300,000 workers would be guaranteed a minimum of €1,200 annually through its income tax measures.

He pointed out that the PN itself estimated the net cost of the proposal at between €110 million and €130 million per year. However, multiplying 300,000 individuals by €1,200 results in a total cost of €360 million.

According to Caruana, this discrepancy shows that the PN significantly miscalculated its figures, stating that the party “got it wrong not once, but at least twice” in relation to its tax proposals. He added that the actual cost of the PN’s proposal would be approximately €260 million higher than what the party had indicated.

The Finance Minister concluded that this reflects a lack of seriousness, professionalism, and credibility in the management of public finances. He also noted that the Nationalist Party has yet to present its fiscal targets, arguing that its proposals resemble a bidding exercise rather than a coherent and credible financial plan.