Monday, August 08, 2005

Vendor duty and your property sale

Vendor duty on contracts for land related property will be abolished from 2 August 2005.

This applies to all contracts entered into (ie exchanged) on or after 2 August 2005. Anti-avoidance provisions will be introduced to prevent persons avoiding vendor duty by cancelling contracts that were exchanged before 2 August 2005. For example, where liable contracts were exchanged before 2 August 2005, the duty will still apply even if these contracts are rescinded and a substitute contract is exchanged on or after 2 August 2005.

Disposal duty (land rich vendor duty) will also cease to apply to a disposal of an interest in a landholder from 2 August 2005.

Selling your home? Come and see us at Erina Legal and get advice on how this will affect you. Call now on 02 4365 6556