Family businesses that wish to transfer it to the next generation for a reduced date of duty have been given an extra six months in which to do so.

The Budget fiscal measure offering a reduction from 5 per cent tp 1.5 per cent on transfers through an act of donation has been extended till September 30, 2018. The respective Legal Notice will be published next week.

The 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,” said Finance Minister Edward Scicluna.