Tax on business inheritance slashed to 1.5%
A measure announced in the Budget, whereby the transfer of family businesses from parents to their children will be taxed at 1.5 per cent instead of five per cent, has come into force, Finance Minister Edward Scicluna and Economic Services Minister Chris Cardona said this afternoon.
The measure applies for one year and is aimed at helping the continuation of family businesses.
Dr Cardona explained how tax and bureaucracy had made continuation of family businesses difficult and many businesses had folded or been sold when their owners retired. The new measure now made succession planning easier.
Prof Scicluna said this measure was part of a package of initiatives to help businesses.
It will remain in force until April 1 next year.