(1) For the purposes
of this section, a partition occurs when property (some or all of which is
dutiable property) that is held by persons jointly (as joint tenants or
tenants in common) and beneficially is transferred or agreed to be transferred
to one or more of those persons.
(2) The dutiable value
of a partition is to be determined in accordance with the following
formula —
where —
DV is the dutiable
value;
A is the greater of
the following amounts —
(i)
the sum of the amounts by which the unencumbered value of
the property transferred or agreed to be transferred to a person exceeds the
unencumbered value of the interest held by the person in all of the property
immediately before the partition; or
(ii)
the sum of any consideration for the partition paid by
any of the parties;
X is the unencumbered
value of all dutiable property the subject of the partition;
Y is the unencumbered
value of all property the subject of the partition.
(3) The minimum amount
of duty payable on a transaction that effects a partition is the amount of
nominal duty.
Note: For example, A
and B own lot 1 which has an unencumbered value of $400 000 and a boat
that has an unencumbered value of $300 000.
The total value of the
property being partitioned is $700 000 and A and B are each entitled to
$350 000.
A is taking lot 1 by
way of partition and the value of that lot exceeds A’s entitlement by
$50 000.
A’s duty
assessment:
$50 000 (excess
entitlement) x $400 000 (value of dutiable
property)
$700 000 (value of all property)
The dutiable value for
the transfer of land to A is $28 571.