Page 392 - Week 03 - Thursday, 1 June 1989
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Value of Interest in Land
The value of the interest in the land is considered to be the value at the date of transfer and
1. IGNORES all encumbrances over the land, but
2. INCLUDES the value of all chattels which are capable of being regarded as relating to the land (refer section 19, Stamp Duties and Taxes ordinance 1987)
In relation to 2, in all cases buildings and other improvements, furniture and fittings and equipment such as air conditioning central heating which forms part of the land and buildings, will be included.
Values leases (other than Crown Leases)
The value of leases and sub-leases held by private companies and trusts is interpreted to be the value of the unexpired term of the lease. In most cases this will be the sum of the periodic rent times the remaining periods making up the unexpired lease term.
Assessing Procedures
As a result of this amendment it will now be necessary for this office, when assessing private share/unit transfers to establish
1. whether or not the company or unit trust holds an interest in land in the ACT and, if so
2. the value of the interest in ACT land, plus
3. the value of the shares or units (excluding the value of the interest in land)
For this purpose it will be necessary for all transfers to be accompanied by a completed "Request for Information" Form (conattached) signed by the transferee or, where expressly approved, the lodging party.
This is in addition to copies of the latest financial statements (including explanatory notes) required under current arrangements . for normal share valuation purposes.
A. Companies/Trusts which do not hold interests in ACT land
Where the transferee declares on the Form that the company or trust does not own interests in ACT land, transfers will usually be assessed under existing procedures.
However, prior to making such a declaration all transferees should be fully aware of the companys /trusts assets and the penalties for making false declarations (see reverse of Form).
B. Companies/Trusts holding interests in ACT land
Where the transferee declares that the company or trust owns interests in land, the transfer must also be accompanied by evidence of the current value of each interest in ACT land.
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