The Stamp Duty Amendment Act 2014, has been amended by the Stamp
Duty Amendment Act of 2020 (the
"Amendment") with effect that from 1
July 2020. Debentures, equitable mortgages and further charges
which previously incurred stamp duty ranging from 0.5% to 1% of the
secured amount, will now incur nil stamp duty.
This is a much welcome incentive given the uncertainties and the
financial burden occasioned on businesses by COVID-19 and is
evidence of government's commitment to put in place initiatives
to enable businesses recover from the effects of the pandemic.
In the Report of the Committee on Finance Planning and
Economic Development on the Stamp Duty (Amendment) Bill, 2020
it was recommended that the exemption apply to debentures and
mortgages because the Committee considered it unfair for a person
already in financial difficulties to lose 0.5% of the loan amount
to stamp duty.
