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A query was raised regarding whether the redistribution of a mortgage loan following the segregation of a property triggers Stamp Duty (AJD) and whether the property would be subject to the repayment of said loan. The DGT ruled that while the operation is taxable based on the variable instalment, it does not result in the assets being subject to the debt, as no transfer of rights or assets has occurred.
The ruling clarifies that restructuring mortgage terms due to land division does not create a new legal link between the property and the debt for tax purposes, provided no ownership rights are transferred.
The tax team reviews your specific situation.
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