The phrase “inheritance tax on land” can refer to different costs, such as inheritance tax, taxes or duties on a later real-estate transfer, and registration fees. Do not apply the rates for a sale or gift to a direct inheritance without checking which rules apply.
Identify the transaction before estimating costs
- Receiving an inheritance: Check the recipient’s rights, court orders or will, and the registration fee for transferring inherited land at the Land Office.
- Selling or transferring the land later: Withholding income tax, specific business tax or stamp duty, and registration fees may apply. The calculation depends on the facts.
- Inheritance tax: This is a separate tax system with its own rules about recipients and the net value received. It is not the land transfer registration fee.
Before booking a transfer, ask the Land Office for an estimate. Explain that the property is inherited, identify the transferor and recipient, say whether an estate administrator has been appointed, and clarify whether the property will be sold or transferred again. The Department of Lands explains registration of inherited land and fees and taxes for registered rights. For inheritance tax, consult the Revenue Department.