The Stamp Duty (Amendment) Bill, 2012, if approved by lawmakers, will standardise the rate of stamp duty paid for the transfer [sale] of property to 7.5 per cent for everyone, no matter where they buy the land or building structures in the Cayman Islands.

There are some exceptions for first-time Caymanian home buyers whose homes are valued at $400,000 or less, or who buy land valued at $150,000 or less.

The bill, as proposed, would also serve to increase the flat fee of $12 now paid on property insurance premiums. That charge will now be 2 per cent of the cost of new or renewed property insurance premiums.

Surprisingly, or should we say “not really surprisingly”, Cayman Islands Insurance Association president Derry Graham said they hadn’t been consulted.

“It is a substantial increase to from a $12 flat fee to a 2 per cent charge on premiums,” he said.

He also said his organisation had only learned about Monday, and it was his understanding it would apply to the total value of the building section of the policy.

The amended legislation as proposed sets the [stamp] dutiable charge to transferable property at 7.5 per cent.

Under the proposal, there would be no different duty amounts charged based on whether the home is located along Seven Mile Beach or whether the property is sold to a Caymanian or a non-Caymanian.

There are some exceptions to that rule:

There will be no duty charged for a property transfer [sale] in the case of a Caymanian buyer purchasing a primary dwelling home valued at $300,000 or less, or land valued at $100,000 or less.

A duty rate of 2 per cent will be charged to a Caymanian home buyer if the home was worth more than 300,000 but less than 400,000.

That same rate will apply to land valued at between $100,000 and $150,000.