56Transfers of farms to relatives or charities

56 Transfers of farms to relatives or charities (1) No duty is chargeable under this Chapter in respect of a transfer of dutiable property if the Commissioner is satisfied that— S. 56(1)(a) amended by Nos 58/2003 s. 12, 88/2005 s. 117(Sch. 2 item 1.1). (a) the dutiable property is an estate in fee simple, life estate or estate in remainder in land referred to in section 65, 66 or 67 of the **Land Tax Act 2005**; and (b) the transferor is a person referred to in subsection (2); and (c) the transferee is a person referred to in subsection (3); and (d) the transfer does not arise from arrangements or a scheme devised for the principal purpose of taking advantage of the benefit of this section. (2) The transferor must be— (a) a natural person; or (b) a trustee for a natural person; or S. 56(2)(c) substituted by No. 37/2009 s. 7(1). (c) a company (not acting in the capacity of trustee under a trust) all the shares in which are owned by natural persons who are relatives of each other; or S. 56(2)(d) inserted by No. 37/2009 s. 7(1). (d) a trustee under— (i) a discretionary trust, the capital beneficiaries of which are limited to natural persons who are relatives of each other; or (ii) a fixed trust, the beneficiaries of which are limited to natural persons who are relatives of each other. (3) The transferee must be— (a) a relative of a natural person referred to in subsection (2); or (b) a trustee under a fixed trust, the beneficiaries of which are limited to— (i) a present or future relative of a natural person referred to in subsection (2); or (ii) a charitable institution; or (iii) a present or future relative of a natural person referred to in subsection (2) and a charitable institution; or (iv) a present or future relative of a natural person referred to in subsection (2) and a natural person referred to in subsection (2); or (v) a charitable institution and a natural person referred to in subsection (2); or (vi) a present or future relative of a natural person referred to in subsection (2), a natural person referred to in subsection (2) and a charitable institution; or S. 56(3)(c) amended by No. 88/2005 s. 117(Sch. 2 item 1.1). (c) a trustee under a discretionary trust the terms of which do not allow the distribution of the whole or any part of the capital of the trust that comprises land referred to in section 65, 66 or 67 of the **Land Tax Act 2005** to any person or body other than a person or body referred to in paragraph (b); or S. 56(3)(d) amended by No. 37/2009 s. 7(2). (d) a natural person referred to in subsection (2)(c) or (2)(d). S. 56(4) def. of *capital beneficiary* inserted by No. 37/2009 s. 7(3). ***capital beneficiary*** of a discretionary trust means a person, or a member of a class of person, in whom, by the terms of the trust, the whole or any part of the capital of the trust estate may be vested or remain vested— (a) in the event of the exercise of a power or discretion in favour of the person (whether or not that power is presently exercisable); or ***charitable institution*** means a corporation or body of persons associated for charitable purposes; ***fixed trust*** means a trust under which the identity of the beneficiaries and the quantum of their interests are ascertained. S. 57 substituted by No. 39/2009 s. 13.