Recent increase in registry fees on property transactions

AuthorityTreasury
Date received2019-08-07
OutcomeSome information sent but not all held
Outcome date2019-08-29
Case ID905625

Summary

A request for Treasury papers regarding recent increases in Isle of Man land registry fees was partially fulfilled, disclosing a confidential proposal to restructure fees to support first-time buyers while maintaining revenue neutrality.

Key Facts

  • The Treasury proposed three options to restructure land registry fees to align with other jurisdictions and assist low-to-middle income buyers.
  • Current fees have remained static for five years despite rising administrative costs, making the Isle of Man out of step with other jurisdictions.
  • All three proposed options include a minimum fee of £150 for properties up to £190k and exempt the first £190k of purchase price from percentage-based fees.
  • Option A was designed to be revenue neutral, whereas Option B would generate a large revenue contribution of approximately £4.2m in 2017-18.
  • The proposal aimed to include changes within the 2019-20 financial year budget.

Data Disclosed

  • £150
  • £190k
  • £5.70
  • £30 per £1,000
  • £4.2m
  • 2017-18
  • 2019-20
  • £75.00
  • 3,252,859
  • Treasury Paper 670/18

Original Request

All treasury papers relating to this. All email correspondence regarding same Consultation papers and replies. Economic analysis outlining impact

Data Tables (50)

Band (Market value) Current Fee / £1000 Current Minimum
<100k £5.70 £75.00
100k-190k £5.70
190k-250k £5.70
250k-300k £5.70
300k-400k £5.70
400k-500k £5.70
500k-1m £5.70
1m-3m £5.70
3m-5m £5.70
5m-10m £5.70
10m+ £5.70
Band (Market value) Current Fee / £1000 Current Minimum
<100k £5.70 £75.00
100k-190k £5.70
190k-250k £5.70
250k-300k £5.70
300k-400k £5.70
400k-500k £5.70
500k-1m £5.70
1m-3m £5.70
3m-5m £5.70
5m-10m £5.70
10m+ £5.70
New Fee / £1000 New Minimum
£0.00 £150.00
£0.00
£10.00
£15.00
£15.00
£15.00
£20.00
£20.00
£25.00
£25.00
£30.00
Change in fee Change in Minimum
-£5.70 +£75.00
-£5.70
+£4.30
+£9.30
+£9.30
+£9.30
+£14.30
+£14.30
+£19.30
+£19.30
+£24.30
Band (Market value) Current Fee / £1000 Current Minimum
<100k £5.70 £75.00
100k-190k £5.70
190k-250k £5.70
250k-300k £5.70
300k-400k £5.70
400k-500k £5.70
500k-1m £5.70
1m-3m £5.70
3m-5m £5.70
5m-10m £5.70
10m+ £5.70
New Fee / £1000 New Minimum
£0.00 £150.00
£0.00
£10.00
£15.00
£15.00
£15.00
£20.00
£20.00
£25.00
£25.00
£30.00
Change in fee Change in Minimum
-£5.70 +£75.00
-£5.70
+£4.30
+£9.30
+£9.30
+£9.30
+£14.30
+£14.30
+£19.30
+£19.30
+£24.30
Band (Market value) Current Fee / £1000 Current Minimum
<100k £5.70 £75.00
100k-190k £5.70
190k-250k £5.70
250k-300k £5.70
300k-400k £5.70
400k-500k £5.70
500k-1m £5.70
1m-3m £5.70
3m-5m £5.70
5m-10m £5.70
10m+ £5.70
New Fee / £1000 New Minimum
£0.00 £150.00
£0.00
£15.00
£15.00
£15.00
£15.00
£15.00
£15.00
£15.00
£15.00
£15.00
Change in fee Change in Minimum
-£5.70 +£75.00
-£5.70
+£9.30
+£9.30
+£9.30
+£9.30
+£9.30
+£9.30
+£9.30
+£9.30
+£9.30
Current Fee Proposed Fee UK Jersey
Option A 855.00 1 50.00 5 00.00 1 ,830.00
Option B 855.00 1 50.00 5 00.00 1 ,830.00
Option C 855.00 1 50.00 5 00.00 1 ,830.00
Current Fee Proposed Fee UK Jersey
Option A 3,135.00 5 ,350.00 1 7,500.00 9 ,250.00
Option B 3,135.00 11,000.00 1 7,500.00 9 ,250.00
Option C 3,135.00 5 ,400.00 1 7,500.00 9 ,250.00
Current Fee Proposed Fee UK Jersey
Option A 2 8,500.00 1 04,350.00 5 13,750.00 2 87,080.00
Option B 2 8,500.00 1 25,000.00 5 13,750.00 2 87,080.00
Option C 2 8,500.00 72,150.00 5 13,750.00 2 87,080.00
Band (Market value) Current Fee / £1000 Current Minimum
<100k £5.70 £75.00
100k-190k £5.70
190k-250k £5.70
250k-300k £5.70
300k-400k £5.70
400k-500k £5.70
500k-1m £5.70
1m-3m £5.70
3m-5m £5.70
5m-10m £5.70
0 £5.70
New Fee / £1000 New Minimum
£0.00 £150.00
£0.00
£10.00
£15.00
£15.00
£15.00
£20.00
£20.00
£25.00
£25.00
£30.00
New Fee / £1000 New Minimum
£0.00 £150.00
£0.00
£15.00
£15.00
£15.00
£15.00
£15.00
£15.00
£15.00
£15.00
£15.00
Current Option A Option B Option C
5 70 1 50 1 50 1 50
1 ,083 1 50 1 50 1 50
1 ,425 6 00 2 ,500 9 00
1 ,710 1 ,350 4 ,500 1 ,650
2 ,280 2 ,850 6 ,000 3 ,150
2 ,850 4 ,350 7 ,500 4 ,650
5 ,700 1 4,350 2 0,000 1 2,150
1 7,100 5 4,350 6 0,000 4 2,150
2 8,500 1 04,350 1 25,000 7 2,150
5 7,000 2 29,350 2 50,000 1 47,150
> 57000 > 229350 > 300000 > 147150
Band (Market value) Current Fee / £1000 Current Minimum
<100k £5.70 £75.00
100k-190k £5.70
190k-250k £5.70
250k-300k £5.70
300k-400k £5.70
400k-500k £5.70
500k-1m £5.70
1m-3m £5.70
3m-5m £5.70
5m-10m £5.70
10m + £5.70
New Fee / £1000 New Minimum
£0.00 £150.00
£0.00
£10.00
£15.00
£15.00
£15.00
£20.00
£20.00
£25.00
£25.00
£30.00
New Fee / £1000 New Minimum
£0.00 £150.00
£0.00
£15.00
£15.00
£15.00
£15.00
£15.00
£15.00
£15.00
£15.00
£15.00
Current Option A Option B Option C
5 70 1 50 1 50 1 50
1 ,083 1 50 1 50 1 50
1 ,425 6 00 2 ,500 9 00
1 ,710 1 ,350 4 ,500 1 ,650
2 ,280 2 ,850 6 ,000 3 ,150
2 ,850 4 ,350 7 ,500 4 ,650
5 ,700 1 4,350 2 0,000 1 2,150
1 7,100 5 4,350 6 0,000 4 2,150
2 8,500 1 04,350 1 25,000 7 2,150
5 7,000 2 29,350 2 50,000 1 47,150
> 57000 > 229350 > 250000 > 147150
Band (Market value) Current Fee / £1000 Current Minimum Original Fee (Option A) Revised Fee / £1000 New Minimum
<100k £5.70 £75.00 £0.00 £0.00 £150.00
100k-165k £5.70 £0.00 £0.00
165k-250k £5.70 £10.00 £7.50
251k-300k £5.70 £15.00 £10.00
301k-400k £5.70 £15.00 £10.00
400k-500k £5.70 £15.00 £15.00
501k-1m £5.70 £20.00 £25.00
1.01m-3m £5.70 £20.00 £30.00
3.01m-5m £5.70 £25.00 £30.00
5.01m-10m £5.70 £25.00 £30.00
10m + £5.70 £30.00 £30.00
Current Option A Variance
5 70 1 50 420
9 41 1 50 791
1 ,425 6 38 788
1 ,710 1 ,163 548
2 ,280 2 ,063 218
2 ,850 3 ,763 (913)
5 ,700 1 6,263 (10,563)
1 7,100 7 6,263 (59,163)
2 8,500 1 36,263 (107,763)
5 7,000 2 86,263 (229,263)
+57,000 +286,263 -(229,263)
3,252,859
3,323,387
70,528
Property Value Proposed fee per £1,000 of
property value
Less than £500,000 £10
£500,000 to £3,000,000 £20
Above 3,000,000 £25
All applications Minimum fee £300
Band Current Fee per £1,000 of Property Value) Proposed Fee per £1,000 of Property Value) Current fee for maximum value in band Proposed fee for maximum value in band Variance Count of properties transacted (17/18)
Not owner-occupier
<100k £5.70 £10.00 £570 £1,000 £430 120
100k–190k £5.70 £10.00 £1,083 £1,900 £817 29
190k–250k £5.70 £10.00 £1,425 £2,500 £1,075 17
250k–300k £5.70 £10.00 £1,710 £3,000 £1,290 3
300k–400k £5.70 £10.00 £2,280 £4,000 £1,720 17
400k–500k £5.70 £10.00 £2,850 £5,000 £2,150 13
500k–1m £5.70 £20.00 £5,700 £15,000 £9,300 12
1m–3m £5.70 £20.00 £17,100 £55,000 £37,900 9
3.01m–5m £5.70 £25.00 £28,500 £105,000 £76,500 0
5.01m– 10m £5.70 £25.00 £57,000 £230,000 £173,000 0
Owner-occupier
<100k £5.70 £0.00 £570 £300 -£270 259
100k–190k £5.70 £0.00 £1,083 £300 -£783 489
190k–250k £5.70 £10.00 £1,425 £600 -£825 499
250k–300k £5.70 £10.00 £1,710 £1,100 -£610 324
300k–400k £5.70 £10.00 £2,280 £2,100 -£180 300
400k–500k £5.70 £10.00 £2,850 £3,100 £250 106
500k–1m £5.70 £20.00 £5,700 £13,100 £7,400 89
1m–3m £5.70 £20.00 £17,100 £55,000 £37,900 20
3.01m–5m £5.70 £25.00 £28,500 £105,000 £76,500 1
5.01m– 10m £5.70 £25.00 £57,000 £230,000 £173,000 1
Current Minimum Fee: £75
Proposed Minimum Fee: £300
Property Value Fees Payable1
IOM (Current) IOM (Proposed) England & Wales Jersey Guernsey
£500,000 £2,850 £3,100 £15,000 £8,080 £14,640
£1,000,000 £5,700 £13,100 £43,750 £22,080 £34,700
£3,000,000 £17,100 £55,000 £273,750 £127,080 £131,640
No. Nature of Transaction Fee
1 Any deed of mortgage, bond and security or any deed creating any lien or charge (including Government Grant and top-up loan) £40.00
2 When land is conveyed to a beneficiary from the estate of a deceased person, whether directly from the deceased’s estate to the beneficiary or out of a trust established by the deceased’s estate to the beneficiary £100.00
3 Any deed of appointment of new trustee, any copy of a Will, letters of administration, memorial, affidavit, receipt for legacy or share of estate, power of attorney, any other similar document or registering any document in the Deeds Registry not otherwise specified £40.00
4 If any document is tendered for registration and enrolment or recording in more than one parish, for each additional parish £3.00
5 Any release or receipt to cancel, in whole or in part, any mortgage, deed of bond and security, charge, lien or other encumbrance £40.00
6 A certificate of cancellation £10.00
7 Filing any document in the Probate Registry £3.00
8 Certificate of filing any document in the Probate Registry £10.00
9 For making any minute required to be made on any document £3.00
10 Duplicate certificate of registration £3.50
11 For a print-out of a scanned deed or document £6.00
12 Inspection of documents, per deed or document £2.50
13 Retrieval of original document from storage after scanning (excepted where retrieval is required by the Registrar) £45.00
14 Affixing the Seal Public of the Isle of Man, or a seal of office to a Commission, to any paper or proceeding (per document) £32.00
15 An affidavit, affirmation, declaration or attestation taken before a public officer £8.00
16 Witnessing each exhibit to an affidavit, affirmation, declaration or attestation taken before a public officer £5.00
17 Certification of a copy £5.00
No. Nature of Transaction Fee
18 Electronic copy sent via e-mail – per scanned deed or document £3.00
No. Nature of Service Fee
19 For making a black and white photocopy of a document held in the Deeds or Probate Registry, for each page: A4 A3 over A3 £0.30 £1.20 £3.50
20 For making a colour photocopy of a document held in the Deeds or Probate Registry, for each page: A4 A3 over A3 £1.20 £6.50 £13.00
No. Nature of Application Fee
1 To register a charge (including Government Grant and top-up loan) £40.00
2 To discharge or release a registered charge £40.00
3 To register an assent, a transmission of registered land to a personal representative on death, or to a trustee in bankruptcy £100.00
4 A change of name, address or description of a registered owner or other person (other than a Chargee) referred to in the title register, including the removal of a co- owner pursuant to an order under the Matrimonial Proceedings Act 2003 or the Civil Partnership Act 2011, or the addition/removal of an owner by way of gift between spouses or civil partners of registered land, also including the name of a joint owner deceased, or any change in the description of registered land and changes to a service address £0.00 (nil)
5 To give effect on the title register to a change of registered owner of land or a charge, otherwise than by virtue of a transfer or on death or bankruptcy £40.00
6 Issuing a summons under the seal or stamp of the Land Registry or issuing an order of the Registrar or the Land Commissioner £100.00
7 To register or modify an inhibition, restriction or other entry in the title register for which no other provision is made £40.00
8 To cancel an inhibition or restriction £40.00
9 To register, modify or cancel any appurtenant right or burden £100.00
10 To close or partly close a registered leasehold title or rent-charge title £40.00
11 To convert a title from one class to another £100.00
12 For first registration of title to a rent-charge £100.00
13 An application to divide or amalgamate registered freehold titles, for each affected title £100.00
14 To register a transaction in the register of transactions £40.00
15 To enter or remove a caution requiring notice of an application for first registration of land or a caution against registered dispositions, for each parcel of land £20.00
16 An application to the Registrar to extend time for first compulsory registration: for initial application for each subsequent application £100.00 £30.00
17 To rectify the register £250.00
18 To register a title acquired by adverse possession (possessory title) (* note - in addition to value based duty prescribed in the Land Registration Duty Order4) £250.00 *
19 Resignation and Appointment of a new trustee/trustees of a settlement £40.00
20 Transfer of a registered charge (per affected title) £40.00
No. Nature of Application Fee
21 For an office copy of the title register (including the filed plan but excluding any other plan or document forming part of the title register) £6.50
22 For any other plan or document forming part of an office copy of the title register, for each plan or document: up to size A3 size A3 and above £6.50 £13.00
23 For a printed copy of a caution against first registration, or of an entry in the index of pending applications, or the register of transactions £6.50
24 For an official search of the title register (for each title) £6.50
25 For an official search of the index map (for each area of land in respect of which the search is made) £6.50
26 For a priority search of the title register £10.00
27 For a search of the register of transactions (for each name) £6.50
28 Retrieval of original documents from storage after conclusion of registration (excepted where retrieval is required by the Registrar) £45.00
No. Nature of Service Fee
29 Electronic copy sent via e-mail, for each request: for an office copy of the title register (including the filed plan but excluding any other plan or document forming part of the title register) for any other plan or document forming part of an office copy of the title register for each plan or document £3.00 £3.00
No. Nature of Service Fee
30 For making a black and white photocopy of a document held in the Land Registry, for each page: A4 A3 over A3 £0.30 £1.20 £3.50
31 For making a colour photocopy of a document held in the Land Registry, for each page: A4 A3 over A3 £1.20 £6.50 £13.00
No. Nature of Service Fee
32 To lodge an appeal under section 6 of the Act £400.00
Band (Market value) Current Fee / £1000 Current Minimum
<100k £5.70 £75.00
100k-190k £5.70
190k-250k £5.70
250k-300k £5.70
300k-400k £5.70
400k-500k £5.70
500k-1m £5.70
1m-3m £5.70
3m-5m £5.70
5m-10m £5.70
10m+ £5.70
Band (Market value) Current Fee / £1000 Current Minimum
<100k £5.70 £75.00
100k-190k £5.70
190k-250k £5.70
250k-300k £5.70
300k-400k £5.70
400k-500k £5.70
500k-1m £5.70
1m-3m £5.70
3m-5m £5.70
5m-10m £5.70
10m+ £5.70
New Fee / £1000 New Minimum
£0.00 £150.00
£0.00
£10.00
£15.00
£15.00
£15.00
£20.00
£20.00
£25.00
£25.00
£30.00
Band (Market value) Current Fee / £1000 Current Minimum
<100k £5.70 £75.00
100k-190k £5.70
190k-250k £5.70
250k-300k £5.70
300k-400k £5.70
400k-500k £5.70
500k-1m £5.70
1m-3m £5.70
3m-5m £5.70
5m-10m £5.70
10m+ £5.70
New Fee / £1000 New Minimum
£0.00 £150.00
£0.00
£10.00
£15.00
£15.00
£15.00
£20.00
£20.00
£25.00
£25.00
£30.00
Band (Market value) Current Fee / £1000 Current Minimum
<100k £5.70 £75.00
100k-190k £5.70
190k-250k £5.70
250k-300k £5.70
300k-400k £5.70
400k-500k £5.70
500k-1m £5.70
1m-3m £5.70
3m-5m £5.70
5m-10m £5.70
10m+ £5.70
New Fee / £1000 New Minimum
£0.00 £100.00
£0.00
£15.00
£15.00
£15.00
£15.00
£15.00
£15.00
£15.00
£15.00
£15.00
Property Value Bandings England and Wales Ireland N. Ireland Scotland Isle of Man Jersey
Stamp Duty Stamp Duty Stamp Duty LBTT Fees Fees
From To Paper From To Paper From To Paper From To Paper From To From To From To
0 13,000 £40 £0 £0 €400 €0 €130 £100 £0 £0 £60 £0 £0 £0 £75 £0 £145
13,001 20,000 £40 £0 £0 €400 €130 €200 £100 £0 £0 £60 £0 £0 £80 £114 £145 £180
20,001 50,000 £40 £0 £0 €400 €200 €500 £160 £0 £0 £60 £0 £0 £120 £285 £180 £330
50,001 80,000 £40 £0 £0 €600 €500 €800 £160 £0 £0 £120 £0 £0 £291 £456 £330 £780
80,001 100,000 £80 £0 £0 €600 €800 €1,000 £220 £0 £0 £120 £0 £0 £462 £570 £780 £1,080
100,001 125,000 £190 £0 £0 €600 €1,000 €1,250 £260 £0 £0 £240 £0 £0 £576 £855 £1,080 £1,830
125,001 150,000 £190 £0 £500 €600 €1,250 €1,500 £260 £0 £500 £240 £0 £100 £576 £855 £1,080 £1,830
150,001 200,000 £190 £500 £1,500 €600 €1,500 €2,000 £370 £500 £1,500 £360 £100 £1,100 £861 £1,140 £1,830 £2,580
200,001 250,000 £270 £1,500 £2,500 €700 €2,000 €2,500 £425 £1,500 £2,500 £480 £1,100 £2,100 £1,146 £1,425 £2,580 £3,330
250,001 300,000 £270 £2,500 £5,000 €700 €2,500 €3,000 £535 £2,500 £5,000 £480 £2,100 £4,600 £1,431 £1,710 £3,330 £4,080
300,001 400,000 £270 £5,000 £10,000 €700 €3,000 €4,000 £535 £5,000 £10,000 £480 £4,600 £5,850 £1,716 £2,280 £4,080 £6,080
400,001 500,000 £270 £10,000 £15,000 €800 €4,000 €5,000 £535 £10,000 £15,000 £600 £5,850 £13,350 £2,286 £2,850 £6,080 £8,080
500,001 700,000 £540 £15,000 £25,000 €800 €5,000 €7,000 £535 £15,000 £25,000 £600 £13,350 £23,350 £2,856 £3,990 £8,080 £13,080
700,001 925,000 £540 £25,000 £36,250 €800 €7,000 €9,250 £535 £25,000 £36,250 £720 £23,350 £43,350 £3,996 £5,700 £13,080 £22,080
925,001 1,000,000 £540 £36,250 £43,750 €800 €18,500 €10,000 £535 £36,250 £43,750 £840 £43,350 £48,350 £3,996 £5,700 £13,080 £22,080
1,000,001 1,500,000 £910 £43,750 £93,750 €800 €20,000 €30,000 £535 £43,750 £93,750 £840 £48,350 £78,350 £5,706 £11,400 £22,080 £67,080
1,500,001 2,000,000 £910 £93,750 £153,750 €800 €30,000 €40,000 £535 £93,750 £153,750 £1,000 £78,350 £198,350 £5,706 £11,400 £22,080 £67,080
2,000,001 3,000,000 £910 £153,750 £273,750 €800 €40,000 €60,000 £535 £153,750 £273,750 £3,000 £198,380 £318,350 £11,406 £17,100 £67,080 £127,080
3,000,001 5,000,000 £910 £273,750 £513,750 €800 €60,000 €100,000 £535 £273,750 £513,750 £5,000 £318,350 £558,350 £17,106 £28,500 £127,080 £287,080
5,000,001 + £910 £513,750 + €800 €100,000 + £535 £513,750 + £7,500 £558,350 + £28,506 + £287,080 +
Current Fee Proposed Fee UK Jersey
Option A 8 55.00 1 50.00 5 00.00 1,830.00
Option B 8 55.00 1 50.00 5 00.00 1,830.00
Option C 8 55.00 1 00.00 5 00.00 1,830.00
Current Fee Proposed Fee UK Jersey
Option A 3 ,135.00 7 ,200.00 1 7,500.00 9,250.00
Option B 3 ,135.00 1 1,000.00 1 7,500.00 9,250.00
Option C 3 ,135.00 5 ,400.00 1 7,500.00 9,250.00
Current Fee Proposed Fee UK Jersey
Option A 2 8,500.00 120,250.00 5 13,750.00 2 87,080.00
Option B 2 8,500.00 125,000.00 5 13,750.00 2 87,080.00
Option C 2 8,500.00 7 2,150.00 5 13,750.00 2 87,080.00
Treasury Paper reference number Date of paper
Appendix A.1 670/18 28/11/2018
Appendix A.2 705/18 12/12/2018
Appendix A.3 268/19 17/04/2019
Date of email or date of the latest email in the chain of emails
Appendix B.1 25/09/2018
Appendix B.2 27/10/2018
Appendix B.3 30/10/2018
Appendix B.4 12/11/2018
Appendix B.5 21/11/2018
Appendix B.6 23/11/2018
Appendix B.7 26/11/2018
Appendix B.8 28/01/2019
Appendix B.9 28/03/2019

Full Response Text

STRICTLY CONFIDENTIAL To the Treasury Minister and Members Amendment to Land Registry Fees Purpose and Context This document proposes a change to the structure of the land registry fees for house purchases on the Isle of Man. The purpose of the proposal is to re balance the fees to align to other jusridictions and across the value bandings providing assistance to those on low to middle incomes and first and second time buyers. The proposal has been based on the following principles: i) Everybody must pay something ii) The minimum fee should cover administrative costs iii) The proposition is, at a minmum, revenue neutral iv) Support for middle income families and first and second time buyers If the proposal is accepted, we would look to include the changes within the 2019-20 financial year budget. An online calculator would be provided to assist in calculating the applicable fee. Background Over the past 5 years the property market has been subdued with no real increase in people owning their own property. During this time land registry fees have remained the same despite increasing costs in providing the service. The island has now become out of step with other jursidictions resulting in much higher fees in the lower end of the value bands and substantially less expensive fees at the higher end.
There is recognition that it has become more difficult for first time and second time buyers to own their own property and addressing the fee structure would assist in helping those in this area. Current Fees See appendix 1 for comparitives against other jursidictions Band (Market value) Current Fee / £1000 Current Minimum <100k £5.70 £75.00 100k-190k £5.70 190k-250k £5.70 250k-300k £5.70 300k-400k £5.70 400k-500k £5.70 500k-1m £5.70 1m-3m £5.70 3m-5m £5.70 5m-10m £5.70 10m+ £5.70 1 Treasury Paper 670/18 APPENDIX A.1 Proposal Three options are put forward to the Treasury Minister and Members for consideration. i) Option A:

• Minimum fee of £150 up to purchase price of £190k • Stepped increase on each value banding up to a maximum of £30 per £1,000 • The first £190k of the purchase price is not chargeable (although the minimum fee of £150 will apply) • Proposed fee becomes greater than the current fee in the £400-£500k value band • Effectively a revenue neutral position (£3k favourable to actual in 2017-18)

Actual vs Proposed Income (per Financial Year)

Band (Market value) Current Fee / £1000 Current Minimum New Fee / £1000 New Minimum Change in fee Change in Minimum <100k £5.70 £75.00 £0.00 £150.00 -£5.70 +£75.00 100k-190k £5.70 £0.00 -£5.70 190k-250k £5.70 £10.00 +£4.30 250k-300k £5.70 £15.00 +£9.30 300k-400k £5.70 £15.00 +£9.30 400k-500k £5.70 £15.00 +£9.30 500k-1m £5.70 £20.00 +£14.30 1m-3m £5.70 £20.00 +£14.30 3m-5m £5.70 £25.00 +£19.30 5m-10m £5.70 £25.00 +£19.30 10m+ £5.70 £30.00 +£24.30 2012-13 2013-14 2015-16 2016-17 2017-18 3 Actual Income 2,089,141 2,684,273 2,844,922 3,193,829 3,252,859 Potential Income 2,117,692 3,443,407 3,588,362 3,836,306 3,255,797 Difference 28,550 759,134 743,440 642,478 2,938 2

ii) Option B:

• Minimum fee of £150 up to purchase price of £190k • Fees based on each value banding up to a maximum of £30 per £1,000 • All of the purchase price is chargeable when you reach the £190k value band • Proposed fee becomes greater than current fee in the £190k-£250k value band • Large contribution to revenue (£4.2m in 2017-18)

Actual vs Proposed Income (per Financial Year)

Band (Market value) Current Fee / £1000 Current Minimum New Fee / £1000 New Minimum Change in fee Change in Minimum <100k £5.70 £75.00 £0.00 £150.00 -£5.70 +£75.00 100k-190k £5.70 £0.00 -£5.70 190k-250k £5.70 £10.00 +£4.30 250k-300k £5.70 £15.00 +£9.30 300k-400k £5.70 £15.00 +£9.30 400k-500k £5.70 £15.00 +£9.30 500k-1m £5.70 £20.00 +£14.30 1m-3m £5.70 £20.00 +£14.30 3m-5m £5.70 £25.00 +£19.30 5m-10m £5.70 £25.00 +£19.30 10m+ £5.70 £30.00 +£24.30 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 Actual Income 2,089,141 2,684,273 2,769,130 2,844,922 3,193,829 3,252,859 Potential Income 4,752,742 6,519,758 6,600,574 7,058,557 7,687,491 7,404,735 Difference 2,663,601 3,835,485 3,831,445 4,213,635 4,493,662 4,151,877 3

iii) Option C:

• Minimum fee of £150 up to purchase price of £190k • £15 per £1,000 across all value bandings would be applicable • The first £190k of the purchase price is not chargeable • Proposed fee becomes greater than the current fee in the £300k-£400k value band • Small contribution to revenue (£16k in 2017-18)

Actual vs Proposed Income (per Financial Year)

See Appendix 2 for worked examples from Option A, B and C Band (Market value) Current Fee / £1000 Current Minimum New Fee / £1000 New Minimum Change in fee Change in Minimum <100k £5.70 £75.00 £0.00 £150.00 -£5.70 +£75.00 100k-190k £5.70 £0.00 -£5.70 190k-250k £5.70 £15.00 +£9.30 250k-300k £5.70 £15.00 +£9.30 300k-400k £5.70 £15.00 +£9.30 400k-500k £5.70 £15.00 +£9.30 500k-1m £5.70 £15.00 +£9.30 1m-3m £5.70 £15.00 +£9.30 3m-5m £5.70 £15.00 +£9.30 5m-10m £5.70 £15.00 +£9.30 10m+ £5.70 £15.00 +£9.30 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 3 Actual Income 2,089,141 2,684,273 2,769,130 2,844,922 3,193,829 3,252,859 Potential Income 2,156,474 3,138,358 3,154,848 3,313,577 3,617,614 3,310,916 Difference 67,333 454,085 385,719 468,655 423,786 58,057 4

Additional information

The Land Registry has previously received advice from the Attorney General’s Chambers that it only has vires to charge a fee but the fees proposed impose a duty. The Land Registry will need to address the vires issue with the Attorney General’s Chambers before any new fees order is submitted to Tynwald.

In putting forward a new Fees Order, the Land Registry will also be looking to make a number of other fee amendments to make the Order simpler, fairer and compliant in spirit with GDPR.

Once land is registered in the Land Registry, the owners acquire a Government Guarantee of Title. At present, Treasury has no budget to provide cover against the inherent risks of underwriting secure title to land.

Recommendation

The recommendation put forward for Treasury approval is option A as the stepped increase in the fee is believed to be a more balanced approach whilst remaining revenue neutral.

Treasury are requested to approve the change in fee structure and for the change to commence from April 2019.

20 November 2018

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Appendix 1 Comparitives against other jurisdictions

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Appendix 2 Worked Examples

1) Ffinlo and Breesha were a first time buyer and looking to purchase a house for £150,000

2) Orry and Voirrey were buying a property for £550,000

3) Reginald and Tabitha were buying a property for £5,000,000

Current Fee Proposed Fee UK Jersey Option A 855.00

150.00

500.00

1,830.00

Option B 855.00

150.00

500.00

1,830.00

Option C 855.00

150.00

500.00

1,830.00

Current Fee Proposed Fee UK Jersey Option A 3,135.00

5,350.00

17,500.00

9,250.00

Option B 3,135.00

11,000.00

17,500.00

9,250.00

Option C 3,135.00

5,400.00

17,500.00

9,250.00

Current Fee Proposed Fee UK Jersey Option A 28,500.00

104,350.00

513,750.00

287,080.00

Option B 28,500.00

125,000.00

513,750.00

287,080.00

Option C 28,500.00

72,150.00

513,750.00

287,080.00

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Appendix 3 Comparison of fee charges within value bands

Note:- the difference between Option A and Option B is that Option A has first £190k exempt from the chargeable value and the charges are stepped to each value band. In Option B, the full value is chargeable. Band (Market value) Current Fee / £1000 Current Minimum New Fee / £1000 New Minimum New Fee / £1000 New Minimum Current Option A Option B Option C <100k £5.70 £75.00 £0.00 £150.00 £0.00 £150.00 570

150

150

150

100k-190k £5.70 £0.00 £0.00 1,083

150

150

150

190k-250k £5.70 £10.00 £15.00 1,425

600

2,500

900

250k-300k £5.70 £15.00 £15.00 1,710

1,350

4,500

1,650

300k-400k £5.70 £15.00 £15.00 2,280

2,850

6,000

3,150

400k-500k £5.70 £15.00 £15.00 2,850

4,350

7,500

4,650

500k-1m £5.70 £20.00 £15.00 5,700

14,350

20,000

12,150

1m-3m £5.70 £20.00 £15.00 17,100

54,350

60,000

42,150

3m-5m £5.70 £25.00 £15.00 28,500

104,350

125,000

72,150

5m-10m £5.70 £25.00 £15.00 57,000

229,350

250,000

147,150

0 £5.70 £30.00 £15.00

57000 229350 300000 147150 Comparison of fees using maximum value in band Option C Current Fees Option A and B 8

STRICTLY CONFIDENTIAL To the Treasury Minister and Members
UPDATE PAPER: Amendment to Land Registry Fees 7th December 2018 Overview A paper was presented to Treasury on the 28th November 2018 proposing three options to re balance the land registry fees in line with other jurisdictions and to provide support to low and middle incomes and first and second time buyers. (see appendix 1 for comparisons with other jurisidictions) The recommendation put forward to Treasury for consideration was ‘Option A’. Summary of options presented Noting that the changes proposed were broadly cost neutral dependent on the volume of house sales and that the proposed changes would benefit low income families, Treasury approved Option A in principle, namely: ● A minimum fee of £150 up to a purchase price of £190k; ● A stepped increase on each value banding up to a maximum of £30 per £1k; ● The first £190k of the purchase price is not chargeable (although the minimum fee of £150 will apply; ● That the proposed fees would become greater than the current fees in the £400k-£500k value band, Clarification was requested in relation to the breakeven point for ‘Option A’ and whether this fell in the £400k-£500k value banding or the £300k-£400k band.
Band (Market value) Current Fee / £1000 Current Minimum New Fee / £1000 New Minimum New Fee / £1000 New Minimum Current Option A Option B Option C <100k £5.70 £75.00 £0.00 £150.00 £0.00 £150.00 570

150

150

150

100k-190k £5.70 £0.00 £0.00 1,083

150

150

150

190k-250k £5.70 £10.00 £15.00 1,425

600

2,500

900

250k-300k £5.70 £15.00 £15.00 1,710

1,350

4,500

1,650

300k-400k £5.70 £15.00 £15.00 2,280

2,850

6,000

3,150

400k-500k £5.70 £15.00 £15.00 2,850

4,350

7,500

4,650

500k-1m £5.70 £20.00 £15.00 5,700

14,350

20,000

12,150

1m-3m £5.70 £20.00 £15.00 17,100

54,350

60,000

42,150

3m-5m £5.70 £25.00 £15.00 28,500

104,350

125,000

72,150

5m-10m £5.70 £25.00 £15.00 57,000

229,350

250,000

147,150

10m + £5.70 £30.00 £15.00

57000 229350 250000 147150 Current Fees Option A and B Option C Comparison of fees using maximum value in band 1 Treasury Paper 705/18 APPENDIX A.2 Revised Option A Option A was reviewed and the original proposal had a breakeven point at the £300k-£400k value band rather than the required £400k-£500k requested by Treasury. In order to meet the breakeven point of £400k-£500k and remain revenue neutral, Option A has been revised to the following:

• Minimum fee of £150 up to purchase price of £165k • Stepped increase on each value banding up to a maximum of £30 per £1k • The first £165k of the purchase price is not chargeable (although the minimum fee of £150 will apply) • A reduced fee of £7.50 per £1k in the £165k-£250k value band • Proposed fee becomes greater than the current fee in the £400k-£500k value band • A revenue neutral position (£70k favourable to actual in 2017-18)

Recommendation

The recommendation put forward for Treasury approval is to accept the revised Option A as this meets both the revenue and breakeven requirements.

Treasury are requested to approve the change in fee structure and for the change to commence from April 2019.

Treasury 7th December 2018

Band (Market value) Current Fee / £1000 Current Minimum Original Fee (Option A) Revised Fee / £1000 New Minimum Current Option A Variance <100k £5.70 £75.00 £0.00 £0.00 £150.00 570

150

420 100k-165k £5.70 £0.00 £0.00 941

150

791 165k-250k £5.70 £10.00 £7.50 1,425

638

788 251k-300k £5.70 £15.00 £10.00 1,710

1,163

548 301k-400k £5.70 £15.00 £10.00 2,280

2,063

218 400k-500k £5.70 £15.00 £15.00 2,850

3,763

(913) 501k-1m £5.70 £20.00 £25.00 5,700

16,263

(10,563) 1.01m-3m £5.70 £20.00 £30.00 17,100

76,263

(59,163) 3.01m-5m £5.70 £25.00 £30.00 28,500

136,263

(107,763) 5.01m-10m £5.70 £25.00 £30.00 57,000

286,263

(229,263) 10m + £5.70 £30.00 £30.00 +57,000 +286,263 -(229,263) Actual Revenue 17/18 3,252,859

Proposed Revenue 17/18 3,323,387

Surplus 70,528

Comparison of fees using maximum value in band Current Fees Option A 2

Appendix 1 Comparitives against other jurisdictions

3

IOM Government Department for Enterprise MEMORANDUM To: The Minister and Members of the Treasury CC Mark Lewin - Chief Executive DfE From: Edward Clague – Director Central Registry Re: Land Registration Fees Date: 15th April 2019 Purpose of this paper This paper seeks Treasury concurrence, as required by section 83 of the Interpretation Act 2015, for the following Fees and Duties Orders to be laid before the May sitting of Tynwald to come into effect from 1ST September 2019.
• Deeds and Probate Registries (Fees and Duties) Order 2019; • Land Registration Duty Order 2019; • Land Registry Fees Order 2019. Background The new Orders arise from recent discussions aimed at re-balancing land registration costs at the Land Registry and Deeds Registry to align closer to other jurisdictions, and across the value bandings providing assistance to owner-occupiers on low to middle incomes, and first and second time buyers.
In-particular the final fees model arises out of a workshop held on 8th March 2019, between Members and Officers of the Treasury and the Department for Enterprise. (See Appendix 1.) Proposed Fee Structure 1. Land Registration Fee; Property Value Proposed fee per £1,000 o

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