ESTATE DUTY ACT (Extra-statutory concession)

Mr L. P. Rodrigo asked the Minister for Finance, in the light of the provisions of the Estate Duty Act that, where one spouse gifts the matrimonial house to the other and continues to reside in it rent free by virtue of his or her marital rights, the property is subject to estate duty on the death of the donor even when the donor has survived the statutory period of five years, if he will consider granting an extra-statutory concession in such cases to relieve the hardship that could arise where the matrimonial house is the only asset of any substance in the estate of the deceased so that the surviving spouse and other immediate members of the family are precluded from having to dispose of their residence in order to meet the death duties.

The Minister for Finance (Mr Hon Sui Sen): Mr Speaker, Sir, no concession is necessary in the circumstances suggested by the Member for Serangoon Gardens, as no estate duty is payable.