Parliament passed a law abolishing stamp duty on the primary family homestead last night.

Finance Minister Paula Cox said the legislation will reverberate around the community even more than breaks for seniors on land tax which she said had led to parties.

Only one family home can be passed on tax free but the ambit is wide, meaning it can apply to all the units in a multi-apartment homestead and even numerous homes on undivided land.

The tax break is not available on undeveloped plots or unfinished buildings.

Ms Cox said: "All Bermudians whether they are grass roots people, big shot people or back of town people will be able to rejoice, go in peace and rest in peace."

The legislation had the support of the Opposition who said they had suggested it years ago.

UBP leader Grant Gibbons said he was aware of a number of families who were not able to pay stamp duty when someone died and were forced to sell the property.

"We felt that was inequitable, certainly for poor members of the community."

However Dr. Gibbons said he had concerns about the second part of the bill which doubles duty to half a percent of the principal sum secured on a mortgage.

The previous rate of one quarter percent stays in place for mortgages under $400,000.

Dr. Gibbons said the new rate should have been staggered and not suddenly doubled once the mortgage went over $400,000.

However Ms Cox said consideration might be given to staggering at a later stage but Government had not been overly generous after losing a lot of revenue from abolishing stamp duty for the primary family homesteads.

She said people with mortgages over $400,000 could afford the extra rate and her colleague Michael Scott, who has experience of handling mortgages, said the money he had to hand to the Accountant General in such situations was relatively low ? often between $200 and $400.

Opposition MP John Barritt welcomed the bill and said people would soon get into the habit of registering with the tax commissioner a property as their primary homestead at the moment of buying it.

If someone dies without registering their property and has more than one property to pass on then an estate representative must designate one property as the primary homestead ? the least valuable one must be chosen if the deceased person lived in none of their properties.