Following Minister Gordhan’s budget speech yesterday, government proposes that transfer duty on the acquisition of immovable property is to be reduced on transactions concluded on or after 23rd February 2011, as follows:

1. First R600,000 will be exempt;
2. Then on the value or purchase price between R600,000 and R1,000,000.00, transfer duty will be at 3%;
3. On property value or purchase price above R1,000,000.00 to R1,500,000.00, transfer duty will be R12,000 plus 5% of the amount between R1,000,000.00 and R1,500,000.00; and finally:
4. Where the value or purchase price is above R1,500,000.00, then transfer duty will be R37,000.00 plus 8% of the amount in excess of R1,500,000.00.

At the very end of the “proposal” [See the document entitled “Tax Proposals – Budget 2011“ to be found @ http://www.treasury.gov.za/documents/national%20budget/2011/ ] the following interesting statement is made: “It will also be applicable to legal persons (close corporations, companies and trusts).”

Regards
Sieg

[I am now blogging this diary: see http://aconveyancersdiary.blogspot.com/ ]