Since my conveyancer’s diary last week wherein I mentioned the new Transfer Duty Rates applicable on transactions concluded on or after 23rd February 2011, I have been asked how the lower rates compare with the rate of transfer duty that applied prior to this date.

I have prepared a comparative table to show, by way of example on various purchase prices, the difference in the actual amount of transfer duty payable previously and payable on or after 23 Feb 2011:

New transfer duty tariff as from 23 Feb 2011
Some comparisons


Purchase Price | Before 23 Feb 201 | On or after 23 Feb 2011 | "Saving" | Calculation: new tariff


R 500 000.00 R 0.00 R 0.00 R 0.00 Exempt


R 600 000.00 R 5 000.00 R 0.00 R 5 000.00 exempt


R 700 000.00 R 10 000.00 R 3 000.00 R 7 000.00 3% of R100,000.00


R 750 000.00 R 12 500.00 R 4 500.00 R 8 000.00 3% of R150,000.00


R 800 000.00 R 15 000.00 R 6 000.00 R 9 000.00 3% of R200,000.00


R 1 000 000.00 R 25 000.00 R 12 000.00 R 13 000.00 3% of R400,000.00 = R12,000.00


R 1 200 000.00 R 41 000.00 R 22 000.00 R 19 000.00 5% of R200,000.00 plus R12,000


R 1 500 000.00 R 65 000.00 R 37 000.00 R 28 000.00 5% of R500,000.00 = R25,000 plus R12,000


R 1 800 000.00 R 89 000.00 R 61 000.00 R 28 000.00 8% of R300,000 = R24,000 plus R37,000


R 2 000 000.00 R 105 000.00 R 77 000.00 R 28 000.00 8% of R500,000 = R40,000 plus R37,000


R 2 500 000.00 R 145 000.00 R 117 000.00 R 28 000.00 8% of R1,000,000 = R80,000 plus R37,000


I have also attached a document which shows the various rates of transfer duty over the years, for those who are interested in doing the comparison.

[With thanks to Flippy Hartwig of Bate, Chubb & Dickson, East London, for checking my calculations.]

Regards
Sieg

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