On everyone’s lips during February was the anticipated budget speech on the 25th of February and the implications thereof on our pockets. Clearly there are many other economic factors, but for the man in the street the most important detail would be how our personal budgets would be affected.
As stated on the BizCommunity website, from 1 March 2015 most purchasers of immovable property will be subject to increased transfer duties when acquiring immovable property. The motivation from the fiscus for the quite radical proposed changes to the tax structure is to provide relief for middle-income households.
From the SARS website www.sars.gov.za : Transfer Duty is a tax levied on the value of any property acquired by any person by way of a transaction or in any other way.
The new legislation does give some breathing space for properties in the bracket up to R750 000 – these will be exempt of transfer fees. The second level price range up to R1,25 million will pay a maximum of R15 000 transfer duty which is also a reduced rate from the previous months.
Craig Hutchison, CEO of Engel & Völkers Southern Africa explains that these adjustments will substantially assist the middle income households and could likely boost the residential property market up to the R2,3 million price range.
For any purchaser who is not sure of the amount of transfer duty payable on their potential purchase, contact one of our qualified sales advisors within the E&V group who will be able to provide you with accurate figures or turn to page 47. Our sales advisors always work closely with established and reputable transferring attorneys, who make this information available in an easy to understand format.” Craig concluded.
These are the Transfer Duty rates applied to properties acquired on or after 1 March 2015, and apply to all persons (including Companies, Close Corporations and Trusts):
|VALUE OF PROPERTY (Rand)||RATE|
|0 – 750 000||0|
|750 001 – 1 250 000||3% on the value above 750 000|
|1 250 001 – 1 750 000||15 000 + 6% of the value above 1 250 000|
|1 750 001 – 2 250 000||45 000 + 8% of the amount above 1 750 000|
|2 250 001 and above||85 000 + 11% of the amount above 2 250 000|
Posted by firstname.lastname@example.org on April 15, 2015