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TRANSFER DUTY DOWN: HOW MUCH WILL YOU SAVE?
How will you (and the property market generally) benefit from the proposal in Budget 2011 to reduce transfer duty?
First, the details -
- The reduction will apply to all property sales on or after 23 February 2011
- No transfer duty is payable when VAT applies to a sale
- “Non-natural” persons (companies, close corporations, trusts etc), which used to pay transfer duty at a flat rate of 8%, will now enjoy the same exemption threshold and reduced rates as individuals – making it more attractive to hold property in such entities (but only where appropriate in your particular circumstances – take advice on that first!)
- The exemption threshold increases from R500.000 to R600.000
- From R600.001 to R1.000.000, the rate is now 3% (last year – 5% from R500.001 up)
- From R1.000.001 to R1.500.000, the rate is now R12.000 + 5% (last year – R25.000 + 8%)
- From R1.500.001 up, the rate is now R37.000 + 8% (last year – R65.000 + 8%)
That’s great news, particularly for property investors and first-time buyers, and thus for the property market generally.
Your savings will look like this:
Please contact us if you require any further information or would like to apply for finance:
Complete this short form online
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