Do you benefit from the NEW transfer duty threshold?
Category Newsletter
Great news for homebuyers
In an effort to support the property market, Finance Minister Tito Mboweni announced that properties valued at less than R1 million will no longer attract Transfer Duty from 1 March 2020. Previously, the transfer duty threshold was R900 000. (Transfer Duty is a transfer tax payable to SARS when ownership of immovable property changes hands)
This is big news for those who cannot spend big on real estate.
In the past, buyers, who would have had to pay R3 000 on transfer duty on a property costing
R1 million, will now pay R0.
That's right, no transfer duty at all!
It is important to remember that Transfer Duty is determined by the highest of the purchase price, or the declared value (obtained through valuation), or the fair market value (determined by SARS)
The obligation to pay Transfer Duty applies when property rights are transferred, and not only when a property is sold. (There are certain exemptions though.)
To determine if your property transfer falls within the exemptions may be tricky.
The best advice is to get professional advice.
With 3%.Com Properties®, our property experts, who are all practising attorneys, are just the people who can help you make the best of your property plans for 2020.
3%.Com Properties - Lawyers selling properties, it makes sense.®
This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)
Author: 3%.Com Properties