Transfer duty exemption increased

25 Feb 2015 1 min read Budget Alert Article

The transfer duty exemption for properties under R600,000 remained largely untouched over the last few years, however, given a slow but steady recovery in the property market the Minister announced an increase in the exemption to R750,000, with effect from 1 March 2015. The relief at the lower end has however resulted in a transfer duty increase at the higher end for properties exceeding R2.25 million. Transfer duty in the aforementioned bracket will, with effect from 1 March 2015, be R85,000 plus 11% of the value above R2.25 million.

The relief is targeted at the middle income market but one feels that more could have been put on the table. Given the median growth in house prices in South Africa, an exemption of R1 million may have been more beneficial, however, considering the Minister’s small room to manoeuvre, the R150,000 increase this year could be followed by a further increase in the exemption in the next Budget cycle, depending on the performance of the property market.

The information and material published on this website is provided for general purposes only and does not constitute legal advice. We make every effort to ensure that the content is updated regularly and to offer the most current and accurate information. Please consult one of our lawyers on any specific legal problem or matter. We accept no responsibility for any loss or damage, whether direct or consequential, which may arise from reliance on the information contained in these pages. Please refer to our full terms and conditions. Copyright © 2024 Cliffe Dekker Hofmeyr. All rights reserved. For permission to reproduce an article or publication, please contact us