People & News

2005 Budget speech

Extract from the Budget Speech
"Transfer duty
Taking into account the steep rise in property prices over the past two years, it is proposed that the transfer duty exemption threshold should be raised from R150 000 to R190 000, together with an increase in the upper threshold from R320 000 to R330 000. The duty payable on a property of R330 000 or more will fall by R2 300, making houses slightly more affordable. The total revenue loss is estimated at R450 million."

Proposed rates of transfer duty
According to the Tax Pocket Guide on the National Treasury Website the new scale which comes into effect from the 1 March this year will be as follows:

Property Value Rates of tax
R0 - R190 000 0%
R190 001 - R330 000 5% on the value above R190 000
R330 001 and above R7000 plus 8% on the value above R330 000

By way of comparison the old rates were the following:

Property Value Rates of tax
R0 - R150 000 0%
R150 001 - R320 000 5% on the value above R150 000
R320 001 and above R8 500 plus 8% on the value above R320 000

The table below has examples of the transfer duty for properties of various prices

Property Value (R) Current duty (R) Proposed duty (R) Reduction (R)
180 000 1 500 - 1 500
250 000 5 000 3 000 2 000
320 000 8 500 6 500 2 000
350 000 10 900 8 600 2 300
500 000 22 900 20 600 2 300
750 000 42 900 40 600 2 300
1 000 000 62 900 60 600 2 300

The full revised tables will be published in the GhostDigest next week.

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