The exemption is set to increase from R600 000 to R750 000 in what could be seen as a positive move for the broader property market.
To quote from the relevant extract of the Budget Tax Proposals:
Average house prices have recovered slowly over the past two years following a post-2009 decline. The rates and brackets for transfer duties on the sale of property on or after 1 March 2015 will be adjusted to provide relief to middle-income households. The new rates will eliminate transfer duty on all property acquired below R750 000, decrease effective transfer duty liability for properties acquired up to about R2.3 million and increase liability for properties above this amount.
Table 4.8 Transfer duty rate adjustments, 2014/15 to 2015/16
|Property value (R)||Rates of tax||Property value (R)||Rates of tax|
|R0 - R600 000||0% of property value||R0 - R750 000||0% of property value|
|R600 001 - R1 000 000||3% of property value above R600 000||R750 001 - R1 250 000||3% of property value above R750 000|
|R1 000 001 to R1 500 000||R12 000 + 5% of property value above R1 000 000||R1 250 001 - R1 750 000||R15 000 + 6% of property value above R1 250 000|
|R1 500 001+||R37 000 + 8% of property value above R1 500 000||R1 750 001 - R2 250 000||R45 000 + 8% of property value above R1 750 000|
|R2 250 001+||R85 000 + 11% of property value above R2 250 000|
The popular Tables of Costs for Conveyancing - ready reckoner will be updated and published next week to reflect these transfer duty rates which come into effect on 1 March 2015.