Divorced spouses

Section 16 of the Small Business Tax Amnesty and Amendment of Taxation Laws Act [No. 9 of 2006] has amended section 9 of the Transfer Duty Act of 1949. As from 25 July 2006, divorced and surviving spouses in all types of marriage unions will now be exempt from paying transfer duty on property arising from divorce or death. This follows on from the announcement that Finance Minister Trevor Manuel made in his budget speech in March. See Budget Speech 2006.

Section 16 reads as follows:
16. Section 9 of the Transfer Duty Act, 1949, is hereby amended-
(a) by the deletion in subsection (1) of paragraph (a) ; and
(b) by the substitution in subsection (1) for paragraph (i) of the following
"(i) a surviving or divorced spouse who acquires the sole ownership in the whole or any portion of property registered in the name of his or her deceased or divorced spouse [to whom he was married in community of property, in respect of so much of the value of the property in which sole ownership is acquired as represents his share in that property by virtue of the marriage in community of property] where paragraph: that property or portion is transferred to that surviving or divorced spouse as a result of the death of his or her spouse or dissolution of their marriage or union;".

The Act also amends the rates of transfer duty, which came into effect on 1 March this year.

Small Business Tax Amnesty and Amendment of Taxation Laws Act