Minor adjustments to transfer duty on property in the 2017 Budget

Posted On Thursday, 23 February 2017 12:01 Published by
Rate this item
(0 votes)

The 2017 national Budget was tabled in the South African Parliament by the Minister of Finance, Pravin Gordhan, on Wednesday, 22 February 2017.  

Jacques_Du_Toit_Absa_Hoam_Loans 

The Budget was delivered against the background of turbulent times. The global outlook is currently marked by significant economic policy and political uncertainty in some of the world’s largest economies, impacting trade and political relations across both advanced and developing countries. The South African economy is experiencing tough and challenging economic conditions together with a current high level of political tensions and policy uncertainty. In view of the abovementioned trends and developments, the Minister of Finance had a daunting task in balancing the Budget, with an additional R28 billion to be raised in taxes. As a result, a range of tax measures were proposed, including a new top personal income tax bracket with a marginal rate of 45% for taxable incomes of above R1,5 million per annum and increases in excise duties and the general fuel levy.   

The rate structure for transfer duty on the sale of property on or after1 March 2017 saw some minor adjustments in the Budget after major changes were introduced last year in respect of higher-priced properties.  In this year’s Budget transfer duty relief was given to specifically support low- and middle-income households in affording a home, with the exemption threshold that was increased from R750 000 to R900 000. The latest adjustments to the transfer duty rate structure will bring a saving of R4 500 in respect of the amount payable on all properties sold from March this year. Revenue from transfer duty on property is budgeted at R8,4 billion in 2017/18, which will be about 0,7% of expected total tax revenue of R1 265,5 billion in the coming fiscal year.   

The maximum value of a property exempted from transfer duty was fixed at R100 000 in 2002/03; R140 000 in 2003/04; R150 000 in 2004/05; R190 000 in 2005/06; R500 000 in 2006/07 to 2010/11; R600 000 in 2011/12 to 2014/15; R750 000 in 2015/16 to 2016/17; and R900 000 in 2017/18.    

Value of property Transfer duty payable R0 - R750 000 0% R750 001 - R1 250 000 3% on the value from R750 001 to R1 250 000 R1 250 001 - R1 750 000 R15 000 plus 6% on the value from R1 250 001 to R1 750 000 R1 750 001 - R2 250 000 R45 000 plus 8% on the value from R1 750 001 to R2 250 000 R2 250 001 - R10 000 000 R85 000 plus 11% on the value from R2 250 001 to R10 000 000 R10 000 001 and above R937 500 plus 13% on the value above R10 000 000

Value of property Transfer duty payable R0 - R900 000 0% R900 001 - R1 250 000 3% on the value from R900 001 to R1 250 000 R1 250 001 - R1 750 000 R10 500 plus 6% on the value from R1 250 001 to R1 750 000 R1 750 001 - R2 250 000 R40 500 plus 8% on the value from R1 750 001 to R2 250 000 R2 250 001 - R10 000 000 R80 500 plus 11% on the value from R2 250 001 to R10 000 000 R10 000 001 and above R933 000 plus 13% on the value above R10 000 000 

 

Last modified on Thursday, 23 February 2017 12:13

Most Popular

Balwin's Munyaka registers record R850 million in opening weekend sales, selling 555 apartments

Mar 09, 2020
Steve_Brookes_Balwin_Properties
JSE listed Balwin Properties, a developer that cares about environmentally responsible…

Balwin Properties and ABSA launch South Africa’s first green home loan

Mar 13, 2020
Apartment 71933
JSE-listed Balwin Properties Limited (Balwin Properties or the Company) and Absa Group…

Growthpoint reports a steady first half with its growth strategies paying dividends

Mar 11, 2020
Growthpoint Properties Group CEO Norbert Sassee
Growthpoint Properties (JSE: GRT) reported distributable income growth of 2.2% to R3.2bn,…

Spear REIT launches innovative self-isolation campaign for returning travellers in Cape Town, South Africa to combat COVID-19:

Mar 18, 2020
Double Tree Op
JSE listed Spear REIT Limited, the owner of the Double Tree by Hilton Cape Town, is the…

Financial Fitness – Is this the right time to buy property?

Mar 20, 2020
Governor Lesetja Kganyago SARB1
With the South African Reserve Bank’s announcement of interest rates cut of 100 basis…

Please publish modules in offcanvas position.