Legislation will close home transfer loophole.

Posted On Friday, 25 October 2002 10:01 Published by
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Each time such companies changed hands, transfer duty would be payable at the rate of 10% of the fair market value.
Each time such companies changed hands, transfer duty would be payable at the rate of 10% of the fair market value.

However, where an entity was registered for value-added tax (VAT) because the property was used as a hotel or constituted commercial property, no transfer duty would be payable as VAT would be paid when the property was sold.

Deloitte & Touche corporate tax partner Russell Eastaugh said people who owned property through companies, close corporations or trusts faced a 'double-edged sword'.

He said that when these people sold their property they would be subject to capital gains tax on any subsequent gain which they made.

Business Day


Publisher: Business Day
Source: Business Day

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