Generic selectors
Exact matches only
Search in title
Search in content
Search Products
Filter by Categories
B-BBEE
Blog
Company Secretarial
Featured
General Business
General Interest
Investing in Property
Marketing
Personal Growth
Personal Wealth
Tax
Trusts and Estate Planning
Uncategorized

Transfer Duty is a relatively simple tax, but it is treated in some very strange ways in the legislation. Here are some examples –

  1. As far as I have been able to determine, it is the only tax that is applicable on a transaction between spouses. All others – CGT, Donations Tax, Estate Duty do not kick in at the time of the transaction.
  2. If the shares of a company are sold and whose assets are mostly residential property, then this transaction is treated as the sale of the properties and Transfer Duty applies. However, if the properties are mainly commercial, it is a sale of shares and Transfer Duty does not apply.
  3. There is no Transfer Duty on change of ownership of fixed property from a deceased estate to an heir or legatee.
  4. If a company issues new shares in exchange for fixed property (a s42 Asset for share swap), no Transfer Duty is levied.
  5. If a trust awards fixed property to a beneficiary who is a relative (as defined) of the founder of the trust, no Transfer Duty is imposed.
  6. If a VAT vendor buys commercial property from a VAT vendor, VAT is paid and claimed and there is no Transfer Duty.
  7. If a VAT vendor buys commercial property from a non-VAT vendor, the buyer pays Transfer Duty, but claims all or part of it back as VAT.

0 comments

XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Need help with your Trust or Buisness?

Contact us today or set up a free meeting with our CEO, Derek Springett. We have been offering expert advice and business services since 1971. You can also visit our online store to see our full list of services.