Exemption from transfer duty – Budget Speech 2020
27 Feb 2020
Any person who wishes to purchase immovable property is liable to pay transfer duty. Transfer duty is a tax levied in terms of statute on any immovable property which is acquired by way of a transaction or otherwise.
In the 2020 Budget Speech, the Minister of Finance, Tito Mboweni, announced “to support the property market, the threshold for transfer duties is adjusted”. The threshold is now R1 million which means that a property costing R1 million or less will no longer be subject to transfer duty.
The new threshold will be effective from 1 March 2020 and will be favourable to all prospective property purchasers and may assist new buyers in entering the property market, as the previous threshold was R900,000.00.
Apart from the above, there are also general exemptions from transfer duty which is set out in the Transfer Duty Act, No. 40 of 1949.
Please feel free to contact us for any questions or assistance in your next property transaction, our conveyancing team will gladly assist.
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