Extract from the Budget Speech
"Again this year, we are able to contribute to making home ownership more affordable, by amending further the graduated transfer duty rate structure in respect of the acquisition of fixed property. The duty exempt level will be increased from the current R100 000 to R140 000.
The average duty on property with a value of R200 000 will fall from 2,5 percent to 1,5 percent; the duty on property with a value of R400 000 falls from 4,5 percent to 3,9 percent. These duty adjustments will apply to property acquired from 1 March 2003 and will cost the fiscus R435 million."
Proposed rates of transfer duty
|R0 - R140 000
|R140 001 - R320 000
||5% on the value above R140 000
|R320 001 and above
||R9000 plus 8% on the value above R320 000
By way of comparison the old rates were the following:
|R0 - R100 000
|R100 001 - R300 000
||5% on the value above R100 000
|R300 001 and above
||R10000 plus 8% on the value above R300 000