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The Minister of Finance has, in his Budget Speech, announced the following important changes effective in respect of all transactions from 1 March 2006 onwards: (Note - this was unchanged in 2007 Budget

1.         Properties costing less than R500 000 will attract no transfer duty.

2.         Transfer duty will be payable at a rate of 5% between R500 000-R1 million and 8 percent on any amount over R1 million.

3.         The flat rate of transfer duty for companies, close corporations and trusts is reduced from 10% to 8%.

4.         The threshold exemption for stamp duties on leases is raised from R200 to R500 per agreement.

5.         The primary residence exclusion for Capital Gains Tax is increased from R1 million to R1.5 million.

6.         The annual Donations Tax exemption is increased from R30 000 to R50 000.

7.         The annual Capital Gains Tax exclusion is increased from R10 000 to R12 500 and, on death, from R50 000 to R60 000.  

8.         The Estate Duty threshold is raised from R1.5 million to R2.5 million.

9.         In regard to exchange control, the offshore individual allowance per person is increased from R750 000 to R2 million.