BUDGET SPEECH 2012/2013
Category Whats New
The National Treasury's budget for 2012/2013 has just been delivered to Parliament by our Minister of Finance, Mr Pravin Gordhan. Herewith a short summary of how the budget might affect the property market.
- Transfer duty rates have remained unchanged;
- Income tax threshold was increased; last year the entry level was income above R150 000 which has now increased to R160 000;
Capital Gains Tax: Capital gains on the disposal of assets that are included in taxable income have been increased as follows:
- Maximum effective rate of tax:
- Individuals and special trusts: up from 10% to 13.3%
- Companies: up from 14% to 18.6%
- Other trusts: up from 20% to 26.7%
- The exclusions on the disposal of a primary residence were increased from R1,5 million to R2 million;
- An annual R30 000 capital gain or capital loss is granted to individuals and special trusts (previously this was R20 000)
- Exclusion on death increased from R200 000 to R300 000 for the year of death.
- Dividends tax becomes effective from 1 April 2012 at a rate of 15%
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