News from – Anne Porter Knight Frank


Smith Tabata Buchanan Boyes’ advice to property sellers, buyers and agents – indeed, to all interested in property – has been invaluable over the last ten years and has often been used in Anne Porter Knight Frank training courses, says Lanice Steward, MD of APKF.

This week, she has drawn particular attention to a STBB news release which points out that the transfer of shares in a property owning company is treated differently to the transfer of a membership in a close corporation.

This information, said Steward, is especially relevant where two or more people share the ownership of a property.

“Supposing a 20% share is sold to a private individual by the company owning one property worth R1,2 million. The transfer duty on the sale would be R41 000, i.e. 20% of the transfer duty that would be paid on the whole property if it was sold.”

When a member’s interest in a CC is sold, however, the duty here is calculated only on the value of the interest sold, i.e. on R240 000 in the case of a property worth R1,2 million.

As this would be below the R500 000 purchase price it will be totally exempt from any duty.

Any property in which one or more of the shareholders’ shares is likely to be worth less than R500 000 at the time of the purchase is, therefore, better vested in a CC than in a company.

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