From IEA News - 25 January 2003



Further to our article "Transfer Duty Loophole Closing Rapidly" in the November 2002 IEA News: the Revenue Laws Amendment Act 2002 became law on Friday 13 December 2002. This means that, if anyone acquires a residential property through a company, CC or trust on or after that date, he/ she will have to pay transfer duty even though the company, CC or trust remains the registered owner. The date of acquisition is the date on which the contract is formed, i.e. the date on which the seller accepts the offer. It will be interesting to see whether this has any noticeable effect on the purchase and sale of private homes through companies, CCs and trusts.