Stamp duty ranks among the most dreaded fees associated with property purchases, but for some, there might be a surprise in store. Unfortunately it doesn’t apply to all transactions, so keep reading before you get too excited. But in July 2018, there were changes made when Qualifying Land was introduced.
“What’s Qualifying Land?” I hear you ask, well, read on …
So, the official bit is this .. As of 1 July 2018, transfers of non-residential or non-primary production land (Qualifying Land) no longer incur Stamp Duty. This is a massive saving for a lot of people. But would be even better if they did something on the stamp duty for residential properties too.
For Qualifying Land eligibility, the property must not be used for any residential purposes or primary production. Commercial properties were definitely the biggest winner!
No stamp duty … surely there’s a catch?
Stamp duty for these type of transfers saw reductions in December 2015 and in July 2017, ultimately resulting in its complete elimination in July 2018.
It sounds too good to be true right! If you’re after some further information, check out this article from Revenue SA.
Will there be a replacement for stamp duty?
It has been several years now and thankfully, no. There hasn’t been any announcement around any new fees or charges for these types of transactions, but only time will tell if it remains this way.
What do I have to pay then?
If you’re transferring Qualifying Land you’ll still need to pay a Transfer Registration Fee to the Registrar-General, but this is nothing new. The purchase price in a Contract or a current valuation will determine how much.
If you’d like to find out more about this exemption, Qualifying Land, or Registration Fee’s, get in touch and we can answer any questions you have.