“Fair value” definition of section 1 of Transfer Duty Act

“fair value”

(a)     in relation to property as defined in paragraphs (a) and (c) of the definition of “property”, means the fair market value of that property as at the date of acquisition thereof;

[Para (a) substituted by section 1 of Act 24 of 2011]

(b)     in relation to a share or member’s interest in a company as contemplated in paragraph (d) or (e) of the definition of “property”, means so much of the fair market value as at the date of acquisition of that share or member’s interest, of any property held by that company which constitutes –

(i)      residential property;

(ii)     a share or member’s interest in any company as contemplated in paragraph (d) or (e) of the definition of “property”; or

(iii)    a contingent right in property of a trust as contemplated in paragraph (f) of the definition of “property”,

(without taking into account any lease agreement, any liability in respect of any loan or any right to or an interest in the use of immovable property conferred on the owner of a share in a share block company as contemplated in section 1 of the Share Blocks Control Act, 1980 (Act No. 59 of 1980), in relation to that residential property or any residential property of any company or trust contemplated in subparagraph (ii) or (iii)), as is attributable to that share or member’s interest;

[Paragraph (b) amended by section 1 of Act 45 of 2003 and section 1 of Act 17 of 2009]

(c)     in relation to any contingent right to any property, which constitutes –

(i)      residential property;

(ii)     a share or member’s interest contemplated in paragraph (d) or (e) of the definition of “property”; or

(iii)    a contingent right in property of a trust as contemplated in paragraph (f) of the definition of “property”,

held by a discretionary trust, means the fair market value of that property (without taking into account any lease agreement or any liability in respect of any loan in relation to that residential property or any residential property of any company or trust contemplated in subparagraph (ii) or (iii)), as at the date of acquisition of that contingent right; or

[Paragraph (c) amended by section 1 of Act 17 of 2009]

(d)     in relation to a share in a company as contemplated in paragraph (g) of the definition of “property”, means so much of the fair market value, as at the date of acquisition of that share, of any property held by that company which constitutes property as contemplated in paragraphs (a) and (c) of that definition (without taking into account any lease agreement or any liability in respect of any loan in relation to that residential property) as is attributable to that share:

[Paragraph (d) inserted by section 1 of Act 17 of 2009 and substituted by section 1 of Act 24 of 2011]

 

Provided that –

(a)     the fair market value of any property of a company or a trust which constitutes a contingent right in property of a trust, as contemplated in paragraphs (b)(iii) and (c)(iii) shall be equal to the fair value of that contingent right as determined in terms of paragraph (c) of this definition; and

(b)     where property, has been acquired by the exercise of an option to purchase or a right of pre-emption, the fair value in relation to that property shall be the fair market value thereof as at the date upon which the option or right of pre-emption was acquired by the person who exercised the option or right of pre-emption;

[Definition of “fair value” substituted by section 2 of Act 74 of 2002]