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Summary Tax: Estate Duty Notes
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In-depth summary on estate duty as per the tax course
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ESTATE DUTYWHAT IS IT? S54-S62
Estate duty is a separate tax to normal tax that is levied on the transfer of wealth
(net assets) from the deceased estate to the beneficiaries of the deceased person.
Liability of the deceased estate for all natural persons who were:
o Ordinarily resident in SA at the time of their death
o Not ordinarily resident but owned assets in SA at time of death
👤 PARTIES INVOLVED
DECEASED PERSON NORMAL TAX
- Any income accrued to deceased
person before/after their death up
until finalisation of estate has
normal tax consequences
- Deemed to dispose of assets on
date of death to the deceased
estate for an amount
received/accrued = MV on date of
death (s9HA)1
- This disposal attracts CGT
DECEASED ESTATE NORMAL TAX
- Person/TP that arises after death of - Deemed to acquire the deceased
deceased person persons assets for MV on date of
death
- They distribute the assets in
accordance with the will
o Disposal of assets by
deceased estate will then
attract CGT for the estate.
ESTATE DUTY
- On transfer of wealth (assets) from
the deceased estate to the
beneficiaries of the deceased estate
BENEFICIARIES OF DECEASED ESTATE NORMAL TAX ON DISPOSAL:
- Receipt is deemed to be fortuitous
and thus of a capital nature
- No immediate income tax
consequences
NORMAL TAX LATER
- Income receive or accrued, and
expenditure incurred i.r.o assets
acquired
- Capital Gains Tax on disposal of
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