Summary Tax: Estate Duty Notes

ESTATE DUTY
WHAT 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