As at the 1st April 2010 the relevant rates of tax were as
follows:
Estate Duty – Estate duty is payable
at the rate of 20% of the net value of assets in the estate in
excess of the sum of R3 500 000,00. Estate duty is not
payable on assets bequeathed to a surviving spouse. If the estate
of a spouse does not utilise the whole of the abatement of
R3 500 000,00, the estate of the last dying of the
spouses may have the benefit of the unused portion of the
abatement. Spouses therefore can enjoy a combined abatement of
R7 000 000,00.
Capital Gains - Capital gains in a trust or
company are taxed at the rate of 20% or 14% as opposed to up to a
maximum of 10% in the hands of a natural person. A person who dies
is deemed to have disposed of his or her assets for an amount equal
to the market value of those assets at the date of death. The
capital gain is taxed to the extent that it exceeds R120 000,00,
subject to the proviso that assets transferred to a surviving
spouse
