Under SA's stamp duty regime, how is duty calculated when a property is transferred between related parties at below market value?
Correct Answer
C) Duty is charged on the higher of the consideration and the market value
In SA, stamp duty on property transfers is calculated on the higher of the actual consideration and the market value. This prevents duty minimisation through below-market transfers between related parties.
Why This Is the Correct Answer
Under the Stamp Duties Act 1923 (SA), duty on a conveyance is assessed on the greater of the consideration and the market value, so an undervalue transfer between related parties does not reduce duty.
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