South African farmers need to know that the recent tax changes would affect farmers at death.
Old mutual recently released information regarding capital gains tax (CGT) at death, which is seen as a deemed disposal of the deceased’s assets equal to market value at date of death. Due to tax changes, as of 1 March 2016, a deceased is deemed to have disposed of all his/her assets at market value at date of death, for both income tax and CGT purposes. This has an impact on moveable farming assets and could result in increased tax liability at death. – Old Mutual