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Estate Duty Act, 1955 (Act No. 45 of 1955)

Regulations

Regulations under the Estate Duty Act

 

Notice No. R. 1942

23 September 1977

 

 

The State President has, under and by virtue of the powers vested in him by section 29 of the Estate Duty Act, 1955 (Act No. 45 of 1955), made the subjoined regulations:

 

VALUATION OF ANNUITIES OR OF FIDUCIARY, USUFRUCTUARY OR OTHER LIMITED INTERESTS IN PROPERTY IN THE ESTATES OF DECEASED PERSONS

 

Calculations for the purposes of the valuation of annuities or of fiduciary, usufructuary or other limited interests in property in the estate of any person who died or dies on or after 1 April 1977 shall be made in accordance with the Tables subjoined hereto:

 

(The regulations promulgated under Government Notice No. 641 of 13 April 1956 shall continue to apply in relation to the estate of any person who died before 1 April 1977.)

 

TABLE A

THE EXPECTATION OF LIFE AND THE PRESENT VALUE OF R1 PER ANNUM FOR LIFE CAPITALISED AT 12 PER CENT OVER THE EXPECTATION OF LIFE OF MALES AND FEMALES OF VARIOUS AGES

 

 

Age

Expectation of life

Present value of R1 per annum for life

 

Age

Male

Female

Male

Female

0

64.74

72.36

8.32791

8.33105

0

1

65.37

72.74

8.32828

8.33114

1

2

64.50

71.87

8.32776

8.33091

2

3

63.57

70.93

8.32714

8.33064

3

4

62.63

69.97

8.32644

8.33033

4

5

61.69

69.02

8.32567

8.32999

5

6

60.74

68.06

8.32480

8.329.61

6

7

59.78

67.09

8.32381

8.32918

7

8

58.81

66.11

8.32271

8.32869

8

9

57.83

65.14

8.32146

8.32815

9

10

56.85

64.15

8.32007

8.32753

10

11

55.86

63.16

8.31849

8.32684

11

12

54.87

62.18

8.31673

8.32608

12

13

53.90

61.19

8.31480

8.32522

13

14

52.93

60.21

8.31265

8.32427

14

15

51.98

59.23

8.31029

8.32320

15

16

51.04

58.26

8.30770

8.32203

16

17

50.12

57.29

8.30489

8.32071

17

18

49.21

56.33

8.30180

8.31926

18

19

48.31

55.37

8.29841

8.31764

19

20

47.42

54.41

8.29471

8.31584

20

21

46.53

53.45

8.29061

8.31383

21

22

45.65

52.5

8.28613

8.31161

22

23

44.77

51.54

8.28117

8.30912

23

24

43.88

50.58

8.27564

8.30633

24

25

43.00

49.63

8.26959

8.30326

25

26

42.10

48.67

8.26274

8.29981

26

27

41.20

47.71

8.25516

8.29595

27

28

40.30

46.76

8.24677

8.29171

28

29

39.39

45.81

8.23737

8.28697

29

30

38.48

44.86

8.22694

8.28170

30

31

37.57

43.91

8.21538

8.27583

31

32

36.66

42.96

8.20257

8.26930

32

33

35.75

42.02

8.18836

8.26210

33

34

34.84

41.07

8.17262

8.25400

34

35

33.94

40.13

8.15536

8.24509

35

36

33.05

39.19

8.13647

8.23517

36

37

32.16

38.26

8.11558

8.22426

37

38

31.28

37.32

8.09274

8.21199

38

39

30.41

36.40

8.06781

8.19866

39

40

29.54

35.48

8.04030

8.18386

40

41

28.69

34.57

8.01067

8.16762

41

42

27.85

33.67

7.97844

8.14983

42

43

27.02

32.77

7.94344

8.13012

43

44

26.20

31.89

7.90547

8.10881

44

45

25.38

31.01

7.86380

8.08527

45

46

24.58

30.14

7.81924

8.05956

46

47

23.79

29.27

7.77109

8.03119

47

48

23.00

28.41

7.71843

8.00026

48

49

22.23

27.55

7.66236

7.96617

49

50

21.47

26.71

7.60201

7.92950

50

51

20.72

25.88

7.53713

7.88967

51

52

19.98

25.06

7.46748

7.84646

52

53

19.26

24.25

7.39387

7.79965

53

54

18.56

23.44

7.31631

7.74834

54

55

17.86

22.65

7.23234

7.69355

55

56

17.18

21.86

7.14414

7.63363

56

57

16.52

21.08

7.05178

7.56896

57

58

15.86

20.31

6.95225

7.49927

58

59

15.23

19.54

6.85004

7.42321

59

60

14.61

18.78

6.74206

7.34135

60

61

14.01

18.04

6.63010

7.25457

61

62

13.42

17.30

6.51232

7.16020

62

63

12.86

16.58

6.39301

7.06046

63

64

12.31

15.88

6.26822

6.95537

64

65

11.77

15.18

6.13789

6.84161

65

66

11.26

14.51

6.00726

6.72393

66

67

10.76

13.85

5.87165

6.59893

67

68

10.28

13.20

5.73403

6.46635

68

69

9.81

12.57

5.59182

6.32818

69

70

9.37

11.96

5.45165

6.18466

70

71

8.94

11.37

5.30775

6.03607

71

72

8.54

10.80

5.16744

5.88278

72

73

8.15

10.24

5.02437

5.72222

73

74

7.77

9.70

4.87876

5.55743

74

75

7.41

9.18

4.73490

5.38893

75

76

7.07

8.68

4.59354

5.21727

76

77

6.73

8.21

4.44663

5.04679

77

78

6.41

7.75

4.30309

4.87092

78

79

6.10

7.31

4.15898

4.69389

79

80

5.52

6.89

4.02440

4.51647

80

81

5.55

6.50

3.89051

4.34399

81

82

5.31

6.13

3.76802

4.17315

82

83

5.09

5.78

3.65276

4.00482

83

84

4.89

5.45

3.54546

3.83988

84

85

4.72

5.14

3.45232

3.67921

85

86

4.57

4.85

3.36864

3.52371

86

87

4.45

4.58

3.30066

3.37426

87

88

4.36

4.33

3.24907

3.23175

88

89

4.32

4.11

3.22597

3.10296

89

90

4.30

3.92

3.21438

2.98912

90

 

N.B. - The age is to be taken as at the next birthday after the date when the right was acquired.

 

Example - Find the present value of an annuity or usufruct of R100 per annum for life of: (A) a female who becomes entitled thereto at the age of 42 years 3 months, or (B) a male who becomes entitled thereto at the age of 65 years 9 months.

 


(A)

(B)

Age when acquired

42 years 3 months

65 years 9 months

Age next birthday

43 years

66 years

Present value of R1 per annum for life

R8,130 12

R6,007 26

Therefore present value of R100 per annum for life equals

R813,01

R600,73

 

TABLE B

PRESENT VALUE OF R1 PER ANNUM CAPITALISED AT 12 PER CENT OVER FIXED PERIODS

 

Years

Amount

Years

Amount

1

0.8929

51

8.3076

2

1.6900

52

8.3104

3

2.4018

53

8.3128

4

3.0374

54

8.3150

5

3.6048

55

8.3170

6

4.1114

56

8.3187

7

4.5638

57

8.3203

8

4.9676

58

8.3217

9

5.3282

59

8.3229

10

5.6502

60

8.3240

11

5.9377

61

8.3250

12

6.1944

62

8.3259

13

6.4236

63

8.3267

14

6.6282

64

8.3274

15

6.8109

65

8.3281

16

6.9740

66

8.3286

17

7.1196

67

8.3291

18

7.2497

68

8.3296

19

7.3658

69

8.3300

20

7.4694

70

8.3303

21

7.5620

71

8.3307

22

7.6446

72

8.3310

23

7.7184

73

8.3312

24

7.7843

74

8.3314

25

7.8431

75

8.3316

26

7.8957

76

8.3318

27

7.9426

77

8.3320

28

7.9844

78

8.3321

29

8.0218

79

8.3323

30

8.0552

80

8.3324

31

8.0850

81

8.3325

32

8.1116

82

8.3326

33

8.1354

83

8.3326

34

8.1566

84

8.3327

35

8.1755

85

8.3328

36

8.1924

86

8.3328

37

8.2075

87

8.3329

38

8.2210

88

8.3330

39

8.2330

89

8.3330

40

8.2438

90

8.3330

41

8.2534

91

8.3331

42

8.2619

92

8.3331

43

8.2696

93

8.3331

44

8.2764

94

8.3331

45

8.2825

95

8.3332

46

8.2880

96

8.3332

47

8.2928

97

8.3332

48

8.2972

98

8.3332

49

8.3010

99

8.3332

50

8.3045

100

8.3332

 

N.B. - Fractions of a year are to be disregarded when using this table.

 

Example - Testator, who died on 1 April 1977 left to (A) an annuity or usufruct value R100 per annum, to terminate when (A) attains majority, which will occur, say, at 30 September 1987.  This period is found to be 10 years 6 months, but is taken as 10 years.

 

Present value of R1 per annum for 10 years

= R5,650

Therefore present value of R100 per annum for 10 years

= R565,02