TAX BREAK TO MOVE YOUR PRIMARY RESIDENCE FROM A CO, CC OR TRUST INTO YOUR OWN NAME
Category Property News
Is your primary residence still registered in a Company, Close Corporation or Trust? If so then you only have 5 more months to transfer the property into your own name without raising capital gains tax and without being charged transfer duty to do so. The possible savings associated with this tax break means you definitely don’t want to miss this opportunity.
To check if you are eligible for this concession which SARS are granting, here are the requirements:
- The property must be the members’ (or directors, shareholders or Trustees as the case may be) primary residence (i.e they must have ordinarily resided on the property);
- The members must have used that property mainly for domestic purposes since February 2009 ;
- The members must resolve to take steps to liquidate or wind up the CC or Company within 6 months of date of disposal, or in the case of a Trust the Trustees must agree to revoke the Trust; and
- The disposal takes place before 31 December 2012. We are currently not aware of any extension of this date.
Please note: the benefit of using this tax concession can be a saving of up to R200 000 so it’s definitely worth doing some research to see if your particular situation suits this scenario, especially since capital gains tax has gone up.
Report compiled by Annabelle J. da Costa (LLB)