SARS has introduced tax relief for home owners who own their primary residence through a trust, CC or company.
Home owners can now transfer property owned through a trust, CC or company, free of Transfer Duty, Secondary Tax on companies or Capital Gains Tax, into their own names – provided they have financed the acquisition of the property owned by the trust, and in the case of a member of the CC or company, they are a shareholder or member of such CC or company.
In the event of a property owned by a company or CC, the property may also be transferred to a spouse of such member or shareholder – even if such person was married to such spouse out of community of property.
This relief is not available to farmers as the property must be less than 2 hectares in extent.
Home owners have until 31 December 2011 to register transfer in terms of these provisions.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.