SARS Offers Window Period

SARS Offers Window Period to Transfer Property to Individuals, Transfer Duty Free


Is your house in a Company, Close Corporation or Trust?

The Taxation Laws Amendment Act became operational on 30 September this year. One of the amendments applies to persons who own their residential home in a trust, close corporation or company and offers a window period in which the property can be transferred from the trust, close corporation or company to the individual without attracting liability for the usual taxes payable on such a transaction.

This means that no Transfer Duty, Capital Gains Tax (CGT) and/or Secondary Tax on Companies (STC) will be payable to SARS when the property is transferred to the individual in terms of this amendment.

This saving will be available if:

• you (or you and your spouse) are the holder/s of all the shares in the Company that owns the residential home; or,

• you (or you and your spouse) are the holder/s of all the member's interest in the Close Corporation that owns the residential home; or

• you (or you and your spouse) financed the purchase of the residential property in a Trust; and

• you (or you and your spouse) have always resided in the home and have used it for normal domestic purposes (and not merely as holiday house) since 11 February 2009; and

• you transfer ownership in the property into your name, or in both you and your spouse's names jointly before 31 December 2011.

Acme Accountants urges property owners to take advantage of this window period: "The concession offers property owners a welcome saving, especially in this challenging economic period."