Thought of the Week

TAX RELIEF NOW EXTENDED TO HOLIDAY HOME OWNERS!

Amended income tax provisions offer relief for homeowners whose properties are registered in Close Corporations, Companies or Trusts. The legislation allows owners to transfer their properties from the owning entity without incurring Capital Gains Tax (CGT), Secondary Tax on Companies (STC) or transfer duty, provided certain conditions are complied with. The terms of the legislation have always been interpreted by SARS as applying only to primary residences.

Amendments to Para 51A that were gazetted on 10 January this year, provide that the tax relief will now be extended to properties where the owner may not have “ordinarily resided”, but have still used for mainly domestic purposes. This would then appear to open the way for the transfer of holiday homes. In addition foreign owners who do not ordinarily reside in South Africa may now also utilise the legislation. Click here for more information in our article from December 2011 - before the amendments were gazetted.

To take advantage of this tax relief, or to get more information, contact Allan White at allanw@stbb.co.za or 021 673 4700.