Owners of Immovable Property Should Transfer it Into Their Own Name As Soon As Possible

Do you own property through a trust, company or CC? Transfer it into you own name before 31 December 2012 to avoid paying transfer tax
 
Those who own residential immovable property in the name of a juristic person (Ie. a trust, company or close corporation (CC)) have until 31 December 2012 to transfer the property into their own name without paying additional taxes if the beneficiaries or members meet certain conditions.

These conditions are set out in paragraph 51A of the Eighth Schedule to the Income Tax Act, 1962. One condition is that the property must be transferred to a person who ordinarily resided in the property for a certain period. But on 2 June 2011, the National Treasury announced that it intends changing the law to scrap this condition. The only requirement in this regard would be that the member or beneficiary had used the property for domestic purposes.

Proper advice should be sought before transferring property in terms of the new legislation as the property may still be subject to Donations tax in certain circumstances.