URGENT UPDATE FOR TAX-FREE PROPERTY TRANSFERS

Earlier this year we advised you on amendments to the Taxation Laws which allowed taxpayers to transfer a primary residence from a company, close corporation or trust free from Transfer Duty, Capital Gains Tax and/or Secondary Tax on Companies (where applicable). Many clients made use of the chance to restructure their financial portfolios and to release their homes from the costly red-tape burden of holding it in an entity or trust. It was not necessary to deregister the entity however.

The tax-friendly transfers are still available in the following circumstances:

• 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 2012.

Therefore, if you wish to make use of this tax-free transfer window period whilst retaining the company close corporation or trust, you need to contact one of our conveyancers without further ado.