"Company" Owned Properties

Few benefits still exist for those that own their properties in the name of a CC or a Pty.  SARS allowed an extended window for those occupying such a property for their own residential use to transfer them into their own name; but that has long-since expired.  That could have been done with no transfer duty payable and just the legal costs involved.

It has now been proposed that another tax concession be allowed for such a transfer and this should be taken advantage of; where occupation is strictly for residential use by the Members/ Directors of the CC/Pty.  (This appers to not apply to properties owned by a Trust).

Full details are not yet available and the proposal refers to a "tax concession" which could well be as far as Capital Gains Tax (CGT) is concerned.  Whether this also applied to Transfer Duty; remains to be clarified.  (In any event, Transfer Duties have been greatly reduced over the last few years).

It appears that such a transfer out of the CC/Pty will need to occur between January 2010 until December 2011.

The impact of CGT when a Company-owned property is disposed of; is at much higher rate of tax AND the 'Primary Residence' exemption does not apply.  Even though there is currently a down-turn in property values' present values upon disposal are likely to be at a far higher amount that when the property was first purchased.

This is an offer that cannot/ shouldn't be refused and we will up-date our website as fuller information becomes available.

Another advantage in moving ownership out of CC/Pty; is that the CC can then be-deregistered and the need for annual returns to CIPRO fall away - a further savings in costs.