13 Apr 2012

As from the 1st April 2012 the exemption granted in respect of the transfer of residential properties owned by close corporations, companies and trusts has been extended to residential properties which are used for domestic (i.e. non business) purposes and therefore now includes holiday homes. The transferee must be the shareholder or member or trustee or beneficiary or a person connected to such person (such as a father, mother, child, sister or wife). The property must have been used as residential property for domestic (i.e. non-business) purposes during the period commencing on 11th February 2009 and ending on the date of the disposal of such property to such person. Such disposal must also take place on or before the 31st December 2012. The company, close corporation or trust must be wound up or deregistered within 6 (six) months of the date of the disposal of such property which has taken place.

This is good news as holiday homes now also fall under the exemption.

Thanks to Dykes,Van Heerden (Cape)Inc