Some festive cheer from SARS!

If you were intent on transferring your primary residence from a trust or private company to a natural person, but baulked at the prospect of paying duties to the taxman; well, then, help is at hand in the form of the Taxation Laws Amendment Act of 2009.

You may qualify for an exemption from transfer duty!

In order to qualify for this exemption, you will need to supply the South African Revenue Services (SARS) with the following information:

1. Transfer Duty forms TD1, TD2 and TD3 (provided the source document is anything other than a sale agreement);
2. Transfer Duty Forms TD1 and TD2 (provided the source document is a sale agreement) , the source document (provided it was executed between 11 February 2009 and 31 December 2011) and an affidavit by the natural person who acquires the property confirming that:

• he/she personally and ordinarily resided in the property since 11 February 2009 and have used it mainly for domestic purposes and will continue to do so till date of transfer;
• that the company or close corporation has resolved to transfer the property to him/her/them pursuant to the provisions of paragraph 51 of the 8th schedule to the Income Tax Act 1962
• that the property is less than 2 hectares in extent; and
• that application is made in terms of section 9(20) of the Transfer Duty Act 1949 for exemption from the payment of transfer duty on the acquisition of the property.

You will also be required to provide, amongst other things, proof to SARS that the natural person concerned resided in the property in question and proof of the date of registration of the property in the name of the company or trust (as the case may be).

Please refer to your conveyancer for further details with regard to this exemption.