Primary residence in CC

**Dave A** · 03-Aug-09, 01:17 PM

Now I'm really questioning the motive!!

**Martinco** · 05-Aug-09, 11:48 AM

Originally Posted by Dave A

Now I'm really questioning the motive!!

O come on Dave.............Don't you trust the government ? They are so trustworthy and honest !

Back to the implications: I have read the draft and still have a question. If one takes up the "offer" and re-register in your own name, would the rule presently in place for privately registered property apply 100% to the "converted" property as well ? i.e. Selling price minus cost minus R500K and 5% on the rest as CGT or would the rule as for a CC apply i.e. Selling price minus cost and the rest at 25% CGT tax plus company tax 28% on the profit.

( I might have some percentages incorrect , but it still amounts to a huge sum of money )

Mention in the draft is made of a "rollover" and this makes me wonder.

The reason for me asking is that I am thinking of selling and buying again but would it be worth my while to wait until next year ?

**Sieg** · 06-Aug-09, 02:58 PM

There was a "window" of opportunity to transfer a residence owned by a CC or company to the natural persons who were the beneficial owners, a few years ago, but that window was closed long time ago. Maybe this is another such window to be created? When it opens, I'll do a post on this Forum. Till then, the windows are closed and if you transfer your house from a cc / pty to yourself, the transaction will attract transfer duty / VAT and possibly Capital Gains Tax.

Sieg

**Martinco** · 13-Oct-09, 01:09 PM

Has anybody heard any more news on this thread ?

**taxlibrary** · 14-Oct-09, 10:23 AM

The Taxation Amendment Bill B10 of 1 September 2009 has made far-reaching changes to the draft bill.

The relief has been extended to trusts and the condition that the company should have only one asset has been removed.

For more info see: http://www.taxlibrary.co.za/articles/?p=95

**Martinco** · 04-Oct-10, 10:01 AM

Just an update:

Well I have finally taken the step to register my house from the CC to my private name. A fairly painless exercise except for the cost ( +- R 18000.00 )

In a previous post the matter of an electrical COC was discussed and it appears that in this case the document is not required because the rule says that the "buyer" can "request" this document and being the seller and the buyer, I did not request the COC. So, my CC did not have to fork out any money as the seller. Something to remember !