Final SARS Guide

The following paragraphs in this guide to the application of paragraphs 51 and 51A of the Eighth Schedule to the Income Tax Act, promulgated by the Taxations Laws Amendment Act have been changed from the version published in November last year - see Draft Sars Guide - II

The following changes have been made to this update:

  • 5. STC exemption - disposal has been expanded upon and an example added.
  • 6. Dividends tax exemption - Note on relation of s 64F(iA) and the need to amend it to identify a beneficial owner to align it with the opening words of s 64F.
  • 7.2.1. An interest in a residence must be disposed of - application of accession.
  • 7.2.2. "date of acquisition" discussed.
  • 7.2.3. The use-and-occupation requirements - need to amend law to include holiday homes.
  • 7.2.4 The connected person requirement - longer list of persons considered to be connected in relation to a close corporation.
  • 7.2.5 The termination of the company or trust requirement - references to the Companies Act of 1973 need to be amended to reflect the position under the Companies Act of 2008, the equivalent 2008 provisions are given.
  • 7.4 Base cost of residence acquired from a company - shares acquired in company already holding the residence - expanded upon.
  • Who qualifies as an acquirer? - New examples regarding disposals by a close corporation to a relative or member, and the disposal by a company to a spouse of shareholder.

Final Sars Guide to Disposal of a Residence 11May2011


Leave a comment:

Security Picture (click to change)
Word shown in picture:
menu close

Search Articles