Moratorium transfers

In order for a person to avail himself of the benefits of the moratorium or window period to transfer a "principal place of residence" from a company, close corporation or trust, there are a number of tests and circumstances to be met.

There is one requirement in particular relating to companies, that conveyances must not forget, but it has got nothing to do with the new enabling legislation.

Typically the property will be the sole asset of a company. Therefore, in addition to complying with the amended paragraph 51 of the Eight Schedule to the Income Tax Act, the conveyancer must ensure that a special resolution of the shareholders is passed and registered by the disposing company if the property is its principal or sole asset in order to comply with this section 228 of the Companies Act.

Donald Moore
Guthrie & Rushton Attorneys