Page 402 - SAIT Compendium 2016 Volume1

Eighth Schedule INCOME TAX ACT 58 OF 1962 Eighth Schedule
50 Rental periods
A natural person or a bene ciary of a special trust or a spouse of that person or bene ciary must for purposes of paragraph 49 be treated as having used a residence for domestic purposes during any continuous period of absence therefrom (not exceeding ve years) while that residence was being let, if—
(a) that person or bene ciary or spouse resided in that residence as a primary residence for a continuous period of at
least one year prior to and after any such period;
(b) no other residence was treated as the primary residence of that person or bene ciary during any such period; and
(c) that person or bene ciary or spouse was—
(i) temporarily absent from the Republic; or
(ii) employed or engaged in carrying on business in the Republic at a location further than 250 kilometres from that
residence.
51 Transfer of residence from company or trust
(1) Where an interest in a residence has been transferred from a company or a trust to a natural person as contemplated in subparagraph (2)—
(a) that company or trust must be deemed to have disposed of that interest for an amount equal to the base cost of that
interest on the date of transfer thereof;
(b) that company or trust and that natural person must, for purposes of determining any capital gain or capital loss in
respect of the transfer of that interest, be deemed to be one and the same person with respect to—
(i) the date of acquisition of that interest by that company or trust and the amount and date of incurral by that
company or trust of any expenditure in respect of that interest allowable in terms of paragraph 20; and (ii) any valuation of that interest effected by that company or trust as contemplated in paragraph 29 (4);
(c) no allowance or deduction allowed to that company or trust in respect of that interest must be recovered or recouped by that company or trust or be included in the income of that company or trust in the year in which the transfer takes place; and [Item (c) substituted by s. 104 (1) (a) of Act 7 of 2010.]
(d) that company or trust and that natural person must be deemed to be one and the same person for purposes of determining the amount of any allowance or deduction that is to be recovered or recouped by or included in the income of that natural person in respect of that interest.
[Item (d) substituted by s. 104 (1) (a) of Act 7 of 2010.]
(2) Subparagraph (1) applies where—
(a) that natural person acquires that interest from the company or trust no later than 30 September 2010; [Item (a) substituted by s. 104 (1) (b) of Act 7 of 2010.]
(b) that natural person—
(i) alone or together with his or her spouse directly held all the share capital or members’ interest in that company
from 11 February 2009 to the date of registration in the deeds registry of that residence in the name of that
natural person or his or her spouse or in their names jointly; or
(ii) disposed of that residence to that trust by way of donation, settlement or other disposition or nanced all the expenditure,
as contemplated in paragraph 20, actually incurred by the trust to acquire and to improve the residence; and
(c) that natural person alone or together with his or her spouse personally and ordinarily resided in that residence and used it mainly for domestic purposes as his or her or their ordinary residence from 11 February 2009 to the date of
the registration contemplated in item (b) (i):
(d) . . .
[Item (d) deleted by s. 104 (1) (e) of Act 7 of 2010.]
Provided that this paragraph applies only in respect of the portion of the property contemplated in paragraph 46.
[Para. 51 amended by s. 96 (1) of Act 60 of 2001 and by s. 85 of Act 74 of 2002 and substituted by s. 74 (1) of Act 17 of 2009.]
51A Disposal of residence by company or trust and liquidation, winding up, deregistration or termination of company or trust
[Heading of para. 51A substituted by s. 113 (1) (a) of Act 24 of 2011 – date of commencement: 1 October 2010. This substitution applies iro disposals made on or after that date and before 1 January 2013.]
(1) Subject to subparagraph (6), this paragraph applies where a company or trust disposes of an interest in a residence and—
(a) the disposal takes place on or before 31 December 2012;
(b) the residence to which that interest relates is mainly used for domestic purposes during the period commencing on
11 February 2009 and ending on the date of the disposal contemplated in item (a) by one or more natural persons
who are connected persons in relation to the company or trust at the time of that disposal; and
[Item (b) substituted by s. 113 (1) (b) of Act 24 of 2011 – date of commencement deemed to have been 1 October 2010. This substitution applies iro disposals made on or after that date and before 1 January 2013.]
(c) . . .
[Item (c) substituted by s. 113 (1) (c) of Act 24 of 2011 – date of commencement deemed to have been 1 October 2010.
This deletion applies iro disposals made on or after that date and before 1 January 2013.] (d) within a period of six months commencing on the date of the disposal contemplated in item (a)—
(i) in the case of a company making the disposal, that company has taken steps to liquidate, wind up or deregister as contemplated in section 41 (4); or
(ii) in the case of a trust making the disposal, steps have been taken to terminate the trust.
[Subitem (ii) substituted by s. 113 (1) (d) of Act 24 of 2011 – date of commencement deemed to have been 1 October 2010. This substitution applies iro disposals made on or after that date and before 1 January 2013.]
394 SAIT CompendIum oF TAx LegISLATIon VoLume 1