Take the following into consideration.

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Buying residential property in a company or CC comes with disadvantages regarding tax when selling the property.
– The calculation of CGT is calculated at 22.4% of the capital gain.
– Even if a shareholder uses the property as their primary residence the R 2 mil exemption in respect of CGT is not applicable.
-ALL shareholders / member will pay 20% dividends Tax on the net profit.

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– 36 % CGT is to be paid unless shared between beneficiaries then personal rate will apply between 0% – 18%.
-So no dividends Tax when shared between the Trust beneficiaries.
– Even if a beneficiaries / trustees use the property as their primary residence the R 2 mil exemption in respect of CGT is not applicable.

It is always necessary to speak to your Tax adviser as each case is different.

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