New tax laws will ensure that individual ownership will increase and cc, company and trust ownership decrease

The proposed amendments to the taxation laws relating to properties owned in close corporations, companies or trusts will result in many of these organisations which were simply “property owning vehicles” being replaced by individual owners.

And the good news, says Tony Clarke, MD of Rawson Properties, is that if the owner or his/her spouse has since February used the home regularly as a primary residence, the Receiver of Revenue has agreed to allow the transfer to the individual owner to take place without any payment of company tax, capital gains tax or transfer duty – provided this is done before 21st December 2011.

Clarke said that although there had in some cases been tax advantages to owning property in one of the vehicles described (especially for those earning large incomes), individual ownership will simplify matters because the owner will no longer have to submit audited annual statements and accounts as is necessary when the property is owned by a close corporation, a company or a trust.

“Many of the companies, cc’s or trusts had no other purpose other than to hold a property and therefore it is right that they should disappear from the scene and the actual owner be recognised.”

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