If you hold your home in the name of a company, close corporation or trust, you may be able to take advantage of the opportunity to transfer it - free of tax - into your own name until the end of 2011. It is however, advisable to take all the possible advantages and disadvantages into account, when considering such a step.

1. Who qualifies?

The property must have been owned by the company, CC or trust since 11 February 2009, and must be

o used mainly for "domestic purposes" (the word "mainly" implies that you may be able to safely run a home office; but there are grey areas here, so take advice before you do so);

o the "ordinary residence" (since 11 February 2009) of you or your spouse; so, for example, buy-to-let properties and holiday houses will not qualify; and be

o no more than 2 hectares in extent.

With a company or CC, the shares or member's interests must be held by individuals (so if the shareholder is a trust, there is no relief).

With a trust, the person taking transfer must have donated the house to the trust or funded its acquisition, improvement, maintenance, and payment of bond installments (if any).

2. Possible Advantages

There is potentially a Capital Gains tax advantage to holding your primary residence in your personal name (or indeed in the name of any other qualifying individual).

Firstly, when you come to sell the property down the line, you will pay less Capital Gains Tax as an individual, in three respects: -

a). The first R1.5m of the capital gain on a "primary residence" is exempted from Capital Gains tax, and

b). The balance of the capital gain will be subject to CGT at a maximum effective rate of only 10% (much less than the fixed 14% for a company/CC, or the 20% for a trust), and

c). An "annual exclusion" of R17 500 (R120 000 on death) applies (i.e. any capital gain up to that amount is tax-free for individuals).

Then (and this again is a cost which the private individual avoids), if you want to take the proceeds out of your company or CC, your company must also pay a second tax of 10% - STC ("secondary tax on companies") on that dividend.

3. Possible Disadvantages

If the property is bonded, first check the following with your bank (and factor in whatever costs may result):

• Although in theory your bank could possibly agree to substitute you for your entity, it seems more likely that it will instead insist on registration of an entirely new bond - find out which will apply in your case.

• Will it re-assess your loan? If so, will you qualify (as you will have to) in terms of the National Credit Act.

• Will you get the same interest rate as applies now?

• Do you need to give notice on the bond?  Often penalties are incurred if you give less than 3 months' notice.

NB: If you originally put your property into a separate entity to insulate it from business or other risks (usually protection from creditors), re-assess the current risk in relation to both these tax and other savings. The same applies if your primary concern was Estate Duty.