Page 14 - F6 Slides (CGT,TT,ET AND PT)

Periods of non-residential use deemed to be

residential use

• In certain circumstances, where the trade constitutes the temporary letting of the

primary residence, the non-residential use will be treated as residential use. A
non-trade adjustment in terms of par 49 will not be necessary even though the

person or beneficiary of a special trust is absent from it for a continuous period of
up to five years while it is being let. This concession applies if

• the person (or spouse or beneficiary of a special trust) concerned resided in the
residence as a primary residence for a continuous period of at least one year

prior to and after the period of letting, and l

• no other residence was treated as his or her primary residence during the period
of letting, and l

• he or she was either temporarily absent from South Africa during the period of

letting or was employed or engaged in carrying on business in South Africa at a
location further than 250 kilometres from the residence during the relevant

period (par 50).