Page 54 - Bespoke EPG 2017 Digital

■■ As such, in the event of death, the asset that will be held by the deceased
will be the shareholding in the company, namely a capital asset, therefore
subject to capital gains tax and not normal gross income upon death. This
could result in a significant saving of tax as the maximum marginal income
tax rate is 45% while the effective maximum capital gains tax rate is 18% for
a natural person.

■■ Such a transfer of business or farming activities to a company could be
done by utilising the corporate rollover relief contained in the income tax act
resulting in no or minimal tax being triggered.

■■ It is advisable to consult with your professional adviser for further information
on this.

51