Author: Peter Surtees
Important:
This answer is based on tax law year ending 28 February 2021.
Answer:
For tax purposes the date of disposal of an asset is the date on which the contract is concluded and suspensive conditions, if any, are met. Transfer is not a suspensive condition. So, the date for purposes of your client, is the date on which the trust and the company conclude the agreement and the shares are issued. Eighth Schedule paragraph 13(1)(a)(ii): “The time of disposal of an asset by means of- (a) a change of ownership effected from one person to another because of an event, act, forbearance or by the operation of law is, in the case of-…(ii) any agreement which is not subject to a suspensive condition, the date on which the agreement is concluded”.