Tax and SARS knowledge base

Can a special trust claim the primary-residence CGT exclusion?

Last reviewed: 28 August 2026

Direct answer

Potentially, yes. SARS explains that a primary residence can be a residence in which an individual or a special trust holds an interest, provided the individual, beneficiary of the special trust or spouse ordinarily resides there and uses it mainly for domestic purposes as an ordinary residence. That is not a blanket rule for every trust. The trust must in fact be a special trust for the relevant purpose and the residence, occupation and use requirements must be supported.

For the current 2026/27 information SARS lists a R3 million primary-residence exclusion, but the amount and applicable rules must be checked against the year in which the disposal occurs. First calculate and classify the gain, then test the relief. Do not begin by assuming that the entire sale proceeds are exempt.

What this means in practice

Trust property often creates a misleading shortcut: a beneficiary may live in a house and call it "our family home", but the legal owner may be the trust. SARS distinguishes a special trust from other trusts for this relief. Its current trust information says trustees should apply for classification where they seek benefits applicable to a special (a) trust. Keep the SARS classification, trust deed, trustee resolutions and records showing why the trust qualifies available for review.

The residence facts matter too. The relevant person must ordinarily reside in the home and use it mainly for domestic purposes. A holiday house, a property mainly let to tenants, or a house substantially used in a trade can create a different answer or a need for apportionment. The SARS primary-residence material also describes limits concerning one residence at a time, land, periods not ordinarily occupied and trade use. Those details make contemporaneous records valuable.

Do not treat a trust sale as an individual's personal sale. The seller, the trust's tax status, whether a gain is vested, and the ITR12T reporting position are separate questions. A special-trust primary-residence analysis should be completed before a sale agreement is signed where possible.

Step-by-step

Confirm the trust type.

Obtain the trust deed, letters of authority, SARS registration and any evidence of special-trust classification. Do not rely solely on the name used by the family.

Identify the legal owner and disposal.

Review the title, sale agreement and trustee resolution. Confirm whether the trust is disposing of the property or whether another person holds the relevant interest.

Evidence ordinary residence and domestic use.

Retain municipal records, insurance, utility accounts, school or medical correspondence where relevant, and a practical occupancy timeline. These are supporting facts, not a prescribed universal list.

Identify non-qualifying periods or use.

Record tenant occupation, trade or home-office use, holidays, other residences and any absence. These facts can require a different calculation.

Calculate the capital gain first.

Build the base-cost, proceeds and selling-cost file. Keep purchase, improvement, valuation and legal records.

Apply the current SARS rules to the disposal year.

Check the exclusion amount and relevant CGT guidance in force for the year. Retain the calculation and trust decision records.

Documents and records to keep

Trust deed, letters of authority, SARS registration and special-trust evidence.
Title deed, sale agreement and trustee resolution.
Occupancy and use timeline, including any letting or business use.
Purchase, improvement, valuation and sale-cost records.
Current CGT calculation and return working papers.

Important limits and exceptions

A normal trust does not become a special trust merely because it assists a family member. SARS's FAQ says the special-trust interest and ordinary-residence conditions are fundamental. The primary-residence exclusion is limited, and the current published amount applies only for its applicable period. More than one owner, more than one residence, land above the qualifying scope, trade use and periods of absence can affect the result.

This is not an opinion on the trust deed, disability criteria, vesting of capital gains, estate planning or the tax effect of a transfer from the trust. Those issues can substantially alter the answer and require a review of the legal documents.

When to get tailored advice

Get advice before sale if the property is high value, has been let, was used in a business, is jointly held, is a holiday property, has multiple beneficiaries or the trust classification is unclear. TaxProof can compile the property and occupancy evidence for the accountant or tax specialist.

Related TaxProof guides

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