Page 29 - Nexia Cape Town 2018 TG Digital

CAPITAL GAINS TAX (CGT)

Persons subject to CGT
CGT is payable on capital gains that arise by the following persons:
■ Residents are subject to CGT on all assets including overseas assets
■ Non-residents are subject to CGT on immovable property or any right or
interest in a property situated in South Africa and any asset of a permanent
establishment through which a trade is carried on in South Africa (SA)
Note: Any right or interest in a property includes a direct or indirect interest of at
least 20% held alone or together with any connected person in the equity share
capital of a company, where at least 80% of the value of the net assets of the
company is, at the time of the disposal, attributable to immovable property in SA�
Exclusions
The following are the main exclusions from CGT:
■ Primary residences with capital gains up to R2 million
■ Personal use assets
■ Retirement benefits
■ Long-term assurance
■ Small business assets with capital gains up to R1�8 million (applicable when
a person is over the age of 55 where the maximum market value of the small
business assets does not exceed R10 million)
■ Annual exclusion for natural persons: R40 000
■ Annual exclusion on death for natural persons: R300 000
Calculation and inclusion rates
A capital gain or loss is calculated separately in respect of each asset disposed�
Once determined, gains or losses are combined for that year of assessment and
if it is:
■ an assessed capital loss, it is carried forward to the following year, or
■ a net capital gain, it is multiplied by the inclusion rate and included in
taxable income

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