Where is taxable capital gain found on normal tax calculation?
Below deductions and allowances
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What is the tax treatment of capital gains?
Included in GI as per S26a
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What assets are included in CGT for residents?
Taxed on disposal of world wide assets
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What assets are included in CGT for residents?
Fixed/immovable property in SA (inc any interest or right in said property) OR assets of South African permanent establishment
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What four key principals required for CGT to occur?
1. Asset 2. Disposal 3. Proceeds 4. Base Cost
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What does an 'asset' include?
Property of any nature, tangible or intangible (inc rights or interest in property) AND any coin made mainly from gold or platinum
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What doesn't 'asset' include?
Currency
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What does 'disposal' include?
Sale, donation, transfer of ownership, destruction, scrapping, loss etc.
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How do you calculate taxable CG?
Proceeds less base cost
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Another way to frame it : CG =
Proceeds - any amts included in GI on disposal
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What is the annual CGT exclusion for individuals?
R40000
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What are the individual and company tax rates for CGT?
40% and 80%
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Is trading stock included as an asset for CGT?
TS is an asset but no CGT because proceeds all included in GI
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Which certain disposals are deemed to take place at MV?
Donation + disposal not measurable in money + to a CP not at arms length price + all other 'deemed' disposals
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What does the base cost include?
Costs of aq., moving costs, installation costs, improvements, cost of holding asset, costs of selling, costs of advertising etc.
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What costs doesn't it include?
S24j costs + costs of repair
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How do you treat a capital loss?
As you would with gain take proceeds less base cost and reduce the amount by the R40000 exclusion - then carry this forward to the next year to reduce the capital gain
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What is included in proceeds?
Amount received less recoupments
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What is included in base cost?
Expenditure less allowances
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What CGT exclusions are there?
Primary residence, personal use assets, gambling/games/competitions, donations to PBO's
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Who does the primary residence exclusion apply to?
Only natural persons and special trusts
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What are the 2 rules for the exemption?
1. If proceeds < R2m entire gain/loss disregarded 2. Otherwise R2m of the gain/loss disregarded
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Can you have more than 1 primary residences at a time?
No
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What are 'personal use assets' defined as?
Any asset, mainly used for purposes other than carrying on a trade
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