Summary
Capital Gains Tax Summary: Tax 200
- Course
- Taxation 200
- Institution
- University Of Johannesburg (UJ)
A step by step explanation of the inclusion of Capital Gain Tax in the Tax Framework.
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Capital Gains TaxOther Inclusions
Recoupment Formula: Selling Price(limited to cost) – Tax Value
Disposal of capital Assets:
Step 1: Calculate Tax Value on date of disposal
Tax Value = cost - total capital allowances
Step 2: Calculate Recoupment = Tax Profit (+) or Tax Loss(-)
Valuation Date = 1 Oct 2001
CGT is applied on:
Portion of gain/loss on
Capital Assets
Disposed of
On/After 1 Oct 2001
Regardless of when the asset was purchased
Who is Subject to CGT?
Resident – Worldwide assets disposed of
Non-Residents
Calculation of Taxable Capital Gain
Step 1 – Determine whether CGT needs to be calculated
Step 2 – Calculate and add Capital Gains/Losses, take exclusions into account
Proceeds – base cost = Capital Gain/Loss
Proceeds = Selling Price – Recoupment
Base Cost = Acquired After 1 Oct 2001= amount of qualifying expenditure – certain
exclusions (Allowances) [Base cost = Cost price – allowances]
Acquired Before 1 Oct 2001 = Valuation date value(VDV) PLUS expenditure after 1 Oct 2001
Base Cost = Greater of MV, TABC or 20% x Proceeds
VDV = Greater of:
Market Value on 1 Oct 2001
Time apportioned base cost
20% of (Proceeds less costs incurred after 1 Oct 2001)
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