How to Calculate Capital Gains Tax

Following article written and published by Nolands Chartered Accountants, www.Nolands.co.za


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;
an annual exclusion of R10 000 then applies, in respect of natural persons only, to the sum of all gains and losses (R50 000 in the year of death of the person);
the resulting capital gain or loss (if not specifically excluded, disregarded or deferred) is aggregated with all other gains or losses in the current tax year, and if it is;
 

o an assessed capital loss, it is carried forward to the following year, or
o a net capital gain, it is multiplied by the inclusion rate (see example).
this taxable capital gain is included in taxable income and taxed at the normal income tax rates applicable - (see table).

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