Important:
This answer is based on tax law year ending 28 February 2021.
Answer:
You stated that the individual acquired the helicopter and is the registered vendor. A person registers as a vendor, and not only in respect of certain activities. From the facts it is clear that the goods (the helicopter) was used (and held at the time of supply) by the vendor (the individual), but NOT wholly for the purpose of consumption, use or supply in the course of making taxable supplies (or partly so). The issue is not whether a deduction of input tax was made, but for what purpose the goods, the helicopter, was used by the vendor. Because the goods were not used or held for ‘taxable purposes’, the supply will not be a taxable supply – essentially not made in the course of carrying on an enterprise. No output tax will then be levied. A deduction of input tax, there was none (based on our assumption), can also not be made – principally as the supply is not a taxable supply (or a non-supply) and there was no change in the intention. We agree with your view on the personal use asset – see Paragraph 53(3)(c) of the Eighth Schedule, “personal use assets do not include … an aircraft, the empty mass of which exceeds 450 kilograms”. The wear and tear, or section 12C (more likely) allowances deducted must indeed be recouped, but we are not sure how this was claimed as the individual used the helicopter for private purposes (and not for trade purposes). The capital loss, on the disposal of a primary residence, to the extend it exceeds the R2 million exclusion, can be used in arriving at the net capital gain for the individual.