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CGT Exemption Applicable to Estate
- 22 November 2023
- Accounting
- The Tax Faculty Tax Specialist
This FAQ article is based on tax law for the year ending 29 February 2024.
1. Background
A deceased taxpayer bequeathed her share portfolio to her surviving spouse. The spousal roll-over relief will be applicable, and the transfer will not trigger CGT. However, if the estate decides to sell the shared portfolio at a later stage, it might trigger CGT. Unfortunately, the Deceased Estate Late might not qualify for the higher R300,000 CGT exemption typically applicable upon death. Could you confirm if this interpretation is accurate?
2. The Problem / Facts
What is the CGT exclusion applicable to a deceased estate?
3. Applicable Law
Paragraph 5(1) of the Eighth Schedule of the Act
4. Application of the Law to the Facts
The CGT exclusion applicable to the estate is R40 000, the same as for a natural person and the estate with some exclusions is treated as a natural person.
5. Conclusion
The estate is treated with some exclusions as a natural person and many of the tax allowances, rebates and exclusions granted to a natural person are granted to the estate.
Join Carmen Westermeyer for her upcoming webinar about Turnover Tax and learn all about the who, what and how.
- Click here to intro snippet.
- Click here to for more information