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Overview On 1 October 2001 Treasury implemented Capital Gains Tax into our South African tax legislation.  Prior to this date, any profits on the disposal of capital assets were not subject to tax. When a capital asset is sold it will result in either a taxable capital gain that will be included in a taxpayer’s taxable income or an assessed capital loss that should be carried forward to the next year of assessment. Capital Gains Tax (“CGT”) is regarded as a tax on income (gains that are capital in nature) and is therefore subject to normal tax. CGT is not a separate tax and is incorporated into the Income Tax Act. The Eighth Schedule of the Income Tax Act provides principles and rules to determine the CGT consequences of the disposal of assets. Section 26A forms the link between the Act and the Eighth Schedule by including taxable capital gains into taxable income. Recording content This subtopic cover: Capital Gains Tax basic working Competencies developed in this recording After studying this topic related to capital gains tax, you should be able to: Understand what capital gains tax is. Understand where capital gains tax fits into the income tax framework of an individual taxpayer. Understand that the Eighth Schedule contains the provisions in respect of capital gains tax and how to apply these provisions to determine its inclusion in a taxpayer’s taxable income calculation. Understand the basic working of CGT. Understand the process to calculate a taxable capital gain or assessed capital loss to be included in a taxpayer’s taxable income. Understand when CGT will be triggered. Understand which questions in the ITR12 tax return to answer in order to disclose capital gains and capital losses.

Overview On 1 October 2001 Treasury implemented Capital Gains Tax into our South African tax legislation.  Prior to this date, any profits on the disposal of capital assets were not subject to tax. When a capital asset is sold it will result in either a taxable capital gain that will be included in a taxpayer’s taxable income or an assessed capital loss that should be carried forward to the next year of assessment. Capital Gains Tax (“CGT”) is regarded as a tax on income (gains that are capital in nature) and is therefore subject to normal tax. CGT is not a separate tax and is incorporated into the Income Tax Act. The Eighth Schedule of the Income Tax Act provides principles and rules to determine the CGT consequences of the disposal of assets. Section 26A forms the link between the Act and the Eighth Schedule by including taxable capital gains into taxable income. Recording content This subtopic cover: Basic Proceeds and Base Cost Calculations. Competencies developed in this recording After studying this topic related to capital gains tax, you should be able to: Understand what capital gains tax is. Understand where capital gains tax fits into the income tax framework of an individual taxpayer. Understand that the Eighth Schedule contains the provisions in respect of capital gains tax and how to apply these provisions to determine its inclusion in a taxpayer’s taxable income calculation. Understand the basic working of CGT. Understand the process to calculate a taxable capital gain or assessed capital loss to be included in a taxpayer’s taxable income. Understand when CGT will be triggered. Understand which questions in the ITR12 tax return to answer in order to disclose capital gains and capital losses.

Overview On 1 October 2001 Treasury implemented Capital Gains Tax into our South African tax legislation.  Prior to this date, any profits on the disposal of capital assets were not subject to tax. When a capital asset is sold it will result in either a taxable capital gain that will be included in a taxpayer’s taxable income or an assessed capital loss that should be carried forward to the next year of assessment. Capital Gains Tax (“CGT”) is regarded as a tax on income (gains that are capital in nature) and is therefore subject to normal tax. CGT is not a separate tax and is incorporated into the Income Tax Act. The Eighth Schedule of the Income Tax Act provides principles and rules to determine the CGT consequences of the disposal of assets. Section 26A forms the link between the Act and the Eighth Schedule by including taxable capital gains into taxable income. Recording content This subtopic cover: Potential capital gain. Competencies developed in this recording After studying this topic related to capital gains tax, you should be able to: Understand what capital gains tax is. Understand where capital gains tax fits into the income tax framework of an individual taxpayer. Understand that the Eighth Schedule contains the provisions in respect of capital gains tax and how to apply these provisions to determine its inclusion in a taxpayer’s taxable income calculation. Understand the basic working of CGT. Understand the process to calculate a taxable capital gain or assessed capital loss to be included in a taxpayer’s taxable income. Understand when CGT will be triggered. Understand which questions in the ITR12 tax return to answer in order to disclose capital gains and capital losses.

Overview On 1 October 2001 Treasury implemented Capital Gains Tax into our South African tax legislation.  Prior to this date, any profits on the disposal of capital assets were not subject to tax. When a capital asset is sold it will result in either a taxable capital gain that will be included in a taxpayer’s taxable income or an assessed capital loss that should be carried forward to the next year of assessment. Capital Gains Tax (“CGT”) is regarded as a tax on income (gains that are capital in nature) and is therefore subject to normal tax. CGT is not a separate tax and is incorporated into the Income Tax Act. The Eighth Schedule of the Income Tax Act provides principles and rules to determine the CGT consequences of the disposal of assets. Section 26A forms the link between the Act and the Eighth Schedule by including taxable capital gains into taxable income. Recording content This subtopic cover: Potential capital loss. Competencies developed in this recording After studying this topic related to capital gains tax, you should be able to: Understand what capital gains tax is. Understand where capital gains tax fits into the income tax framework of an individual taxpayer. Understand that the Eighth Schedule contains the provisions in respect of capital gains tax and how to apply these provisions to determine its inclusion in a taxpayer’s taxable income calculation. Understand the basic working of CGT. Understand the process to calculate a taxable capital gain or assessed capital loss to be included in a taxpayer’s taxable income. Understand when CGT will be triggered. Understand which questions in the ITR12 tax return to answer in order to disclose capital gains and capital losses.

Overview On 1 October 2001 Treasury implemented Capital Gains Tax into our South African tax legislation.  Prior to this date, any profits on the disposal of capital assets were not subject to tax. When a capital asset is sold it will result in either a taxable capital gain that will be included in a taxpayer’s taxable income or an assessed capital loss that should be carried forward to the next year of assessment. Capital Gains Tax (“CGT”) is regarded as a tax on income (gains that are capital in nature) and is therefore subject to normal tax. CGT is not a separate tax and is incorporated into the Income Tax Act. The Eighth Schedule of the Income Tax Act provides principles and rules to determine the CGT consequences of the disposal of assets. Section 26A forms the link between the Act and the Eighth Schedule by including taxable capital gains into taxable income. Recording content This subtopic cover: Special base cost rules. Competencies developed in this recording After studying this topic related to capital gains tax, you should be able to: Understand what capital gains tax is. Understand where capital gains tax fits into the income tax framework of an individual taxpayer. Understand that the Eighth Schedule contains the provisions in respect of capital gains tax and how to apply these provisions to determine its inclusion in a taxpayer’s taxable income calculation. Understand the basic working of CGT. Understand the process to calculate a taxable capital gain or assessed capital loss to be included in a taxpayer’s taxable income. Understand when CGT will be triggered. Understand which questions in the ITR12 tax return to answer in order to disclose capital gains and capital losses.

Overview On 1 October 2001 Treasury implemented Capital Gains Tax into our South African tax legislation.  Prior to this date, any profits on the disposal of capital assets were not subject to tax. When a capital asset is sold it will result in either a taxable capital gain that will be included in a taxpayer’s taxable income or an assessed capital loss that should be carried forward to the next year of assessment. Capital Gains Tax (“CGT”) is regarded as a tax on income (gains that are capital in nature) and is therefore subject to normal tax. CGT is not a separate tax and is incorporated into the Income Tax Act. The Eighth Schedule of the Income Tax Act provides principles and rules to determine the CGT consequences of the disposal of assets. Section 26A forms the link between the Act and the Eighth Schedule by including taxable capital gains into taxable income. Recording content This subtopic cover: Primary residence exclusion. Competencies developed in this recording After studying this topic related to capital gains tax, you should be able to: Understand what capital gains tax is. Understand where capital gains tax fits into the income tax framework of an individual taxpayer. Understand that the Eighth Schedule contains the provisions in respect of capital gains tax and how to apply these provisions to determine its inclusion in a taxpayer’s taxable income calculation. Understand the basic working of CGT. Understand the process to calculate a taxable capital gain or assessed capital loss to be included in a taxpayer’s taxable income. Understand when CGT will be triggered. Understand which questions in the ITR12 tax return to answer in order to disclose capital gains and capital losses.

Overview On 1 October 2001 Treasury implemented Capital Gains Tax into our South African tax legislation.  Prior to this date, any profits on the disposal of capital assets were not subject to tax. When a capital asset is sold it will result in either a taxable capital gain that will be included in a taxpayer’s taxable income or an assessed capital loss that should be carried forward to the next year of assessment. Capital Gains Tax (“CGT”) is regarded as a tax on income (gains that are capital in nature) and is therefore subject to normal tax. CGT is not a separate tax and is incorporated into the Income Tax Act. The Eighth Schedule of the Income Tax Act provides principles and rules to determine the CGT consequences of the disposal of assets. Section 26A forms the link between the Act and the Eighth Schedule by including taxable capital gains into taxable income. Recording content This subtopic cover: Other Loss Limitation Provisions and Rules Regarding Disregarding Tax consequences. Competencies developed in this recording After studying this topic related to capital gains tax, you should be able to: Understand what capital gains tax is. Understand where capital gains tax fits into the income tax framework of an individual taxpayer. Understand that the Eighth Schedule contains the provisions in respect of capital gains tax and how to apply these provisions to determine its inclusion in a taxpayer’s taxable income calculation. Understand the basic working of CGT. Understand the process to calculate a taxable capital gain or assessed capital loss to be included in a taxpayer’s taxable income. Understand when CGT will be triggered. Understand which questions in the ITR12 tax return to answer in order to disclose capital gains and capital losses.

Overview On 1 October 2001 Treasury implemented Capital Gains Tax into our South African tax legislation.  Prior to this date, any profits on the disposal of capital assets were not subject to tax. When a capital asset is sold it will result in either a taxable capital gain that will be included in a taxpayer’s taxable income or an assessed capital loss that should be carried forward to the next year of assessment. Capital Gains Tax (“CGT”) is regarded as a tax on income (gains that are capital in nature) and is therefore subject to normal tax. CGT is not a separate tax and is incorporated into the Income Tax Act. The Eighth Schedule of the Income Tax Act provides principles and rules to determine the CGT consequences of the disposal of assets. Section 26A forms the link between the Act and the Eighth Schedule by including taxable capital gains into taxable income. Recording content This subtopic cover: Roll-over of capital gains. Competencies developed in this recording After studying this topic related to capital gains tax, you should be able to: Understand what capital gains tax is. Understand where capital gains tax fits into the income tax framework of an individual taxpayer. Understand that the Eighth Schedule contains the provisions in respect of capital gains tax and how to apply these provisions to determine its inclusion in a taxpayer’s taxable income calculation. Understand the basic working of CGT. Understand the process to calculate a taxable capital gain or assessed capital loss to be included in a taxpayer’s taxable income. Understand when CGT will be triggered. Understand which questions in the ITR12 tax return to answer in order to disclose capital gains and capital losses.

Overview On 1 October 2001 Treasury implemented Capital Gains Tax into our South African tax legislation.  Prior to this date, any profits on the disposal of capital assets were not subject to tax. When a capital asset is sold it will result in either a taxable capital gain that will be included in a taxpayer’s taxable income or an assessed capital loss that should be carried forward to the next year of assessment. Capital Gains Tax (“CGT”) is regarded as a tax on income (gains that are capital in nature) and is therefore subject to normal tax. CGT is not a separate tax and is incorporated into the Income Tax Act. The Eighth Schedule of the Income Tax Act provides principles and rules to determine the CGT consequences of the disposal of assets. Section 26A forms the link between the Act and the Eighth Schedule by including taxable capital gains into taxable income. Recording content This subtopic cover: Deemed disposal rules Competencies developed in this recording After studying this topic related to capital gains tax, you should be able to: Understand what capital gains tax is. Understand where capital gains tax fits into the income tax framework of an individual taxpayer. Understand that the Eighth Schedule contains the provisions in respect of capital gains tax and how to apply these provisions to determine its inclusion in a taxpayer’s taxable income calculation. Understand the basic working of CGT. Understand the process to calculate a taxable capital gain or assessed capital loss to be included in a taxpayer’s taxable income. Understand when CGT will be triggered. Understand which questions in the ITR12 tax return to answer in order to disclose capital gains and capital losses.

Overview As we know, capital gains tax is not a separate tax but forms part of income tax and is based on the profit earned from the sale of an asset which has increased in value over time. The basic calculation isn’t hard to forget but it&r squo;s easy to overlook the finer details of costs that should be included in base cost and disposal. Are you aware of the number of changes to the principles of CGT have occurred over the years? This session is aimed at renewing your technical knowledge on the subject, as well as informing you of the correct practical procedures to follow when calculating CGT. Video Content What transactions and events are subject to CGT? How is CGT calculated? Looking specifically at: Definition of base cost  Definition of proceeds Exceptions to the rule What special rules could apply? These fall into three categories: Loss limitations Roll over relief Exclusions Case law developments in CGT Competencies Developed Upon completion of this session, participants will develop the following competencies: Understanding of CGT terminology. Ability to interpret the scope of the Eighth Schedule. Ability to calculate gains or losses. Advanced knowledge of the relevant inclusions and exclusions when calculating the tax burden. Awareness of tax liabilities.