Resources On-Demand

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.