I owned a piece of land. Acquired in 1998 for R60 000. The land was sold in 2014 (this tax year) for R300 000. The agent fee for selling was 5%. I know the Capital Gains Tax was only implemented after acquisition. Please advise whether the calculation for capital gains tax is able to take into account some appreciation in value between 1998 and the year when the tax came in.
Yes, it would take appreciation in value between acquisition date and October 2001 into account.
To work out the base cost of the asset, you either use a valuation of the land obtained between October 2001 and 30 September 2004 if you obtained one at this time. Or you use the time apportionment method to work out adjusted cost at October 2001.