Capital gains tax on shares sold

Hi, In the current tax year I sold shares in my 3 year old business to my other shareholder. The shareholder transferred the agreed amount via an attorney (they subtracted their fees related to this transaction) to my account. The nett amount was in the low millions and I expect the full amount to be subject to CGT.

What kind of documentation do I have to provide SARS with and what kind of documentation should I keep should I ever be audited by SARS? Which amount do I record in my return?


This entry was posted in Tax Q&A and tagged , , . Bookmark the permalink.

TaxTim TaxTim says:
21 November 2012 at 14:12

You would include in your return the proceeds and the "cost" (base cost) of the shares when established. The difference will be the amount subject to capital gains tax. You should keep the original share certificate/purchase agreement and the lawyers letter showing the sale amount in case SARS requests supporting documentation.

TaxTim is FREE for all Momentum & Multiply members.

Use your ID number at the payment step to claim your free TaxTim voucher

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund

Get started FREE

Blog Categories

Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →

Get SARS Tax Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.