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Capital gain from trust split between spouse and myself

Posted 26 November 2015 under Tax Questions


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Claire says:
23 November 2015 at 11:54

I earn a salary and have an IRP5. This year I have received a capital gain distribution from a trust of which I am a beneficiary of. A property was sold in the Trust and it was decided to split the capital gain between myself and my husband in equal shares. I am not sure how to deal with this on my tax return. I assume that I tick the box that says that a capital gain is applicable - it then asks me to put in the proceeds and base cost etc, but as I only received half the gain I am not too sure what to fill in.

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TaxTimTaxTim says:
24 November 2015 at 0:34

Did the trust pay any CGT on this disposal?


Claire says:
24 November 2015 at 8:40

No CGT was paid by the trust. Full amount distributed in equal shares to myself and my husband as beneficiaries of the trust.


TaxTimTaxTim says:
24 November 2015 at 12:06

If the CGT was paid by the trust you will not need to pay CGT as well.


Claire says:
24 November 2015 at 13:01

Hi. The CGT was not paid by the Trust as per my previous message. It was decided to distribute the Capital Gain in equal shares to the beneficiaries as the beneficiaries have a lower tax rate & get a R30,000pa exclusion. So, I need to show half of the capital gain on my tax return. I am not sure how to show the capital gain on my tax return because I only received half of the actual gain.


TaxTimTaxTim says:
24 November 2015 at 14:27

My apologies, I completely misread that message.

You would show half the proceeds and half the base cost - so in effect your 50% share of the gain.


Claire says:
24 November 2015 at 15:17

Thank you so much for the help.


TaxTimTaxTim says:
24 November 2015 at 15:33

Only a pleasure!


Claire says:
26 November 2015 at 14:03

Sorry, just another question. The other half of the capital gain was distributed to my husband. He is a provisional tax payer. I did not include this gain in his 02/2015 provisional return and have not paid the CGT yet. Will there be a penalty payable?


TaxTimTaxTim says:
26 November 2015 at 17:22

In theory yes, but depends on the amount and if it adds more than 10% to his overall income. Else you can dispute it and say you were unaware at the time.


Claire says:
26 November 2015 at 17:27

Thank you.


Claire says:
26 November 2015 at 17:27

Thank you.


Claire says:
26 November 2015 at 17:27

Thank you.


TaxTimTaxTim says:
26 November 2015 at 20:15

Glad we could assist!


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Hi, I'm Tim!
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