Work out the Capital Gains Tax Payable on the disposal of your Asset
Follow the steps below to calculate your Capital Gains Tax / CGT
Have you disposed of an asset this year?
Is the asset excluded from Capital Gains Tax?
When did you acquire the asset?
What did you pay for it? R This is called the Base Cost.
Several costs can be added to the Base Cost to decrease overall CGT. Learn more
The base cost of an asset is generally the costs involved in taking ownership of an asset (what you paid for it) together with expenditure directly related to the purchase or disposal of that asset (for example, sales commission) or to improve the asset (such as the cost of renovations / additions / improvements to the asset). The base cost of an asset does not include any costs to the extent to which they have been allowed as a deduction against ordinary income. Examples include a capital allowance on plant or machinery, or plumbing repairs to a property that you previously declared as an expense to offset income earned. Some of the main costs that may form part of the base cost of an asset are the following:
Expenditure to purchase the asset.
Transfer costs, stamp duty, securities transfer tax, transfer duty.
Advertising cost to find a buyer or seller.
Cost of improvements / renovations (NOT repairs or maintenance) to an asset. Ask yourself, did this improvement add anything new that wasn't there before?
Cost of obtaining a valuation of an asset for the purpose of calculating a capital gain or loss up on its disposal.
Costs directly related to the acquisition, creation or disposal of an asset, for example, fees paid to a surveyor, auctioneer, accountant, broker, agent, consultant or legal advisor, for services rendered.
Value-added tax (VAT) paid and not claimed or refunded on an asset.
Cost of establishing, maintaining or defending a legal title to or right in an asset.
Cost of moving an asset from one location to another for purposes of acquiring or disposing of it - transport costs.
Cost of installation of an asset, including the cost of foundations and supporting structures.
Building costs, such as city council forcing you to pay to have an electricity meter installed.
All of these costs can be added to your Base Cost above. Add them now!
Allowed costs: R (if any)
Were these costs all paid in one tax year?
Capital Gains Tax was only implemented in 1 October 2001.
Please separate the allowed costs before and after 1 October 2001.
Allowed costs (after 1 October 2001): R (if any)
Did you get a valuation of the asset after that date and before 30 September 2004?
If so, please enter it here: R You can enter a value if it was published in the Government Gazette outside of those dates e.g. South African-listed shares or participatory interests in collective investment schemes.
Were any costs involved with disposing of the asset? Enter them here: R If you included selling costs in the above allowed costs, remove it now.
When did you dispose of the asset?
What amount did you get for it? R This is called the Proceeds.
Did the seller die and declare this in their final tax return?
Was the asset disposed your primary residence?
There are two basic requirements which must be met before a home may be considered a primary residence, namely:
it must be owned by a natural person (not a trust, company or close corporation); and
the owner or spouse of the owner must ordinarily reside in the home as his or her main residence and must use the home mainly for domestic purposes.
Lastly, what is your annual taxable income? R Not sure? Use our salary calculator to work it out.
Ok, then no need to calculate Capital Gains Tax!
Ok, then no need to calculate Capital Gains Tax!
A wide meaning is given to the term "disposal". The following are some examples of events that are disposals:
The sale of an asset
Donation of an asset
The loss or destruction of an asset
Change of use - from business use to personal
Certain assets (for example personal-use assets) do not attract CGT.
Maybe your asset is one of the below:
Most personal belongings such as a motor vehicle (including a motor vehicle for which you receive a car allowance), a caravan, artwork, stamp collection, furniture and household appliances and other assets used mainly (that is, more than 50%) for a non-trade (non-business / non-income earning) purpose.
Boats not exceeding ten metres in length and aircraft having an empty mass of 450 kilograms or less which are personal-use assets.
Lump sum payments from pension, pension preservation, provident, provident preservation and retirement annuity funds (approved retirement funds).
Proceeds from an endowment policy or life insurance policy (but not if it is a second-hand policy or a foreign policy).
Compensation for personal injury or illness.
Prizes/winnings from gambling, games or competitions which are authorised by, and conducted under, the laws of South Africa, for example, the National Lottery.