48.    Disposal and acquisition of primary residence

A natural person or a beneficiary of a special trust or a spouse of that person or beneficiary must for purposes of paragraph 47 be treated as having been ordinarily resident in a residence for a continuous period (not exceeding two years), if that natural person, beneficiary or spouse did not reside in that residence during that period for any of the following reasons-

(a)     at the time the residence was the primary residence of that natural person or special trust it had been offered for sale and vacated due to the acquisition or intended acquisition of a new primary residence;

(b)     that residence was being erected on land acquired for that purpose in order to be used as the primary residence of that natural person or special trust;

(c)     the residence had been accidentally rendered uninhabitable; or

(d)     the death of that natural person, beneficiary or spouse.

[Paragraph 48 substituted by section 45 of Act 20 of 2021]

49.    Non-residential use

Subject to paragraph 50–

(a)     where a natural person or special trust-

(i)      disposes of an interest in a primary residence; or

(ii)     disposes of an interest in a residence that was a primary residence for a part of the period on or after the valuation date during which that person or special trust held that interest; and

(b)     where that natural person, a beneficiary of that special trust or a spouse of that natural person or beneficiary used the residence referred to in subparagraph (a) or a part thereof for the purposes of carrying on a trade for any portion of the period on or after the valuation date during which that person or special trust held that interest,

[Subparagraph (b) substituted by section 95(1)(b) of Act 60 of 2001 and by section 46 of Act 20 of 2021]

then paragraph 45(1)(a) must apply only in respect of the portion of the capital gain or capital loss on disposal of the primary residence that is attributable to any period on or after the valuation date during which that person, beneficiary or spouse used that residence for domestic purposes as well as to the part of that residence used by that person, spouse or beneficiary mainly for purposes other than the carrying on of a trade.

[Words following paragraph (b) substituted by section 74 of Act 15 of 2016 effective on 19 January 2017]

50.    Rental periods

A natural person or a beneficiary of a special trust or a spouse of that person or beneficiary must for purposes of paragraph 49 be treated as having used a residence for domestic purposes during any continuous period of absence therefrom (not exceeding five years) while that residence was being let, if-

(a)     that person or beneficiary or spouse resided in that residence as a primary residence for a continuous period of at least one year prior to and after any such period;

(b)     no other residence was treated as the primary residence of that person or beneficiary of a special trust during any such period; and

[Paragraph (b) substituted by section 75 of Act 15 of 2016 effective on 19 January 2017]

(c)     that person or beneficiary or spouse was-

(i)      temporarily absent from the Republic; or

(ii)     employed or engaged in carrying on business in the Republic at a location further than 250 kilometers from that residence.