Category: Paragraph 3 (Eighth Schedule) – Capital gain

Paragraph 3

 

  1. Subparagraph (a) substituted by section 67 of Act 60 of 2001.

 

  1. Subitem (b)(i) substituted by section 53 of Act 32 of 2004.

 

  1. Subitem (b)(ii) substituted by section 53 of Act 32 of 2004 and section 103 of Act 22 of 2012 effective on 1 January 2013.

 

  1. Subitem (b)(iii) added by section 53 of Act 32 of 2004.

Paragraph 3 (Eighth Schedule) – Capital gain

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3.     Capital gain

A person’s capital gain for a year of assessment, in respect of the disposal of an asset-

(a)     during that year, is equal to the amount by which the proceeds received or accrued in respect of that disposal exceed the base cost of that asset;

[Subparagraph (a) substituted by section 67 of Act 60 of 2001 and amended by section 103 of Act 25 of 2015 effective on 1 January 2016]

(b)     in a previous year of assessment, other than a disposal contemplated in subparagraph (c), is equal to-

[Words preceding item (i) substituted by section 103 of Act 25 of 2015 effective on 1 January 2016] 

(i)      so much of any amount received by or accrued to that person during the current year of assessment, as constitutes part of the proceeds of that disposal which has not been taken into account –

(aa)    during any year in determining the capital gain or capital loss in respect of that disposal; or

(bb)   in the redetermination of the capital gain or capital loss in terms of paragraph 25(2); or

(ii)     so much of the base cost of that asset that has been taken into account in determining the capital gain or capital loss in respect of that disposal as has been recovered or recouped during the current year of assessment, otherwise than by way of any reduction of any debt owed by that person, and which has not been taken into account in the redetermination of the capital gain or capital loss in terms of paragraph 25(2); or

(iii)    the sum of –

(aa)   any capital gain redetermined in terms of paragraph 25(2) in the current year of assessment in respect of that disposal; and

(bb)   any capital loss (if any) determined in respect of that disposal in terms of paragraph 25 for the last year of assessment during which that paragraph applied in respect of that disposal; or

[Subitem (bb) amended by section 103 of Act 25 of 2015 effective on 1 January 2016]

(c)     in a previous year of assessment that has been reacquired as contemplated in paragraph 20(4), is equal to any capital loss determined in respect of that disposal.

[Subparagraph (c) added by section 103 of Act 25 of 2015 effective on 1 January 2016]