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]