Category: PART VIII – Other exclusions

Paragraph 64D (Eighth Schedule) – Land donated in terms of land reform measures

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64D.  Land donated in terms of land reform measures

A person must disregard any capital gain or capital loss in respect of the disposal by way of a donation of land or right to land by virtue of the measures as contemplated in Chapter 6 of the National Development Plan: Vision 2030 of 11 November 2011 released by the National Planning Commission, Presidency of the Republic of South Africa.

[Paragraph 64D inserted by section 77 of Act 15 of 2016 effective on 29 February 2016, applies in respect of years of assessment ending on or after that date]

Paragraph 63C (Eighth Schedule) – Disposal of equity instruments

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64C.    Disposal of restricted equity instruments

A person must disregard any capital gain or capital loss determined in respect of the disposal of any restricted equity instrument as contemplated in section 8C(4)(a), (5)(a) or (c).

[Paragraph 64C inserted by section 118 of Act 25 of 2015 effective on 1 March 2016]

Paragraph 63B (Eighth Schedule) – Small business funding entities

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63B.    Small business funding entities

(1)       A small business funding entity approved by the Commissioner in terms of section 30C must disregard any capital gain or capital loss determined in respect of the disposal of an asset if-

(a)     that small business funding entity did not use that asset in carrying on any business undertaking or trading activity; or

(b)     substantially the whole of the use of that asset by that small business funding entity was directed at-

(i)      a purpose other than carrying on a business undertaking or trading activity; or

(ii)     carrying on a business undertaking or trading activity contemplated in section 10(1)(cQ)(ii)(aa), (bb) or (cc).

[Paragraph 63B inserted by section 90 of Act 43 of 2014 effective on 1 March 2015]

Paragraph 61 (Eighth Schedule) – Portfolios of collective investment schemes other than portfolios of collective investment schemes in property

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61.    Portfolios of collective investment schemes other than portfolios of collective investment schemes in property

 

(1)     A holder of a participatory interest in a portfolio of a collective investment scheme, other than a portfolio of a collective investment scheme in property, must determine a capital gain or capital loss in respect of the participatory interest only upon the disposal of that participatory interest.

 

(2)     The capital gain or capital loss to be determined in terms of subparagraph (1) must be determined with reference to the proceeds from the disposal of that participatory interest and its base cost.

 

(3)      Any capital gain or capital loss in respect of a disposal by a portfolio of a collective investment scheme, other than a portfolio of a collective investment scheme in property, must be disregarded.

Paragraph 62 (Eighth Schedule) – Donations and bequests to public benefit organisations and exempt persons

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62.    Donations and bequests to public benefit organisations and exempt persons

 

A person must disregard a capital gain or capital loss determined in respect of the donation or bequest of an asset by that person to-

 

(a)     the government of the Republic in the national, provincial or local sphere, as contemplated in section 10(1)(a);

 

(b)     a public benefit organisation contemplated in paragraph (a) of the definition of ‘public benefit organisation’in section 30(1) that has been approved by the Commissioner in terms of section 30(3);

 

(c)     a person contemplated in section 10(1)(cA) or (d)(iv);

 

(d)     a person referred to in section 10(1)(cE) or (e); or

 

(e)     a recreational club which is a company, society or other organisation as contemplated in the definition of ‘recreational club’ in section 30A(1) that has been approved by the Commissioner in terms of section 30A.

Paragraph 63A (Eighth Schedule) – Public benefit organisations

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63A.    Public benefit organisations

 

A public benefit organisation approved by the Commissioner in terms of section 30(3) must disregard any capital gain or capital loss determined in respect of the disposal of an asset if –

 

(a)     that public benefit organisation did not use that asset on or after valuation date in carrying on any business undertaking or trading activity; or

 

(b)     substantially the whole of the use of that asset by that public benefit organisation on and after valuation date was directed at –

 

(i)      a purpose other than carrying on a business undertaking or trading activity; or

 

(ii)     carrying on a business undertaking or trading activity contemplated in section 10(1)(cN)(ii)(aa), (bb) or (cc).