67B. Disposal of immovable property by share block company
(1) For the purposes of this paragraph-
Category: Paragraph 67B (Eighth Schedule) – Disposal of immovable property by share block company
Paragraph 67B
Paragraph 67B inserted by section 110 of Act 45 of 2003 and substituted by section 129 of Act 22 of 2012 effective on 1 January 2013.
“Share” definition of paragraph 67B of Eighth Schedule
‘share’ means a share as defined in section 1 of the Share Blocks Control Act;
“Share block company” definition of paragraph 67B of Eighth Schedule
‘Share Blocks Control Act’ ……….
[Definition of ‘Share Blocks Control Act’ deleted by section 91 of Act 43 of 2014 effective on 20 January 2015]
“Share Blocks Control Act” definition of paragraph 67B of Eighth Schedule
‘Share Blocks Control Act’ means the Share Blocks Control Act, 1980 (Act No. 59 of 1980).
Sub-paragraphs 2 and 3 of paragraph 67B of Eighth Schedule
(2) This paragraph applies where a person who holds a right of use of a part of the immovable property of a share block company, which right is conferred by reason of the ownership of a share by that person in that share block company, acquires ownership of that part of immovable property from that share block company as part of any transaction in terms of which a disposal of that part of immovable property is made by that share block company.
(3) Where a person who owns a share in a share block company acquires ownership of immovable property as part of any transaction in terms of which a disposal is made by that share block company as contemplated in subparagraph (2)-
(a) the share block company must disregard any capital gain or capital loss determined in respect of that disposal; and
(b) that person must-
(i) disregard any capital gain or capital loss determined in respect of any disposal of that share as a result of that disposal; and
(ii) be treated as having-
(aa) acquired that immovable property for an amount equal to the expenditure contemplated in paragraph 20 incurred by the person in acquiring that share;
(bb) incurred the expenditure contemplated in subsubitem (aa) on the same date that the expenditure was incurred by the person in acquiring that share;
(cc) effected improvements to that immovable property for an amount equal to the expenditure contemplated in paragraph 20 incurred by that person in effecting improvements to the part of the immovable property of the share block company in respect of which the person had a right of use as a result of the ownership of that share;
(dd) incurred the expenditure contemplated in subsubitem (cc) on the same date that the expenditure was incurred by the person in effecting the improvements to the part of the immovable property of the share block company in respect of which the person had a right of use as a result of the ownership of that share;
(ee) acquired that immovable property on the date that the share was acquired by the person; and
(ff) used that immovable property in the same manner as the person used the immovable property in respect of which the person had a right of use as a result of the ownership of that share; and
(c) any valuation of that share which was done by that person within the period prescribed by paragraph 29(4) must be deemed to have been done by that person in respect of that immovable property.