4.     Capital loss

A person’s capital loss 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 base cost of that asset exceeds the proceeds received or accrued in respect of that disposal;

[Subparagraph (a) substituted by section 68 of Act 60 of 2001 and section. 65 of Act 74 of 2002 and amended by section 104 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 104 of Act 25 of 2015 effective on 1 January 2016]

(i)      so much of the proceeds received or accrued in respect of the disposal of that asset that have been taken into account during any year in determining the capital gain or capital loss in respect of that disposal-

(aa)   as that person is no longer entitled to as a result of the cancellation, termination or variation of any agreement, or due to the prescription or waiver of a claim or a release from an obligation or any other event during the current year of assessment;

(bb)   as has become irrecoverable during the current year of assessment; or

(cc)    as has been repaid or has become repayable during the current year of assessment;

and which have not been taken into account in the redetermination of the capital gain or capital loss in terms of paragraph 25(2);

(ii)     so much of any expenditure incurred during the current year of assessment in respect of that asset, which is allowable in terms of paragraph 20 and that 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

(iii)    the sum of-

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

(bb)   any capital gain (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 104 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 gain determined in respect of that disposal.

[Subparagraph (c) added by section 104 of Act 25 of 2015 effective on 1 January 2016]