19.     Losses on the disposal of certain shares

(1)     Subject to paragraph 43A, where a person disposes of a share in a company-

(a)     as a result of the acquisition by the company from that person of that share or as part of the liquidation, winding-up or deregistration of that company, that person must disregard so much of any capital loss resulting from the disposal as does not exceed any exempt dividends; or

(b)     in circumstances other than those contemplated in item (a), that person must disregard so much of any capital loss resulting from the disposal (other than a disposal deemed to have taken place in terms of section 29B) as does not exceed any extraordinary exempt dividends.

received by or accrued to that person in respect of that share within a period of 18 months prior to or as part of the disposal.

[Sub­paragraph (1) substituted by section 72(1)(a) of Act 35 of 2007, by section 69(1)(a) of Act 17 of 2009 and by section 109(1)(a) of Act 24 of 2011 and amended by section 55(a) of Act 34 of 2019]

(2)     ……….

(3)     For the purposes of this paragraph-

(a)     the period of 18 months does not include any days during which the person disposing of a share-

(i)      has an option to sell, is under a contractual obligation to sell, or has made (and not closed) a short sale of, substantially similar financial instruments;

(ii)     is the grantor of an option to buy substantially similar financial instruments; or

(iii)    has otherwise diminished risk of loss with respect to that share by holding one or more contrary positions with respect to substantially similar financial instruments;