53.    Personal-use assets

 

(1)     A natural person or a special trust must disregard a capital gain or capital loss determined in respect of the disposal of a personal-use asset as contemplated in subparagraph (2).

 

(2)     A personal-use asset is an asset of a natural person or a special trust that is used mainly for purposes other than the carrying on of a trade.

 

(3)     Personal use assets do not include-

 

(a)     a coin made mainly from gold or platinum of which the market value is mainly attributable to the material from which it is minted or cast;

(b)     immovable property;

(c)     an aircraft, the empty mass of which exceeds 450 kilograms;

(d)     a boat exceeding ten metres in length;

(e)     a financial instrument;

(f)      any fiduciary, usufructuary or other like interest, the value of which decreases over time;

(g)     any contract in terms of which a person, in return for payment of a premium, is entitled to policy benefits upon the happening of a certain event and includes a reinsurance policy in respect of such a contract, but excludes any short-term policy contemplated in the Short-term Insurance Act;

(h)     any short-term policy contemplated in the Short-term Insurance Act to the extent that it relates to any asset which is not a personal-use asset; and

(i)      a right or interest of whatever nature to or in an asset envisaged in items (a) to (h).

 

(4)     For the purposes of subparagraph (2), an asset of a natural person or a special trust to whom an allowance is or was paid or payable in respect of the use of that asset for business purposes, must be treated as being used mainly for purposes other than the carrying on of a trade.