Paragraph 64A (Eighth Schedule) – Awards in terms of land restitution programmes and land reform measures

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64A.  Awards in terms of land restitution programmes and land reform measures

A person must disregard any capital gain or capital loss in respect of the disposal that resulted in that person receiving-

(a)     restitution of a right to land, an award or compensation in terms of the Restitution of Land Rights Act, 1994 (Act No. 22 of 1994); or

(b)     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 64A inserted by section 92 of Act 74 of 2002, substituted by section 55 of Act 20 of 2006, amended by section 121 of Act 22 of 2012, substituted by section 76 of Act 15 of 2016 effective on 29 February 2016, applies in respect of years of assessment ending on or after that date]

Paragraph 64 (Eighth Schedule) – Asset used to produce exempt income

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64.    Asset used to produce exempt income

 

A person must disregard any capital gain or capital loss in respect of the disposal of an asset which is used by that person solely to produce amounts which are exempt from normal tax in terms of –

 

(a)     section 10, other than receipts and accruals contemplated in paragraphs (cN), (cO), (i) and (k) of subsection (1) thereof; or

 

(b)     section 12K.

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).

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 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)     Subject to paragraph 82A, 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.

[Subparagraph (1) substituted by section 141(1)(b) of Act 31 of 2013 and by section 33(1) of Act 5 of 2026 effective on 1 March, 2026 and applicable in respect of disposals made on or after that date]

 

(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 60 (Eighth Schedule) – Gambling, games and competitions

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60.    Gambling, games and competitions

 

(1)     A person must disregard a capital gain or capital loss determined in respect of a disposal relating to any form of gambling, game or competition.

 

(2)     Notwithstanding subparagraph (1), a capital gain may not be disregarded-

 

(a)     by any person other than a natural person; or

 

(b)     by any natural person, unless that form of gambling, game or competition is authorised by, and conducted in terms of, the laws of the Republic.

Paragraph 59 (Eighth Schedule) – Compensation for personal injury, illness or defamation

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59.    Compensation for personal injury, illness or defamation

 

A natural person or a special trust must disregard a capital gain or a capital loss determined in respect of a disposal that resulted in that person or that special trust, as the case may be, receiving compensation for personal injury, illness or defamation of that person or a beneficiary of that special trust.

Paragraph 57A (Eighth Schedule) – Disposal of micro business assets

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57A.    Disposal of micro business assets

A registered micro business as defined in terms of the Sixth Schedule must disregard any capital gain or capital loss in respect of the disposal by that business of any asset used mainly for business purposes.

 [Paragraph 57A inserted by section 80 of Act 60 of 2008, amended by section 140 of Act 31 of 2013, substituted by section 116 of Act 25 of 2015 effective on 8 January 2016]