Page 11 - Nexia SAB&T Property & Tax Guide 2022

Individual, under 65 years of age, primary residence,
valued at R1m at 1 October 2001,
sold 7 March 2022 for R5m, costs to dispose asset were R50 000*
Taxable income for year ended 28 February 2023 was R500 000
R
Proceeds 5 000 000
Less Base Cost –1 050 000
Capital Gain 3 950 000
Less primary residence exclusion –2 000 000
1 950 000
Less annual exclusion (indiv) –40 000
Net Capital Gain 1 910 000
At inclusion rate of 40% 764 000
R764 000 as taxable capital gain is included in the taxable income of the individual and
taxed at the normal tax rates applicable, as follows:
Taxable income 500 000
Taxable capital gain 764 000
Total Taxable income 1 264 000

Calculation:
Tax per 2023 Tables 422 476
Less Rebate –16 425
406 051

Tax payable 406 051
R764 000/R1 264 000 × R406 051 = R245 430
Therefore R245 430 relates to the capital gain. As such the CGT % on the capital gain is
R245 430/3 950 000 × 100 = 6.21%
*can include estate agents commission, costs, certificates of compliance (electrical, beetle,
plumbing, gas and electrical fence compliance certificates, but not selling costs).
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