Page 7 - Nexia SAB&T Property and Tax Guide 2024
P. 7
Individual, under 65 years of age, primary residence,
valued at R1m at 1 October 2001,
sold 7 March 2024 for R5m, costs to dispose asset were R50 000*
Taxable income for year ended 28 February 2025 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 2025 Tables 417 759
Less Rebate –17 235
400 524
Tax payable 400 524
R764 000/R1 264 000 × R400 524 = R242 089
Therefore R242 089 relates to the capital gain. As such the CGT % on the capital gain is R242 089/3 950
000 × 100 = 6.12%
*can include estate agents commission, costs, certificates of compliance (electrical, beetle, plumbing, gas
and electrical fence compliance certificates, but not selling costs).
5
