Page 8 - Nexia SAB&T Property and Tax Guide 2025

The valuation date value is calculated as follows:
◆ The market value on 1/10/2001 as determined by a valuation; or
◆ 20% of the proceeds after deducting the allowable capital expenditure incurred
after valuation date; or
◆ The time apportioned base cost, as determined by a formula.
Allowable capital expenditure includes the following:
◆ The cost of acquiring, creating or improving the asset (excluding any borrowing
costs).
◆ The cost for valuation of the property for CGT purposes.
◆ Cost incurred in respect of disposal of the property (including sales commission,
advertising, valuation costs, accounting and legal costs, removal cost etc.).
A capital gain or loss is calculated separately in respect of each asset disposed. Once
deter mined, gains or losses are combined for that year of assessment and if it is:
◆ An assessed capital loss, it is carried forward to the following year; or
◆ A net capital gain, it is multiplied by the inclusion rate and included in taxable
income.
◆ Annual exclusion of R40 000 capital gain or capital loss is granted to individuals
and special trusts.
◆ Instead of the annual exclusion, the exclusion granted to individuals is R300 000
for the year of death.
The inclusion rates are as follows:

PERSON 2024 2025 2026
Natural person and special trust 40% 40% 40%

Company 80% 80% 80%
Trust 80% 80% 80%

6