Capital Gains Tax (Terminology) (Government Tax)

Capital Gains Tax is Government Tax that you pay on the profit you made from the sale of your assets. You are only liable to make payment of Capital Gains Tax on the disposal of your asset by means of selling, giving it away, destroying it or even losing it.


Assets that are excluded from Capital Gains Tax are:
If you sell your house (primary residence, ie the house which is personally occupied by you) for an amount of R2 000 000,00 or less and / or if you sell your primary residence for a profit or loss of R1 500 000,00 or less, the sale will be exempted from Capital Gains Tax;


Personal belongings (eg motor vehicle, caravan, artwork, furniture and household appliances) used for non-trade purposes;

Pension-, Provident- and Retirement Fund payments;

Life Insurance Policies;

Compensation for personal injury and illness; and

Prize winnings (eg: lotteries, gambling, etc.).