Jason, 56 years old, a resident of South Africa, disposed of a few items in the current year of assessment. He was unsure on how to calculate the capital gains on the disposal and requested assistance on the calculations. Calculate the taxable gain for the year ended 28 February 2026.

Step 1: Calculate the capital gain or loss for each asset. Primary Residence: Proceeds: R4,000,000 Base Cost: R2,500,000 (purchase) + R300,000 (renovations) + R100,000 (transfer costs) = R2,900,000 Capital Gain before exemption: R4,000,000 - R2,900,000 = R1,100,000 The primary residence exclusion of up to R2,000,000 applies. Since the gain is less than R2,000,000, the entire gain is exempt. Net Capital Gain (Primary Residence) = R0 Shares: Proceeds: R117,500 Base Cost: R85,000 Capital Gain: R117,500 - R85,000 = R32,500 Other Assets Sold (Exemptions): Gold Jewellery (R55,000): This is a personal use asset and is exempt from capital gains tax. Capital Gain = R0 Proceeds from Long term insurance policy (R155,000): Proceeds from a long-term insurance policy are exempt from capital gains tax. Capital Gain = R0 Antique furniture (R101,000): This is a personal use asset and is exempt from capital gains tax. Capital Gain = R0 Ski Boat (13 metres): Proceeds: R270,000 Base Cost: R200,000 Capital Gain: R270,000 - R200,000 = R70,000 Note: A boat exceeding 10 metres in length is not considered a personal use asset and is therefore subject to capital gains tax.* Krugerrands: Proceeds: R250,000 Base Cost: R202,000 Capital Gain: R250,000 - R202,000 = R48,000 Compensation for personal injury (R75,000): Compensation for personal injury is exempt from capital gains tax. Capital Gain = R0 Donated holiday home to spouse: Donations between spouses are disregarded disposals for capital gains tax purposes. No capital gain or loss arises for Jason. Capital Gain = R0 Step 2: Calculate the Aggregate Capital Gain. This is the sum of all non-exempt capital gains. Aggregate Capital Gain = R32,500 (Shares) + R70,000 (Ski Boat) + R48,000 (Krugerrands) Aggregate Capital Gain = R150,500 Step 3: Deduct the Annual Exclusion. The annual exclusion for individuals for the 2026 year of assessment is R40,000. Capital Gain after annual exclusion = R150,500 - R40,000 = R110,500 Step 4: Deduct Assessed Capital Loss brought forward. Jason has an assessed capital loss of R20,000 as at 28 February 2025. Net Capital Gain = R110,500 - R20,000 = R90,500 Step 5: Calculate the Taxable Capital Gain. The inclusion rate for individuals is 40%. Taxable Capital Gain = R90,500 × 40\% Taxable Capital Gain = R36,200 The taxable capital gain for the year ended 28 February 2026 is R36,200. Send me the next one 📸