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.

• 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

This is the sum of all non-exempt capital gains.

The annual exclusion for individuals for the 2026 year of assessment is R40,000.

Jason has an assessed capital loss of R20,000 as at 28 February 2025.

The inclusion rate for individuals is 40%.

The taxable capital gain for the year ended 28 February 2026 is $\boxed{\text{R36,200}}$.