Capital gains tax is levied on the sale of assets, subject to the following conditions :

• There had to be a disposal.
• The disposal must be an asset.
• There must have been proceeds from the sale of the assets.
• The asset should have a base cost (cost price).

There are fewer exemptions from CGT when trading as a company than in the case of sole proprietors.

Some of the main differences between operating as a company vs sole proprietor are :

• No exemption on the sale of residential property if property was registered in the Company’s name
• There is no such thing as private assets in a Company.
• There is no annual exclusion
• There is no exclusion due to death of a member / shareholder.
• The inclusion rate for a capital gain is 66.66% (2013)
• The maximum effective rate will be 18.66%

SOURCES :
Cronje & Cronje
Business Partners