The following requirements have to be present before there can be a Capital gain or loss :

• 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).

Some of the exclusions from CGT include:

• the first R2 million profit on the sale of your primary residence;
• the sale of assets for personal use, such as motor vehicles and jewellery; and
• small business assets, limited to R1.8 million, taking into account certain provisions.

Individuals and special trusts are also subject to an annual exclusion of R30 000 (2013) and R300 000 in the year of death.

Should the sale of any asset be subject to CGT, the taxable amount of CGT will be included in your personal income tax at a rate of 33%.

The maximum effective rate of tax payable on the gain will depend on the tax bracket you fall into, but currently the maximum is limited to 13.3%.

SOURCES :
Cronje & Cronje
Business Partners