Individuals.
Companies.
Exclusion.
Residence exclusion.
Critical Problems We Solve
Effective financial management isn't just about balancing books; it's about removing the friction points that stall your business growth.
Unexpected tax bills after selling assets
Overpayment due to understated Base Cost
Confusion between 'Revenue' and 'Capital' nature
Audit rejections of unproven renovation costs
Primary Residence Exclusion
The biggest tax break in South Africa is the Primary Residence Exclusion. The first R2 million of profit on the sale of your home is tax-free.
However, if you used a part of the home for business (home office) or rented out a cottage, that portion of the profit is NOT exempt. We calculate this apportionment precisely to prevent SARS audit clawbacks.
- R2 million exclusion
- Apportionment calculation
- Rental period adjustment
- Dual-use implications
The Base Cost Battle
Your Base Cost isn't just what you bought the asset for. It includes transfer duty, legal fees, agent commission, and *capital* improvements (like adding a room).
It does NOT include maintenance (painting, repairs). We go through your records to find every eligible cent to add to your Base Cost, reducing your profit and your tax.
- Expenditure analysis
- Capital vs Repairs distinction
- Receipt verification
- Transfer cost inclusion
Small Business Asset Relief
For small business owners over 55 deciding to retire and sell their business, there is a massive relief: The first R1.8 million of capital gain is tax-free.
This is a once-in-a-lifetime exemption. We assist in structuring the sale of your business to ensure you qualify for this 'Golden Handshake' from SARS.
- Retirement relief
- R1.8m exemption
- Qualifying criteria
- Sale structuring
Preparing the CGT File Before the Sale Closes
Capital gains tax becomes expensive when the calculation starts after the deal is already complete. At that point, the seller may be trying to find transfer documents, improvement invoices, bond settlement statements, agent commission records, valuations, shareholder records, or trust resolutions under pressure. Missing evidence usually increases the taxable gain because SARS will not accept a base cost simply because the owner remembers spending the money.
We prepare the CGT file around the asset being sold. For property, that means purchase documents, transfer duty, legal fees, agent commission, capital improvements, rental periods, home office use, and any split between primary residence and business use. For shares, it means acquisition history, share certificates, securities registers, shareholder loans, dividend records, and the method used to identify the shares disposed of. For a business sale, it means separating goodwill, equipment, stock, debtor balances, restraint payments, and the legal seller.
This matters for SMEs because the CGT answer often connects to other taxes. A commercial property sale may have VAT implications. A share sale may affect beneficial ownership records. A business sale may require apportionment between capital assets and normal trading income. Trusts and companies also have different inclusion rates and distribution considerations, so the same gain can land differently depending on the structure.
Our advisory work gives the owner a practical estimate before cash is spent. It also leaves a clear schedule for the annual return, reducing the risk that SARS disallows base cost items or reclassifies the profit because the supporting story is incomplete.
- Base cost evidence gathered before filing pressure
- Property, shares, and business sale records separated
- VAT, trust, and company impacts flagged early
- CGT schedule prepared from traceable documents
Who Is This For?
- Property Sellers (Residential or Commercial)
- Share Traders and Investors
- Business Owners selling their company
- Trusts disposing of assets
Engagement Requirements
- Original Purchase Agreement
- Sale Agreement
- Invoices for improvements/renovations
- Transfer Duty receipts
- Valuation certificates (if applicable)
- Bond settlement figures, agent commission invoices, and records of periods rented or used for business
- Share transaction history, shareholder resolutions, and company records where the asset is shares or a business interest
Deliverables & Results
- Calculation of Base Cost (including valid enhancements)
- Determination of Capital vs Revenue nature
- Application of Annual Exclusion (R40,000 for individuals)
- Primary Residence Exclusion calculation (R2m)
- Submission of CGT schedule in ITR12/ITR14
South African Compliance Context
"Creations transformed how we handle SARS. No more compliance anxiety."
Trusted Resources
Our Operational Methodology
A structured, 5-step approach designed for precision and clarity.
We compile all proof of expenditure (purchase price, transfer costs, renovations) to establish your base cost.
We determine the proceeds and apply the specific inclusion rate (40% for individuals, 80% for companies).
We automatically apply statutory exclusions like the R2 million Primary Residence break.
We include the gain as part of your annual tax return, ensuring it is added to your taxable income correctly.
Professional Insights
The most critical part of CGT is the 'Base Cost'. Every Rand of proven expenditure reduces your taxable profit.
Selling shares? The 'First-In-First-Out' vs 'Weighted Average' method can radically change your tax bill.
If you sell your small business to retire (over age 55), there is a special once-off exclusion of R1.8 million.
The best CGT result usually comes from collecting base cost evidence before the sale is final, not during tax filing months later.
A CGT estimate should be updated when the selling price changes, when commission or legal fees are confirmed, when improvements are identified, or when the seller discovers a period of rental or business use.
Related Insights and Resources
Use these links to move from service scope into practical guidance, supporting documents, and regional pages.
Practical guidance on how to Submit Your Tax Return on eFiling Without Rework.
Practical guidance on tax Clearance Certificate What Usually Delays Approval.
Practical guidance on what to Do If You Miss a SARS Tax Deadline.
Practical guidance on why Small Businesses Fall Behind on Provisional Tax.
Practical guidance on online Tax Services vs Local Advisers.
Practical guidance on what SARS Penalties Usually Point To in a Small Business.
Common Questions
Everything you need to know about our capital gains tax (cgt) advisory service.
Is CGT a separate tax I pay on sale?
No. It is part of Income Tax. A portion of your profit is added to your other income for the year and taxed at your marginal rate.
I sold my house. Do I pay tax?
Only if the profit is over R2 million, and it was your 'Primary Residence'. If you rented it out, you pay CGT on the whole profit.
How much is the tax?
For individuals, max effective rate is 18%. For Companies, it is 21.6%. For Trusts, it is 36%.
I lost my invoices for renovations. Can I claim them?
No. SARS is strict on proof. Without invoices, your base cost is lower, and your tax is higher. We help you digitize these proofs.
When should CGT be reviewed?
Review CGT before signing if the sale involves property, shares, a business, a trust, or mixed personal and business use. Once the transaction closes, missing base cost evidence is harder to fix.
Trusted by South African SMEs
See how we've transformed the financial frameworks of companies just like yours.
