Creations · South Africa
Capital gains tax review before an asset disposal
Review the seller, asset, disposal date and supporting costs before estimating the tax effect of a property, share or business sale.
What the work covers
Use this scope to identify what you need. Your proposal will confirm the services, records, reporting frequency and fees for your business.
- Review of capital versus revenue treatment
- Proceeds and supported base-cost schedule
- Assessment of applicable exclusions and apportionment
- Estimated tax effect for the relevant year
- Return preparation support within the agreed scope
What to prepare
Tell us which records are available and where there are gaps. We can then distinguish ongoing work from any initial catch-up.
- Purchase and sale agreements
- Evidence of acquisition costs and qualifying improvements
- Valuations and transaction-cost records
- Dates and extent of private, rental and business use
- Ownership records and prior capital losses
Timing and responsibility
Timing depends on the records, approvals and work required. Tell us about any deadline at the start. The engagement should identify the person handling your work, the review responsibilities and any external specialist needed.
Use the exclusion for the correct tax year
SARS lists an individual annual exclusion of R50 000 and a primary-residence exclusion of R3 million for the 2027 year of assessment, compared with R40 000 and R2 million for 2026. The small-business disposal exclusion increased to R2.7 million, with a R15 million business-value limit. These figures do not establish eligibility: the taxpayer, ownership, qualifying assets, age or other relief conditions must be reviewed.
Prepare the calculation before committing the proceeds
Keep an evidence schedule for each asset and separate supported costs from estimates or missing records. Rental periods and business use can require apportionment; neither the entire gain nor an exclusion should be assumed automatically. A business sale may also include trading stock, VAT or other tax consequences. Agree which specialist reviews are needed before treating the proceeds as available cash.
How the work progresses
- 01
Review the requirement
Identify the entity, reporting period, records and deadline.
- 02
Agree the scope
Set the outputs, responsibilities, fees and approval process.
- 03
Prepare and resolve
Work through the records and raise missing information or decisions.
- 04
Review and hand over
Complete the agreed approvals and retain the outputs and outstanding actions.
Questions before you start
Does everyone pay the maximum CGT rate?
No. An inclusion rate determines the part of a net capital gain included in taxable income. The resulting tax depends on the taxpayer and applicable income-tax rate.
Does missing an invoice automatically settle the base cost?
No. Identify the missing evidence and assess what reliable support can be obtained. Do not invent a cost or assume an unsupported amount will be accepted.
Official guidance
Let’s define the next step.
Tell us what you need, what is outstanding and when it matters.