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
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)
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.
Common Questions
Everything you need to know about our capital gains tax (cgt) advisory service.