CGT

Capital Gains Tax

Affected date 1st of March 2013

Disposal of assets from 1 st March 2012

CGT

individuals & special trusts

- increase from 25% to 33.3%.

- increases the maximum effective tax rate to 13.3%.

Effective tax rate payable (at top marginal rates)

- increase from 10% to 13.32% (an increase of 33.2%),

Companies and other trusts

- increase from 50% to 66.6%

- effective rate for companies to 18.6%

- effective rate for other trusts to 26.6%

Effective CGT rate for companies and trusts:

- increase from 14% to 18.65% (a 33% increase).

The following exemptions for individual capital gains are increased from March 1 2012:

- The annual exclusion from R20 000 to R30 000;

- The exclusion amount on death from R200 000 to R300 000;

- The primary residence exclusion from R1.5m to R2m;

- The exclusion amount on the disposal of a small business when a person is over age 55

from R900 000 to R1.8m; and

- The maximum market value of assets allowed for a small business disposal for business owners

over 55 years increases from R5m to R10m.