Capital Gains Tax (CGT) implications on property transfers

CAPITAL GAINS TAX IS LEVIED ON THE GAIN MADE ON THE SALE OF AN ASSET AND THUS APPLIES TO THE SALE OF IMMOVABLE PROPERTY.

If your primary residence which is registered in your personal name is sold for less than R2 Million there will be no CGT implications.

Where the gain or loss is more than R2 Million, then only will that gain or loss above R2 Million be subject to CGT.

If the property is not solely used as a primary residence, the portion used to generate income attracts CGT and is not subject to the primary residence exclusion.

Any secondary properties which are registered in your personal name and which you sell will attract CGT and furthermore all properties registered in the name of a company, CC or trust will be subject to CGT when they are sold and a prot is made.