No, certain limits have been placed on the exclusion.
- The exclusion will not apply to any capital gain or loss in excess of R2 million for the 2013 to 2018 years of assessment (2007 to 2012: R1,5 million). To the extent that the gain exceeds R2 million, the excess must be taken into account as a capital gain. For example, if the gain is R2,5 million, R2 million must be disregarded while R500 000 will comprise a capital gain (paragraph 45(1) of the Eighth Schedule).
- You may not claim the primary residence exclusion for more than one residence at a time (paragraph 45(3) of the Eighth Schedule).
- The exclusion will apply to a capital gain or loss attributable only to a maximum of two hectares of land used together with the primary residence for domestic or private purposes. For larger pieces of land or land that is not used for private or domestic purposes, the capital gain or loss must be apportioned.
- The primary residence exclusion will reduce only the qualifying portion of the capital gain or loss (paragraph 46 of the Eighth Schedule).
- The exclusion will not apply to any capital gain or loss in respect of a period on or after the valuation date (1 October 2001) when the person was not ordinarily resident in the primary residence (paragraph 47 of the Eighth Schedule). The exclusion will not apply to any capital gain or loss in respect of that part of a primary residence that has been used for the carrying on of a trade after the valuation date (paragraph 49 of the Eighth Schedule).
