For the 2013 to 2019 years of assessment the first R2 million of a capital gain or loss on disposal of a primary residence must be disregarded (2007 to 2012: R1,5 million). This concession, known as the primary residence exclusion, means that most individuals will not be subject to CGT on the sale of their primary homes.
Thus, if the primary residence is sold during the 2018 year of assessment for a capital gain of R2,5 million, the first R2 million is excluded and the remaining R500 000 is subject to CGT.
You are also entitled to disregard any capital gain on disposal of your primary residence if the proceeds do not exceed R2 million. In such event you do not need to determine the base cost of the residence. This rule is unavailable under specified circumstances, for example, when you have not ordinarily resided in the residence throughout the period since 1 October 2001 or have used part of it for trade purposes.
