FAQ: Do paragraphs 26 and 27 apply to listed shares and units in a unit trust?
Generally yes, but these rules do not apply to – foreign listed shares and foreign unit trusts for which you have not determined a market value; or when you have adopted the weighted average method for determining the base cost of the relevant assets.
FAQ: I bought LISTED shares in 1999 for R100 and sold them in 2013 for R70. Their market value on 1 October 2001 was R60. Am I liable for CGT on the R10 (R70 – R60) even though I made an actual loss of R30 (R70 – R100)?
The answer depends on which asset identification method you have adopted. First in, first out or specific identification If you adopted the first-in-first-out or specific identification method for identifying which shares you have disposed of, your valuation date value will be restated to R70 under paragraph 27(3)(a) of the Eighth Schedule. There will, therefore, be […]
FAQ: If, after 1 October 2001, an investor were to add monthly to units in a unit trust fund acquired before valuation date and then sell all the units how would the loss/gain be calculated?
Two features of the legislation reduce the record-keeping required of a monthly investor in a unit trust. The weighted average cost method is one of three asset identification methods for determining the base cost of identical assets such as unit trusts. The other methods permitted are specific identification and first in, first out (FIFO). In […]
FAQ: I hold units that are held in income and gilt unit trusts. These pay interest (on which income tax is paid), and which is reinvested.
I hold units that are held in income and gilt unit trusts. These pay interest (on which income tax is paid), and which is reinvested. On selling these units will I have to pay CGT on the difference between the original capital amount and the redeemed amount bearing in mind that this increased amount will […]
FAQ: I hold units in a unit trust through a management company that charges me a monthly fee. Is this fee deductible from any capital gain that I may make?
No, this is a current expense that does not enhance the value of the assets concerned.
FAQ: What if an asset was acquired before the valuation date?
For an asset acquired before the valuation date and disposed of afterwards, CGT will be payable only on the capital gain attributable to the period after the valuation date. In other words, any gain attributable to the pre-valuation date period is not subject to CGT. The gain attributable to the period of ownership of an […]
FAQ: What is base cost?
Base cost is the amount against which any proceeds upon disposal are compared in order to determine whether a capital gain or loss has been realised. For assets held on the valuation date (1 October 2001) that were acquired before that date base cost is equal to the “valuation date value” of the asset plus […]
FAQ: Will Dividends Tax withheld be set off as a credit against my Income Tax liability, or may I claim a refund of the Dividends Tax withheld if I am not liable for Income Tax (for example I earn income below the tax threshold)?
No, Dividends Tax is a separate and final tax. It may not be used as a credit against your income tax liability. For the same reason a refund of the Dividends Tax withheld cannot be claimed if you are not liable for income tax.
FAQ: Will penalties be levied on late payment and submission to SARS?
Yes, penalties will be levied for late payments of Dividends Tax or the late submission of Dividends Tax returns.
FAQ: What is the definition of “Date paid / payable” referred to in the BRS?
As per section 64E of the Act this refers to the earlier of the dividend being paid or becoming due payable by the company declaring the dividend.
