CGT Guide beefed up

The South African Revenue Service (SARS) has released its revised draft guide on Capital Gains Tax for comment. The Comprehensive Guide to Capital Gains Tax, which runs to 459 pages, will be available for comment on or before 30 June 2005. This version of the draft Guide takes into account comments taken into account by the first draft in 2003, as well as changes effected by the Revenue Laws Amendment Act 74 of 2002, the Exchange Control Amnesty and Amendment of Taxation Laws Act 12 of 2003, the Revenue Laws Amendment Act 45 of 2003, Taxation Laws Amendment Act 16 of 2004 and Revenue Laws Amendment Act 32 of 2004.

Chapter 11 will be of interest to conveyancing attorneys. It deals with the primary residence exclusion (including a discussion concerning the CGT implications of awards of damages for loss of view). Appendix A deals with the transfer of a residence out of a company or a trust.

SARS considered it appropriate to release this draft before releasing the guide in its final form, due to the volume of new material. Comments may be sent by e-mail to Sars at cgt@sars.gov.za and should be submitted by 30 June 2005.

Comprehensive Guide to Capital Gains Tax