Page 40 - P6 Slide - Taxation - Lecture Day 1
P. 40

Valuation date

                                                               1 Oct 2001




            Base cost of pre-valuation date assets






          • Asset  acquired before valuation date


          • Historical cost: R100

          • Sold for: R700

          • Capital gain is R600 (R700 – R100)





          • A portion of the gain of R600 refers to the pre-valuation date period
               and is not subject to CGT,


          • but a portion of this gain of R600 refers to the post-valuation date
               period and is therefore subject to CGT.





          • How should one determine which part of the R600 is subject to

               CGT?
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