Page 13 - F6 - Capital Gains Tax - Proceeds, Cost Price & Roll-Overs
P. 13
Solution
In terms of par 38(1)(a), Company A has
proceeds (market value) R120
– (recoupment) R100
= R20, and a base
cost
cost R100
reduced by capital allowances R100
= R0
Capital gain R20
Company B acquires the asset at a base cost of R120.
