Page 14 - F6 - Capital Gains Tax - Proceeds, Cost Price & Roll-Overs

Example

In Year 1, X (Pty) Ltd sells an office building to a

fellow subsidiary, Z (Pty) Ltd, at a capital loss of

R7 000 000. In Year 4, X (Pty) Ltd sells a block of

listed shares to Z (Pty) Ltd at a capital gain of

R5 000 000.

 Explain the CGT consequences.