Page 20 - F6 - Capital Gains Tax - Proceeds, Cost Price & Roll-Overs

Roll-overs

Acquire replacement asset within 12 months after involuntary

disposal

Replacement asset will be brought into use within 3 years of the

involuntary disposal

 If not - deferred capital gain will be treated as capital

gain on the date on which the prescribed period ends.

 In addition, he must determine interest at the ‘prescribed

rate’ on the capital gain

 from the date of the disposal to the end of the prescribed period

 Interest treated as an additional capital gain.

 There is no requirement that the replacement

asset must fulfil the same function as the old

asset.