Page 27 - F6 - Capital Gains Tax - Base Cost

Example – Loss-limitation rule 1

Mr X disposes of a pre-valuation date asset after the

valuation date. He adopts the market value as the

valuation date value of the asset. Other relevant

information:

Expenditure incurred before valuation date R100

Expenditure incurred after valuation date R25

Market value on valuation date R200

Proceeds on disposal R150

 Calculate Mr X’s capital gain or loss arising from

the disposal of the asset.