Page 31 - F6 - Capital Gains Tax - Base Cost

Example – loss-limitation rule 2

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

valuation date. He determined market value as R200

on valuation date. Other relevant information:

Expenditure incurred before valuation date R250

Expenditure incurred after valuation date R25

Proceeds on disposal R150

Calculate Mr X’s capital gain or loss arising

from the disposal of the asset.