Page 42 - F6 - Capital Gains Tax - Base Cost
P. 42
Solution - Standard TAB formula (par 30(1))
= (R100) + ((R700 – R100) × 10/30) = R300
The TAB cost is, therefore, R300 and the capital gain
on the disposal, using the TAB cost, will be
R400 (R700 – R300).
Test: Two-thirds of the profit relates to the post-CGT
period, ieR600 × 20/30 = R400.
