Page 47 - F6 - Capital Gains Tax - Base Cost
P. 47
Solution - Standard Proceeds formula (par 30(2))
Firstly, the standard proceeds formula should be used to determine the
proceeds that relate to the period before 1 October:
Secondly, the TAB cost is determined using the standard TAB formula:
Thirdly, the total base cost is determined as the TAB cost (R144), plus
the expenditure incurred after the valuation date (R200) = R344.
The capital gain on the disposal using the TAB cost will be R356, ie
(R700 – R344).
