Capital gains tax comes into effect on the sale of an asset that is disposed of on or after 1 October 2001, including property.
It is a tax on the difference between the price an asset was purchased for and the amount for which it was sold.
So if you’re a property seller, you can find out what your capital gains are, by subtracting the base cost of the property (which includes incurred costs such as renovations, transfer costs and attorney fees) from the amount you sold it for.
Capital gains on a primary residence (the residence in which the home seller lives) are excluded up to a rate of R2 000 000.
Capital gains tax on a second property in South Africa would still qualify for an exclusion rate of R40 000.