Skip to content

What is capital gains tax?

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.

Ranked #1 in Financial Services on Hellopeter

hello-peter
image-stars

Average rating of 4.82 from over 3 000 reviews

Simply The Best

Ooba home loans services are simply the best. My Consultant Bianca Dancer was so hands on and helpful from the get go. She guided me through the entire process and put me at ease being a first time buyer. I highly recommend their services.

Tia J

Excellent Service

Jay Govender and Maleshini Reddy from OOBA provided outstanding assistance and guidance in securing our home loan. Response times were excellent and they were professional and friendly.

Brice G

Bond Application

Estelle Vorster was really helpful in securing the best deal for my home loan, she not only negotiated a lower interest rate she went as far as securing 50% discount on the transfer costs.

Butana M