Capital Gains Tax Made Simple – 2026/27

Description

Capital Gains Tax can feel confusing when unfamiliar terms, calculations and tax rules are presented all at once.

Capital Gains Tax Made Simple – 2026/27 is a free, plain-English introduction designed to help South Africans understand the absolute basics before attempting a calculation or obtaining professional assistance.

What This Guide Explains

• What Capital Gains Tax is and when it may apply.
• The meaning of an asset, disposal, proceeds, base cost, capital gain and capital loss.
• The basic order of a Capital Gains Tax calculation.
• Which costs may form part of an asset’s base cost.
• Common expenses that do not normally form part of base cost.
• The annual exclusion and qualifying primary-residence exclusion.
• Why assets acquired before 1 October 2001 require special treatment.
• The importance of retaining invoices, agreements and supporting records.
• Common mistakes that may cause an incorrect calculation.

The guide includes simple examples and the principal Capital Gains Tax amounts and maximum effective rates applicable to individuals, companies and trusts for the 2027 year of assessment.

Who This Guide Is For

This introductory guide is suitable for anyone who wants to understand the basic structure of Capital Gains Tax without beginning with technical tax language or complicated calculations.

It may be particularly useful when organising information relating to property, investments or other assets that may eventually be sold, transferred or otherwise disposed of.

Important

This guide provides general educational information only. It does not calculate your personal Capital Gains Tax liability, prepare or submit a tax return, or replace a SARS assessment.

Capital Gains Tax treatment depends on the asset, ownership structure, transaction, supporting evidence and the legislation applying at the time of disposal. Obtain assistance from a registered tax practitioner, accountant or suitably qualified legal adviser where necessary.

Annual edition: The figures in this guide apply to the 2027 year of assessment, from 1 March 2026 to 28 February 2027.