Annual exclusion (R40,000)
Also known as: CGT annual exclusion, R40 000 exclusion
The first R40,000 of an individual's net capital gain in a tax year that is excluded before the inclusion rate is applied.
Definition
South Africa grants individuals an annual capital gains exclusion (R40,000 for the relevant year) that reduces the net capital gain before the inclusion rate applies. Only the amount above the exclusion is carried into the inclusion-rate calculation. The exclusion is per person per tax year and is not a tax-free threshold on income — it applies to net capital gains only. Confirm the current year's figure, as it can change.
Example
Your net capital gain for the year is R50,000. After the R40,000 annual exclusion, R10,000 is subject to the CGT inclusion rate.
Jurisdiction notes
- South Africa: Individuals get an annual capital gains exclusion (R40,000 for the relevant year); confirm the current figure as it can change.