Specialising in tax and exchange control, Johan spent time with PwC in the UK, the financial capital of the globe, and on his return spent 3 years with PwC Cape Town in the Corporate International Tax department before joining STBB as a candidate attorney in 2011. Johan practices within the Corporate Commercial department and has extensive commercial drafting experience with a specific focus on business acquisitions, going-concern transactions and advises on tax aspects of commercial and property-related transactions. Since 2015 Johan heads the Non-Resident practice within STBB. His expert services range from assisting foreign investors in remitting their proceeds from fixed property out of South Africa and drafting and regularising loan agreements through the SARB to obtaining Tax Directives and various types of Tax Clearance Certificates from SARS. As an admitted attorney, conveyancer and registered tax practitioner, Johan’s skill set makes him an invaluable asset in advising and assisting STBB’s diverse clients.

Thought of the Week | This is excluded from your CGT liability

Many South Africans are cautious of Capital Gains Tax (CGT) because, essentially, it creates a tax liability when you make a profit on the sale of an asset. It is therefore good news that the capital gains (or losses) made on the disposal of certain assets are excluded from CGT. Some of the important exclusions are:

  1. Personal-use assets, such as a motor vehicle, a caravan, artwork, stamp collection, furniture, household appliances and other assets used mainly for non-trade purposes;
  2. Personal-use boats smaller than 10 m in length;
  3. Lump sum payments from pension, pension preservation, provident, provident preservation and retirement annuity funds;
  4. Proceeds from an endowment policy or life insurance policy (with minor exceptions)
  5. Compensation for personal injury or illness

Importantly, on the sale of a South African resident’s primary residence, the first R2 million of the profit is also excluded. Other expenses incurred in respect of the home may also be subtracted from the amount of the profit, thereby decreasing the amount of CGT payable.

To obtain a rough estimate of what your CGT liability will be on the proposed sale of a home and the expenditure that may be subtracted from the profit, speak to your conveyancer at STBBbefore entering into the transaction.