HomeHome SearchSearch MenuMenu Our productsOur products

Here's what you need to know about CGT before you sell your company's Krugerrand collection to free up some cash!

by , 30 April 2013
Buying gold coins as an investment is a great profit making-move. Many businesses are realising this, with the smallest American Eagle coins proving so popular in recent times that the US Mint has run out of stock! If your company's invested in a collection of Krugerrands that you intend to sell for a profit at a later stage, best you beef up on capital gains tax rules, because CGT applies any time you dispose of capital assets like Krugerrand coins!

 
If you dispose of assets at the wrong time, you could face a 200% penalty from SARS.
 
And most capital assets are subject to capital gains tax.
 
But did you know that capital gains tax applies to Krugerrands or other silver, platinum, or gold-minted coins, or any other coin that's market value is mainly in the metal it is made of?
 
 
The reason you're selling or 'disposing of' your company's Krugerrands comes into play...
 
Because if your company's selling or disinvesting in Krugerrands because you need the funds for necessary expenditures like repaying company loans, there's no longer a profit-making intent, says IOL's Personal Finance website. 
 
This, in turn, is why Krugerrands are excluded from the definition of personal-use assets.
 
The Krugerrand ruling prices you'll need to know when it comes to CGT
 
So the base cost of these coins at the valuation date of 1 October 2001 must be determined when you dispose of them, says SARS.
 
The ruling prices of these coins on 1 October 2001 was R2,750 for a full Krugerrand and R1,202 for a half Krugerrand. 
 
If you want to ascribe other values to these coins as at 1 October 2001, SARS says your valuation must be motivated and accompanied by documentary proof.
 
Simple as that!
 


Related articles




Related articles



Related Products



Comments
0 comments


Recommended for You 

  Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance



Here are all the most interesting, thought-provoking and common tax questions
asked by our subscribers over the last tax year – everything from A to Z!

To download Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance click here now >>>
  Employees always sick? How to stop it today



Make sure you develop a leave policy to regulate sick leave in your company.

BONUS! You'll find an example of the leave policy and procedure in this report.

To download Employees always sick? How to stop it today click here now >>>
  Absenteeism: Little known ways to reduce absenteeism



This FREE e-report will tell you how you can reduce absenteeism in your workplace while avoiding the CCMA and without infringing your employees' labour rights.

To download Absenteeism: Little known ways to reduce absenteeism click here now >>>
  7 Health & safety strategies to save you thousands



Don't let a health and safety incident cost you one more cent. Implement these seven
strategies in your company today.

To download 7 Health & safety strategies to save you thousands click here now >>>