Three little-known facts about CGT
Fact #1: Certain assets are subject to CGT
Here are some of the important assets that are subject to CGT:
So anytime you dispose any of the above assets, you'll trigger CGT and you must account for it correctly.
Experts at the Accounting & Tax Club say 'in the event that you fail to include the taxable capital gain in the appropriate tax return, this error could result in a penalty' in terms of Section 26 A.
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Fact #2: There are instances where you don't have to pay CGT
'In these cases your CGT consequences are rolled-over and the asset will be transferred on a tax-free basis. Roll-over is a method for deferring a capital gain or loss.'
If you want to find out about when roll-over relief is applicable, checkout the full article where we explain this extensively.
Fact #3: CGT affects you if you work from home
If you use a portion of your residence for business purposes, this portion won't form part of a primary residence. Any gains or losses made on this portion must be included for CGT purposes, says Capital Gains Tax 101: Your ultimate guide to slashing Capital Gains Tax.
'This means if you claim expenses for your office or study at home, that portion of your property will be subject to CGT when you dispose of the property.'