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Use one of these nine methods to value your assets and ensure your Capital Gains Tax liability is never too high

by , 19 September 2014
Different assets need to be valued differently. If you don't, you may not work out its value correctly and that could mean problems with SARS.

If SARS doesn't agree with your asset valuation, it could adjust the value. And you could end up paying more Capital Gains Tax (CGT) than you expected when you disposed of the assets.

Rather use the right method. There are nine to choose from...

 
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Choose from these nine valuation methods

 
#1: General rule: Market value = price based on willing buyer, willing seller at arm's length in an open market.
 
#2: Financial instruments listed on a recognised exchange in the Republic: Price based on five trading days after you bought the asset. Available on SARS website.
 
#3: Foreign financial instruments listed on a recognised exchange elsewhere: The ruling price on that recognised exchange on the last trading day before you bought the asset.
 
#4: Units in SA unit trusts and property unit trusts: Average 'sell' price for the last five trading days before you bought the asset. The value's available on the SARS website.
 
#5: Units in foreign unit trusts: Same as for SA unit trusts, except based on last trading day before you bought the asset.
 
#6: Controlling interest in listed company: Control premium/discount determined on disposal and applied to listed price.
 
#7: SA second-hand endowment policies: Surrender value, or Insurer's market value.
 
#8: Kruger Rands: Values available on the SARS website.
 
#9: Farm land: Land Bank value or market value based on general rule.
 
So when do you have to submit your valuation for these different asset types?
 
Submit your valuation certificate for these asset types with your tax return in the same year as you disposed it in. 

Recommended Product: Capital Gains Tax 101. Your ultimate guide to slashing Capital Gains Tax.

 
 

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