Submitted by abb2b2test@gmail.com on Mon, 2011-06-13 18:09
When does my buddy become liable for the CGT on the sale of his investment property?
Question
My colleague is selling his investment property and he needs to know on which date he’s liable for the capital gains tax (CGT). On the registration date of the property in the buyer's name? Or on the date when he receives the actual sale price amount in his account from the lawyer/buyer?
Answer
He’ll be liable for CGT on the date of registration. Remember that capital gains tax is payable with normal income tax and would be payable on assessment. The normal tax rules apply.
