Page 382 - SAIT Compendium 2016 Volume1

Eighth Schedule INCOME TAX ACT 58 OF 1962 Eighth Schedule (2) A person to whom an asset is disposed of is treated as having acquired that asset at the time of disposal of that asset
as contemplated in subparagraph (1).
14 Disposal by spouse married in community of property
For the purposes of this Schedule, in the case of spouses married in community of property, where any asset is disposed of by one of the spouses and that asset—
(a) falls within the joint estate of the spouses, that disposal is treated as having been made in equal shares by each
spouse; and
(b) was excluded from the joint estate of the spouses, that disposal is treated as having been made solely by the spouse
making the disposal.
[Para. 14 amended by s. 70 of Act 74 of 2002.]
PART IV
LIMITATION OF LOSSES (paras. 15–19)
15 Personal-use aircraft, boats and certain rights and interests
A capital loss in respect of the following assets of a person must be disregarded in determining the aggregate capital gain or aggregate capital loss of a person, to the extent that the assets are used for purposes other than the carrying on of a trade:
(a) An aircraft with an empty mass exceeding 450 kg;
(b) a boat exceeding ten metres in length;
(c) any duciary, usufructuary or other similar interest, the value of which decreases over time;
(d) any lease of immovable property;
(e) any—
(i) time-sharing interest as de ned in section 1 of the Property Time-sharing Control Act, 1983 (Act 75 of 1983); or
(ii) share in a share block company, as de ned in section 1 of the Share Blocks Control Act,
[Item (ii) substituted by s. 83 of Act 43 of 2014 – date of commencement: 20 January 2015.] with a xed life, the value of which decreases over time; or
[Sub-para. (e) substituted by s. 73 (1) (b) of Act 60 of 2001.]
(f) any right or interest of whatever nature to or in an asset contemplated in items (a), (b), (c), (d) or (e).
[Sub-para. (f) added by s. 73 (1) (c) of Act 60 of 2001.]
16 Intangible assets acquired prior to valuation date
(1) A person must, in determining the aggregate capital gain or aggregate capital loss of that person, disregard any capital loss determined in respect of the disposal of an intangible asset acquired prior to valuation date—
(a) from a connected person in relation to that person; or
(b) which was associated with a business taken over by that person or any connected person in relation to that person.
(2) For the purposes of subparagraph (1), ‘intangible asset’ means— (a) goodwill;
(b) any patent as de ned in the Patents Act or any design as de ned in the Designs Act or any trade mark as de ned
in the Trade Marks Act or any copyright as de ned in the Copyright Act or any rights recognised under the Plant Breeders’ Rights Act, 1976 (Act 15 of 1976), or any model, pattern, plan, formula or process or any other property or right of a similar nature;
[Item (b) substituted by s. 129 of Act 31 of 2013 – date of commencement: 12 December 2013.]
(c) any intellectual property right or property or right of a similar nature in respect of which a proprietary interest may
be established in terms of the common law of the Republic of South Africa; or
(d) any other intangible property except any nancial instrument.
17 Forfeited deposits
(1) Where—
(a) a person has made a deposit for the purpose of acquiring an asset which is not intended for use wholly and exclusively
for business purposes; and
(b) that deposit has been forfeited,
the capital loss determined in respect of that forfeiture must be disregarded when determining that person’s aggregate capital gain or aggregate capital loss.
(2) Subparagraph (1) does not apply in respect of—
(a)
(b) (c) (d)
18
a coin made mainly from gold or platinum, of which the market value is mainly attributable to the material from which it is minted or cast;
immovable property, other than immovable property intended to be the primary residence of that person;
a nancial instrument; or
any right or interest in any asset contemplated in items (a), (b) or (c).
Disposal of options
(1) Where a person who is entitled to exercise an option—
(a) to acquire an asset not intended for use wholly and exclusively for business purposes; or
(b) to dispose of an asset not used wholly and exclusively for business purposes,
has abandoned that option, allowed that option to expire, or in any other manner disposed of that option other than by way of the exercise thereof, any capital loss of that person determined in respect of that expiry shall be disregarded.
374 SAIT CompendIum oF TAx LegISLATIon VoLume 1