Page 406 - SAIT Compendium 2016 Volume1

Eighth Schedule INCOME TAX ACT 58 OF 1962 Eighth Schedule
(3) The sum of the amounts to be disregarded by a natural person as contemplated in subparagraph (2) may not exceed R1,8 million during that natural person’s lifetime.
[Sub-para. (3) substituted by s. 11 (1) (b) of Act 13 of 2012 – date of commencement deemed to have been 1 March 2012; the substituted de nition applies iro years of assessment commencing on or after that date.]
(4) A natural person must realise all capital gains qualifying in terms of subparagraph (2) within a period of 24 months commencing on the date of the rst disposal contemplated in subparagraph (2).
(5) Where a natural person operates more than one small business either by way of a sole proprietorship, a partnership interest or a direct interest in the equity of a company consisting of at least 10 per cent, then he or she may subject to subparagraphs (4) and (6), include every such small business in the determination of the amount to be disregarded in terms of subparagraph (2).
(6) The provisions of this paragraph do not apply where a person owns more than one business either by way of a sole proprietorship, a partnership interest or a direct interest in the equity of a company consisting of at least 10 per cent, and the total market value of all assets in respect of all those businesses exceeds R10 million.
[Sub-para. (6) substituted by s. 139 (1) of Act 31 of 2013 – date of commencement deemed to have been 1 March 2012; the substituted subparagraph applies iro years of assessment commencing on or after that date.]
57A Disposal of micro business assets
A registered micro business as de ned in terms of the Sixth Schedule must disregard any capital gain or capital loss in respect of the disposal by that business of any asset used mainly for business purposes.
[Para. 57A inserted by s. 80 (1) of Act 60 of 2008, amended by s. 140 (1) of Act 31 of 2013 and substituted by s. 116 of Taxation Laws Amendment Act, 2015 – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
Prelex
Wording of para. 57A in force until the substitution thereof wef the date of promulgation of Taxation Laws Amendment Act, 2015
57A Disposal of micro business assets
A registered micro business as de ned in terms of the Sixth Schedule must disregard any capital gain or capital loss in respect of the disposal by that business of—
(a) any asset which constitutes immovable property mainly used for business purposes; and
[Sub-para. (a) substituted by s. 140 (1) of Act 31 of 2013 – date of commencement deemed to have been 1 March 2011; the substituted subparagraph applies iro years of assessment commencing on or after that date.]
(b) any asset (other than immovable property) used mainly for business purposes. [Para. 57A inserted by s. 80 (1) of Act 60 of 2008.]
58 Exercise of an option
Where, as a result of the exercise by a person of an option, that person acquires or disposes of an asset in respect of which that option was granted, that person must disregard any capital gain or capital loss determined in respect of the
exercise of that option.
[Para. 58 substituted by s. 100 (1) of Act 60 of 2001.]
59 Compensation for personal injury, illness or defamation
A natural person or a special trust must disregard a capital gain or a capital loss determined in respect of a disposal that resulted in that person or that special trust, as the case may be, receiving compensation for personal injury, illness or defamation of that person or a bene ciary of that special trust.
[Para. 59 substituted by s. 101 (1) of Act 60 of 2001.]
60 Gambling, games and competitions
(1) A person must disregard a capital gain or capital loss determined in respect of a disposal relating to any form of gambling, game or competition.
(2) Notwithstanding subparagraph (1), a capital gain may not be disregarded—
(a) by any person other than a natural person; or
(b) by any natural person, unless that form of gambling, game or competition is authorised by, and conducted in terms
of, the laws of the Republic.
[Item (b) substituted by s. 32 (1) of Act 19 of 2001.]
61 Portfolios of collective investment schemes other than portfolios of collective investment schemes in property
[Heading substituted by s. 141 (1) (a) of Act 31 of 2013 – date of commencement: 1 April 2014; the substitution applies iro disposals made on or after that date.]
(1) A holder of a participatory interest in a portfolio of a collective investment scheme, other than a portfolio of a collective investment scheme in property, must determine a capital gain or capital loss in respect of the participatory interest only upon the disposal of that participatory interest.
[Sub-para. (1) substituted by s. 141 (1) (b) of Act 31 of 2013 – date of commencement: 1 April 2014; the substitution applies iro disposals made on or after that date.]
(2) The capital gain or capital loss to be determined in terms of subparagraph (1) must be determined with reference to the proceeds from the disposal of that participatory interest and its base cost.
[Para. 61 substituted by s. 102 (1) of Act 60 of 2001, by s. 90 (1) of Act 74 of 2002, by s. 75 (1) of Act 17 of 2009 and by s. 106 (1) of Act 7 of 2010.]
398 SAIT CompendIum oF TAx LegISLATIon VoLume 1