Not every capital gain is automatically fully included in taxable income. The annual exclusion is one of the mechanisms used when determining the taxable portion of an individual's capital gains, which can matter to anyone selling investments, shares or other appreciated assets.
Source: SARS — Capital Gains Tax
Frequently Asked Questions
Is the R50,000 exclusion available every year?
It is an annual exclusion for individuals and special trusts under the applicable CGT rules.
Does the exclusion mean I receive R50,000 cash from SARS?
No — it is an exclusion used in calculating capital gains.
Does every asset qualify?
Different exclusions and rules apply to different types of assets.