Capital gains tax is often misunderstood when people sell homes — the relevant question isn't simply whether you sold for more than you paid, since the tax calculation considers the capital gain alongside the applicable exclusions. The primary-residence exclusion can be extremely important for ordinary homeowners, not just investors.
Source: SARS — Capital Gains Tax
Frequently Asked Questions
Does the R3 million exclusion mean a R3 million house can never create CGT?
No — the exclusion concerns qualifying capital gain on a primary residence, subject to the rules.
Does this apply to every investment property?
No — the primary-residence exclusion has specific requirements.
Is the R3 million figure the property's selling price?
No — it refers to the qualifying capital gain or loss exclusion.