Page 57 - Bespoke EPG 2017 Digital

Capital gains tax and the deceased

■■ At death, capital gains tax is activated through a deemed disposal whereby
the deceased is deemed to have disposed of all his assets to his estate, at
market value at the time of death.

Deceased Deceased Estate Beneficiary

Deceased estate At distribution to heir,
acquires asset for a legatee or trustee of
base cost equal to a trust, the deceased
market value at time estate is deemed
of death to dispose of asset
for proceeds equal
to base cost of the
deceased estate. The
heir, legatee or trustee
shall be treated as
having acquired the
asset for a base cost
equal to the base cost
of the deceased estate

■■ Assets bequeathed to a surviving spouse do not incur capital gains tax as
they are subject to roll-over relief.

■■ The R300,000 exemption will apply to disposals made to the deceased
estate.

■■ The exclusion for primary residence may apply.

■■ Therefore, where an estate consists of a primary residence, and personal use
assets, no capital gains tax may be payable.

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