Page 58 - Bespoke EPG 2017 Digital

■■ Under most circumstances, although capital gains tax may be paid at the
death of the deceased, no further capital gains tax will be payable when an
heir, legatee or trustee receives an asset from the deceased estate.

Capital gains tax and the deceased estate
■■ The executor may sell certain assets during the administration of the estate to

persons other than beneficiaries, legatees or trustees of a trust.
■■ The value of such assets may increase or decrease between the date of

death and the date of sale, which may have capital gains tax implications for
the estate.
■■ Capital gains tax is levied in a deceased estate at the same rate as for
individuals.
■■ The deceased estate will be entitled to the same exemptions and exclusions
as would have been available to the deceased before his death (the
annual exclusion of R40,000), however will not be entitled to any assessed
capital loss that might have remained in the estate of the deceased, or the
R300,000 exemption.

Capital gains tax and estate duty
■■ Capital gains tax will be a liability in the estate, thus reducing the dutiable

estate for estate duty purposes.

Capital gains tax and roll-overs
■■ All assets that pass to a surviving spouse (either by way of a Last Will and

Testament, or by intestate succession) are subject to “roll over” relief.
■■ This means that capital gains tax is postponed until the surviving spouse

disposes of the assets during his or her lifetime or at death- the capital gain
is then determined from the date of acquisition by the first dying spouse and
the base cost at such disposal is the base cost as incurred by the first dying
spouse.

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