Capital Gains Tax Summary: Tax 200

Capital Gains Tax

Other Inclusions



Recoupment Formula: Selling Price(limited to cost) – Tax Value

Disposal of capital Assets:

Step 1: Calculate Tax Value on date of disposal

Tax Value = cost - total capital allowances

Step 2: Calculate Recoupment = Tax Profit (+) or Tax Loss(-)



Valuation Date = 1 Oct 2001

CGT is applied on:

 Portion of gain/loss on
 Capital Assets
 Disposed of
 On/After 1 Oct 2001
 Regardless of when the asset was purchased

Who is Subject to CGT?

 Resident – Worldwide assets disposed of
 Non-Residents



Calculation of Taxable Capital Gain

Step 1 – Determine whether CGT needs to be calculated

Step 2 – Calculate and add Capital Gains/Losses, take exclusions into account

 Proceeds – base cost = Capital Gain/Loss

Proceeds = Selling Price – Recoupment

Base Cost = Acquired After 1 Oct 2001= amount of qualifying expenditure – certain
exclusions (Allowances) [Base cost = Cost price – allowances]

Acquired Before 1 Oct 2001 = Valuation date value(VDV) PLUS expenditure after 1 Oct 2001

Base Cost = Greater of MV, TABC or 20% x Proceeds

VDV = Greater of:

 Market Value on 1 Oct 2001
 Time apportioned base cost
 20% of (Proceeds less costs incurred after 1 Oct 2001)