In our last Capital Gains Tax article we discussed the method of calculating the Capital Gains Tax which is payable on the sale of immovable property in South Africa. We mentioned that we would discuss the three other methods of calculation which could be utilised if the property had been purchased before the 1st October 2001.
The Valuation method
Provided one received avaluation of the property (which valuation had to be completed by the 30th September 2004), one may use the valuation to determine the base value of the property. The valuation had to be performed as if done on the 1st October 2001 i.e. it has to give the value of the property as at the 1st October 2001.
The Act does not prescribe who had to have done these valuations and generally speaking a valuation by an estate agent who was an expert in regard to property prices in the particular area is acceptable.
Click here to read more about these methods
Article from: www.chaseveritt.co.za
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