You’ve built your small business (one with assets valued at no more than R10m) and now you want to sell it, use the proceeds to add to your property portfolio and retire.

What are the CGT implications?

We have to go to the Eighth Schedule of the Income Tax Act para 57 2(c).

Provided you are 55 years or older or that you are selling because of ill-health, infirmity, superannuation (why can’t they say retirement?) or death, the first R1,8m capital gain is ignored.

Isn’t that lovely?

The company cost you R100 (shares). It’s now worth R10m, so you’ll only pay CGT on R8,2m. That will add R3 280 000 to your already taxable income and that will be largely taxed at 45%. Oh, SARS is sooo generous!