If you are thinking of retiring and selling your small-business assets, you may be able to benefit from the capital gains tax exclusion that is available under certain circumstances. If you are a sole proprietor or you hold a direct interest (at least 10%) in a company or close corporation, you may be able to exclude R1.8-million of the capital gain incurred in disposing of your active business assets if the following are applicable: You have reached the age of 55, or the disposal is due to ill health; Your business assets (or combined business assets) do not exceed R10-million; The value of the assets held by the company or CC in which you hold an interest do not exceed R10-million; You have held the active business assets or interest in the company for a continuous period of at least five years prior to the disposal; and You were substantially involved in the operations of that small business. This is best illustrated by means of two examples. Interest in a company or CC Assume th...
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