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CGT - Offshore Stock

Posted 11 September 2013

Tim

I have a question. I live in the UK. I have been living here for 5 years. I have property and bank accounts in South Africa. I submit my tax returns every year, claiming a loss on my bonds over my properties. I put my foreign income under section S10(1)(o).

I want to know about off shore investments, if I decide to buy US Stock today, will this be the base cost for CGT purposes or will it be the day I return permanently to South Africa?

How would this differ from me being a non-resident as apposed to a tax resident currently?

TaxTim TaxTim says:
12 September 2013 at 12:20

If you were a non-resident and you bought any capital item outside of SA then you would not be subject to CGT as there are no South African related tax consequences.

As an ordinary resident for tax purposes your base cost will be the purchase price of the asset which means that if you do sell the asset when you are back in SA then the difference in selling price and cost price from the date of purchase.

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