Capital Gains Tax on Trusts

When it comes to Capital Gains Tax (CGT), PATC are able to assist with all areas including taxation on investment assets such as trusts. Capital Gains Tax is applied differently to every asset, which means that what may apply for certain assets may not always apply to other assets. When it comes to trusts, you as the investor are liable to pay CGT on any profit that you make once you sell your trusts and make a profit on the sale. Unit trust management companies do not pay CGT on any trading that is done on the underlying investments. To ensure that you fully understand the way that CGT is applied, speak to your professional accountant to discuss your personal needs.

Specific points for investors to note when it comes to CGT and trusts include the following:

  • As a unit trust investor, you will only be liable for CGT if you sell your units in a unit trust.
  • Investors will only need to pay CGT costs once, when the units within your trust are sold.
  • You will not be liable for CGT when a portfolio manager restructures a unit trust portfolio by selling an underlying share or bond.
  • Each tax year, SARS gives you an exclusion of R10,000 on the sum of all your capital gains and losses, including trusts.

Contact PATC today to discuss all of your CGT concerns, and learn more about the wide range of accountant services on offer.