Capital gains or Income tax

By Marc Sevitz · Updated

Steve

Steve said:
16 February 2016 at 23:17

Bought shares for R5000. 00 in 2008
Opened a share trading account in 2015. No of shares was 187 and the value was brought in as 187 x R1854
R346698. Sold in 2015 for R1822. 00x187
Also bought other shares which is share trading. Is this Capital or income
TaxTim Marc

TaxTim Marc said:
17 February 2016 at 13:47

If you are actively buying and selling over the short term (less than 3 years) the profit would generally be considered to be "income". However, if you are purchasing as an investment and holding for a period greater than 3 years in order to achieve capital growth over the medium to long term, it would be considered a sale of an asset which would attract capital gains tax.