CGT on transfer of shares

By Alicia Human · Updated

Graham

Graham said:
8 June 2016 at 19:40

Hi
My client started 2 companies and was the 100% shareholder
He now wants to transfer the shares to his holding company
With regards to the cgt calculation can a simple valuation be performed for the deemed proceeds or does SARS require to have it done by a professional
Also - what can we add to the base cost
Can we add the legal costs to create the agreements for the transfer of shares?
TaxTim Alicia

TaxTim Alicia said:
10 June 2016 at 17:22

All costs associated with the sale of the asset, in this case the shares can be added to the base cost. You can perform the valuation yourself, of course if SARS does query it then you do need to explain your methodology.