What is the CGT Annual Exclusion?
Capital Gains Tax (CGT) is triggered when you dispose of an asset at a profit. To provide administrative relief for small gains, SARS grants natural persons (and special trusts) an annual exclusion.
The 2026 Increase
For the 2026 year of assessment, the annual exclusion for individuals has been increased, providing greater scope for tax-free portfolio rebalancing. This means the first portion of your aggregate capital gain for the year is entirely exempt from CGT. Furthermore, the exclusion in the year of death has also been adjusted upwards.
Strategic Planning
Investors should strategically time their asset disposals across multiple tax years to fully utilize their annual exclusions. Selling a portion of a highly appreciated asset over two consecutive tax years, instead of a lump sum, can effectively double your tax-free gain allowance.
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