Tax and SARS knowledge base

How do I calculate CGT when selling listed shares?

How do I calculate capital gains tax when I sell listed shares?

Last reviewed: 28 August 2026

Direct answer

For a listed-share disposal that is capital in nature, begin with the share-sale proceeds and subtract the supported base cost allocated to the shares sold. The result is a capital gain or loss for that disposal. The current-year gains and losses are then considered together under the CGT rules, including the annual exclusion and inclusion rate for the correct year of assessment.

The arithmetic is often simpler than the evidence. The difficult part can be identifying the right parcel of shares, using a valid and consistent base-cost method, and accounting for corporate actions, prior partial sales and broker fees. A broker tax certificate can help, but it should be reconciled to the underlying contracts and records before you use it in a return.

What this means in practice

SARS explains that a capital gain is the amount by which disposal proceeds exceed base cost. Base cost may include qualifying acquisition, enhancement and disposal costs that have not already been deducted from income. Listed shares may also require an identification and base-cost approach that fits how and when the shares were acquired.

Prepare one transaction schedule. For every sale, record the date, quantity, share, gross proceeds, brokerage and other directly relevant amounts, base-cost method, allocated base cost and calculated gain or loss. Retain the source document beside each figure. If a broker's report uses different dates or currency conversions, identify the reason rather than forcing the numbers to match.

Then calculate the aggregate position across all capital transactions for the year. SARS publishes an annual exclusion table. It is not a permanent number, so use the figure for the relevant assessment year. The annual exclusion is applied to the aggregate capital gain or loss under the rules, not separately to every share sale. The inclusion rate is also not the final amount of tax payable. It determines the portion of a net capital gain included in taxable income, which is then affected by the taxpayer's wider tax position.

Corporate actions deserve special care. A return of capital, rights issue, unbundling, share consolidation, share scheme event or company takeover can affect base cost or create a disposal. Do not simply accept an opening cost from an app if the shares have a long history. Preserve issuer notices and broker records.

Step-by-step

Confirm that a capital calculation is appropriate.

Classification comes first. If the activity could be trading in nature, obtain advice before completing a CGT-only schedule.

Gather the disposal evidence.

Save the contract note and broker statement for each sale. Record the actual settlement and trade dates shown by the evidence.

Reconstruct base cost.

Bring together acquisition notes, brokerage, relevant corporate-action records and earlier disposal schedules. Use a supported approach consistently for identical listed shares.

Calculate each disposal.

Compare proceeds with the portion of base cost allocated to that sale. Keep fees and adjustments visible rather than entering only a final net number.

Aggregate the current-year gains and losses.

Combine the capital results for the year, then use the SARS annual-exclusion information for that year. Do not apply a current figure to a historical sale.

Complete and retain the return support.

Use the current ITR12 guide for fields and disclosure. Save the calculation, source documents, final return and assessment in one file.

Documents and records to keep

Purchase and sale contract notes.
Broker certificates and platform statements.
Corporate-action, dividend and return-of-capital notices.
A base-cost and disposal schedule with source references.
ITR12, assessment and communications relevant to any correction.

Important limits and exceptions

This guide assumes that the transaction is capital in nature. It does not give a final classification opinion. It also does not attempt to calculate a single tax bill from a gain because the outcome depends on the full year, other gains and losses, taxable income and the applicable period.

Use only the annual exclusion and inclusion rate for the correct year of assessment. Values can change. If shares were acquired before 1 October 2001, the valuation-date rules may be relevant. If the holding was acquired through an employee share plan, inheritance, donation or non-arm's-length transaction, additional rules can apply.

When to get tailored advice

Seek advice where the share history is incomplete, there are foreign currency transactions, corporate actions, pre-2001 holdings, employee shares, a material loss or disagreement with a broker certificate. TaxProof can help reconcile source documents and build the schedule, but a complex CGT calculation should be reviewed before filing.