Question: Jameel acquires a home for R 2 700 000. He spends R 600 000 renovating it, and then sells it for R 4 400 000 a few years later. Jameel lived in this house for the whole time that he owned it and therefore it would be regarded as his primary residence for tax purposes. Let us assume now that Jameel lived in the house for five years and then relocated to a different city for three years, during which time he rented out his house. He then sold it eight years after buying it.
Excluding the capital gain, Jameel's taxable income for 2022 is R 700 000.
You are required to calculate the capital gains tax that Jameel will pay on the disposal of the property.