A price decline is different from a realised loss. Identify the event and the tax treatment before using a loss in a return.
How do capital losses work?
Applicable capital losses are aggregated with capital gains for the assessment year. They do not reduce salary income. The annual exclusion also reduces a net annual capital loss; only the resulting assessed capital loss carries forward.
What does that mean in an example?
Assume an individual realises a net R80,000 capital loss in 2025/26, with no other capital events or exclusions. After the R40,000 annual exclusion, R40,000 remains as an assessed capital loss. It is incorrect to carry forward the entire R80,000.
If the next year has R150,000 capital gains and no current losses, the R50,000 exclusion leaves R100,000. Setting off the R40,000 brought-forward loss leaves R60,000; the 40% included amount is R24,000.
What about trading losses?
Revenue losses have different deduction and limitation rules. This tool does not determine whether they may offset other income or must be ring-fenced. Ask a practitioner before treating a trading loss as a salary deduction.
What records matter?
Keep proof of acquisition, disposal and costs. Do not create artificial transactions solely because an example shows a lower tax figure. The annual calculator accepts multiple capital disposals and an assessed loss brought forward.