QUESTION $8\mathrm{.}1(22$ marks, $40$ minutes$)$

You are the accountant at a holiday letting business. Your clients requested help with the capital gains tax implications on the following assets for the year of assessment ending $29$ February $2024.$

Client A:

On $1$ September $2000,$ she purchased an eight$-$metre boat. She uses the boat on weekends when she goes sailing and when her children visit her, they use the boat for private fishing.

On $15$ January $2024$ she sold the boat for R$600000.$ The base cost of the boat was R$450000.$

Ms A wants to know what the capital gain or loss on the disposal of the boat will be$.$

Client B:

After Mr B retired in $1998,$ he purchased a house in Margate on $1$ October $1998.$ He paid R$300000$ for the house and he made improvements costing R$100000$ to the house in $1999.$ He has been living in the house since $1998.$

The market value and the time$-$apportionment base cost of the property on $1$ October $2001$ was R$780000$ and R$592000,$ respectively. Every year since $1998,$ Mr B has rented the house to students between $15$ November and $15$ January. During this period, he stays with a friend in Ramsgate. He receives rental income of R$20000$ per annum and his municipal costs amount to R$800$ per month. On $1$ February $2024,$ Mr B sold the house for R$2000000$ to an overseas investor. $Mr$ B wants to know what the capital gain or loss on the disposal of the asset will be$.$

Client C:

Ten years ago, after Mr C retired, he purchased a house in Port Shepstone. On $1$ September $2009,$ he decided to start his own sea tour business and purchased a nine$-$metre boat. He uses the boat to take holidaymakers out on sea tours.

On $15$ January $2024,$ he sold the boat for R$600000.$ The base cost of the boat was R$650000.$ Mr C wants to know what the capital gain or loss implications of the transaction will be$.$

Client D:

Mr D owns "Sea View Fast$-$foods", a fish and chips shop at Ramsgate beach. He wants to retire from the business and sell the shop to a local businessman. He heard that if one sells one's small business, one does not have to pay capital gains tax on a portion of the capital gain.

Mr D wants to know when a person will qualify for the exclusion and how much the exclusion is$.(9)$

$\backslash$table$[[$REQUIRED$,$Marks$],[\backslash$table$[[$Calculate the capital gain or loss on the sale of the asset for each of the above$-],[$mentioned clients or advise the client where applicable, with reasons.$]],]]$