The following 'resident' taxpayers own, or owned, primary residences: Royale Spooner Ruth Spooner owns a house in Johannesburg in which she and her husband, Royale, spend most of their time. Ruth and Royale are both employed in Johannesburg. They are married out of community of property. Royale owns a house in Umhlanga Rocks which he lived in for three years before he moved to Johannesburg, and before he and Ruth were married. He had lived in Johannesburg for two years at the time when capital gains tax was implemented. His house in Umhlanga Rocks was then used as a holiday home by Ruth and himself. They spent their annual leave there. It stood vacant for the rest of the year. When moving to Johannesburg, Royale employed an armed. response service in Umhlanga Rocks to attend to the security of his house. Royale believes that this house was his primary residence. On 31 October 2021 Royale sold his house in Umhlanga Rocks.

 

Discuss whether Royale Spooner's Umhlanga Rocks house can be regarded as his primary residence.

 

Royston Steel Royston Steel was born in Kwa Zulu Natal South Coast. He spent the first thirty-two years of his life in Durban. On 01 October 2017 he purchased a house in Durban for R700 000 and a house in Midrand (Gauteng) for R800 000. He owns a business that operates in both Durban and Midrand. He spends six months of the year in each house. He remains a 'Natalian' at heart, and he supports the 'Dolphins' at cricket. On 8 February 2021 he retired. He sold both houses. The Durban house was sold for R2 600 000 and the Midrand house for R2 100 000. 

 

Calculate the capital gains subject to capital gains tax that arises when John sells his Durban and Johannesburg houses.