okie dokie - it starts making a little more sense. i am guessing that sugar snap either did NOT get a tax break on the trading losses or made profits against the same revenue source code from somewhere which were then allowed as deductions. if its ringfenced, my understanding would be that losses will only be deductible against same type profits. if this sounds strange, imagine that you can have losses on some share dealings and profits on others; the losses from share dealings can then be netted against profits from share dealings, but you cannot deduct the trading loss of investment activities from your PAYE paid over to SARS iro salaried earnings. kipper, you can claim a capital loss, but its also ringfenced, in this case its ringfenced within the "capital sphere", ie you can claim capital losses against any CAPITAL gain you may have, but not against a trading (revenue) gain. you can also carry a capital loss forward to the next year and use it then. the formula is : 1) determine capital gain/loss on EACH capital transaction 2) add up all capital gains/losses 3) deduct your annual exclusion (is it still 15K ?) 4) deduct any assessed loss carried forward 5) = NET capital gain/loss IF IT IS A GAIN, THEN : 6) apply the inclusion rate of 25% (for individuals) 7) pay tax at your marginal rate IF IT IS A LOSS, THEN : 8) carry item "5" forward to the next year all of the above assumes that the share transactions are of a CAPITAL nature, ie you have held the shares for longer than 3 years or can motivate to SARS as to why you do not consider the gain/loss to be capital. (thats a whole other kettle of fish) there is NO double taxation, ie you will never pay capital AND normal tax, its either or. moosedawg, you are right... provided the profit and loss is in the same year, both transactions are as a result of the same activity and both are revenue in nature. (ie not capital) CAVEAT : i am pretty sure i am right, but this is not my area of absolute expertise, pls be guided accordingly.