A method for processing a prediction unit (PU) to generate predicted samples is provided that includes computing predicted samples for samples of the PU using sample-based angular intra-prediction (SAP) when lossless coding is enabled for the PU, and computing predicted samples for the samples of the PU using block-based angular intra-prediction when lossless coding is not enabled for the PU. Computation of the predicted using SAP includes determining an intra-prediction angle for the PU, and computing a predicted sample for each sample of the samples in the PU based on linear interpolation of two reference samples adjacent to the sample, wherein the two reference samples are selected according to the intra-prediction angle.