Gareth Collier
3 minute read
16 Mar 2020
7:03 pm

How to maximise your tax benefits

Gareth Collier

Look into whether a tax-free savings account is appropriate for you, though there are many other options available.

South Africans working abroad and earning in foreign currency will have to prepare for the new tax now or get hit by penalties at a later stage. Picture: iStock

As an investor, you are granted a R40 000 capital gains tax (CGT) exemption per year in respect of events that trigger a disposal of assets, which includes the sale of unit trusts. Although it is never ideal to be disinvested if your intention is to invest for the long term, investors may find merit in switching from an invested fund to cash and then back into an invested fund without attracting CGT, provided that the gain is no greater than R40 000. In doing so, you will be able to rebase your investment at a higher base cost, effectively...