We offer you a tax-free investment option in one or more of nine of our unit trust funds. The investment returns are 100% tax exempt.
Benefits of tax-free investments
- You earn tax-free growth on your contributions into your investment.
- You don’t pay tax on any dividends (normally 20% tax is charged).
- You don’t pay tax on any interest earned.
- You don’t pay tax on capital gains (ie any profit made on the sale of your investment).
To find out more about this investment option, please speak to your financial adviser, or contact our client service consultants on 0800 864 418 (toll free). Alternatively, email firstname.lastname@example.org.
Contributions are strictly limited to R36 000 per year, with a lifetime limit of R500 000 across all of your tax-free investment accounts with financial institutions. Amounts in excess of the annual or lifetime limits will be taxed at 40%.
You are free to invest in more than one unit trust as long as overall investment limits are adhered to. The overall growth of the investment does not have a tax-free limit – just the contributions.
While you can access and withdraw your tax-free investment at any time, the R500 000 total lifetime contribution limit will still apply. Any further contributions therefore cannot be seen as a replacement of the portion withdrawn.