Coronation, Allan Gray to launch tax-free savings accounts
03 June 2015
Posted by: Author: Ingé Lamprecht
Author: Ingé Lamprecht (Moneyweb)
Within the next few months.
South Africa’s two largest unit trust managers plan to launch their own tax-free savings accounts (TFSAs) within the next few months.
When TFSAs were first introduced on March 1 this year, Coronation Fund Managers and Allan Gray did not offer any products in this space as it was still in discussions with National Treasury about the requirements.
TFSAs allow individuals to invest up to R30 000 per annum in a variety of asset classes. All proceeds on the underlying investments (interest, capital gains and dividends) are 100% tax-free. A lifetime capital contribution limit of R500 000 applies. The introduction of these vehicles is an effort by Treasury to encourage consumers to save and to reduce their financial vulnerability.
Richard Carter, director and head of product development at Allan Gray, says they are working on their own product, which he hopes will be available within the current tax year.
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This article first appeared on moneyweb.co.za