If you are investing for the long term, you can benefit from tax savings on your investment return in our tax-free investment account. It is also a useful product for estate planning purposes. The maximum you can invest per year is currently R33 000, with a lifetime maximum of R500 000.
BENEFITS
Tax benefits
The interest, capital gains and dividends you earn are completely tax free.
Estate planning
You may nominate one or more beneficiaries. When you die, your investment can be paid to your beneficiaries immediately and there are no executor fees. The value of the investment will be included in the estate for the calculation of estate duty.
INVESTMENT LIMITS
MINIMUM AND MAXIMUM INVESTMENT AMOUNTS
Lump sum
R20 000 minimum
R500 minimum per additional investment
Debit order
R500 minimum per month
Lump sum
R33 000 maximum per year, subject to a lifetime maximum of R500 000
Debit order
R2 750 maximum per month
The maximum investment limits are for all tax-free savings and investment accounts you may have across different product providers.
Any portion of your unused annual limit may not be carried forward to the new tax year. For example, if you invest R27 000 in year 1 you cannot roll your unused portion of R6 000 over to year 2. In year 2, you will only be able to invest the normal annual maximum of R33 000.
There is a 40% tax penalty on any amount you invest in excess of the maximum across product providers. For example, if you invest R35 000, which exceeds the annual limit by R2 000, 40% of the R2 000 excess (i.e. R800) must be paid to SARS at your tax assessment.
We need to collect the money from your account – you cannot deposit it in ours. This is to ensure that you don’t exceed the maximum limits, as prescribed by legislation, in your Allan Gray Tax-Free Investment Account.