Silke RA and Tax Free Investment: February 2017 Deadlines

02 Feb 2017

The deadline for contributions into the Silke Retirement Annuity Fund (RA) and the Silke Tax-Free Savings Account (TFI) for the 2016/2017 tax year is 14:00 on Tuesday, 28 February 2017. Please send us your tax-free investment instructions before 14:00 on Friday 24 February 2017.

What is a Retirement Annuity?

Watch a 31sec video explaining what a retirement annuity is.

You can invest directly into unit trusts, or you can invest in unit trusts via our retirement annuity. A retirement annuity gives you tax savings and a measure of protection, but comes with some restrictions.

What is a Tax-Free Savings Account?

The Tax-Free Investment Account was introduced by National Treasury to encourage individuals to save with the benefit of the account being 100% tax free. These accounts came into effect on 1 March 2015. The investment account is exempt from income tax, capital gains tax (CGT) and dividend withholding tax. Individuals are allowed to contribute R30 000 per year to a tax-free savings account and there is a lifetime maximum contribution limit of R500 000.

Learn more about Tax-Free Savings Account.

Please note that the maximum amount your clients can invest in tax-free savings and tax-free investment accounts per tax year is R30 000. This limit applies across all tax-free savings and tax-free investment accounts that you may own. Please note SARS will levy a 40% penalty on any excess investments. Please note that EFTs will not be allowed - to ensure that you do not exceed the contribution limits in your Tax-Free Investment, money will be collected from your bank account via a direct debit. FICA requirements for new TFI accounts. As a reminder, Tax-Free Investment is an investment policy issued by Allan Gray Life Limited. We therefore cannot rely on Exemption 4 of the Financial Intelligence Centre Act, and need to have new FICA documents on record (not older than 3 months) for all new investors investing in the product, irrespective if they are already invested on the Allan Gray Platform.

Please refer to Allan Gray Practice Note 283 for more detailed information on the various cut-off dates and times.

Our integrated wealthcare approach is based on your personal priorities and aspirations. This process is designed to give you a clear course of action for pursuing your goals that span various time horizons and life stages to empower you to do extraordinary things with your wealth, both now and in the future.

Regards,

Shane Thom, CFP^® GTP(SA)™
Managing Partner: Integrated Wealthcare Advisor