Maximise your tax benefits: Don't miss the 22 February deadline

Maximise Your Tax Benefits

Retirement annuities (RAs) and tax-free investments (TFIs) offer attractive tax-saving benefits. To avoid missing out on these benefits, make use of them before the end of the tax year. To maximise your benefits and invest before the end of the tax year, you will need to submit your instruction and your money must reflect in Allan Gray's bank account by 14:00 on 25 February 2021. Payments can take two to three days to reflect in our bank account. This deadline is applicable to all payment methods:

• Electronic Funds Transfer (RA only)
• Electronic collection (RA and TFI)

Deadlines for moving money from your unit trust investment to an RA or a TFI:

Accounts starting with AGUT
(basic unit trust investment)

24 February

Accounts starting with AGLP
(via the investment platform)

22 February

You will need to send Allan Gray two separate instructions to move your money:

1. Withdrawal from your unit trust investment
2. Additional contribution for your RA or TFI

You can send Allan Gray both instructions at the same time. Please make a note on both forms indicating that the money must be paid into and then collected from the Allan Gray RA or TFI bank account. The money will not be paid into your bank account.

Remember the withdrawal may trigger capital gains tax.

You will need to complete the forms, as Allan Gray's online functionality currently does not allow you to move money between these investment accounts.

Please note: Allan Gray's daily cut-off time is 14:00. If you meet the above deadline and your investment is finalised on the last day of the tax year, the transaction date on your statement may reflect as 1 March 2021. However, your investment will still be part of this tax year and included on your 2020/2021 tax certificate.

By investing before the deadlines, you could get back some of the tax you've paid to SARS (if you invest in an RA) and therefore get more from your investment over time.

If you need any help with this, please email us at engage@silke.co.za.

Interactive example: See how much one could get back from SARS by investing in an RA here: https://www.allangray.co.za/2021-tax-year/

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.

I look forward to talking with you again soon.

Yours in health,

Shane Thom, CFP^® GTP(SA)™
Managing Partner // Key Individual // Integrated Wealthcare Advisor // Personal Portfolio Manager (PPM)

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