News

New section 7C and interest – free loans to trusts

06.Mar.2017 | News

Effective from 1 March 2017 section 7C will apply to all loans, including loans currently in existence, made to a trust by connected parties (including the founder, trust beneficiaries and any relatives of such beneficiaries as well as connected companies) where no interest or interest below the official rate of interest is charged (currently 8%). The consequences: The difference between the interest rate charged and the official interest rate of 8% in the hands of the lender will be treated as an ongoing and annual donation on the last day of the tax year and will be subject to... read more

Budget Changes 2017/2018

28.Feb.2017 | News

                      Individual Tax: A super tax bracket of 45% has been introduced for individuals with a taxable income of more than R1 500 000. Middle class individuals earning between R500 000 and R1.5 million should be most upset as Treasury did little to adjust the tax tables for inflation. The effect is that they will pay R12 billion more than if the brackets had been adjusted to fully accommodate inflation. Capital Gains Tax: Capital gains inclusion rates remain at 40% for individuals and 80% for companies and trusts. With... read more

Trust Fund Management Services

02.Aug.2016 | Trusts

Who Should We Provide your Trust Fund Management Services? Since the main purposes of setting up a trust fund are to protect and to grow one’s assets, choosing who is best able to provide the necessary management services is a decision that needs careful thought. It may also depend upon the version of this financial instrument that is to be used and this takes two possible forms. These are known as living and testamentary and are applicable, respectively, to a financial instrument established during the life of the owner (grantor) and to one decreed in a last will and... read more

Trust Funds – Benefits and Purpose

02.Aug.2016 | Trusts

The Purpose and Main Benefits of Establishing a Trust Fund Trust funds are not, as many people tend to believe, the sole province of the multimillionaire. However, despite their many potential benefits, they are not a suitable financial instrument for everyone’s purpose. In essence, the term applies to a legal document or deed that may be established by either an individual or a corporation, thereafter known as the grantor. The deed sets out the terms for the management of property and other assets held on behalf of a beneficiary that, once again, may either be a named individual or... read more

Estate Handling Services

14.Jul.2016 | Estate Planning, Trusts

The Responsibilities of Estate Handling Services in South Africa Whilst in the midst of enjoying our lives, it is all too easy to overlook the simple fact that each of us must, at some time, confront the inevitability of death. In practice, this has long been a prospect that many choose to avoid contemplating more than superficially and, as a result, it is an eventuality for which such individuals tend to make provision only at the last moment, if they do so at all. While this policy of avoidance may help to shield them from the reality of their... read more

Trust Fund Assistance and More

14.Jul.2016 | Trusts

Professional Assistance with Managing Trust Funds and More For the average citizen anywhere in the world, being faced with the need to deal with legal matters is a prospect that they would rather avoid. Without, at least, some basic knowledge of the pertinent laws, even relatively basic legal undertakings such as drawing up a will, drafting an anti-nuptial agreement or, all too commonly, completing divorce papers, are tasks that can be confusing and fraught with hidden pitfalls for the layman. Of the three tasks cited, it is perhaps the first of these that people are, albeit unwisely, most often... read more