May 2019


Endowment-based investment comparison
An easy-to-follow comparison of the three main endowment-based investment vehicles, including an endowment policy, a traded endowment policy and a tax-free investment.Download
Summary of tax consequences of investment options
This tabled comparison sums up the tax consequences of several popular investment options, including an endowment, voluntary annuity, income plan, unit trust, listed share portfolio, fixed property, a business venture and cash.Download
Voluntary investment comparison – natural persons
A tabled comparison of voluntary investments for natural persons, comparing endowments with direct investments, including a flexible endowment option Individual policyholder fund, a flexible investment option owned by a trust with natural persons as beneficiaries and a Flexible Investment option owned by natural person.Download
Voluntary investment comparison – non-natural persons
A tabled comparison of endowment versus direct investments for non-natural persons, including a flexible endowment option company policyholder fund, a flexible investment option owned by a trust with corporate entities as beneficiaries and a flexible investment option owned by company or CC.Download


May 2019 Edition
In the May 2019 issue of Leverage, Gauteng-based financial adviser Annemie Nieman takes a hard look at investments and shows us how perception can differ from reality when taxes are taken into consideration. Further to this theme, Cape Town-based legal adviser, Odette Kriel, examines how irrational bias can effect the way we make decisions about investments. Finally, we look at whether an endowment policy can be considered a good investment choice when tax implications are taken into account. Download


The Traded Endowment Policy
An overview of the traded endowment policy which allows an investor the benefits of investing in an endowment policy without the five-year term restriction. Also looks into the taxes that will be levied on this investment and how these are calculated.Download
The endowment policy – technical details
All the details you may need to know governing an endowment policy, including income tax consequences, capital gains tax consequences, estate duty and endowment policies and a comparison of endowment-based investments.Download
The tax free investment (TFI)
The TFI was introduced in March 2015 to allow for tax-free savings by a natural person or a deceased or insolvent estate of that natural person, up to a certain limit. This article gives you all the essential information relating to this investment vehicle, including the regulations governing them.Download
Section 7C of the Income Tax Act
In the past it was common practice for a trust to acquire assets via an interest-free or low interest loan from a natural person. The objective of Section 7C is to tax loans by related parties (founders, beneficiaries, etc) to the trust, if these loans attract interest at a rate lower than the official rate of interest. The new provision seeks to address the avoidance of estate duty and donations tax. This article provides sufficient information to answer the most common questions incurred in respect of this technical topic.Download