Savers set to score
Feb 11 2009 14:08
Marc Hasenfuss
Cape Town - Savers are in line for a tax break from this year's budget.
In line with the government's goal of encouraging greater national savings, the tax-free interest-income ceiling has been raised from R19 000 to R21 000.
For savers over 65 years old the ceiling has been raised from R27 500 to R30 000.
The tax-free income ceilings for foreign dividends and interest was raised slightly from R3 200 to R3 500, while the
annual exclusion ceiling for capital gains and losses for individuals has been lifted from R16 000 to R17 000.
The budget has also proposed several exclusions for the capital gains regime in a bid to reduce the tax burden for
lower- and middle-income earners.
The capital gains tax (CGT) exclusion will now apply to any primary residence up to a gross value of R2m, a marked
increase on the previous ruling of R1.5m.
This means that people selling their primary residence with a gross value of R2m will not be liable for CGT.
For primary residence valued above the R2m threshold, the normal rules (including the current R1.5m capital gain/loss
exclusion) will apply.
- Fin24.com
