A Fin24 user wants to know if he will pay capital gains tax if he transfers money from his Sasol unit trust into a living annuity. He writes:
If I transfer my money which is in a Sasol unit trust into a living retirement annutiy by February 28 2015, must I pay capital gains tax (CGT) on this money?
Marc Sevitz of TaxTim responds:
The sale of unit trusts is subject to CGT as this is a disposal of assets and attracts tax on the capital gain or loss made.
The first R30 000 will be tax free, however, and thereafter 33.3% will be included in your taxable income.
Once put into a living annuity, any disinvestment from that will not be subject to CGT.
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