Northern Hills Magazine 2015 Easter Issue | Page 11

requirements be met: The policy must be a life, disability, health or a funeral policy. The policy must be effected by the insolvent on his/her own life or that of his/her spouse. The policy must have been in force for a minimum of 3 years prior to the date of insolvency Contact us on Office: (SA) 021-035 0372 NEW TAX IMPLICATIONS FOR 2015 Firstly, all proposed tax changes to retirement funds have been delayed until 2016 and even possibly 2017. This means that the increased tax deductibility of up to 27.5% on all retirement funds have been delayed for the time being. More good news - Section 12T of the Act provides that from 1 March 2015, an individual can rely on a tax free savings account subject to the contributions having a R30,000 per year limit and R500,000 per lifetime limit. Anything over and above the aforementioned amounts shall be taxable at a 40% penalty. Even though this savings account is tax free, it is still subject to Estate Duty. The 1st of March 2015 is also the commencement date for income continuation benefit premiums to no longer be tax deductible for individuals and/or employees. The pay-out is tax free in the hands of the claimant shou