1. You can
invest only R30 000 a year in a tax-free savings account, and once the amounts
you have invested (without taking growth into account) add up to R500 000, you
cannot contribute any more. It does not matter how much growth you earn on your
annual contributions, as long as the amounts you put in do not add up to more
than the annual or the lifetime limit.
2. The
benefits of the tax free investment; you pay no tax on any interest income or
dividends earned by the investment, regardless of how long you stay invested,
and you do not pay any capital gains tax (CGT) when you withdraw your
investment.
3. The tax
free flexible plan is a unit trust and the proceeds can be drawn at any time
unlike a policy.
