Notices on Expanding Access to Living Annuity Funds gazetted

The Notices on Expanding Access to Living Annuity Funds were gazetted on 1 June 2020. These Notices give effect to tax measures to combat the economic effect of the national lockdown due to the COVID-19 pandemic, following the President’s address to the nation on 21 April 2020 and the announcement by the Minister of Finance on further tax measures to combat the COVID-19 pandemic.

Access to living annuity funds has been expanded for a limited period of four months beginning 1 June 2020 and ending on 30 September 2020. For more information on expanding access to living annuity funds, click here to read our previous articles.

Association for Savings and Investment South Africa (ASISA) welcomed the temporary easing of living annuity drawdown regulations however they have cautioned living annuity policyholders, in a media statement, to use the flexibility offered wisely.

Click on the links below to read more

• ASISA Media Statement – Use temporary living annuity drawdown flexibility wisely, cautions ASISA
• Gazetted notices:

– Notice in respect of formula for purposes of determination of amount for purposes of paragraph (b) of the definition of living annuity in Section 1(1) of Income Tax Act, 1962

– Notice in respect of amount of value of assets that may be paid in lumpsum for purposes of paragraph (c) of definition of living annuity in Section 1(1) of Income Tax Act, 1962

• Media Statement by National Treasury – Gazetting of Notices on Expanding Access to Living Annuity Funds