Stephen Cranston Writer & columnist

There is no doubt that the increases in foreign exchange limits in the most rescent budget were largely ignored. Yet it is highly significant that a total of 40% of money invested in unit trusts, pensions and life policies can leave the country — 30% globally and 10% to the rest of Africa. Perhaps it is not as tangible as the personal allowance which now allows R1m/year as a travel allowance without the need for SA revenue service clearance, plus a further R10m/year with clearance. And it all started with a R200,000 "lifetime" allowance in 1997. But for most people with smaller sums to invest, the hassle of buying foreign exchange and going through tax clearance is hardly worth it. Realistically, most will access foreign markets through rand-denominated unit trusts and life policies. Individuals with retirement annuities can simply ask the product provider to rebalance their portfolio, putting an extra 5% weighting to a global rand-denominated fund. It’s much easier than sending mon...

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