With markets having risen sharply, many investors are now facing potential capital gains tax (CGT). What strategies can be used to reduce the tax implications?<\/p>\n
\n <\/p>\n
You\u2019ve raised a great question, and it\u2019s an important consideration given how strongly markets have performed. Fortunately, there are a few practical strategies to help reduce the tax impact by making use of the concessions available.<\/p>\n
1. Use the annual capital gains exclusion<\/strong><\/p>\n With the new R50 000 annual CGT exemption, you\u2019re able to realise up to R50 000 of capital gains each year without paying tax.<\/p>\n While this may seem modest in isolation, consistently making use of this exemption can meaningfully reduce your overall CGT exposure over time \u2013 especially on long?term holdings where gains have built up.<\/p>\n 2. Offset gains through retirement annuity (RA) contributions<\/strong><\/p>\n You\u2019re allowed to contribute up to 27.5% of your taxable income to an RA each year, now capped at R430 000.<\/p>\n These contributions are tax-deductible, which means that increasing RA contributions in a year where you\u2019ve realised gains can help offset some, or in some cases most, of the tax payable.<\/p>\n This does shift funds from discretionary investments into a retirement vehicle, so it\u2019s important to ensure your liquidity needs and overall investment strategy allow for this.<\/p>\n However, if you\u2019re not currently maximising RA contributions, this can be a very effective way to lower tax.<\/p>\n By combining the annual CGT exclusion with your allowable retirement contributions, you can gradually reduce the tax implications of capital gains \u2013 without needing to make drastic changes to your portfolio.<\/p>\n<\/p><\/div>\n <\/p>\n Was this answer by Jonty helpful?<\/p>\n \n \n <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n #investors #reduce #capital #gains #tax #strong #market #growth<\/p>\n","protected":false},"excerpt":{"rendered":" Timing is important, as this tax is only triggered on disposal. By Jonty Sacks \u2013 Sacks & Associates \u00b7 30 Apr 2026\u00a0 04:05\u00a0 With markets having risen sharply, many investors… <\/p>\n","protected":false},"author":1,"featured_media":889,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[577,1298,581,92,33,1297,266,227],"class_list":["post-888","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing","tag-capital","tag-gains","tag-growth","tag-investors","tag-market","tag-reduce","tag-strong","tag-tax"],"_links":{"self":[{"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=\/wp\/v2\/posts\/888","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=888"}],"version-history":[{"count":0,"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=\/wp\/v2\/posts\/888\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=\/wp\/v2\/media\/889"}],"wp:attachment":[{"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=888"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=888"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gw.adampg777.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=888"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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