- Title
- An analysis of tax incentives offered for investments by individuals in South Africa and the United Kingdom
- Creator
- Muzenda, Nokuthula Tafadzwa
- ThesisAdvisor
- Stack, E.M.
- ThesisAdvisor
- Horn, E.
- Subject
- Uncatalogued
- Date
- 2024-10-11
- Type
- Academic theses
- Type
- Master's theses
- Type
- text
- Identifier
- http://hdl.handle.net/10962/463516
- Identifier
- vital:76416
- Description
- This research analysed the tax incentives available for investments by individuals in South Africa and compared them to investments in the United Kingdom. It answered the question whether, based on incentives provided in the United Kingdom, recommendations can be made for investment incentives to be implemented in South Africa. The type of investments described were venture capital schemes, tax-free investments, retirement savings, endowment policies, purchased annuities, workplace investment schemes, and fixed interest bonds. These classes of investments were discussed together with the tax incentives offered for them in South Africa and the United Kingdom. An interpretative paradigm was adopted for this research, together with a doctrinal methodology and a qualitative method. This research analysed the legislative provisions in South Africa and the United Kingdom. Information was also collected from secondary sources such as textbooks and articles written on investments and taxes. There were no ethical considerations in this research as the data that was used are publicly available. The tax incentive provisions in South Africa have not proven to be effective in increasing household savings, which remain low. The comparison of the taxes and incentives in South Africa and the United Kingdom indicated that there are some similarities on how certain investments are taxed, but for most types of investments, the United Kingdom provided more favourable tax incentives than South Africa. Recommendations were made for the venture capital company incentive previously applying to be reinstated, or to introduce some form of income tax and capital gains tax relief for direct investment into venture capital companies. The removal of the penalty for tax-free investments in excess of the maximum permitted was recommended, and to charge income tax according to the tax tables on contributions exceeding the limit. With regard to purchased annuities, it was recommended that no income tax should apply to annuities received in the case of disability, sickness, and similar circumstances. For the section 8B Broad-Based Share Incentive Scheme recommendations were made to not levy dividends tax on cash dividends retained for reinvestment into the scheme, and for employees not to be liable for income tax when shares are disposed of, where they are no longer in the relevant employment due to circumstances beyond their control. A recommendation was also made to consider introducing workplace savings schemes similar to the savings schemes applying in the United Kingdom. An education campaign by the South African Revenue Service was recommended, to inform the public of investment incentives.
- Description
- Thesis (MCom) -- Faculty of Commerce, Accounting, 2024
- Format
- computer, online resource, application/pdf, 1 online resource (101 pages), pdf
- Publisher
- Rhodes University, Faculty of Commerce, Accounting
- Language
- English
- Rights
- Muzenda, Nokuthula Tafadzwa
- Rights
- Use of this resource is governed by the terms and conditions of the Creative Commons "Attribution-NonCommercial-ShareAlike" License (http://creativecommons.org/licenses/by-nc-sa/2.0/)
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RU Department of Accounting
| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details | SOURCE1 | MUZENDA-MCOM-TR24-122.pdf | 550 KB | Adobe Acrobat PDF | View Details |