I have 2 investments 1mil in a fixed deposit and 1mil in unit trusts will I be able to draw my yearly tax free allowance from both without incurring any further tax (ie) my tax free alowance from intrest on my fixed deposit and my tax free alowance from my C.G.T from my unit trusts
Alexander, There are no restrictions as to how much you draw out of your savings or unit trust products. Your are taxed on the full interest you earn, (net of tee tax-free portion) not on the amount of interest you draw out of the account. You must also pay tax on the interest income you earn in your unit trust (the dividends are already taxed by way of a withholding tax). You will incur CGT on the units you sell, and the first R30 000 is tax-free. The onus is then up to you to calculate how many units you need to sell, to reach a capital gain of R30 000. Note that one-third of capital gains (beyond the R30 000 tax free portion) are included in your taxable income and taxed per the income tax tables. Roughly the first R70 000 of your taxable income is tax free (after deducting the rebate), so if this is your only source of income, you can sell more units without paying tax.