Tax efficient investing

Life Account 2 is a life assurance contract that offers customers certain tax benefits. These could include:

Tax on Growth*

Because your contribution is within a life assurance contract, it is Old Mutual Guernsey rather than you, the contract holder, who is responsible for the payment of any taxes that may arise within your Life Account 2. This is generally at a more beneficial tax rate than would apply if you held the investments directly, and could represent a valuable saving for you.

Tax when encashing*

Based on Old Mutual Guernsey’s understanding of the current South African tax law, as a South African resident, you should not be liable for any further tax under current legislation when you encash your Life Account 2, as long as the legal ownership of the contract has not changed other than by way of death.

Tax administration*

With Life Account 2 you are relieved from tax administration, that is often seen as a complex and time-consuming chore, especially for offshore investments.

*Tax rules could change in the future.

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