The Minister of Finance announced in his budget speech on 22 February 2012 that the new Dividends Tax, replacing the former Secondary Tax on Companies, would be at a rate of 15% - not the 10% advised previously. He also announced an effective one-third increase in all capital gains tax rates.
The Dividends Tax increase was to be effective from 1 April 2012, but capital gains tax was to increase from 1 March 2012 for most taxpayers – 5 working days hence.
CLIENT A
This was an inter vivos trust housing an investment company. This company in turn owned fixed property and a listed investment portfolio. All of these growth assets would in all likelihood be realised within 10 years at significant capital gains. The company had substantial existing reserves. As the object of the trust was to support the family beneficiaries, all reserves would eventually be distributed.
