Can I invest on behalf of my children?
Yes. You can invest on behalf of your children regardless of their age. However, it’s important to note the following:
- Contributions to their investments are counted towards their annual and lifetime limits.
- Contributions above the maximum limits are subject to 40% tax.
- Withdrawals from their investments can only be made to a bank account held in their name.
- Contributions made on their behalf are regarded as donations and may be liable for donations tax. Currently, SARS exempts the first R100,000 donated by an individual from donations tax.