Are investment clubs
Like sto kvel s, investment clubs are not taxed. But are they really a vehicle to use if you want to avoid having your investments taxed?
Brown says there is no special tax dispensation for stokvels/ investment clubs. “Any tax liabilities i ncurred are passed onto the individual members. This is often quite effective. For instance, each individual taxpayer can incur capital gains of R30 000 per year, before CGT [capital gains tax] is payable,” he says.
“So an investment club/stokvel which has a R300 000 capital gains tax liability, but has 10 or more members, can pass this through to individual members, who would not then be liable for CGT, unless they were incurring other CGT liabilities elsewhere.”