Budget supports 12J

This week’s budget was a super-tough one with the majority of South Africans being called on to foot the bill for the theft and mismanagement of the Zuma ‘error’.

A notable exception was Treasury’s explicit support for 12J Venture Capital Companies (VCC’S) by further liberalising investment criteria and addressing ‘administrative and technical issue obstructing uptake’.  Although detailed amendments are vague at this stage its encouraging to see the focus on supporting the structure going forward.

Another notable issue is the fact that, contrary to many predictions, capital gains tax (CGT) remains unchanged.  This means that individual investors into 12J companies can claim 45% upfront and only be taxed at 18% on the ultimate sale of their shares.

The Lucid Hotel Fund is the 12J ‘suite’ spot in that it combines an investment in one of South Africa’s most important job creating and highest growth industries – tourism.  At the same time it protects investor capital with a strong property underpin. The fund is almost at capacity and closes next week.

I hope you’re feeling as optimistic about 2018 as we are!


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