The start of a new financial year is always a moment worth marking. But this year, it carries particular significance. From the 1st of March 2026, a number of meaningful changes to contribution limits and tax exemptions come into effect, changes that, if acted on deliberately, can make a real difference to your long-term financial position. 

We believe that every detail matters. Here’s what’s changed, and why it matters to you. 

Tax-Free Savings Accounts: room to save more 

In a welcome move to encourage household savings, the government has increased the annual contribution limit for Tax-Free Savings Accounts for the first time in several years. From 1 March 2026, individuals can contribute up to R46,000 per year, up from R36,000. The lifetime limit remains unchanged at R500,000. 

This is a meaningful increase. Every rand that grows inside a TFSA is free from income tax, dividends tax, and capital gains tax, making it one of the most efficient savings vehicles available. If you haven’t been maximising your annual contribution, now is the time to revisit that decision.

Retirement Annuities: a significantly higher deduction ceiling 

Retirement savers have received one of the most substantial boosts in recent memory. The annual maximum tax-deductible contribution limit for retirement funds, including pension, provident, and retirement annuity funds, has been raised from R350,000 to R430,000. The 27.5% of remuneration or taxable income rule still applies, but for higher earners, this increased cap opens up considerable additional tax relief. 

Contributing to a retirement annuity remains one of the most powerful tools for reducing your taxable income while building long-term wealth. If your current contribution level hasn’t been reviewed recently, this change makes that conversation more worthwhile than ever.

Offshore investing: double the discretionary allowance 

For those looking to diversify beyond South African borders, here’s the good news. Finance minister Enoch Godongwana recently announced that the Single Discretionary Allowance (SDA), the amount individuals can move offshore without requiring a tax clearance certificate, has been doubled from R1 million to R2 million per calendar year. This easing of exchange controls gives investors greater flexibility to access global markets and reduce concentration risk in their portfolios, with considerably less administrative friction.

Capital gains and interest exemptions: inflation-adjusted relief 

Several key exemptions have been adjusted upward, effectively reducing the tax burden on investment growth. The annual capital gains exclusion increases from R40,000 to R50,000. The CGT exclusion on death rises substantially from R300,000 to R440,000. And for homeowners, the primary residence exclusion has been lifted from R2 million to R3 million, a notable improvement for those with appreciating property. 

These adjustments may appear incremental, but applied to a well-structured financial plan, they compound into meaningful savings over time.

The opportunity is there, but it requires action 

Knowing about these changes is only half the work. The real value comes from acting on them with intention and purpose; and at Hereford, we move alongside our clients to ensure that every available opportunity is considered, every detail accounted for, and every decision made with clarity. 

If you’d like to understand how these changes apply to your specific circumstances, reach out to your Hereford advisor. The new financial year has begun and we’re a month in, let’s make the most of it together.