April 2026 has brought several important tax updates that individuals, trusts, and expatriates should be aware of. Here’s a breakdown of what’s changed—and how it could affect you:
1. Capital Gains Tax (CGT) Relief on Primary Residences
There’s good news for homeowners. For property sales where agreements become binding on or after 1 March 2026, the primary residence exclusion has increased from R2 million to R3 million.
This adjustment provides meaningful relief, especially for those selling higher-value homes, potentially reducing the capital gains tax burden significantly.
2. Increased Enforcement on Trust Compliance
SARS is tightening the screws on trust compliance.
Trusts that fail to submit their ITR12T income tax returns—or submit them late—will soon face stricter penalties. SARS is clearly signaling a zero-tolerance approach to non-compliance.
What this means:
Trustees must ensure that all filings are accurate and submitted on time to avoid costly penalties.
3. Expatriate Tax Crackdown
Financial institutions are stepping up enforcement of SARS and Exchange Control regulations.
There are growing reports of bank accounts being frozen where expatriates attempt to move funds offshore without proper approval or compliance.
Key takeaway:
If you’re an expatriate, ensure your tax affairs and exchange control approvals are fully in order before transferring funds.
4. Budget 2026: Relief vs Reality
While the 3.4% inflationary adjustment to personal income tax brackets offers some relief, the reality is less encouraging.
Rising costs in:
Fuel
Medical aid
Electricity
…are eroding these gains, leaving many households financially strained despite the adjustments.
5. New SARS Commissioner Appointed
Dr. Ngobani Johnstone Makhubu has been appointed as the new SARS Commissioner, succeeding Edward Kieswetter.
This leadership change comes after SARS surpassed an impressive R2 trillion in revenue collection, signaling continued focus on enforcement and efficiency.
6. The Reality: Taxpayer Relief is Shrinking
Although there are technical tax adjustments, inflation continues to outpace relief measures.
The result?
Many South Africans are experiencing a real decline in disposable income, despite nominal tax relief.
Final Thoughts
The overall trend is clear:
➡️ Increased enforcement
➡️ Stricter compliance requirements
➡️ Limited real financial relief
Staying compliant and proactive is more important than ever.
If you’re unsure how these changes impact you, it’s worth getting professional guidance before small issues become costly problems.