Budget Speech 2026 announced changes to Donations Tax and CGT. Here’s why that matters if you own gold.
The Budget Speech 2026 did not introduce dramatic new taxes on investors. It did something more subtle — and, for precious-metal owners, more practical.
From 1 March 2026, the annual donations tax exemption increased from R100,000 to R150,000. At the same time, the annual capital gains tax (CGT) exclusion increased from R40,000 to R50,000. The CGT exclusion in the year of death rose from R300,000 to R440,000. These changes are reflected in the SARS Budget Tax Guide 2026 and the National Treasury Budget Review 2026.
Those numbers may look technical. They’re not. They affect how families structure wealth transfers and how investors decide when to sell bullion or jewellery.
If you hold Krugerrands, silver bullion, or inherited gold jewellery, this is relevant now.
Donations Tax: The R150,000 shift and what it actually changes
Before this Budget, an individual could donate R100,000 per tax year without triggering donations tax. That threshold is now R150,000 per tax year for natural persons.
The rate itself has not changed. Donations tax remains 20% up to R30 million in cumulative donations (since 1 March 2018), and 25% above that level.
The effective application aligns with the 2026/27 year of assessment, beginning 1 March 2026.
On its face, this looks like a R50,000 adjustment. In practice, it changes how bullion gifting can be structured over time.
What this means for Krugerrands and silver gifting
Many South African families do not rely solely on trusts or complex offshore structures. They build wealth incrementally — one Krugerrand at a time, one silver allocation at a time — and eventually transfer that wealth to children or grandchildren.
Under the new threshold, an individual can now gift up to R150,000 worth of assets in a tax year before donations tax is triggered.
If a grandparent purchases R150,000 worth of Krugerrands and formally transfers ownership to a grandchild within the same tax year, that falls within the exemption — provided total donations for that year do not exceed the threshold.
If they gift R200,000 in one tax year, the excess R50,000 may attract donations tax at 20%.
The difference now is scale. R150,000 in bullion is not a symbolic gift. It can represent:
This makes disciplined, documented annual gifting more viable.
What matters is proper documentation. SARS requires a donations tax declaration (Form IT144) after a donation is made, and donations tax – where applicable – must be paid by the end of the month following the month in which the donation takes effect.
What matters is that the transfer is structured clearly and correctly. If you are purchasing bullion with the intention of gifting it, ownership should reflect that intention and be supported by appropriate documentation.
That may include retaining purchase invoices, recording the date of transfer, and ensuring the gift is properly declared where required. These are standard administrative steps. They are not complex, but they are important in ensuring the gift achieves its intended legal and tax outcome.
This is about clarity, not complexity.
A critical tightening: spousal donations and tax residency
Budget 2026 also narrowed the spousal exemption in a specific circumstance. Treasury’s Annexure C confirms that the exemption for donations between spouses is limited where the receiving spouse is not a South African tax resident. The stated effective date is 25 February 2026.
For resident couples, this changes little. For cross-border families where one spouse has ceased tax residency, this matters. Asset transfers between spouses in that context should now be approached cautiously and with professional advice.
This is not a bullion issue specifically. It is a tax-residency issue that affects all asset classes, including precious metals.
Capital Gains Tax: Why the R50,000 annual exclusion matters
The second adjustment is in CGT.
The annual exclusion increased from R40,000 to R50,000. The exclusion in the year of death increased from R300,000 to R440,000.
This matters when you dispose of an asset and realise a capital gain.
Let’s apply that to bullion.
If you sell Krugerrands and realise a capital gain of R45,000 in the 2026/27 tax year, that gain falls within the R50,000 annual exclusion. If you realise R80,000, the first R50,000 is excluded and the balance is subject to CGT mechanics.
That shift from R40,000 to R50,000 is not cosmetic. It increases the room available to crystallise gains in a given tax year without triggering tax consequences.
For investors considering phased disposals — particularly when gold prices are strong — timing becomes a legitimate planning discussion. Selling part of a holding before 28 February and part after 1 March can mean utilising two annual exclusions across two tax years.
That is not tax avoidance. It is simply understanding the structure of the legislation.
Krugerrands are not “personal-use assets”
One point must be stated clearly.
SARS explicitly notes that Krugerrands are excluded from the definition of personal-use assets.
That means gains on Krugerrands are not automatically disregarded in the way certain personal-use items can be.
Jewellery, by contrast, is generally treated as a personal-use asset when held for private enjoyment and not for trade. However, if jewellery is acquired or disposed of as part of a profit-making scheme, different rules apply.
The distinction is important:
The tax treatment ultimately depends on how the asset was acquired and held. An occasional disposal of long-held personal jewellery is very different from regular buying and selling activity. Maintaining clear purchase records and valuations simply ensures that, if required, you can calculate any gain accurately and apply the correct exclusions.
Inheritance planning and the R440,000 death-year exclusion
The increase of the death-year CGT exclusion to R440,000 is also significant in estate planning.
Upon death, assets are deemed to be disposed of for CGT purposes. The larger exclusion creates more headroom before CGT becomes payable within the estate.
For families holding bullion as a long-term wealth reserve, this increases flexibility. It does not eliminate CGT. It reduces exposure within a defined threshold.
Used together with disciplined annual gifting under the R150,000 donations exemption, this creates a more structured pathway for intergenerational transfer.
Again – not a loophole. Just legislation functioning as designed.
Selling gold or jewellery in 2026: what to think about
If you are considering selling:
SARS provides valuation-date guidance for Krugerrands held on 1 October 2001, which can be critical where original invoices are missing.
Strong gold prices create opportunity. The tax position determines the net outcome.
Frequently Asked Questions
Did donations tax rates increase?
No. The exemption increased to R150,000. The rates remain 20% and 25%.
Is the R150,000 exemption per person?
Yes. It applies per natural person per tax year.
Are Krugerrands exempt from CGT?
No. SARS explicitly excludes Krugerrands from personal-use treatment.
Does jewellery trigger CGT?
Often not if it is genuinely personal-use, but circumstances matter.
Final thought
Budget 2026 did not introduce aggressive new taxes. It adjusted thresholds.
For families who build wealth in physical gold and silver, that adjustment matters. It allows larger annual transfers without donations tax, and more room to realise gains before CGT applies.
The key is structure, documentation and timing.
If you are considering gifting bullion to children or grandchildren, restructuring holdings, or selling unwanted gold or jewellery while prices remain firm, this is the moment to review your position properly.
If you would like a private consultation to review your bullion position in light of the 2026 changes, contact us directly.
Disclaimer: This article is for general information purposes only and does not constitute tax advice. Always consult a qualified tax professional regarding your personal circumstances.
