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	Investment Strategy	Targeted investment returns¹	Targered consistent dividend	Targeted dividend yield p.a.	Targeted capital growth	Investment term 5 – 6 years	Upfront fees	Annual fees 2%	Westbrooke S12J diversified portfolios
	Investment Strategy	Targeted investment returns¹	Targered consistent dividend	Targeted dividend yield p.a.	Targeted capital growth	Investment term 5 – 6 years	Upfront fees	Annual fees 2%	Income Portfolio	Balanced Portfolio	Growth Portfolio
aria / Alternative Rental Income Assets	Movable asset rentals	15% p.a.		9%²			Nil		40%	34%	20%
read more	Movable asset rentals	15% p.a.		9%²			Nil		40%	34%	20%
stac / Student Accommodation	Student Accommodation	> 17% p.a.		10%²			Nil		20%	33%	40%
read more	Student Accommodation	> 17% p.a.		10%²			Nil		20%	33%	40%
aria plus/ Alternative Rental Income Assets Plus	Movable asset rentals and renewable energy infrastructure	> 20% p.a.		9%²			Nil		40%	33%	40%
read more	Movable asset rentals and renewable energy infrastructure	> 20% p.a.		9%²			Nil		40%	33%	40%

What is the size of the S12J industry?

As at Feb 2019, there has been c. R8.3 billion raised into the Section 12J industry. Westbrooke is SA’s largest Section 12J fund manager, managing over c. R2.3 billion of the capital raised in the industry to date.

What is the annual limit per investor for subscriptions into a Section 12J company?

An annual limit of R2.5m per individual investor or trust and R5m per company was introduced in 2019.

26187-westbrooke-s12j-fund-raise-social-impact

Can I use debt or gearing to make an investment into a S12J company?

Yes, you may utilise a loan / gearing to make an investment into a VCC, subject to complying with Section 12J(3)(a) of the Income Tax Act

How long does the S12J incentive last for?

The VCC regime, introduced in 2009, is subject to a 12-year sunset period that ends on 30 June 2021. The upfront income tax relief will only apply to VCC shares acquired on or before 30 June 2021.The sunset clause is to be reviewed, and may be extended.

What is the term of my investment?

The term of the investment will be 5 years, with a realization period of 18 months (if required).

Can the tax relief be recouped by SARS?

Only if you sell your shares within 5 years of their being issued, will you incur a recoupment and have the tax relief withdrawn.

What do I need to give SARS or my Tax Advisor to claim the deduction?

Westbrooke will provide each investor with a tax certificate which may be requested as evidence of their investment into a Section 12J company.

How can I obtain my tax relief?

Investors can claim the tax relief by either reducing their estimate of taxable income when submitting provisional tax returns or by obtaining a tax refund through the annual income tax assessment.

When can the tax deduction be claimed?

An investment into an approved Section 12J company is 100% tax deductible in the tax year you invest.

What is a Section 12J company?

A Venture Capital Company as described in Section 12J of the Income Tax Act, which came into operation with effect from 1 July 2009. Section 12J is a tax-based incentive designed to encourage individual and corporate investors to invest in a range of small and medium size companies by investing through Section 12J.

The aim of the incentive is to create a pooling mechanism of passive investors who get an upfront tax deduction for stimulating the South African economy.

Does a section 12J investment carry risk?

As with any private equity investment, an investment in a Section 12J company carries risk. It?s important, therefore, to assess the investment strategy of the Section 12J company to ensure you understand the associated investment risk as well as the expertise and track record of the asset manager.