Section 20A of the Income Tax Act
Assessed Losses: Ring-Fencing Checklist for Sideline Hustles & Businesses
Running a side hustle or small business alongside your main job or profession, and it's making a loss? Find out — in plain English — whether SARS will let you deduct that loss against your other income, or whether it gets "ring-fenced."
Question 1 of 7
Which tax year are we checking?
We ask this FIRST because it genuinely changes the answer. From 1 March 2026, the income level at which these ring-fencing rules can apply was lowered — from the old top 45% tax bracket down to the 39% bracket. That means quite a few more taxpayers now fall into the danger zone than before. Please pick the tax year the sideline loss actually relates to.