In brief (TL;DR): The 2026 Budget doubled the SDA to R2 million and the under-18 travel allowance to R400,000. For parents funding UK studies, this eliminates the SARS AIT bottleneck that used to interrupt tuition payments mid-semester. Here is exactly what changed and what it means in practice.
On 25 February 2026, the South African National Budget brought two changes that directly affect parents funding their children's UK education. Both were effective immediately for the 2026 calendar year.
Understanding exactly what changed — and what did not change — matters, because the old limits caused real disruption to student funding timelines.
What changed
The adult SDA doubled. The Single Discretionary Allowance increased from R1 million to R2 million per adult per calendar year. A married couple now has a combined R4 million annual capacity. No SARS pre-approval is needed — transfers within the SDA go through your authorised dealer with standard documentation only. For a full breakdown of what the SDA doubling means in practice, see our dedicated explainer.
The under-18 travel allowance doubled. The travel allowance for minors was increased from R200,000 to R400,000 per calendar year under the same March 2026 SARB Circular. This is relevant for parents with children under 18 enrolled in UK boarding schools or pre-university programmes.
The Foreign Investment Allowance (FIA) did not change. It remains at R10 million per adult per calendar year, on top of the SDA. The FIA still requires a SARS Approval for International Transfer (AIT) — see our guide on AIT timelines for what to expect.
Why the old R1m limit caused problems
Under the previous R1 million SDA, a single year of premium UK tuition (£20,000 to £35,000) plus London accommodation and living costs could easily consume the entire allowance. The moment a parent breached R1 million, every subsequent transfer required a SARS AIT application — a process that typically takes two to four weeks.
In practice, this meant parents would hit their SDA ceiling partway through the academic year and suddenly face a compliance bottleneck. Tuition payment deadlines do not wait for SARS processing times. Students had holds placed on their accounts, accommodation deposits were missed, and enrolment was put at risk.
A word from Peter: "We saw this pattern every year under the old limits. A parent would transfer R1 million in January to cover tuition, then in April their child would need accommodation funds for the next academic year. The parent had no SDA left and the AIT would take weeks. The R2m upgrade genuinely fixes this for most families — the majority can now cover a full year without touching the FIA at all."
What this means in practice
For a single parent funding one child at a UK university, the R2 million SDA now comfortably covers annual tuition (£20,000–£30,000 at current rates), accommodation deposits, and a monthly living allowance — all within a single calendar year, with no SARS application needed.
For a couple with two children studying in the UK, the combined R4 million SDA covers both sets of fees in most scenarios. Only families with exceptionally high total costs — multiple children at premium London institutions, for example — will need to use the FIA.
What did not change
The SDA still resets on 1 January each year. Unused allowance does not carry over. If you transferred R500,000 in November, you cannot add the remaining R1.5 million to next year's R2 million.
The SDA still requires transfers to go through an authorised dealer — you cannot simply wire funds from your SA bank account independently. WBForex processes all SDA transfers through Capitec as our authorised dealer partner.
Your next move
If you are funding UK studies for the 2026/27 academic year, check how much you have already used of your 2026 SDA. If you have capacity remaining, transfers can typically be processed same-day. If you have already used your full R2 million (or are close to it), we can start the FIA/AIT process now so there is no gap when your child's next payment is due.
Contact WBForex to confirm your remaining SDA capacity and plan the next academic year's transfer schedule.
