# Taxes.



## perky (Mar 8, 2009)

Under the agreement between the two countries, I pay my taxes in the UK.
Could someone advise me please if this is my best option.
My pensions are classed as Crown pensions so i would still have to pay tax in SA if i decided to change.

Many thanks.


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## Jem62 (Jul 25, 2012)

SA is at the moment hugely unstable, in addition its currency is constantly losing value and if you would have to make the judgment whether SA or the UK would descend into chaos within the next five years, you would certainly not judge it to be the UK. Both my wife and I have good Uk pensions, we have decided to leave it in the UK and use internet banking to monthly transfer what we need i.e. only £10 per transaction. For this peace of mind you would have to pay your taxes in the UK.


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## AF_Cpt (Apr 30, 2015)

Perky, 

I am from the UK myself and moved over to south africa to be with my husband.

I work specifically with UK pensions here in south africa, more towards structuring pensions so that they do not trigger unnecessary taxes; like double taxing from the UK and then into SA again. In all honesty this is just a way for people to make "lazy money" off our hard earned cash. 

My advice to you would be to either 1) reinvest it into an offshore account where you pay reduced tax upon your capital OR 2) if its a small pension, it would be beneficial to you to leave it in the UK and withdraw from that. You should not be taxed a huge amount. 

however, Jem62 is absolutely correct about the value of the SA rand. Yes it will help the cost of living here, but i wouldn't advise taking out more than u need per month. and to keep it in the UK if your not interested in investing offshore.

Hope this helps, drop a message if you would like to know more or need anymore advice  

Goodl Luck


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## kaybee1818 (Dec 18, 2014)

AF_Cpt, do you happen to know anyone who does the same work as you, but with US pensions? I also get the sense I'm not doing things financially as efficiently as I could and would really appreciate a chat with a specialist who works with US expats in SA, if you can recommend anyone.


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## AF_Cpt (Apr 30, 2015)

Hi kaybee1818,

I actually do. One of head consultant specialises in advice for all countries. However, where about are you based? I'm currently in cape town, but if your not here, we have offices all over SA to help with advice. 

If you are interested, I can give you a call/email on Monday and you can then decide what you would like to do.  

P.s- not entirely sure how to exchange details privately on this site yet...

Let me know  hope your enjoying the long weekend..


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## perky (Mar 8, 2009)

Many thanks to you all for your advice. My main pension i have paid into my ABSA account here as i have direct debits that go out each month. My other pensions remain in the UK paid into my bank there.
However i am considering having my pension transfered back to the UK and draw out a lump sum each month to cover my direct debits here. I will leave the UK tax man to take care of my taxes.
Again, thanks to you all and my best regards.


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## perky (Mar 8, 2009)

Something that slipped my mind when i posted. When i die my main pension becomes a widows pension so by having it paid into ABSA it will be easier for my wife to get at it as opposed to it being in a UK bank where ir would be quite difficult.


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## AF_Cpt (Apr 30, 2015)

That is a huge benefit Perky. 

Just make sure you find out exactly how much taxes she will pay in the unfortunate event of your death.. Ask them about the taxes she will pay on 
1) estate duty
2) inheritance
3) capital gains tax on being the beneficiary and not the initial policy holder
and 4) Executor and probate taxes. 

Make sure you know that she will inherit everything and not a portion after "death tax" so to speak...

 F


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## perky (Mar 8, 2009)

AF CPT.
Many thanks. So much to consider especially as i am becoming a permanent resident and will not be returning to the UK. It is only as time has gone by that all the things i need to think about more have become apparent.
It is like starting life all over again but with a South African lady as my wife she has kept me from making mistakes. Just things like tax we are somewhat clueless on'


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## AF_Cpt (Apr 30, 2015)

haha not a problem at all.. I know the feeling. Everything is so different here. 

Tax is always an issue and its forever changing. 

If you ever have any questions at all, please feel free to pop me a private message and i will be glad to assist  

Have fun on your new adventure, South Africa is such a beautiful place to live in!!


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## perky (Mar 8, 2009)

One other question if i may.
It can take up to 8days for my pension from he UK to hit my SA account. Is this cause the banks are hanging onto it and is there a quicker way of getting the money over.


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## AF_Cpt (Apr 30, 2015)

hmmm... I'm not entirely sure why it takes 8days.. I know that on receiving money it does take a few days to clear and then covert ( usually banks wait for the best rate in that working week ). But when I do it, it takes about 6 days. Hence the reason for me now moving my assets to Malta as it is a lot quicker and direct. 
I also think that's related to the two banks you are working with... there is a wait drawing from the UK but it shouldn't be so long.


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## ClaireChoudhry (May 12, 2015)

Hello! I have just joined this forum and have been reading your posts about tax.
Me and my husband are moving to SA next year (we are currently in the UK) and I was wondering if you could offer advice on pensions/tax/national insurance etc?


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## AF_Cpt (Apr 30, 2015)

hi Claire,

Sure, would love to help if I can. Can you pop me an email on [email protected] and you can ask all the questions you like.  

There's so much to discuss on this topic alone and i wouldn't want to impose on Perky. Plus your situation could be different so i rather share case specific info rather than go on about things that have no relevance. However, if you pref to rather stick on this thread, then i'm okay with that too and u can ask me anything in ur next message


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## ClaireChoudhry (May 12, 2015)

No I agree, would rather email you! Thank you so much and apologies to Perky for stealing your thread! hehe


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