Hi. yes I did not realise how this question/answer process works. I have a more full description of my question for you now:
I had an investment & a retirement annuity in South africa for a number of years. I recently finalised my emigration to the UK so I decided to bring that money over.
In October 2014 I brought over the investment money (+/-£13500). I deposited this into my stocks & shares ISA.
I have just managed to cash out my South African retirement annuity on the basis of a permanent emigration, and I wish to bring this money over.
I would like to know how much tax I will have to pay on this money, and if there is any tax benefit in waiting until after the new tax year to bring the money over, because in that case I will wait until after April 5th.
Thank you for your reply.
I have been living in the UK for almost 7 years, so I believe this means I have been a UK resident in the UK for 7 years?
The investment was a return of capital as it was taxed annually, but the annuity was taxed when cashed.
The Annuity was worth R203 811.44, I was taxed R 32 186.05 & received R171 625.39.
This money is still in South Africa.
You may find it is a cheaper option to declare income and gains on arising basis (what you receive/made in the tax year) and pay tax on it in the tax year than to pay tax on remittance basis.
You are advised to consider the above before exercising your option.
I hope this is helpful and answers your question.
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Unfortunately, I am not experienced in these matters at all and I dont really understand all the terminology.
I was born in South Africa and my father considered this his permanent home when I was born. So I assume that means my domicile was South Africa, up until last year when I did formal emigration, at which point I assume that my domicile changed to the UK??
I never declared income or paid tax in the UK on my south african investment, but i did pay tax in South Africa.
The amount is over £2000 so I gather i will have to pay tax.
I was hoping for a simple answer on this it looks like it's more complex than that.
Basically, i am worried that I wont be able to afford the tax bill, which i why Im worried about bringing the money over.
Can you advise roughly how much I might be laible for? And whether it would make a difference If I waited until the new tax year to bring the money over?
Ok I will follow your advice & bring the money over now, and declare it.
I understand that I only need to register for self assessment later this year for the current tax year, but I will do that.
Thank you for your assistance. I will click on the "smiley face", but let me know if there is anything else I need to do to confirm satisfaction.